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Metalformers increasingly optimistic for 2010 |
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According to the January, 2010 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies are increasingly optimistic as the new year kicks off. Conducted monthly, the report is an economic indicator for
manufacturing, sampling 141 metalforming companies in the United States
and Canada.
The January report shows that 45% of participants expect an improvement
in economic activity during the next three months (a jump from 28% in
December), 45% predict that activity will remain unchanged (compared to
50% last month) and only 10% report that activity will decline (down
from 22% in December).
A majority of metalforming companies also anticipate an uptick in
incoming orders during the next three months. Increased orders are
expected by 52% (up from 35% in December), 38% expect no change
(compared to 40% the previous month) and only 10% predict a decrease in
orders (down from 25% in December).
Expectations for current average daily shipping levels remained fairly
steady in January with more than half of responding companies
indicating that expectations for shipments remained the same.
Thirty-three percent of participants report that shipping levels are
above levels of three months ago (down from 37% in December), 53%
report no change (compared to 36% in December) and 14% reported that
shipping levels are below levels of three months ago (down from 27% in
December).
The number of metalforming companies with a portion of their workforce
on short time or layoff dipped to 52% in January, down from 56% in
December. This is the lowest level since November, 2008 when 42% of
companies had workers on short time or layoff.
“PMA members continue to report that business conditions are improving
and the January report reinforces their optimism for increased orders
and shipments in the months ahead,” said William E. Gaskin, PMA
president. “Beginning in mid-summer, the order books of PMA member
companies began to grow with orders and shipments rising above their
respective 12-month rolling averages in September through November (the
most recent month for which PMA has data). January’s numbers for
orders, with 52% expecting increases and only 10% anticipating decreases, is the most positive report in several years.
Most metalforming companies have reduced their costs dramatically and
are beginning to return to profitability,” he concluded. For full report results visit www.pma.org/about/stats/BCreport
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