PMPA/ITR Economics Forecast Report May 2022
The latest ITR report presents economic evidence to argue that despite the new uncertainties as a result of the Ukraine War and slowing capital spending, we are in a better position than the media would have us believe.
Higher energy costs – drawing attention in headlines – are still a smaller share of consumer budget than back in 2011. There is no denying supply chain disruptions and higher commodity prices, and the impacts of these will be uneven across the economy. However, the fundamentals continue to show no more than a flattening at the bottom of the business cycle in the first half of 2023.
Consumers are well positioned going into this cyclical decline with stronger cash resources and lower debt to income than in the past. Savvy managers will focus on leadership, increasing efficiency and productivity by investing to gain competitive advantage – and free up existing talent to perform on higher value jobs and responsibilities. Stay calm and deliver first pass quality on time to your most profitable customers.
The Institute for Trend Research (ITR) quarterly reports focus on major areas of economic growth and decline in key market segments for the Precision Machined Products Industry. They are provided to PMPA members as part of the association’s overall business intelligence program and are used as a management tool to help PMPA members plan for what lies ahead and which markets they should focus on in a complex manufacturing environment.