Sponsored By

Moldmaking shows upturn in North America

Based on recent results from the Fall 2009 Business Forecast of the American Mold Builders Assn. (AMBA; Rolling Meadows, IL), business is starting to improve, with 7% of the 111 respondents saying that business is “Excellent.” This is an increase from 5% of 76 respondents in the summer survey.

PlasticsToday Staff

October 19, 2009

2 Min Read
Moldmaking shows upturn in North America

Based on recent results from the Fall 2009 Business Forecast of the American Mold Builders Assn. (AMBA; Rolling Meadows, IL), business is starting to improve, with 7% of the 111 respondents saying that business is “Excellent.” This is an increase from 5% of 76 respondents in the summer survey.

While the outlook is fairly positive for most respondents, answers to the question, “Have you been experiencing more pressure for ‘low cost’ from your customers recently?” highlight the fight for business. A total of 109 respondents answered the question, with 80% agreeing that the pricing pressure being applied by customers has increased.

Comments to this question included, “Very hard to collect on invoices,”  “Pressure is not only from overseas but also from hungry domestic shops,” and, “We have seen quotes as low as $40/hr from other shops.”

“(It’s a) problem quoting against shops that take jobs at a loss,” or similar comments, were a common refrain, reports the AMBA. “Some competitors are getting very aggressive in quoting jobs—even to the point where they are probably taking a loss on the jobs,” said a respondent.

Current business conditions are "Good" for 23% of the respondents (unchanged from the summer survey). Business is characterized as "Fair" by 38% of the respondents, up from 34% in the summer survey, and "Poor" by 27% (compared to 26% in the summer survey). "Bad" conditions exist for only 5% of the respondents, a sharp decline from the 12% reporting in the summer survey and 11% in the spring survey.

Looking ahead through the rest of 2009, only 8% of the respondents expect business to "Increase Substantially," but 44% expect business to "Increase Moderately," up from 28% in the summer survey. Only 25% expect business to "Remain the Same," compared to 51% in the summer survey, indicating an expectation of some movement. Respondents expecting business to "Decrease Moderately" dropped slightly to 11% compared to 13% in the summer survey. There were fewer respondents that expect business to "Decrease Substantially" (2% in the fall survey vs. 4% in the summer survey).

“While many AMBA member companies continue to struggle with pricing and demands for lower costs, we are seeing a lot of positive signs out there, as this survey reflects,” said Melissa Millhuff, executive director of the AMBA. “We’re optimistic that 2010 will prove to be a better year for the moldmaking industry, and especially for our member companies.” —[email protected]

Sign up for the PlasticsToday NewsFeed newsletter.

You May Also Like