Heading into the New Year, Metal Formers Continue to Expect Economic Activity to Stabilize
December 19, 2023Comments
Metal forming companies expressed increased confidence that business conditions will continue to stabilize in the first quarter of 2024, according to the December 2023 Precision Metalforming Association (PMA) Business Conditions Report. More than half (57 percent) of surveyed companies expect no change in general economic activity in the next three months (compared to 49 percent in November), while 13 percent anticipate an increase in activity, up from 9 percent last month.
Also forecast: an improvement in incoming orders, with 29 percent of survey respondents expecting an increase in orders during the next three months, up from 17 percent in November, and 30 percent anticipating a decrease in orders, down from 38 percent in November.
“’Cautious optimism’ is how I would characterize PMA members’ outlook as we enter into the new year,” says PMA President David Klotz. “The PMA December Business Conditions Report suggests that metal formers are navigating ongoing supply-chain problems, rising costs due to inflation, and labor shortages. However, this week’s announcement that Nippon Steel will acquire U.S. Steel may result in new challenges. The purchase may mean more disruption in the domestic steel industry that could lead to higher steel prices in this country, which already are the highest in the world in part,” Klotz adds. “The sale of U.S. Steel to a foreign competitor is yet another reason why the Biden Administration should immediately remove steel and aluminum tariffs on our national security allies. The tariffs do not apply to the parts produced by metal formers, so our members are at a disadvantage when the cost to purchase steel, which accounts for anywhere between 20 to 60 percent of input costs, is far higher in this country than the prices paid by our overseas competitors. We will continue to raise these concerns through our One Voice for Manufacturing advocacy team in Washington, D.C.”
See also: Precision Metalforming Association
Technologies: Management
