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Power transmission industry realizes six quarters of growth

Chicago, IL - The Power Transmission Distributors Association quarterly PTDA Business Index indicated the third quarter of 2011 was the sixth consecutive quarter for business growth among PTDA members, albeit with a reading of 68.1. Compared...


Chicago, IL – The Power Transmission Distributors Association quarterly PTDA Business Index indicated the third quarter of 2011 was the sixth consecutive quarter for business growth among PTDA members, albeit with a reading of 68.1. Compared with a reading of 70.2 for 2Q2011, the recently released third-quarter results indicate the power transmission/motion control industry is expanding at a slower pace than before. 

[Note: The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.]

The table below provides an overview of the results from the 3Q2011 index and a comparison with 2Q2011. 

PTDA  Quarterly Business Index

2Q2011

3Q2011

Business Activity

74.3

72.3

New Orders

68.2

72.6

Employment

69.3

66.7

Supplier Deliveries

69.0

60.9

Inventories

68.7

70.7

Prices

87.1

89.7

Backlog

71.1

64.7

Overall PTDA Index

70.2

68.1

PTDA members participating in the Business Index on average continued forecasting 12% growth, the same as from the 2Q outlook. Distributors’ sales rose faster in the third quarter than manufacturers’ sales.

The PTDA Business Index full report is available through PTDA’s website at www.ptda.org/Index. It includes US and Canadian breakout data in addition to historical data. Conducted jointly by PTDA and Cleveland Research Company, the Index was modeled after the 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.

A US-based trade association, PTDA represents 178 power transmission/motion control distribution firms that generate more than $10 billion in sales and span just over 3,500 locations in North America and 11 other countries. PTDA members also include 180 manufacturers that supply the PT/MC industry.