Metal formers continue to experience supply shortages and other challenges, report says

Metal forming companies are forecasting little change in business conditions through May, according to the February 2022 Precision Metalforming Association (PMA) "Business Conditions Report." Prepared monthly, the report provides an economic indicator for manufacturing, sampling 103 metal forming companies in the U.S. and Canada.

The February report shows that 58% of metal forming companies expect no change in general economic activity in the next three months (increasing from 56% in January), 32% anticipate an increase in activity (compared to 37% in January), and 10% predict a decrease in activity (compared to 7% in January).

Forty-six percent of respondents reported an increase in lead times, the same percentage reported in January.

Metal formers also forecast steady incoming orders in the next three months, with 42% expecting an increase in orders (compared to 43% in January), 50% predicting no change (compared to 45% in January), and 8% anticipating a decrease in orders (compared to 12% in January).

Current average daily shipping levels rose slightly in February, with 45% of survey respondents reporting an increase (compared to 41% in January), 44% reporting no change (compared to 45% in January), and 11% reporting a decrease (compared to 14% in January).

Only 2% of responding metal forming companies had a portion of their workforce on short time or layoff in February, compared to 4% in January.