Drop In Shipping Levels Clouds Metal Formers’ Outlook
May 23, 2023Comments
Metal forming companies report a drop in shipping levels in May, leading to predictions of a dip in economic activity heading into the summer months, according to the May 2023 Precision Metalforming Association (PMA) Business Conditions Report. The report reveals that 35 percent of metal forming companies anticipate a decrease in general economic activity in the next three months (compared to 30 percent in April), and only 11 percent predict an increase in activity (down from 15 percent last month).
Metal formers also forecast a decline in incoming orders, with 21 percent of survey respondents expecting an increase in incoming orders during the next three months (compared to 28 percent in April), and 34 percent predicting a decrease in orders (up from 28 percent in April). And they report a drop in shipping levels, with only 15 percent reporting an increase in current average daily shipping levels in May (compared to 33 percent in April), and 36 percent reporting a decrease (up from 21 percent in April).
“PMA members face headwinds with more companies reporting drops in shipping levels and a decline in incoming orders,” says PMA president David Klotz. “While one month doesn’t make a trend, rising costs, supply-chain challenges and ongoing difficulty in finding workers all contribute to uncertainty.”a
See also: Precision Metalforming Association
Technologies: Management
