Industry Headlines

PMA Reports Summer Slowdown

June 15, 2010
/ Print / Reprints /
ShareMore
/ Text Size+

CLEVELAND, OH-According to the June 2010 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect business conditions to dip during the next three months, an indication of the summer slowdown typically experienced by the industry. Conducted monthly, the report is an economic indicator for manufacturing, sampling 131 metalforming companies in the United States and Canada.

The June report shows that 24% of participants expect an improvement in economic activity during the next three months (down from 42% in May), 59% predict that activity will remain unchanged (up from 48% last month) and 17% report that activity will decline (up from 10% in May).

Metalforming companies also anticipate a modest softening for incoming orders, although 30% of participants forecast an increase in orders for the next three months (down substantially from 46% in May). Forty-seven percent of companies expect no change (compared to 39% the previous month) and 23% predict a decrease in orders (up from 15% in May).

However, average daily shipping levels remained fairly steady in June. Forty-eight percent of participants reported that average daily shipping levels are above levels of three months ago (down from 54% in May), 43% report no change (compared to 34% in May) and 9% report that shipping levels are below levels of three months ago (down from 12% in May).

The percentage of metalforming companies with a portion of their workforce on short time or layoff dropped again in June, with only 27% of companies reporting workers on short time or layoff, compared to 30% in May. This marks the lowest level since September 2008.

“The metalforming industry appears to be reacting to seasonal business trends and continuing concern about the strength of the economic recovery due to slow job growth, a cautious consumer, credit issues and perhaps from uncertainties from the Gulf oil spill,” says William E. Gaskin, PMA president. “The outlook for new orders remains strong, even though it is somewhat softer than it has been over the past few months. The June 2010 outlook for new orders is almost precisely at the average levels of the past 30 years-which reflects 32% anticipating an increase (vs. 30% this year); 45% expecting no change (vs. 47% in 2010) and 23% expecting a decrease (identical to 2010 levels). And only 9% of members anticipate that their shipments during the next three months will decline over their current levels.”

Did you enjoy this article? Click here to subscribe to Quality Magazine. 

You must login or register in order to post a comment.

Multimedia

Videos

Podcasts

 In honor of World Quality Month, we spoke to James Rooney, ASQ Past Chairman of the Board of Directors 2013, for his take on quality around the world.
For more information, read the ASQ Speaking of Quality column.
More Podcasts

Quality Magazine

CoverImage

2014 September

Check out the September 2014 edition of Quality Magazine for features!

Table Of Contents Subscribe

The Skills Gap

What is the key to solving the so-called skills gap in the quality industry?
View Results Poll Archive

Clear Seas Research

qcast_ClearSeas_logo.gifWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

eNewsletters

STAY CONNECTED

facebook_40.png twitter_40px.png  youtube_40px.pnglinkedin_40px.png