Resiliency, Adaptability and a Slew of Innovation

The condition and health of the manufacturing sector, and the metalworking industry, are looking up, according to recent data. Thanks to guidance, support and cutting-edge equipment and software, industry supplier partners and others are lending a hand as fabricators and machinists navigate the “holding steady” scenario.

Taking a closer look at some of the manufacturing-related business indicators released during the summer, there are positive signs that show manufacturing is rounding a corner to experience more expansion than contraction. Shops continue to adapt and manage their processes by implementing equipment and the latest innovations available in the marketplace to overcome challenges, such as labor constraints.

At the recent FABTECH expo held in September, metal formers, fabricators, welders and finishers were able to meet with 235 new exhibitors (total of 1,500), as well as view and try out 500 new products that will result in efficiencies in productivity. Educational topics, which lead to applicable business insights and strategies, included topics such as robotics, labor shortages and workforce development, sustainability and digital transformation, among others.

What’s Next?

“Demand remains soft, but production execution is consistent with new, reduced output levels based on panelists’ companies order books,” said Tim R. Fiore, the chair of the Institute for Supply Management’s Manufacturing Business Survey Committee. The PMI registered at 47.6% in August, 1.2% higher than the July number of 46.4%. (A PMI reading above 50% indicates that the manufacturing sector is generally expanding; below 50% indicates that it is generally contracting.)

“Suppliers continue to have capacity. Prices are generally stable. Sixty-two percent of manufacturing GDP contracted in August, down from 92% in July, a positive trend for the economy. Additionally, the share of manufacturing GDP registering a composite PMI® calculation at or below 45% — a good barometer of overall manufacturing weakness — was 15% in August, compared to 25% in July and 44% in June, a clear positive.”

In another indicator, in August, the metal forming sector predicted a slight increase in business conditions for the next three months. Eighteen percent of the Precision Metalforming Association’s survey respondents indicated they expect an increase in general economic activity, compared to 11% in July; 53% forecasted no change in activity, compared to 55% in July; and 29% forecasted a decrease in activity, which was down from 34% in July.

Metal formers also indicated a modest improvement for incoming orders, with 26% expecting an increase during the next three months, compared to 18% in July. “The modest increase in business activity predicted by metal forming manufacturers in the August report is a positive signal that our members remain resilient despite inflation and other issues that impact the supply chain,” said PMA’s president David Klotz.

Another factor pointing to a healthy manufacturing sector is the AMT-The Association for Manufacturing Technology’s numbers, which found that although manufacturing technology orders “have continued their downward trend since peaking in the second half of 2021; however, for perspective, they remain above historical averages,” said Douglas K. Woods, president of AMT. “Even in non-IMTS [trade expo] years, the majority of orders tend to come in the second half of the year. Despite some headwinds, including fears of a recession, it would seem reasonable that manufacturing technology orders could outperform some of the more pessimistic expectations if we return to that historical trend.”

The latest industry numbers and data show we are trending toward a healthier manufacturing sector.  Embrace the solutions and innovations that will keep you on that path.

Precision Metalforming Association (PMA)

AMT-The Association for Manufacturing Technology

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