CLEVELAND, OH—May 30, 2024—Metalforming manufacturers’ predictions for economic activity over the next three months fell heading into the summer months, according to the May 2024 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, PMA’s report provides an economic indicator for the next three months of manufacturing, sampling 100 metalforming companies in the United States and Canada.
PMA’s May report shows that only 19% of the manufacturers responding to the survey forecast an increase in economic activity in the next three months (compared to 21% in April), while 26% anticipate a decrease in activity (increasing from 12% in April). Another 55% expect no change in activity (compared to 67% last month).
Metalformers predict little change in incoming orders, with 49% of survey respondents expecting no change in orders during the next three months (compared to 54% in April), 32% forecasting an increase in orders (compared to 33% in April) and 19% anticipating a decrease in orders (compared to 13% last month).
Current average daily shipping levels remained virtually unchanged in May, with 49% reporting no change in shipping levels (compared to 48% in April), 21% reporting an increase in levels (the same percentage reported last month) and 30% reporting a decrease in levels (compared to 31% last month).
Lead times also held steady with 7% of metalforming companies reporting an increase in lead times in May (compared to 6% in April). Twelve percent of companies had a portion of their workforce on short time or layoff in May (compared to 8% in April), while 35% of companies are currently expanding their workforce (increasing from 26% in April).
“For most of this year, metalformers’ expectations for business conditions were fairly steady, but this month’s survey shows that members are increasingly concerned with a slowdown in the economy, trade conflicts that could further increase the costs of important inputs including steel and aluminum, and a lack of progress on the tax package in Congress,” said David Klotz, PMA president. “The Senate should take up and pass The Tax Relief for American Families and Workers Act to restore immediate expensing for R&D costs and bonus depreciation, to help U.S. manufacturing’s competitiveness and innovation.”
Full report results are available at https://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 more than 900 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 tradeshows and MetalForming magazine.