Metalforming businesses are bracing for three months of sinking business conditions, according to a monthly report from the Precision Metalforming Association (PMA).
The July 2013 PMA Business Conditions Report showed that 22 percent of participants are expecting improved business conditions from August through October, down 6 percentage points from 28 in June. Furthermore, 63 percent are expecting static conditions and 15 percent forecast declines (compared to 59 percent and 15 percent, respectively, in June).
The majority of respondents are also expecting a downtick in orders Only 28 percent of respondents are preparing for increases in orders, while 44 percent anticipate no change in orders and 19 percent forecasting a decline.
“Softness in orders and shipments reflected in this month’s survey are confirmed by PMA’s control group of companies who report their orders and shipments on a monthly basis,” PMA President William E. Gaskin said in a statement. “Year-to-date shipments for the first half of 2013 are down 4 percent compared to 2012. When comparing this year to last, there was strong momentum built up for Q1 shipments in 2012, which then leveled out during Q2, and generally declined through the second half of the year. In 2013, we saw a sharp uptick in January, then very modest upward trending in shipments during the subsequent months. The automotive market, which comprises just under half of the shipments of PMA member companies, has provided the most strength year-to-date.”