Optimism Grows as Metalworking Index Improves Again in November

The Gardner Business Index (GBI) measures the current state of metalworking activity through survey responses covering new orders, production, backlog, employment, exports and supplier deliveries. A reading above 50 indicates expansion and below 50 indicates contraction.

The metalworking industry continued to face challenging conditions in November 2024, with the GBI registering 44.7, showing an uptick from the previous month but remaining in contractionary territory. The index’s movement over the past quarter indicates a possible bottoming out of the current contractionary cycle that began in early 2023. Four of the six index components showed improvement compared to the previous month, with only employment and backlog declining.

---

The GBI Components Scorecard reports the monthly change rate of primary metalworking market factors contributing to the overall monthly index reading.

Reading the Scorecard:

• Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion; red indicates contraction.
• Shade indicates a value’s distance from 50. The darker the shade, the further from 50.
• Direction indicates a value’s change versus the previous time period. Pointing up is always better.

---

The GBI Future Business Index is an indicator of the future state of the metalworking market from industry respondents regarding their opinion of future business conditions for the next 12 months. Over 50 is expansion and under 50 is contraction.

The Future Business Index saw a notable uptick to 62.6, representing a significant improvement in sentiment regarding business conditions over the next 12 months. This optimistic outlook, despite current challenges, suggests industry leaders anticipate more favorable conditions emerging in 2025, likely driven by November’s election results. The divergence between current conditions and future expectations highlights the importance of maintaining operational flexibility while positioning for anticipated market improvements.

Find the latest metalworking market research and reporting at GardnerIntelligence.com.