PMA Business report sees a summer slump coming

Association blames global instability, lack of U.S. government action

06/15/2012


According to the June 2012 Precision Metalforming Association Business Conditions Report, metalforming companies expect a significant decline in business conditions during the next three months.  Conducted monthly, the report is an economic indicator for manufacturing, sampling 114 metalforming companies in the United States and Canada.

 

The June report shows that only 11% of participants anticipate economic activity will improve during the next three months (down from 24% in May), 57% predict that activity will remain unchanged (compared to 60% last month) and 32% report that activity will decline (up substantially from 16% in May).

 

PMA officials said that while business generally has been better than in 2011, concerns over domestic and global issues are creating concern. “PMA member companies have generally experienced growth in 2012 vs. 2011, with average orders for the period of January to April up 9% year-over-year and shipments up 11% over the same period,” said William E. Gaskin, PMA president. “However, the outlook expressed in the June 2012 Business Conditions Survey reflects the soft business conditions created by economic uncertainty related to the European monetary crisis, confusion in the United States about health care and tax policy (including the massive tax increases threatened at year-end), and the lack of leadership by the President and Congress in addressing our own looming debt crisis.

 

 “While politicians increasingly speak about the importance of a strong manufacturing economy, little concrete action has been taken to adopt pro-manufacturing policies or to reduce the cost of regulations,” he added. “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.  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.”

 

Metalforming companies also forecast a downward trend in incoming orders during the next three months, with only 15% anticipating an increase in orders (compared to 34% in May), 52% expecting no change (up from 46% in May) and 33% predicting a decrease in orders (up from 20%  last month).

 

Average daily shipping levels declined in June.  Thirty-one% of participants report that shipping levels are above levels of three months ago (down from 37% in May), 39% report that shipping levels are the same as three months ago (compared to 44% last month), and 30% report a decrease in shipping levels (up from 19% in May).

 

The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 14% in June, up from 10% in May.  The June figure is the same as it was one year ago.

 

The monthly Business Conditions Report has been conducted by PMA since 1979.



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.