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June 2022 Business Conditions Report reflects metal formers’ continued concern

The June 2022 Precision Metalforming Association (PMA) Business Conditions Report showed an increase in the percentage of metal forming companies expecting a decline in business conditions, the third straight decline since April. Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 107 metal forming companies in the U.S. and Canada.

The June report shows that 35% of metal forming companies forecast a decrease in general economic activity in the next three months (increasing from 21% in May), 50% anticipate no change in activity (compared to 63% in May), and 15% predict an increase in activity (compared to 16% last month).

The report also showed a decline in predictions for incoming orders, with 19% of survey respondents expecting an increase in incoming orders during the next three months (compared to 22% in May), 51% predicting no change (compared to 57% last month), and 30% anticipating a decrease in orders (compared to 21% in May).

Additionally, current average daily shipping orders dropped significantly in June, with 23% of respondents reporting a decrease (compared to only 9% in May), 41% reporting no change (compared to 45% last month), and 36% reporting an increase (down from 46% in May).

“PMA’s June Business Conditions Report reflects the supply chain disruptions that are impacting our members, particularly those who supply the auto industry,” said PMA President David Klotz. “There are bright spots, though, with members who support the capital equipment industry and those who manufacture parts for the medical and appliance industries, for example, reporting high demand and brisk business activity. However, nearly all of our members report continued challenges in obtaining steel, aluminum, and other raw materials, along with the inability to fill job openings.”

Lead times remained fairly steady in June, with 36% of responding metal forming companies reporting an increase in lead times, compared to 34% in May. Only 2% of companies had a portion of their workforce on short time or layoff in June, up from 1% in May.

Reposted from Canadian Metalworking – https://www.canadianmetalworking.com/canadianfabricatingandwelding/news/fabricating/june-2022-business-conditions-report-reflects-metal-formers-continued-concern

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