CLEVELAND, OH—August 27, 2019—According to the August 2019 Precision Metalforming Association (PMA) Business Conditions Report, uncertainty continues to plague the metalforming sector. While some companies project an improvement in near-term business conditions, others are bracing for a decline. Prepared monthly, the report provides an economic indicator for manufacturing, sampling 105 metalforming companies in the United States and Canada.

The August report shows that 27% of participants anticipate an improvement in economic activity during the next three months (an increase from just 16% in July), 46% expect no change in activity (a decrease from 60% in July), and 27% predict a decline in activity (as compared to 24% last month).

“This month’s report indicates that metalformers continue to be apprehensive about near-term business conditions,” said PMA President David Klotz. “This likely stems from ongoing trade tensions, upcoming political elections and warnings of an economic slowdown.”

Metalforming companies’ predictions for incoming orders remain similar to recent months, with 43% forecasting no change in orders (compared to 49% in July), 28% expecting an increase in orders (an increase from 27% in July), and 29% anticipating a decrease in orders (increasing from 24% last month).

The August report also showed a decline in current average daily shipping levels, with 37% of participants reporting a decrease in levels compared to three months ago (increasing from 26% in July), 38% responding that levels are the same (decreasing from 51% in July), and 25% reporting that shipping levels are higher than three months ago (an uptick from 23% in July). 

The percentage of metalforming companies with a portion of their workforce on short time or layoff increased to 10% in August, from 9% in July. At this time last year, 4% of the participating 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 https://www.pma.org/public/business_reports/images/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.