MRO Magazine

New PTDA Quarterly Business Index reveals growth for distributors and manufacturers in the second quarter of 2010

Chicago, IL - The inaugural Quarterly Business Index released by the Power Transmission Distributors Associati...


Industry

October 18, 2010
By MRO Magazine

Chicago, IL – The inaugural Quarterly Business Index released by the Power Transmission Distributors Association (PTDA) shows rapid expansion for the power transmission/motion control (PT/MC) industry in the second quarter of the year. The overall reading of the association’s distributor and manufacturer members revealed an impressive score of 77.0, where a reading above 50 indicates growth.

 

Conducted jointly by the PTDA and Cleveland Research Company, the new PTDA Quarterly Business Index was modelled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC market to arrive at an overall index.

 

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“In a survey, nine in 10 PTDA members indicated interest in a forward-looking snapshot of the performance of the power transmission/motion control industry. A task force of the PTDA Marketing Committee worked with Cleveland Research to develop the new Quarterly Business Index,” said Don Lanser, chair of the PTDA Marketing Committee and director of industrial marketing – motors and systems – for US Motors/Nidec Motor Corp. “The strong participation in the first survey is a great indication that we’re now meeting that need.”

 

The initial survey showed a robust response, with 122 companies participating – comprising 55 distributors and 67 manufacturing firms. A comparative review of the results reveals that manufacturer respondents are expanding at a more aggressive rate with an index of 81.6, with distributor respondents showing a growth index of 71.1.

 

In addition to improving sales and production, the survey results also anticipated continued strength in the near-term.

 

Participants were also asked to provide their perspective on the remainder of 2010. The positive momentum in the survey results appears to be reflected in the full-year outlook, which calls for 12% growth in sales on average. This comprises expectations for 8% growth on average for distributor participants and 16% growth for manufacturers.

 

The table below shows an overview of the results and provides a breakout reading of the PTDA Quarterly Business Index by distributor and manufacturer.

 

PTDA Quarterly Business Index – 2Q2010

 

 

 

 

 

 

All Respondents

Distributors

Manufacturers

Business Activity

82.1

73.1

89.2

New Orders

81.8

75.4

86.9

Employment

67.8

59.6

74.4

Supplier Deliveries

76.3

76.5

76.1

Inventories

54.4

51.3

56.8

Prices

72.9

77.2

69.5

Backlog

79.2

67

88.8

Overall PTDA Index

77

71.1

81.6

 

The Quarterly Business Index is available at no charge through the PTDA website at www.ptda.org/Index. The full report includes US and Canadian breakout data, as well as distributor and manufacturer expectations in business activity, new orders, employment, supplier deliveries, inventories, prices and backlogs.

 

PTDA is dedicated to providing networking, targeted education, relevant information and business tools to help distributors and manufacturers meet marketplace demands competitively and profitably. For more information, visit www.ptda.org.