Economic Trends
Metalformers’ Optimism Increases for First Time in Four Months
The survey showed rising confidence among metalformers, with more expecting economic growth and higher incoming orders despite ongoing trade challenges.
The outlook for near-term economic activity from manufacturers of metalformed products increased in June, according to a monthly report from the Precision Metalforming Association (PMA).
The latest PMA’s Business Conditions Report, issued June 24, found that 24% of surveyed manufacturers expect an increase in economic activity in the next three months, increasing from 16% in both May and April. Meanwhile, 48% predict no change (46% in May) and 28% expect a decrease (down from 38% in May and April).
The report polled 93 metalforming companies in the U.S. and Canada.
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Metalformers also forecast a slight increase in incoming orders:
- 24% of respondents expect an increase in orders during the next three months (22% in May)
- 47% predict no changes in orders (44% in May)
- 29% expect a decrease in orders (28% in May)
In June, current average daily shipping levels remained steady, with 42% of respondents reporting no change in shipping orders (unchanged from May), 29% reporting an increase in shipping levels (30% in May) and 29% reporting a decrease in levels (28% in May).
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The survey also found that 13% of respondents had workers on short time or layoff in June (9% in May); 35% are currently expanding their workforce (32% in May); and 13% reported an increase in lead times in June (12% in May).
“PMA’s latest Business Conditions Report shows the first uptick in member optimism in three months,” PMA President Davd Klotz in the news release. “That’s welcome news, but manufacturers are still facing serious challenges—particularly ongoing trade uncertainty, including the recent doubling of steel and aluminum tariffs to 50 percent. U.S. metal-using manufacturers are already paying significantly more for steel than their global competitors. If that cost gap continues to widen, customers will increasingly turn to imported finished products—undermining our members’ competitiveness and putting American jobs at risk.”
