Metalforming companies predict a spike in business conditions during the next three months, according to the latest monthly 2012 Precision Metalforming Association (PMA) Business Conditions Report. The February edition of the report, which samples 138 metalforming companies in the US and Canada, indicates 51% of participants expect metalforming economic activity to improve during the next three months. This figure is up roughly 25% from 41% who held a positive outlook in January.

Meanwhile, 45% of participants predict that metalforming activity will remain unchanged, down roughly 9% from 54% in January, and only 4% predict activity will decline, a 20% drop from 5% the prior month.

Incoming Order Improvement also Expected

Metalforming companies also anticipate a slight improvement in incoming orders during the next three months, with 56% of participants forecasting an increase in orders, (up roughly 10% from 51% in January. In addition, 33% expect no change, down about 17% from 40% last month, although 11% predict a decrease in orders, up about 22% from 9% the prior month.

Average Daily Shipping Levels Rise

Average daily shipping levels rose significantly in February with 45% of participants reporting shipping levels above levels of three months ago, up 50% from 30% in January. There was a slight decrease in the number of participants reporting shipping levels remaining flat from three months ago,dropping dropping about 6% from 48% to 45%, and a dramatic decline in the number  reporting a decrease, which fell about 54%, from 22% in January to 10%.

Layoffs Fall Off

The percentage of metalforming companies with a portion of their workforce on short time or layoff dropped to 7% in February, down about 42% from 12% in January.  This number has not been at this level since December 2006, the last time only 7% of companies reported workers on short time or layoff.

Source: Precision Metalforming Association