MRO Magazine

Month-to-month sales continue to fluctuate according to PTDA market outlook report

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


Industry

January 24, 2008
By MRO Magazine
MRO Magazine

Chicago, IL — The November 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 fluctuating sales results in the U.S. and Canada.

U.S. distributors’ sales of PT/MC products continue to fluctuate, dropping 5.9% from October to November after a 5.2% increase in sales the prior month. Year-to- year comparisons have been positive all year; sales in November 2007 came in 6.8% higher than in November 2006. Accounts receivable collection days also continue to fluctuate, increasing 2.5% in November 2007 after dropping 6.8% last month.

The November 2007 confidence index for U.S. distributors remained flat at 6.2 (on a 10-point scale).

Canadian distributors’ sales in PT/MC products increased slightly, gaining 0.3% from October to November 2007. Compared to November 2006, sales in November 2007 dropped 1.7%. After a decrease in October, account receivables collection days were up 1.0% in November.

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The confidence level of Canadian distributors in November 2007 remained flat at 5.3 (on a 10-point scale).

After a spike in sales last month, U.S. manufacturers’ month-to-month sales dropped 9.9% from October to November 2007. Sales growth over the same period last year continued to grow, increasing 4.2%. The confidence level of U.S. manufacturers’ remained flat for the fifth consecutive month at 5.5 (on a 10-point scale).

Mirroring their U.S. counterparts, Canadian manufacturers’ month-to-month sales decreased 3.6% in November after an increase in sales the month before. Year-to- year sales continued to decrease, falling 1.0% over November 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 October and November 2007, U.S. manufacturers experienced a decrease in sales of all product categories, while their Canadian counterparts experienced growth in five out of nine product categories — standard industrial motors, gear products, mounted bearings, positioning systems/linear motion products and shaft couplings.

The full report is available by annual subscription via e-mail or mail by calling 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 website at www.ptda.org/MOR.

A U.S.-based trade association, PTDA represents 211 power transmission/motion control distributor firms with over 3,500 locations throughout North America and 12 other countries, as well as 202 manufacturers that supply the PT/MC industry.