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Survey of industrial power transmission business shows 83% of distributors and 78% of manufacturers expect positive growth in 2013

Chicago, IL — The 3Q12 PTDA Business Index for the third quarter of 2012 produced a reading of 50.3, which represents a deceleration from the second quarter 2012 reading of 54.2. This indicates that the power transmission/motion control...



Chicago, IL — The 3Q12 PTDA Business Index for the third quarter of 2012 produced a reading of 50.3, which represents a deceleration from the second quarter 2012 reading of 54.2. This indicates that the power transmission/motion control (PT/MC) industry expanded for the 10th consecutive quarter at a slower pace compared with 2Q12. The index is compiled by the Power Transmission Distributors Association and Cleveland Research Company.

Both distributors and manufacturers reported decelerated sales growth compared with the last quarter. On average, sales rose 5% in 3Q12, down from the 7% growth seen in 2Q12. Distributor sales growth grew 5% in 3Q12, down from 6% in 2Q12. Manufacturers also reported decelerated sales growth of 6% in 3Q12, compared with 8% growth last quarter.

The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.

The table below provides an overview of the results from the 3Q2012 index and a comparison with 2Q2012. 

PTDA  Quarterly Business Index

 

2Q2012

3Q2012

Business Activity

50.1

48.2

New Orders

49.2

45.0

Employment

64.2

59.5

Supplier Deliveries

53.2

48.6

Inventories

66.9

65.9

Prices

65.7

71.2

Backlog

54.8

41.8

Overall PTDA Index

54.2

50.3

PTDA members expect 2013 to be another year of growth, with an average forecast of 6%. Notably, 83% of distributors and 78% of manufacturers surveyed expect positive growth in 2013.

The PTDA Business Index full report is available through PTDA’s website at www.ptda.org/BusinessIndex. It includes US and Canadian breakout data in addition to historical data. The PTDA Quarterly Business Index was modelled after the Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC market to arrive at an overall index.


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