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Distributors’ and Manufacturers’ Sales Rise According to PTDA’s January 2007 Market Outlook Report Data

Chicago, Ill. -- March 16, 2007 -- The Power Transmission Distributors Association (PTDA) today released January 2007 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products.

After a four month decline in U.S. distributors’ sales of PT/MC products, January sales were up 12.9 percent compared to December 2006.   When matched up against January 2006 sales, sales in January 2007 gained 8.4 percent.  Accounts receivable collection days fell 11.1 percent in January 2007 after an increase in December 2006; accounts receivable collection days were also down 3.3 percent compared to January 2006.  For January, the confidence index of U.S. distributors hit a 12-month low at 6.2, with a one-month decrease of 0.4 points.

Following a steep drop in Canadian distributors’ sales in PT/MC products in December 2006, sales escalated 8.1 percent in January 2007. Sales increased 6.2 percent in January 2007 when compared to January 2006.  Days sales in account receivables dropped 8.7 percent as compared to December 2006 and fell 2.2 percent as compared to the same month last year.  For January, the confidence level of Canadian distributors rose to 7.5 on a 10-point scale, slightly lower than the previous 12-month average of 7.8.

U.S. manufacturers’ sales posted its largest gain in the past four months, climbing 11.4 percent between January 2007 and December 2006.  Sales growth over the same period last year was significant with an 8.4 percent increase.   The confidence level of U.S. manufacturers continues to fluctuate between 5.4 and 5.6, with a 0.1 increase (to 5.6) on a 10-point scale from December 2006 to January 2007.

Canadian manufacturer’s sales broke its two-month stretch of declining sales, with a 17.0 percent gain over the December 2006.  Sales for 2007 remain positive with a 6.3 percent increase in January 2007 as compared to January 2006.  For January, the confidence level of Canadian manufacturers rose  0.4 points (to 5.5) after remaining flat at 5.1 the past two months.

Product-by-product sales between November and December 2006 reflect the overall growth in sales experienced by both U.S. and Canadian manufacturers.  All product categories for U.S. manufacturers, except variable speed drives, experienced a positive change in sales.  For Canadian manufacturers, only three categories of product— clutches & brakes, mounted bearings, and mechanical drive systems & other PT products —showed negative month-to-month sales growth.

U.S. Manufacturer Percent Change in Product Sales (December 2006 vs. January 2007)

Canadian Manufacturer Percent Change in Product Sales (December 2006 vs. January 2007)

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

The report is available by annual subscription via e-mail or mail by contacting +1.312.516.2100 or may be ordered online at www.ptda.org/store; PTDA members may download the report at no charge through the PTDA web site, at www.ptda.org/MOR.

Founded in 1960, the Power Transmission Distributors Association (PTDA) is the leading association for the industrial power transmission/motion control (PT/MC) distribution channel.  A U.S.-based trade association, PTDA represents 216 power transmission/motion control distributor firms with over 3,500 locations throughout North America and 13 other countries, as well as 200 manufacturers that supply the PT/MC industry. 

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