6.15.2005

Outlook stalls for metal products - slowdown in automotive sector blamed

According to a Milwaukee Journal Sentinel report, Metal-product manufacturers are expressing little optimism about business conditions for the next three months, according to a new survey from the Precision Metalforming Association, a trade group with Wisconsin companies in its membership.

For years, some metal fabricators aggressively sought automotive contracts because the dollar amounts were large and the work seemed endless. But that might have been a mistake, as the torrent of money slowed and automakers stepped up the pressure on suppliers to deliver parts at lower costs.

Some companies are diversifying to deal with it. For instance, K&S Tool & Die has turned to the lawn-and-garden industry to keep its order books filled. The company's sales are up from a year ago, and it has recently added robotic welding to its capabilities.

Read the rest over at the Sentinel site -- it's something that filters down to welders in a whole lot of industries when automotive is hurting.

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