Metalforming manufacturers’ forecast for economic activity over the next three months has steadied after dipping the last few months, though actual shipping levels declined, according to the July 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 95 metalforming companies in the United States and Canada.
“The July PMA Business Conditions Report reflects the resiliency of our members and their ability to navigate through these uncertain times,” said David Klotz, PMA president. “With the election upheaval, continued stalled progress on Capitol Hill in passing the Tax Relief for American Families and Workers Act that would reinstate R&D expensing and bonus depreciation, and continued threats of higher tariffs on key inputs in 2025, I am energized by the innovation and determination of our members to continue to compete in the global market and grow their businesses.”
Read more: Metalforming manufacturers’ forecast predict slower economic activity
PMA’s July report shows that 61% of the manufacturers responding to the survey predict no change in economic activity in the next three months (compared to 56% in June), 12% anticipate an increase in activity (compared to 14% in June) and 27% expect a decrease in activity (down from 30% last month).
Metalformers also forecast steady incoming orders, with 24% of survey respondents expecting an increase in orders during the next three months (the same percentage reported in June), 52% predicting no change in orders (compared to 50% last month) and 24% anticipating a decrease increase in orders (compared to 26% in June).
However, current average daily shipping levels declined in July, with 40% reporting a decrease in shipping levels (compared to 29% last month), 46% reporting no change in levels (the same percentage reported in June) and only 14% reporting an increase in levels (down from 25% in June).
Lead times rose slightly in July with 11% of metalforming companies reporting an increase in lead times (compared to 10% in June). Only 5% of companies had a portion of their workforce on short time or layoff in July (compared to 8% in June), while 39% reported that they are currently expanding their workforce (down slightly from 40% in June).
The full report is available here.