MRO Magazine

Manufacturing business conditions show optimism in December

Cleveland, OH -- Jan. 23, 2002 -- The results of the December Business Conditions Report, released by the Precision...


Industry

January 23, 2002
By MRO Magazine
MRO Magazine

Cleveland, OH — Jan. 23, 2002 — The results of the December Business Conditions Report, released by the Precision Metalforming Association (PMA), reflect industry optimism. Conducted monthly, the report is an economic indicator for the manufacturing industry in the U.S., Canada and Mexico.

When asked to compare general economic activity for the next three months with today, the survey results displayed continued optimism. Out of a sample of 199 manufacturing companies, 38% felt economic activity would go up in the coming months (an increase of 14% from November), while 50% expected activity to remain the same (a 3% decrease from November), and only 12% predicted a further downward turn (down 11% from November). A year ago to date, 33% expected economic activity to remain the same, 60% expected a decline and only 7% felt it would go up.

Forty-eight per cent of respondents expected to see an increase in incoming orders during the next three months (an increase of 13% from November). Thirty-six per cent projected no change in orders (down 4% from November) and 16% predicted a decrease over the next three months (a 9% decrease from November). A year ago to date, 18% expected an increase in orders, 33% expected no change and 49% expected orders to decrease.

Forty-eight percent of participants reported plant workforce on short time or layoff for the month of December (down 1% from the month of November). This figure compares to 20% on short time or layoff one year ago to date.

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Full report results are available at www.metalforming.com.