Monthly Business Conditions
Business Conditions Report: February 2011
Monday, February 14, 2011
For more information, please contact Christie Carmigiano
CLEVELAND, OH—February 14, 2011—According to the February 2011 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies anticipate continued improvement in business conditions during the next three months. Conducted monthly, the report is an economic indicator for manufacturing, sampling 120 metalforming companies in the United States and Canada.
The February report shows that 51% of participants forecast an improvement in economic activity during the next three months (up from 47% in January), 44% predict that activity will remain unchanged (compared to 43% last month) and only five percent report that activity will decline (down from 10% in January).
Metalforming companies also expect improvement in incoming orders for the next three months. Sixty-one percent of participants predict an increase in orders (up from 52% in January), 31% anticipate no change (compared to 36% last month) and eight percent predict a decrease in orders (down from 12% in January).
Expectations for growth in average daily shipping levels spiked in February. Forty-eight percent of participants report that shipping levels are above levels of three months ago (compared to 26% in January), 37% report that shipping levels are the same as three months ago (down from 50% last month), and 15% report a decrease in shipping levels (compared to 24% in January).
The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 13% in February from 12% in January. The number is significantly lower than one year ago, when 47% reported employees on short time or layoff in February 2010.
“Metalforming companies continue to benefit from growth in the manufacturing sector, the strongest component of the slow but steady recovery that began some 18 months ago,” says William E. Gaskin, PMA president. “Survey results demonstrating expectations for the general economy and for growth in orders are the most positive we have seen in several years. A few markets, such as construction, continue to underperform, but the outlook for the metalforming industry continues to improve. One cautionary note for the months ahead is substantial concern over higher costs for flat-rolled metals, which could impact supply-chain relationships and profitability for the metalforming industry.”
The monthly Business Conditions Report has been conducted by PMA since 1979. Full report results are available at http://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 1,000 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 tradeshows, and MetalForming magazine.