MRO Magazine

Positive trend in power transmission market fades

Chicago, IL -- The Power Transmission Distributors Association (PTDA) has released March 2007 month-end trend data ...


Industry

May 28, 2007
By MRO Magazine
MRO Magazine

Chicago, IL — The Power Transmission Distributors Association (PTDA) has released March 2007 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products. The positive growth trend in U.S. distributors sales of PT/MC products that started the year did not continue into March.

March sales dropped 2.5% from February to March of 2007. Year-to-year comparisons are still positive, with sales in March of 2007 increasing 2.1% over sales in March of 2006. Accounts receivable collection days continue to creep up with a 2.3% increase over February 2007 and a 3.1% increase over March 2006.

Despite what is reflected in the trends, the confidence index rose by 0.2 points to 6.6 for March 2007 (on a 10-point scale).

Canadian distributors sales in PT/MC products on a month-to-month comparison matched the performance of their U.S. counterparts. After beginning the year with sales gains, the month of March saw a 1.4% decrease in sales when compared to February 2007 and a 2.9% decrease when compared to March of the previous year. Days sales in account receivables for March 2007 reversed a declining trend to increase 1.1 over February 2007 and 1.5% over March 2006.

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The confidence level of Canadian distributors in March experienced its first decline since July 2006, dropping 0.2 points to 5.8 (on a 10-point scale).

U.S. manufacturers sales continued to increase but at a slower rate, rising 2.4% in March. Sales growth over the same period last year followed this trend, with an increase 2.7%.

The confidence level of U.S. manufacturers remains at 5.5 on a 10-point scale.

Canadian manufacturers sales experienced an increase in March 2007 with an 8.6% growth over February 2007 sales. Year-to-year sales from March 2007 to March 2006 decreased 4.2%. The confidence level of Canadian manufacturers for March lost another 0.1 point (to 5.3 on a 10-point scale).

In considering sales growth on a product-by-product basis between February and March 2007, product categories for U.S. and Canadian manufacturers both experienced an overall positive change in sales.

For U.S. manufacturers, only three categories variable speed drives, gear products, and mechanical drive systems & other PT products showed a reduction in sales. Canadian manufacturers also experience negative growth in two product categories positioning systems/linear motion products and clutches and brakes.

The Market Outlook Report is published monthly by the PTDA and 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.