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Thursday, July 18, 2013

PMA Releases July Business Conditions Report

We released our monthly business report today showing that metalforming companies expect a slight dip in business conditions over the next three months.   PMA has issued the monthly Business Conditions Report since 1979 and for the past 34 years it has been used to take the pulse of manufacturing in the US by both policymakers and the news media.

The full PMA Business Conditions Report results are available here.  

Our press release providing a summary of the report is below:

Business Conditions Report: July 2013

Thursday, July 18, 2013

For more information, please contact Christie Carmigiano

According to the July 2013 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect a slight dip in business conditions during the next three months.  Conducted monthly, the report is an economic indicator for manufacturing, sampling 124 metalforming companies in the United States and Canada.

The July report shows that only 22% of participants believe that economic activity will improve during the next three months (down from 28% in June), 63% predict that activity will remain unchanged (compared to 59% in June), and 15% forecast that activity will decline (compared to 13% in June).
Metalforming companies also expect a slight decline in incoming orders during the next three months, with 28% anticipating an increase in orders (down from 31% in June), 53% predicting no change (compared to 52% last month) and 19% expecting a decrease in orders (up from 17% in June).

Average daily shipping levels decreased in July.  Twenty-six percent of participants report that shipping levels are above levels of three months ago (down from 32% in June), 44% report that shipping levels are the same as three months ago (the same percentage reported in June), and 30% report a decrease in shipping levels (up from 24% in June).

The percentage of metalforming companies with a portion of their workforce on short time or layoff dropped to 9% in July, down from 12% in June.  The July figure is the lowest it has been since April 2012, the last time only 9% of metalformers reported workers on short time or layoff. 

“Softness in orders and shipments reflected in this month’s survey are confirmed by PMA’s control group of companies who report their orders and shipments on a monthly basis,” said William E. Gaskin, PMA president.  “Year-to-date shipments for the first half of 2013 are down 4% compared to 2012.  When comparing this year to last, there was strong momentum built up for Q-1 shipments in 2012, which then leveled out during Q-2, and generally declined through the second half of the year.  In 2013, we saw a sharp uptick in January, then very modest upward trending in shipments during the subsequent months.  The automotive market, which comprises just under half of the shipments of PMA member companies, has provided the most strength year-to-date.”

PMA is the full-service trade association representing the $113-billion metalforming industry of North America—the industry that creates precision metal products using stamping, fabricating, spinning, slide forming and roll forming technologies, and other value-added processes.  Its nearly 900 member companies also include suppliers of equipment, materials and services to the industry.  PMA leads innovative member companies toward superior competitiveness and profitability through advocacy, networking, statistics, the PMA Educational Foundation, FABTECH and METALFORM Mexico tradeshows, and MetalForming and Fabricating Product News magazines.

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