Metalforming Companies Expect Business Spike In New Year
Dec 22, 2010
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Metalforming companies expect a significant spike in business conditions during the next three months, according to the December 2010 Precision Metalforming Association (PMA) Business Conditions Report. The report shows that:
• 40% of participants forecast an improvement in economic activity in the next three months (up from 20% in November 2010)
• 46% predict that activity will remain unchanged (compared to 57% in November)
• 14% report that activity will decline (down from 23% in November)
The monthly report is an economic indicator for manufacturing, sampling 136 metalforming companies in the United States and Canada.
Metalforming companies also expect improvement in new orders for the next three months:
• 44% predict an increase in orders (up from 25% in November)
• 40% anticipate no change (compared to 50% in November)
• 16% predict a decrease in orders (down from 25% in November)
The report also shows average daily shipping levels dipped in December:
• 35% report shipping levels are below levels of three months ago (up from 28% in November)
• 38% report shipping levels are the same as three months ago (compared to 45% in November)
• 27% report an increase in shipping levels (the same as in November)
Metalforming companies with a portion of their workforce on short time or layoff increased to 16% in December from 15% in November. In November 2009, 56% of companies reported workers on short time or layoff.
”Metalforming company executives clearly are looking forward to an uptick in business levels after the holiday season,” said William E. Gaskin, PMA president. “This follows a fairly strong performance in 2010, where our average member company experienced 38% higher shipments and 44% higher orders during the first 10 months of the year compared to 2009. The end-of-year fall off appears to be a seasonal dip and not a harbinger of a double-dip recession."
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