MRO Magazine

Mechanical power transmission sales get a boost in August

Chicago, IL -- The August 2007 month-end trend data for distributors and manufacturers of power transmission/motion...


Industry

November 1, 2007
By MRO Magazine

Chicago, IL — The August 2007 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products compiled by the Power Transmission Distributors Association (PTDA) shows increases in sales for both groups in Canada and the United States.

U.S. distributors sales of PT/MC products continue to fluctuate, rising 9.9% from July to August after a 7.0% drop in sales the prior month. Year-to-year comparisons remain positive with sales in August 2007 coming in 6.0% higher than in August 2006. Accounts receivable collection days were down 5.5% over July 2007. The August 2007 confidence index for U.S. distributors remained unchanged for the sixth month in a row at 6.6 (on a 10-point scale).

Canadian distributors sales in PT/MC products were also up, increasing 1.5% from July to August 2007. Year-to-year comparisons continued to rise, gaining 1.1% over sales in August of 2006. Account receivables collection days continue to decline, dropping 4.7% over July 2007. After last months dip, the confidence level of Canadian distributors increased 0.6 points to 5.3 (on a 10-point scale)

U.S. manufacturers sales reversed last months decline, jumping 10.1% from July to August 2007. Sales growth over the same period last year was also up 8.1%. The confidence level of U.S. manufacturers remained flat at 5.5 (on a 10-point scale) from July to August 2007.

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Mirroring their U.S. counterparts, Canadian manufacturers month-to-month sales rose 5.8% in August after a drop in sales the month before. Year-to-year sales growth continued to increase with a 1.7% increase over August 2006. The confidence level of Canadian manufactures also remained flat at 5.2 on a 10-point scale.

Between July and August 2007, U.S. manufacturers experienced an overall increase in sales with only one product category standard industrial motors experiencing a decrease in sales. Canadian manufacturers experienced an overall decline in sales with only three product categories showing an increase in sales unmounted bearings, variable speed drives and gear products.

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.

The PTDA is an association for the industrial power transmission/motion control (PT/MC) distribution channel that 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.