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.

04/20/2012


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.
Water use efficiency: Diminishing water quality, escalating costs; Lowering building energy use; Power for fire pumps
Building envelope and integration; Manufacturing industrial Q&A; NFPA 99; Testing fire systems
Labs and research facilities: Q&A with the experts; Water heating systems; Smart building integration; 40 Under 40 winners
Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
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.