PT/MC distributors experience tough November with double-digit drop in sales
Chicago, IL -- The November 2008 month-end trend data for distributors and manufacturers of power transmission/moti...
Chicago, IL — The November 2008 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 dramatically poor results for both groups of companies in Canada and the United States.
In November 2008, U.S. distributors’ overall sales of PT/MC products experienced the largest month-to-month decrease in sales since January 2002, falling 16.0% when compared to October 2008. When matched up against sales in the same month last year, sales in November 2008 were down by 4.1%. Accounts receivable collection days rose 7.8% since October 2008. The confidence index of U.S. distributors for November was unchanged for the third consecutive month, remaining at 5.2 (on a 10-point scale).
Canadian distributors reported a 12.8% drop in sales in November 2008. Sales over the same period last year were down 11.2%. Accounts receivable collection days increased 18.8% over October 2008, the largest month-to-month increase in more than eight years. For the fourth consecutive month, the confidence level of Canadian distributors remained steady at 5.3 (on a 10-point scale).
After two months of sales growth, U.S. manufacturers’ sales dropped 16.8% in November 2008 when compared to October 2008. Compared to the same period last year, sales in November 2008 were virtually unchanged, decreasing 0.2%. Orders in November 2008 were down 23.7% over October 2008. The confidence level of U.S. manufacturers was unchanged at 4.9 (on a 10-point scale).
Canadian manufacturers’ sales were down 18.6% compared to October 2008. Sales were down 21.1% when compared to the same period last year. The confidence level of Canadian manufacturers rose slightly to 4.8, up 0.4 points from last month’s level (on a 10-point scale).
Sales between October 2008 and November 2008 in specific product categories reflect the change in sales experienced by U.S. and Canadian manufacturers. Only one product category for U.S. manufacturers—shaft couplings—posted an increase in sales. For Canadian manufacturers, all product categories posted a decrease in sales.
The full report is available from the PTDA by calling 312-516-2100 or by visiting www.ptda.org.