CLEVELAND, OH—July 27, 2018—Metalforming companies anticipate a downward trend in business conditions during the next three months, according to the July 2018 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report is an economic indicator for manufacturing, sampling 108 metalforming companies in the United States and Canada.

The July report shows that only 24% of participants forecast an improvement in economic activity during the next three months (down from 31% in June), 53% expect no change (compared to 46% last month), and 23% anticipate a decline in activity (the same percentage reported in June).

“The data confirms that the optimism expressed by our members at the beginning of the year because of tax reform and other positive economic indicators have been reversed because of the Section 232 steel tariffs,” said PMA President Roy Hardy. “Only 24% of participants in this month’s survey forecast improved economic activity in the next three months, compared to 97% in PMA’s February Business Conditions Report. Significant steel price hikes and problems obtaining the steel needed are negatively impacting small and medium-sized manufacturers throughout the country and causing great concern in the metalforming industry. As I have stated, tariffs are taxes, and for many of our members these tariffs have already wiped out any gains from tax cuts and regulatory reform.”

Metalforming companies expect a downward trend in incoming orders during the next three months, with 26% predicting an increase in orders (down from 38% in June), 54% anticipating no change in orders (compared to 42% in June), and 20% forecasting a decrease in orders (the same percentage reported last month).

Current average daily shipping levels also dipped in July. Forty-one percent of participants report that shipping levels are above the levels of three months ago (down from 54% in June), 41% report that levels are the same (up from 32% the previous month), and 18% report a decrease in shipping levels (compared to 14% in June).

The percentage of metalforming companies with a portion of their workforce on short time or layoff rose to 6% in July, up from 4% in June. At this time last year, 5% of companies reported workers on short time or layoff. 

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 $137-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 800 member companies also include suppliers of equipment, materials and services to the industry. PMA leads companies toward superior competitiveness and profitability through advocacy, networking, statistics, the PMA Educational Foundation, FABTECH and METALFORM Mexico tradeshows, and MetalForming and 3D Metal Printing magazines.