ECONOMIC INDICATORS FORECAST UNCERTAINTY By Rachael Pfenninger, Project Manager, AMBA
Areport that current business conditions lthough nearly 90% of mold builders
are positive in the American Mold Builders Association (AMBA) 2020 Business Forecast Report, several business indicators shifted significantly when compared to last year’s data. Amid rising challenges related to increased foreign competition and maintaining profitability, it seems likely that the industry may experience slowing or stagnating growth as it heads into 2020. SURVEY HISTORY Now in its 10th year, AMBA’s annual 2020 Business Forecast Report analyzes data that was collected from more than 110 senior-level executives representing US mold manufacturing shops across 24 states. With this information, mold building companies are able to better benchmark how their companies stack up to industry norms, and executives can better align their anticipated outlook for the upcoming year.
Current Business Conditions: 1st Quarter Trends
Average State of Pipeline in Q1 2020
PROFITS AND HISTORICAL DATA As the industry heads into 2020, current profitability and employment maintain historical trends, but other economic indicators forecast uncertainty and slowing growth within the industry. Fourth-quarter trends hit near historic lows, as 76% of respondents reported that fourth-quarter quoting was either the same or down (up 13% from the previous year) while 75% of New in 2020: Current Capacity Utilization respondents (compared to 60% last year) indicated that backlog was the same or down. This data reflects new From a historical perspective, trending data on current business information benchmarked this year on the state of mold builders’ conditions reflects the information above. Overall, only 40% of pipeline in the first quarter. Over half of mold builders reported that respondents (10% fewer than last year) reported good conditions, either their pipeline is not full enough or they are desperately looking while only 15% reported that conditions are excellent. For the for work; just over one-fifth of respondents said their pipeline is full first time since 2011, a percentage of respondents indicated that or oversold. conditions are bad (i.e., that their pipeline is empty). 30
the american MOLD BUILDER | Issue 1 2020
