MRO Magazine

Sales of mechanical power transmission products jumped in October

Chicago, IL -- According to the October 2007 month-end trend data for distributors and manufacturers of power trans...


Industry

December 18, 2007
By MRO Magazine

Chicago, IL — According to the October 2007 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products prepared by the Power Transmission Distributors Association (PTDA).

U.S. distributors’ sales of PT/MC products have fluctuated all year, with six out of ten months of positive growth in sales. October sales came in at 5.3% over September sales. Year-to-year comparisons have been in the positive all year; sales in October 2007 came in 9.4% higher than in October 2006.

Accounts receivable collection days decreased 6.8% over September 2007. The October 2007 confidence index for U.S. distributors dropped to 6.2 (on a 10-point scale) after holding steady at 6.6. for the past seven months.

Canadian distributors’ sales in PT/MC products on a month-to-month comparison matched the performance of their U.S. counterparts, gaining 3.7% over September 2007. Compared to October 2006, sales in October 2007 experienced a 1.0% gain.

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Account receivables collection days reversed direction from September 2007, decreasing 7.7% in October 2007. After a brief uptick in September, the confidence level of Canadian distributors in October 2007 dropped back to its August 2007 level of 5.3 (on a 10-point scale)

After a drop in sales last month, U.S. manufacturers’ sales spiked 11.2% from September to October 2007. Sales growth over the same period last year also rose, increasing 7.5%. The confidence level of U.S. manufacturers’ remained flat for the fourth consecutive month at 5.5 (on a 10-point scale).

Mirroring their U.S. counterparts, Canadian manufacturers’ month-to-month sales rose 3.1% in October after a decrease in sales the month before. Year-to-year sales growth decreased, falling 2.2% over October 2006. The confidence level of Canadian manufacturers also remained flat at 5.2 on a 10-point scale, a level it has maintained since June.

Between September and October 2007, U.S. manufacturers experienced an overall increase in sales in all product categories except two (positioning systems/linear motion products and mounted bearings). Only three of Canadian manufacturers’ product categories experienced a decrease in sales mounted bearings, mechanical drive systems & other PT products and positioning systems/linear motion products.

The Market Outlook Report is published monthly by the Power Transmission Distributors Association. The full report includes month-to-month and year-to-year changes for the current and the previous years in sales, inventory and accounts receivables data for U.S. and Canadian distributors as well as a general confidence index. U.S. and Canadian manufacturer data includes a confidence index, as well as sales and order trends for mounted bearings, unmounted bearings, standard industrial motors, variable speed drives, positioning systems/linear motion products, gear products, clutches and breaks, shaft couplings and mechanical drive systems and other PT products.

The report 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; PTDA members may download the report at no charge through the PTDA web site at www.ptda.org/MOR.