PMPA’s Business Trends Index for September 2018 came in at 106% of its value a year ago, despite its 7.7% decline from August’s record tying performance. September 2018’s value of 132 is a record for the month of September, a frequent occurrence this year. The September 2018 value of 132 is also 10.4% above the five year average for the index in the month of September. year to date our index indicates that sales up 10 points or 8% over the 2017 year-end average.
Opinions for the next three months compared to today:
- Net Sales: The sales outlook confirms Pareto’s law with 80% of reporting shops expecting sales to improve or remain level over the next three months.
- Lead Times: Ninety- one percent of respondents expect lead times to remain the same or increase in the next three months.
- Employment: Prospects for employment are positive with ninety-eight percent (98%) expecting level or increased opportunities for employment.
- Profitability: Eighty-four percent of our respondents expect business and margins to remain strong for the next three months.
Current Environment: 2018 continues on pace to a much stronger than average sales year as we determined in our April report. The sentiment indicators that we track recognize a seasonal decline ahead, but remain in positive territory for the precision machining industry. Our industry continues to outperform 5-year averages by a wide margin!
PMPA members can download a full copy of the September 2018 Business Trends Report here
Key takeaway: Our business has changed- have we adjusted our management thinking to match?