Metalforming companies anticipate little change in business conditions during the next three months, according to the July 2010 Precision Metalforming Association (PMA) Business Conditions Report.
“Many companies continue to be very cautious about the future due to the constant barrage of media coverage about the possibility of a double-dip recession,” said William E. Gaskin, PMA president. “From numbers reported by PMA members, it certainly appears that the recovery will continue at a slow, but steady pace.”
The monthly report is an economic indicator for manufacturing, sampling 119 metalforming companies in the United States and Canada.
The July report shows that:
• 23% of participants expect an improvement in economic activity during the next three months (down from 24% in June)
• 61% predict that activity will remain unchanged (June: 59%)
• 16% report that activity will decline (June: 17%)
Metalforming companies overall expect almost no change in incoming orders for the next three months:
• 29% of participants forecast an increase in orders (June: 30%)
• 51% expect no change (June: 47%)
• 20% predict a decrease in orders (June: 23%)
Average daily shipping levels dipped in July:
• 34% of participants report that average daily shipping levels are above levels of three months ago (down from 48% in June)
• 54% report no change (June: 43%)
• 12% report that shipping levels are below levels of three months ago (June: 9%)
27% of metalforming companies report that, in July, a portion of their workforce was on short time or layoff. This percentage remains unchanged from June.
“Metalforming companies, particularly suppliers to automotive, medical equipment, energy and electronics markets, continue to report very positive business conditions,” said Gaskin. “It appears that there will be some softening in the 3rd quarter for many automotive suppliers due to reduced June sales.”
to Daily News