Metalforming companies expect a slight downturn in business conditions in the next three months, according to the June 2014 Precision Metalforming Association (PMA) Business Conditions Report. The monthly report samples 124 metalforming companies in the United States and Canada.
In the June 2014 report:
• 31% of participants expect economic activity to improve in the next three months, down from 33% in May
• 54% expect activity to be unchanged, from 60% last month
• 15% expect economic activity to decline, from 7% in May
Metalformers forecast a dip in incoming orders in the next three months:
• 37% expect an increase in orders, from 43% in the May report
• 45% expect no change, from 43% in May
• 18% expect a decrease in orders, from 14% in May
Current average daily shipping levels declined in June:
• 35% report that shipping levels are above levels of three months ago, down from 45% in the May report
• 46% report levels are the same as three months ago, from 40% in May
• 19% report a decrease in shipping levels, from 15% in May
In June, 8% of metalforming companies had some of their workforce on short time or layoff, from 7% in May 2014 and from 12% in June 2013.
"The modest shift downward in the expectations of PMA members for the June through August period is consistent with a fairly typical manufacturing cycle in the metalforming industry, with a summer slowdown during July. This pattern likely is the primary cause of the downward shift reflected in PMA’s June Business Conditions Report,” said William E. Gaskin, PMA president. “Recent feedback from members during executive roundtables in the Twin Cities and Indiana, and reports of business conditions during PMA’s recent Board of Directors meeting, indicates that orders and shipments remain stable with modest growth anticipated during the balance of the year, unless global security issues escalate to the extent that they lead to a disruptive situation for the overall U.S. or global economy.”
to Daily News