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Capital Spending Report Forecasts Increase in Spending for 2003
May 2003
Nearly one half of metalforming companies plan to increase their capital spending in 2003 compared to actual 2002 expenditures, according to the Capital Spending Report issued by the Precision Metalforming Association (PMA). Another 20 percent forecast no significant change in their spending compared to last year.
The report provides a detailed forecast of manufacturers? plans for capital investment in 2003 along with valuable perspective on specific areas of equipment and technology where they expect to invest. It also provides historical information on how budgets were actually spent in 2002. Nearly 100 manufacturers of precision metal formed parts and related products participated in the survey.
Some of the key measures include:
- Average 2003 Capital Spending ? The expected average company expenditure for capital items was reported to be $780,996. This compares to average spending of $658,343 in 2002, a 16% increase.
- Capital Spending Per Quarter ? The largest share of capital expenditures (57%) is expected to be made during the first two quarters of 2003. Anticipated total expenditures during the first and second quarters totals $33,814,352, while the remaining two quarters totals $24,864,374 for all participating companies.
- Decision-making Criteria ? Major factors that motivate manufacturers? decisions to purchase capital equipment are market conditions, equipment quality and price.
- Capital Spending by Type of Manufacturer ? Metal stamping companies plan to spend an average of $776,200 on capital equipment in 2003, while metal fabricating companies reported an average of $707,400. Other types of manufacturers plan to spend $352,682 on average.
To purchase or inquire about the survey, contact the PMA . PMA is the full-service trade association representing the $41-billion metalforming industry of North America?the industry that creates precision metal products using stamping, fabricating and other value-added processes. Its nearly 1,300 member companies include metal stampers, fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry. Members are located in 30 countries, with the majority found in North America¯in 41 states of the United States as well as Canada and Mexico.
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