After December slump, PT suppliers see big hike in January business
Chicago, IL -- The Power Transmission Distributors Association (PTDA) has released January 2007 month-end trend dat...
Chicago, IL — The Power Transmission Distributors Association (PTDA) has released January 2007 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products.
After a four month decline in U.S. distributors sales of PT/MC products, January sales were up 12.9% compared to December 2006. When matched up against January 2006 sales, sales in January 2007 gained 8.4%. Accounts receivable collection days fell 11.1% in January 2007 after an increase in December 2006; accounts receivable collection days were also down 3.3% compared to January 2006. For January, the confidence index of U.S. distributors hit a 12- month low at 6.2, with a one-month decrease of 0.4 points.
Following a steep drop in Canadian distributors sales in PT/MC products in December 2006, sales escalated 8.1% in January 2007. Sales increased 6.2% in January 2007 when compared to January 2006. Days sales in account receivables dropped 8.7% as compared to December 2006 and fell 2.2% as compared to the same month last year. For January, the confidence level of Canadian distributors rose to 7.5 on a 10-point scale, slightly lower than the previous 12- month average of 7.8.
U.S. manufacturers sales posted its largest gain in the past four months, climbing 11.4% between January 2007 and December 2006. Sales growth over the same period last year was significant with an 8.4% increase. The confidence level of U.S. manufacturers continues to fluctuate between 5.4 and 5.6, with a 0.1 increase (to 5.6) on a 10-point scale from December 2006 to January 2007.
Canadian manufacturers sales broke its two-month stretch of declining sales, with a 17.0% gain over the December 2006. Sales for 2007 remain positive with a 6.3% increase in January 2007 as compared to January 2006. For January, the confidence level of Canadian manufacturers rose 0.4 points (to 5.5) after remaining flat at 5.1 the past two months.
Product-by-product sales between November and December 2006 reflect the overall growth in sales experienced by both U.S. and Canadian manufacturers. All product categories for U.S. manufacturers, except variable speed drives, experienced a positive change in sales. For Canadian manufacturers, only three categories of product clutches & brakes, mounted bearings, and mechanical drive systems & other PT products showed negative month-to-month sales growth.
U.S. Manufacturer Percentage Change in Product Sales (December 2006 vs. January 2007)
Variable Speed Drives-5.6%
Positioning Systems/Linear Motion Products3.3%
Unmounted Bearings Sales4.7%
Shaft Couplings 11.2%
Mechanical Drives Systems & Other PT Products14.8%
Clutches & Brakes27.5%
Standard Industrial Motors27.7%
Canadian Manufacturer Percentage Change in Product Sales (December 2006 vs. January 2007)
Mechanical Drive Systems & Other PT Products-2.0%
Clutches & Brakes-0.5%
Standard Industrial Motors18.6%
Variable Speed Drives24.4%
Positioning Systems/Linear Motion Products66.2%
The Market Outlook Report is published monthly by the Power Transmission Distributors Association. It is available by annual subscription via e-mail or mail by contacting 312-516-2100 or may be ordered online at www.ptda.org/store.
Founded in 1960, PTDA is the leading association for the industrial power transmission/motion control (PT/MC) distribution channel. A U.S.-based trade association, PTDA represents 216 power transmission/motion control distributor firms with over 3,500 locations throughout North America and 13 other countries, as well as 200 manufacturers that supply the PT/MC industry. For more information, visit www.ptda.org.Power Transmission Distributors Association.