Supply Challenges Continue to Affect Metalformers’ Outlook, According to PMA Report
Metal-forming companies continue to predict challenging business conditions during the next three months, according to the June 2021 Precision Metalforming Association (PMA) Business Conditions Report.
Posted: July 17, 2021
Prepared monthly, the report provides an economic indicator for manufacturing, sampling 118 metal-forming companies in the United States and Canada.
The June report shows that only 36 percent of metal-forming companies forecast an improvement in economic activity in the next three months (compared to 41 percent in May), 52 percent predict no change (compared to 49 percent in May) and 12 percent anticipate a decline in activity (increasing from 10 percent in May).
Sixty-six percent of respondents reported an increase in lead times, slightly down from 71 percent in May and the first decline reported in eight months.
“Obtaining raw materials and finding workers are the biggest challenges reported by PMA members,” said David Klotz, PMA president. “Members are reporting lead times extending into 2022 for steel, with similar challenges for aluminum, copper, brass and other metals. The semiconductor shortage that has idled some auto plants also is negatively impacting orders. PMA, through its One Voice advocacy team in Washington, D.C., continues to engage policymakers and members of Congress to find ways to increase supply, including ending the damaging and unnecessary Section 232 steel and aluminum tariffs, and to help the industry recruit workers by promoting awareness and training.”
Current average daily shipping levels decreased in June, with only 43 percent reporting an increase (decreasing from 60 percent in May), 39 percent reporting no change (compared to 30 percent in May) and 18 percent reporting a decrease (increasing from 10 percent in May).
The survey also revealed that more companies expect reduced incoming orders in the next three months, with 38 percent forecasting an increase in orders (decreasing from 42 percent in May), 44 percent predicting no change (the same percentage reported in May) and 18 percent anticipating a decrease in orders (compared to 14 percent in May).
Four percent of responding metal-forming companies had a portion of their workforce on short time or layoff in June, the same percentage reported in May.
The full report’s results are available online: https://www.pma.org/public/business_reports/pdf/BCREP.pdf.
