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Metalformers Growing More Optimistic

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Optimism continued to grow among metalforming companies in the latest survey from the Precision Metalforming Association, Cleveland.

PMA’s January report shows 39 percent of metalforming companies surveyed expect an improvement in economic activity in the next three month, up from 34 percent in December. In contrast, only 7 percent anticipate a decline in business activity, down from 17 percent in the prior month.

The survey also revealed that metalformers expect a rise in incoming orders in the next three months, with 50 percent forecasting an increase in orders, up from 41 percent in December. Only 9 percent forecast a decline, more than half the percentage of pessimists in the prior-month report.

“While members expressed optimism that business conditions would improve, great challenges remain, including the current record high prices for steel and supply-chain problems that are causing low steel inventories as supply tightens,” said PMA President David Klotz. “PMA calls on the Biden administration to terminate the Section 232 steel and aluminum tariffs as quickly as possible. Steel represents more than half the manufacturing cost for many of our member companies. While our members buy a vast majority of their steel from domestic mills, the tariffs have caused the United States to become an island of high steel prices, hurting our member companies’ ability to compete with our foreign competitors, who buy steel at world market prices. Our members compete in the global market every day and we are only asking that the domestic steel industry do the same.”

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