Data-Driven Decisions: Good Data Helps Leaders Make Better Decisions

This is article is part of a series of monthly articles produced by Harbour Results for PMA’s MetalForming Business Edge e-newsletter. Click here to view the full collection of articles.

Data is one of the best tools in a manufacturer's toolbox to maintain or improve competitiveness. Understanding what is going on in the industry and, more specifically, how your business is performing helps identify the key areas where your business can improve. It gives you a bigger picture of what’s going on outside of your business, with competitors and the overall industry, so you can identify and address issues to improve your business’s efficiency and competitiveness.

PMA offers metal formers who are members access to manufacturing industry data, metal forming-specific data and benchmarking data. Harbour Results, in collaboration with PMA, recently conducted its manufacturing trends study, which will take place two times a year.  Those members who participated in the study will receive a comprehensive report in the coming weeks. But let’s take a sneak peek at the preliminary data.

Sneak Peek at Manufacturing Trends Study Data

Not surprisingly, in HRI’s study, respondents continued to list higher cost of business, access to labor and upward wage pressures as their top three business concerns. With the threat of a recession and a growing inflation rate, metal formers must protect their cash and make smart investments.  

Study participants forecasted Q1 2023 capacity to be 66% and are optimistic for the future with Q4 2023 capacity forecasted at 69%. This is slightly below what die casters are forecasting and above what plastics processors are forecasting. Additionally, nearly 70% of metal formers are predicting an EBIT (Earnings Before Interest and Taxes) of 6% or higher.

Also interesting are metal formers forecasted talent strategies. Approximately 60% of shops expect to increase headcount to either fill open positions or prepare for growth. And, just under 10% plan to reduce headcount while nearly 30% will not increase or decrease headcount.

We have forecasted that the industry can expect there to be bumps in the road in 2023, similar to 2022. Depending on the industry you operate in you are likely already feeling a squeeze. So having access to data to help drive your business will be critical.

Why Participate in PMA’s MetalForming Insight Benchmarking 

To improve data collection and benchmarking, PMA revamped it MetalForming Insights. Instead of doing three studies annually, the organization will have one annual benchmarking study, which launches in April. The study will cover all aspects of the business, including finance, operations, sales and forecasting and human resources. The new benchmarking tool enhances and updates PMA’s industry surveys and reports and delivers an unmatched resource of business-critical data and insights for PMA members. Also new, is the MetalForming Insights Dashboard. Operated by Microsoft Power BI the dashboard allows participants to view aggregate data quickly and easily as well as customize the data to make it more relevant to your business.

We encourage all PMA members to participate in the study and gain access to the powerful reports. And, if you are not a PMA member, it is not too late the join the organization to take advantage of its many benefits.

Let us know if you would like to learn more about MetalForming Insights and how to leverage benchmarking to help your business.