October's Business Conditions Report reflects the current volatility in manufacturing and the North American economy, says PMA president David Klotz. PHOTO by Pexels.
Metalforming companies forecast a dip in business conditions during the next three months, according to the October 2022 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 115 metalforming companies in the United States and Canada.
PMA’s October report shows that 35% of metalforming companies anticipate a decrease in general economic activity in the next three months (compared to 29% in September), 50% expect no change in activity (decreasing from to 60% in September) and 15% predict an increase in activity (compared to 11% last month).
The report also shows a drop in expectations for incoming orders, with 18% of survey respondents forecasting an increase in incoming orders during the next three months (compared to 19% in September), 43% predicting no change (compared to 54% last month) and 39% anticipating a decrease in orders (compared to 27% in September).
Current average daily shipping levels declined in October after rebounding in September. Only 27% percent of respondents reported an increase in shipping levels in October (compared to 32% in September), 50% reported no change (compared to 51% last month) and 23% reported a decrease (increasing from 17% in September).
“The October report reflects the current volatility in manufacturing and the wider economy,” said PMA President David Klotz. “During my visits to PMA members across the country over the past couple of months, while some companies certainly reported challenges, other companies have told me that their businesses continue going strong. PMA continues to assist its members by providing the latest economic data available and regular updates on legislative and regulatory activities from PMA’s One Voice advocacy team in Washington, D.C.”
Lead times dropped in October, with 17% of metalforming companies reporting an increase in lead times (compared to 20% in September). Four percent of companies had a portion of their workforce on short time or layoff in October (compared to 2% in September), while 63% of companies are currently expanding their workforce (decreasing from 67% last month).
Full report results are available at https://www.pma.org/public/business_reports/pdf/BCREP.pdf.
PMA is the full-service trade association representing the $137 billion metalforming industry of North America—the industry that creates precision metal products using stamping, fabricating, spinning, slide forming and roll forming technologies, and other value-added processes. Its more than 900 member companies also include suppliers of equipment, materials and services to the industry.