CLEVELAND, OH—December 18, 2019—Metalforming companies reported a decline in current average daily shipping levels but signaled some optimism that conditions would improve in 2020, according to the December 2019 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for manufacturing, sampling 107 metalforming companies in the United States and Canada.

Metalformers experienced a drop in current average daily shipping levels in December, with only 11% of participants reporting higher levels than three months ago (decreasing from 24% in November); 40% indicating no change in shipping levels (compared to 43% in November); and 49% reporting lower shipping levels than three months ago (increasing from 33% in November). 

However, 20% of participants predict an improvement in economic activity during the next three months (an increase from 15% in November); 54% forecast no change in activity (compared to 51% in November); and 26% anticipate a decline in activity (a decrease from 34% last month).

“Metalforming companies are ending a challenging year with some optimism that 2020 will bring improved conditions,” said PMA President David Klotz. “The U.S. manufacturing sector contracted this year, with the Institute of Supply Management Manufacturing Index registering its lowest level since 2009. Recent progress on a Phase 1 trade agreement with China and the United States-Mexico-Canada Agreement are positive signs that 2020 will bring more stability, but the trade restrictions that cause the most negative impact, the Section 232 steel and aluminum tariffs, remain unchanged.”

The December report also showed that metalforming companies anticipate an improvement in incoming orders, with 26% forecasting an increase in orders during the next three months (compared to 21% in November); 53% expecting no change in orders (compared to 45% in November); and 21% predicting a decrease in orders (a decline from 34% last month).

The percentage of metalforming companies with a portion of their workforce on short time or layoff in December was 15%, the same percentage as reported in November. At this time last year, only 9% 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.