PMA Report Shows Companies Wary of Winter Market Downturn
The PMA’s November 2020 Business Conditions Report revealed an increasing percentage of companies expecting a decline in economic conditions for the next three months.
According to the November 2020 Precision Metalforming Association (PMA) Business Conditions Report, the percentage of metalforming companies anticipating a decline in business conditions during the next three months has grown.
PMA’s November report shows 19% of metalforming companies expect a decline in economic activity in the next three months (compared to 12% in October), 51% forecast no change (compared to 58% in October), and 30% anticipate an improvement in activity (the same percentage reported in October).
The survey also revealed that metalformers expect incoming orders to drop in the next three months, with 17% anticipating a decrease in orders (compared to 11% in October), 44% predicting no change (compared to 40% last month), and 39% forecasting an increase in orders (a decrease from 49% in October).
“The economic downturn caused by the COVID-19 pandemic continues to impact metalforming manufacturers,” says PMA president David Klotz. “Congress and the White House should help by agreeing to another economic-stimulus package during the upcoming congressional lame-duck session that gives manufacturers access to long-term low-interest loans to purchase raw materials and equipment, provides business-liability protection as they follow government guidelines, enables an immediate claim of General Business Credits, and expands the Employee Retention Credit to Small Business Administration’s Paycheck Protection Program (PPP) recipients.”
Average daily shipping levels remained fairly steady in November, with 10% reporting a decrease (compared to 11% in October), 41% reporting no change (an increase from 32% last month), and 49% experiencing an increase (compared to 57% in October).
Only 15% of responding companies had a portion of their workforce on short time or layoff in November, a decrease from 20% in October.
The monthly report provides an economic indicator for manufacturing, sampling 108 metalforming companies in the United States and Canada. Full November 2020 report results are available at https://www.pma.org/public/business_reports/pdf/BCREP.pdf.