Metal forming companies remain cautious as economic challenges continue

Metal forming companies reported a slight improvement in business conditions but continue to anticipate challenges during the next three months, according to the August 2020 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for manufacturing, sampling 112 metal forming companies in the U.S. and Canada.

The August report shows that 38% of metal forming companies predict an improvement in economic activity during the next three months (the same percentage reported in July), 45% expect no change (compared to 39% last month), and 17% anticipate a decline in activity (a decrease from 23% in July).

Metal forming companies also forecast a slight uptick in incoming orders, with 55% of participants expecting an increase in orders compared to three months ago (an increase from 52% in July), 33% anticipating no change in orders (compared to 28% in July), and only 12% predicting a decrease in orders (compared to 20% last month).

“While there are glimpses of improvement, the August PMA Business Conditions Report shows the continued uncertainty that metal forming companies are experiencing due to the COVID-19 pandemic,” said PMA President David Klotz. “Our members are showing amazing resiliency but it’s clear that it will be some time before the economy fully recovers, and we expect there to be ups and downs the remainder of the year.”

The survey also showed that metal formers experienced an upswing in current average daily shipping levels in August, with 52% reporting an increase in shipping levels compared to three months ago (up from 35% in July), 21% reporting no change (compared to 15% in July), and 27% reporting a decrease (down from 50% in July).

Thirty-seven percent of responding metal forming companies had a portion of their workforce on short time or layoff in August, a decrease from 46% in July.