REGIONAL REPORT workforce programmes include internships ( 74.7 %), apprenticeships or earn-and-learn models ( 57.3 %), high school partnerships ( 55.1 %) and college partnerships ( 48.9 %).
“ Manufacturing employment , production and capital spending all rose in the second quarter . The majority of respondents reported no change in all three categories between the first and second quarters , with some improvements in those suggesting production increased in the second quarter in this release ,” said the survey .
“ Respondents anticipate inventories shrinking 1.0 % over the next 12 months , declining for the eighth straight quarter . This suggests that manufacturers are continuing to draw down their stockpiles , which should necessitate additional production if demand strengthens . Around 41 % of firms expect falling inventories over the next year , with just 15.4 % predicting increases and 43.5 % seeing no changes ,” it added .
“ Industrial production rose 0.6 per cent in June after advancing 0.9 per cent in May . For the second quarter as a whole , industrial production increased at an annual rate of 4.3 per cent . Manufacturing output moved up 0.4 per cent in June and rose 3.4 per cent ( annual rate ) in the second quarter . In June , the indexes for mining and utilities posted gains of 0.3 per cent and 2.8 per cent , respectively . At 104 per cent of its 2017 average , total industrial production in June was 1.6 per cent above its year-earlier level . Capacity utilisation moved up to 78.8 per cent in June , a rate that is 0.9 percentage point below its long-run ( 1972 – 2023 ) average ,” commented the Board of Governors of the Federal Reserve System on 17 July 2024 .
“ Most major market groups posted gains in June . The index for consumer goods stepped up one percent , with increases in the indexes for most of its components — particularly energy ( 2.7 per cent ) and automotive products ( 1.7 per cent ). The index for materials rose 0.7 per cent , benefiting from gains in both its energy and non-energy components . The index for defence and space equipment continued its upward trajectory with a 0.7 per cent increase . Business equipment and construction supplies were the only major market groups to experience declines , with their respective indexes decreasing 0.4 per cent and 0.1 per cent ,” it added .
Metalforming in U . S ./ Canada
Metalforming manufacturers ’ forecast for economic activity over the next three months has continued to dip , according to the June 2024 Precision Metalforming Association ( PMA ) Business Conditions Report . Prepared monthly , PMA ’ s report provides an economic indicator for the next three months of manufacturing , sampling 91 metalforming companies in the United States and Canada .
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Ford F-150 Lightning .
Manufacturing employment , production and capital spending all rose in the second quarter
PMA is the full-service trade association representing the US $ 137-billion metalforming industry of North America . Over 900 member companies also include suppliers of equipment , materials and services to the industry .
PMA ’ s June report shows that only 14 % of the manufacturers responding to the survey predict an increase in economic activity in the following three months ( compared to 19 % in May ), while 30 % anticipate a decrease in activity ( increasing from 26 % in May ). Another 56 % expect no change in activity
( compared to 55 % in May ).
Metalformers also forecast a decline in incoming orders , with only 24 % of survey respondents expecting an increase in orders during the next three months ( compared to 32 % in May ), 50 % predicting no change in orders ( compared to 49 % in May ) and 26 % anticipating a decrease increase in orders ( compared to 19 % in May ).
“ The June survey confirms that PMA members are seeing a slowdown in economic activity , which tracks other recent reports for the manufacturing sector that are reporting a contraction in activity ,” said David Klotz , PMA President . “ Our members are reporting a general sense of uncertainty over industrial demand , the election outcome and whether tariffs will go up in 2025 and taxes will go up in 2026 . The current environment makes it difficult for downstream companies to plan and respond to their customers ’ concerns over similar uncertainties in the markets and over who will be in control of Washington after the November election .”
According to the survey , current average daily shipping levels remained steady in June , with 46 % reporting no change in shipping levels ( compared to 49 % in April ), 25 % reporting an increase in levels ( up from 21 %) and 29 % reporting a decrease in levels ( compared to 30 %).
Lead times rose in June with 10 % of metalforming companies reporting an increase in lead times ( compared to 7 % in May ). Eight percent of companies saw a portion of their workforce on short-time or layoff in June ( compared to 12 % in May ), while 40 % reported that they are currently expanding their workforce ( increasing from 35 % in May ).
The U . S . economy
The Executive Board of the International Monetary Fund ( IMF ) concluded its Article IV consultation with the United States earlier this year .
“ The U . S . economy has turned in a strong performance over the past few years . Hysteresis effects from the pandemic did not materialise and both activity and employment now exceed pre-pandemic expectations .
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