Metalforming companies reported a drop in shipping levels in May, according to the May 2023 Precision Metalforming Association (PMA) Business Conditions Report.
PMA’s May report showed that 35% of metalforming companies anticipate a decrease in general economic activity over the next three months, up from 30% in April.
PMA said 36% of metalforming companies reported a drop in shipping levels in May, up from 21% in April. Meanwhile, most metalforming companies experienced a dip in lead times in May, with only 11% reporting an increase in lead times, down from 17% in April.
“PMA members are facing headwinds with more companies reporting drops in shipping levels and a decline in incoming orders,” PMA President David Klotz said in the report. “While one month doesn’t make a trend, rising costs, supply-chain challenges and ongoing difficulty in finding workers all contribute to uncertainty. Leaders in Washington, D.C. could help by ensuring that the country does not default on its debt. Congress also should reinstate the full deduction of R&D expensing and avoid policies that drive up prices and create shortages of important inputs including raw materials.”
The report also said 34% of metalforming companies forecast a decrease in incoming orders over the next three months, up from 28% in April.
The PMA Business Conditions Report provides an economic indicator for the next three months of manufacturing, surveying 107 metalforming companies across the U.S. and Canada, according to the PMA.