PT/MC Market Posts Decline in Sales

May 9, 2008—Chicago, IL: The Power Transmission Distributors Association (PTDA) released the March 2008 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products. All categories posted a decline in sales for the first time in 2008. 

U.S. distributors’ sales of PT/MC products dropped 7.% in March 2008 compared to February 2008. When matched up against sales in the same month last year, sales in March 2008 gained 1.1%. Accounts receivable collection days experienced its first increase in 2008, up 7.7% from February 2008. The confidence index of U.S. distributors remained flat for the fourth month in a row at 5.8 (on a 10-point scale).

Canadian distributors also reported a drop in PT/MC sales, falling 7.9% in March 2008. Sales over the same period last year were down 5.7%. Days sales in account receivables rose 12.2 percent as compared to February 2008. In March 2008, the confidence level of Canadian distributors was unchanged at 5.7 (on a 10-point scale).

U.S. manufacturers’ sales were also lower in March 2008, posting a 0.7% loss compared to February 2008. Sales in March 2008 increased a negligible 0.4% compared to March 2007. Orders in March 2008 declined 5% over February 2008. The confidence level of U.S. manufacturers rose slightly to 5.6 (on a 10-point).

Canadian manufacturer’s sales mirrored the overall market, down 4.5% over February 2008. Sales for the same period last year experienced a decline of 10.8%. The confidence level of Canadian manufacturers held steady at 5.1 (on a 10-point scale).

Product-by-product sales between February 2008 and March 2008 reflect the overall drop in sales experienced by both U.S. and Canadian manufacturers. Three of nine product categories for U.S. manufacturers—shaft couplings, positioning systems/linear motion products and standard industrial motors—posted sales gains. For Canadian manufacturers, two product categories—unmounted bearings and variable speed drives—experienced a positive change in sales.

U.S. Manufacturer Percent Change in Product Sales (February 2008 vs. March 2008)

Canadian Manufacturer Percent Change in Product Sales (February 2008 vs. March 2008)

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 year in sales, inventory and accounts receivables 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 brakes, shaft couplings and mechanical drive systems and other PT products. 

Year-end data for 2006 and 2007 is available in a complete report. The monthly data is available by subscription via e-mail or mail. To purchase the year-end data or to begin a subscription to the monthly data, order online or call PTDA at 312-516-2100.  PTDA members may download the report at no charge through the PTDA website.