November 2013 Business Conditions Report
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Business Conditions Report: November 2013
Wednesday, November 13, 2013
CLEVELAND, OH—November 13, 2013—According to the November 2013 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect an improvement 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 November report shows that 27% of participants forecast that economic activity will improve during the next three months (up from 22% in October), 58% predict that activity will remain unchanged (compared to 56% last month) and only 15% believe that economic activity will decline (down from 22% in October).
Metalforming companies also expect a slight improvement in incoming orders during the next three months, with only 22% expecting a decrease in orders (down from 28% in October), 45% anticipating no change (compared to 38% in October) and 33% predicting an increase in orders (compared to 34% in October).
Average daily shipping levels increased in November. Thirty-seven percent of participants report that shipping levels are above levels of three months ago (up from 31% in October), 41% report that shipping levels are the same as three months ago (compared to 42% last month), and 22% report a decrease in shipping levels (down from 27% in October).
The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 13% in November, up from 11% in October. The November figure is lower than it was at this time last year, when 17% of metalformers reported workers on short time or layoff.
“Metalforming companies are generally anticipating that orders and shipments for year-end 2013 and early 2014 will continue to reflect flat to modestly higher levels of activity, compared to today’s levels,” said William E. Gaskin, PMA president. “PMA’s Monthly Orders and Shipments Survey, which measures actual results vs. expected activity also reflects this trend, with orders and shipments for all of 2013 trending slightly above the 12-month rolling average for the past year, with the exception of February and July, when current data dipped below the trend line for a single month before returning to positive territory. The automotive market continues to be the most consistent performer in 2013.”
The monthly Business Conditions Report has been conducted by PMA since 1979. Full report results are available at http://www.pma.org/public/business_reports/pdf/BCREP.pdf. 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.