CLEVELAND — Metalforming companies anticipate a slight uptick in business conditions heading into 2023, according to the December 2022 Precision Metalforming Association Business Conditions Report.
Prepared monthly, the report provides an economic indicator for the next three months of manufacturing, sampling 110 metalforming companies in the U.S. and Canada.
The PMA’s December report shows that 10% of metalforming companies predict an increase in general economic activity in the next three months (up from 5% in November), 57% expect no change in activity (compared to 50% last month), and 33% predict a decrease in activity (down from 45% in November).
Metalformers also expect a slight improvement in incoming orders; 15% of survey respondents forecast an increase in incoming orders during the next three months (compared to 13% in November), 51% anticipate no change (compared to 44% last month), and 34% predict a decrease in orders (compared to 43% in November).
However, current average daily shipping levels declined for the third straight month in December with 39% of respondents reporting a decrease in shipping levels (compared to 32% in November), 42% reporting no change (compared to 47% last month), and only 19% reporting an increase (decreasing from 21% in November).
“A majority of our members are reporting that they continue to face headwinds going into the new year,” said PMA President David Klotz. “Metalformers are still experiencing supply-chain challenges with difficulty obtaining the components they need, and some sectors/industries continue to be affected negatively by higher interest rates.
"PMA, through its One Voice team in Washington, D.C., is advocating for Congress to pass an omnibus bill that funds the government to include critical provisions that boost manufacturing including increased job training funding, workforce education and development policies, and key tax provisions such as the R&D tax credit, bonus depreciation, and 163(j) business interest deduction.”
Lead times continued to drop in December with only 9% of metalforming companies reporting an increase in lead times (compared to 11% in November). Five percent of companies had a portion of their workforce on short time or layoff in December (compared to 2% in November), while 52% of companies are currently expanding their workforce (decreasing from 53% last month).
