Metalforming Companies Expect Spike in Business

According to the August 2013 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect a spike in business conditions over the next three months. The monthly report samples123 metalforming companies in the United States and Canada.

According to the August report, 34 percent of participants believe that economic activity will improve during the next three months (up from 22 percent in July), 59 percent predict that activity will remain unchanged (compared to 63 percent in July), and only 7 percent forecast that activity will decline (compared to 15 percent in July). Metalforming companies also expect an improvement in incoming orders during the next three months, with 38 percent anticipating an increase in orders (up from 28 percent in July), 52 percent predicting no change (compared to 53 percent last month) and 10 percent expecting a decrease in orders (down from 19 percent in July

 “PMA’s member companies are far more optimistic as the summer comes to an end and express significant optimism for an uptick in orders and expectations for shipments in Q-4,” said William E. Gaskin, PMA president.  “At this time last year, momentum was in the opposite direction, with companies generally having a strong first half in 2012 and declining orders and shipments in the second half.  This year, momentum seems to be building toward a fall rally to some degree.  Most companies aren’t expecting a sudden surge in orders and shipments, but they do anticipate an uptick compared with the past few months, which is consistent with recent reports by ISM and other economic forecasts.”