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Metalforming capital expenditures projected to increase in 2007

Cleveland, OH -- The 2007 Precision Metalforming Association (PMA) Capital Spending Report reveals that metalformin...


Cleveland, OH — The 2007 Precision Metalforming Association (PMA) Capital Spending Report reveals that metalforming companies are projecting higher capital expenditures in 2007. Conducted annually, the report is a forecast of manufacturers plans for capital investment, sampling 81 metalforming companies in the United States and Canada.

Forty-six per cent of responding companies anticipate that their 2007 capital expenditures will be higher than they were in 2006, 22% report that their 2007 budgets are unchanged compared to actual 2006 expenditures, and only 28% indicate that their capital spending budgets are lower for 2007 than 2006.

On average, companies plan to spend $792,616 on capital expenditures this year — a 9% increase compared to the $717,692 spent in 2006. Strong investments are forecasted in automation, controls, mechanical presses, press safety equipment, robotics, software, toolroom equipment and welding equipment. (All figures in U.S. dollars.)

Metalformers plan to make the largest share of their capital expenditures early in the year, as $25.4 million is projected to be spent in the first and second quarters compared to $24.3 million forecasted for the third and fourth quarters.

PMA is a trade association representing the $41-billion metalforming industry of North America, the industry that creates precision metal products using stamping, fabricating and other processes. Its nearly 1,200 member companies include metal stampers, fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry. Members are located in 30 countries, with the majority found in North America — in 41 states of the United States as well as Canada and Mexico.