Metalformers Look for Decline in Summer of 2012
Jul 9, 2012
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Metalforming companies expect a decline in business conditions during the next three months, according to the June 2012 Precision Metalforming Association (PMA) Business Conditions Report. The monthly PMA report is an economic indicator for manufacturing, sampling 114 metalforming companies in the United States and Canada.
The June report shows that:
* 11% of participants expect economic activity will improve in the next three months (down from 24% in the May report)
* 57% expect activity will remain unchanged (60% in May)
* 32% expects activity will decline (from 16% in May)
Metalforming companies also see a downward trend in incoming orders in the next three months:
* 15% expect an increase in orders (34% in the May report)
* 52% expect no change (46% in May)
* 33% expect a decrease (20% in May)
The PMA report said average daily shipping levels declined in June:
* 31% of participants report shipping levels are above levels of three months ago (down from 37% in the May report)
* 39% report shipping levels are the same (44% in May)
* 30% report shipping levels have decreased (19% in May)
More metalforming companies had a portion of their workforce on short time or layoff in June: 14%, up from 10% in May. This puts June 2012 at the same level as in June 2011.
PMA President William E. Gaskin noted that PMA member companies generally grew in 2012 so far compared to 2011. Average orders during January-April 2012 were up 9% over the first four months of 2011. Shipments were up 11% for the same time period.
"Manufacturing continues to lead the modest growth in the U.S. economy, including consistent growth in jobs; however the recovery is definitely in jeopardy as reflected by PMA's June report," Gaskin stated. "It is time for the President and Congress to set aside political interests and take concrete actions to support job growth, economic recovery, and fiscal prudence."
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