CLEVELAND, OH—March 17, 2022—Metalforming companies forecast a slight decline in business conditions during the next three months as supply-chain challenges continue to affect the manufacturing industry, according to the March 2022 Precision Metalforming Association (PMA) Business Conditions Report. Prepared monthly, the report provides an economic indicator for manufacturing, sampling 109 metalforming companies in the United States and Canada.

PMA’s March report shows that only 24% of metalforming companies expect an increase in general economic activity in the next three months (decreasing from 32% in February), 58% anticipate no change in activity (the same percentage reported last month) and 18% predict a decrease in activity (compared to 10% in February).

Forty-three percent of respondents reported an increase in lead times, slightly down from 46% in February. Metalformers also forecast a dip in incoming orders in the next three months, with 37% expecting an increase in orders (compared to 42% in February), 46% predicting no change (compared to 50% last month) and 17% anticipating a decrease in orders (compared to 8% in February).

At the same time, none of the responding metalforming companies had a portion of their workforce on short time or layoff in March, compared to two percent in February. Seventy-seven percent of respondents reported that they are currently expanding their workforce.

“The March PMA Business Conditions Report reflects the fact that PMA members, like other manufacturers, are facing unprecedented challenges in obtaining the materials they need to meet customer demand due to strains on the global supply chain,” said PMA President David Klotz. “Members are reporting problems in sourcing steel, aluminum and red metals. In fact, as a result of the Russia-Ukraine war and economic sanctions, members are reporting massive price spikes and availability issues for nickel. At the same time, members continue to face challenges finding workers. PMA is helping guide our members through these challenges via various programs such as METALFORM EDU as well as a consistent flow of information from the PMA advocacy team in Washington, D.C.”

Current average daily shipping levels remained fairly steady in March, with 41% of survey respondents reporting an increase (compared to 45% in February), 48% reporting no change (compared to 44% last month) and 11% reporting a decrease (the same percentage reported in February).

Full report results are available at https://www.pma.org/public/business_reports/pdf/BCREP.pdf.

PMA is the full-service trade association representing the $137-billion metalforming industry of North America—the industry that creates precision metal products using stamping, fabricating, spinning, slide forming and roll forming technologies, and other value-added processes. Its more than 850 member companies also include suppliers of equipment, materials and services to the industry. PMA leads companies toward superior competitiveness and profitability through advocacy, networking, statistics, the PMA Educational Foundation, FABTECH tradeshows, and MetalForming and 3D Metal Printing magazines.