Precision Machining Sales Up for Year, Down for September

October 17, 2013

The PMPA Business Trends Report for September 2013 shows our sales /shipments index to be down  to 115 for September, up 12 points over September 2012, but down 9 points from last month,Sept Bus Trends Graph

Outlook for sales and employment remain high, and sentiments for profitability remain positive.

81 % of respondents felt sales would remain the same or increase over the next three months.

This positivity in the face of an actual decline in shipments for most respondents is a sign that the variability seen is expected, rather than a harbinger of a more drastic slowdown industry wide.

You can download a copy of the Sept. Business Trends Report Here

By the way, over one third of respondents were scheduling 45 hours or more of overtime…


Precision Industry Sales In July Beat Seasonal Doldrums

August 23, 2012

Up five points over last July.

PMPA’s Business Trends Index for July 2012 is 111, down substantially from last month’s adjusted value of 119, but still well above last year’s July value of 106 and July 2010’s value of 99. While our index does reflect a drop in shipments that we expect seasonally in July, the 111 value is highest value for July in this decade. July 2012’s reading is up 4 % over last July, and year to date we are up 5% over same period last year. It is easy to see the absolute value of the month to month drop and be concerned, but our index shows that our industry continues to improve over past years’ performance when considering where we are seasonally.

Industrial Production (IP) increased 0.6 percent in July after having risen 0.1 percent in both May and June. In July, the U.S. summary “Purchasing Managers’ Index” (PMI) from the Institute for Supply Management (ISM) inched up 0.1 points for July, to a level of 49.8.

In plain English, “Industrial activity at the nation’s factories remained stalled in July” according to Dr. Ken Mayland, PMPA’s retained economist.

Our index indicates that our shops continue to adjust to the broader economy as we sustain higher performance than prior years.

Over half  of shops responding were scheduling overtime in July.

Full report here.