Metal Formers Predict Modest Increase in Economic ActivityAugust 22, 2023
Metal forming companies predict a slight uptick in business conditions in the coming months, despite a drop in current average daily shipping levels. So finds the August 2023 Precision Metalforming Association (PMA) Business Conditions Report, which reveals that 18 percent of company managers surveyed expect an increase in general economic activity during the next three months, up notably from 11 percent July). Only 29 percent forecast a decrease in activity, down from 34 percent in July.
Also anticipated: modest improvement in incoming orders, with 26 percent of survey respondents expecting an increase in orders during the next three months, up from 18 percent in July, and 28 percent forecasting a decrease in orders, compared to 36 percent in July.
“The modest increase in business activity predicted by metal forming manufacturers in the August report is a positive signal that our members remain resilient despite inflation and other issues that impact the supply chain,” says PMA president David Klotz. “In my visits to our members’ facilities, I have heard a growing concern about a possible labor strike by the United Auto Workers. A slowdown caused by a strike would negatively impact our members, who are major suppliers to the auto sector. In addition, we are watching reports that U.S. Steel is looking for a buyer. Such a sale could affect steel supplies and availability, as it already is a tight market due to limited domestic suppliers of flat-rolled steel and a range of trade restrictions on imports.”
See also: Precision Metalforming Association