2018-On Track to a Strong Finish for Precision Machining

With 80 companies responding, the PMPA Business Trends Index for November 2018 declined 11 points to 130,
which was (still) an all-time high for the month of November! Shops reporting sales declines outnumbered those reporting
gains by a ratio of 4:1- not at all unexpected considering the seasonality of shipments this time of year. The Business Trends
Sales Index remains on track to close the year up 8% over 2017.“- PMPA Business Trends Report for November 2018

Though down eleven points from October’s high, PMPA’s November Business Trends Index remains unseasonably strong.

Outlook for next three months:

  • Net Sales: The sales outlook resumes positive expectations for the next three months despite seasonal
    factors.
  • Lead Times: Eighty- six percent of respondents expect lead times to remain the same or increase in the
    next three months.
  •  Employment: Prospects for employment continue to be positive with ninety-seven percent (97%) expecting
    level or increased opportunities for employment.
  • Profitability: Eighty-five percent of our respondents expect business and margins to remain strong for the
    next three months, just a slight decline from the prior month.

In our April report we forecast that our index of sales would finish the year at 135, up 8% over calendar year 2017. As of this November report, we are at 135, up 8 percent over 2017 with just one month to go.

How is your shop’s performance compared to last year?

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