GENERAL NEWS
Supply challenges impact
David C . Klotz , President , Precision Metalforming Association . metalformers ’ outlook
Metalforming companies continue to predict challenging business conditions during the next three months , according to the June 2021 Precision Metalforming Association ( PMA ) Business Conditions Report . Prepared monthly , the report provides an economic indicator for manufacturing , sampling 118 metalforming companies in the United States and Canada . PMA is the full-service trade association representing the US $ 137 billion metalforming industry of North America — the industry that creates precision metal products using stamping , fabricating , spinning , slide forming and roll forming technologies , and other valueadded processes .
PMA ’ s June report shows that only 36 % of metalforming companies forecast an improvement in economic activity in the next three months ( compared to 41 % in May ), 52 % predict no change ( compared to 49 % in May ) and 12 % anticipate a decline in activity ( increasing from 10 % in May ).
Sixty-six per cent of respondents reported an increase in lead times , slightly down from 71 % in May and the first decline reported in eight months .
“ Obtaining raw materials and finding workers are the biggest challenges reported by PMA members ,” said PMA President , David Klotz . “ Members are reporting lead-times extending into 2022 for steel , with similar challenges for aluminium , copper , brass and other metals . The semiconductor shortage that has idled some auto plants is also negatively impacting orders . PMA , through its One Voice advocacy team in Washington , D . C ., continues to engage policymakers and members of Congress to find ways to increase supply , including ending the damaging and unnecessary Section 232 steel and aluminium tariffs , and to help the industry recruit workers by promoting awareness and training .”
Current average daily shipping levels decreased in June , with only 43 % reporting
an increase ( decreasing from 60 % in May ), 39 % reporting no change ( compared to 30 % in May ) and 18 % reporting a decrease ( increasing from 10 % in May ).
The survey also revealed a slight decline in expectations for incoming orders in the next three months , with 38 % forecasting an increase in orders ( decreasing from 42 % in May ), 44 % predicting no change ( the same percentage reported in May ) and 18 % anticipating a decrease in orders ( compared to 14 % in May ).
Four per cent of responding metalforming companies had a portion of their workforce on short-time or layoff in June , the same percentage reported in May . Full report results are available at https :// www . pma . org / public / business _ reports / pdf / BCREP . pdf n
Diversity is the key
New digital technologies , such as Artificial Intelligence ( AI ), the Internet of Things ( IoTs ), robots and cobots , augmented and virtual reality , are transforming the world of production . They are enabling more efficient processes and generating added value , not just for industry but for local communities and the environment . We are also moving towards a green revolution , as the transition to a more sustainable economy takes pace and manufacturing finds itself optimising efforts to become more energy-efficient and sustainable .
“ This transformation will need more highskilled employees that can respond to these opportunities and challenges . If businesses are to capitalise on these opportunities , they must put people at the top of their agenda – all people . This means creating a truly diverse and inclusive workplace ,” said Make UK ( the UK manufacturer organisation ) in its newly released report , ‘ Manufacturing Our Recovery Through Inclusion ’.
“ To ensure that the right strategies and policies are in place , manufacturers need to embed equality , diversity & inclusion ( ED & I ) across all business units . Fortunately , more and more manufacturing business leaders realise that they need to include the people element into their business strategies . Over a third ( 36 %) of manufacturers have said they already have an ED & I strategy within their business and a further third ( 31 %) are in the process of introducing strategies . Manufacturers agree that giving equal rights and opportunities to all people is simply the right thing to do ,” it added .
Make UK ’ s research shows that manufacturers are stepping up their commitment to a more balanced and diverse workforce to make greater use of the talent pool and to improve their performance . However , its findings make it very clear that there is ‘ a very long way to go to achieve this goal with major longstanding challenges facing the sector in terms of age , ethnicity and gender balance ’.
“ On average , under a third of the manufacturing workforce ( 29 %) is made up of women while 18 % of the workforce are
from ethnic minorities . Greater occupation segregation is apparent with women comprising just 8 % of professional roles , such as chartered engineers , whilst ethnic minority groups make up on average just 5 % of board roles . Diversity does not concentrate on specific factors but is truly intersectional . Make UK commits to leading the way in understanding and supporting all aspects of how we can
REPORT it concluded . n
6 | sheetmetalplus . com | ISMR July / August 2021