Precision Metalforming Association members expect business to be improved in the second half
A majority of the metalworking companies polled in March expect business conditions to remain steady or improve during the second quarter.
By Tom Stundza -- Purchasing, 4/10/2008 2:00:00 AM
A majority of the metalworking companies polled in March expect business conditions to remain steady or improve during the second quarter as Precision Metalforming Association (PMA) survey of members finds only 31% who expect business to decline. This compares with a Purchasing poll of metals buyers where 64% plan to maintain or boost purchasing because of expected improved business while 36% are planning for lower business activity.
"Softness in automotive, construction, appliance and other markets has impacted our members significantly," says William E. Gaskin, PMA president. "Member companies also are being affected by substantial increases in the price of flat-rolled steel, which increases their operating costs. A growing number of reports of shortages of flat-rolled steel from service centers as well as full order books at the mills also are causing concern over availability of steel in the spring."
Current average daily shipping levels remain steady as well. In March, 30% of the survey participants reported that current average daily shipping levels are above levels of three months earlier, 46% reported no change and 24% reported that shipping levels are below levels of three months ago. This compares with the buyers survey where 32% said business was improved in March, 36% said it was the same as the month before and 32% said it had declined
"Uncertainty over general economic conditions exacerbated by sharp first-quarter cutbacks in housing starts, reduced production volumes for autos and light trucks, and slowing orders for durable goods have impacted many metalforming companies in the first quarter of 2008,' says William E. Gaskin, PMA president. "This is reflected in their cautious outlook for the next three months."
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