Metalforming business seen slowing, PMA report says

Metalforming companies anticipate a dip in business during the next three months, according to the April 2012 Precision Metalforming Association Business Conditions Report.


Metalforming companies anticipate a dip in business during the next three months, according to the April 2012 Precision Metalforming Association Business Conditions Report, The monthly report samples 129 metalforming companies in the United States and Canada.

Metalforming, Courtesy: Gilchrist Metal FabricatingThe April report shows that 37% of participants expect economic activity to improve during the next three months (down from 46% in March), 51% predict that activity will remain unchanged (compared to 49% last month) and 12% report that activity will decline (up from 5% in March).

“The strength of PMA member expectations for the general economy and specifically for shipping levels and incoming orders for the next three months softened somewhat in the April PMA Business Conditions Report,” said William E. Gaskin, PMA president. “However, expectations thus far in 2012 are significantly higher than expectations in all but the first quarter of 2011.

“Uncertainty over the strength of the economic recovery, the unsettled political situation brought on by election-year politics, and the increasing difficulty being experienced by many companies in hiring skilled workers, all are conspiring to soften what continues to be a very strong recovery in the metalforming sector,” Gaskin added. “This recovery is consistent with the overall rebound in manufacturing that has been widely reported in the automotive, agriculture, off-highway, medical equipment and other sectors.”

Metalforming companies also anticipate a downward trend in incoming orders during the next three months, with 43% forecasting an increase in orders (compared to 47% in March), 41% expecting no change (down from 47% in March) and 16% predicting a decrease in orders (up from only 6% last month).

Average daily shipping levels declined in April. Only 46% of participants report that shipping levels are above levels of three months ago (down from 53% in March), 41% report that shipping levels are the same as three months ago (compared to 37% last month), and 13% report a decrease in shipping levels (up from 10% in March).

The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 9% in April, from 7% in March. However, this number is lower than April 2011, when managers reported 11% of their workforce on short time or layoff

No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Salary survey: How much are you worth?; Dedicated outdoor air systems; Energy models and lighting
Fire, life safety in schools; Fire protection codes; Detection, suppression, and notification; 2015 Commissioning Giants; Emergency and standby power in hospitals
HVAC and building envelope: Efficient, effective systems; Designing fire sprinkler systems; Wireless controls in buildings; 2015 Product of the Year winners
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Implementing microgrids: Controlling campus power generation; Understanding cogeneration systems; Evaluating UPS system efficiency; Driving data center PUE, efficiency
Optimizing genset sizing; How the Internet of Things affects the data center; Increasing transformer efficiency; Standby vs. emergency power in mission critical facilities
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.