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Distributors’ and U.S. Manufacturers’ Sales Rise According to PTDA’s February 2007 Market Outlook Report Data

Chicago, Ill. -- April 17, 2007 -- The Power Transmission Distributors Association (PTDA) today released February 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 at the end of 2006, this year’s sales continued to show positive growth with a 9.3 percent jump in sales for February.   When matched up against February 2006 sales, sales in February 2007 were up 8.8 percent.  Accounts receivable collection days were up 0.5 percent in February after a steep decline the previous month; accounts receivable collection days were up 1.5 percent compared to the same period last year.  Compared to the previous month, February’s U.S. distributors confidence index of decreased 0.3 percent points to 6.4 on a 10-point scale.

Following a drop in December 2006 sales, Canadian distributors’ sales in PT/MC products posted its second consecutive month of gains, rising 8.5 percent in February. Compared to February 2006, sales increased 5.3 percent in February 2007.  Days sales in account receivables continued to drop, decreasing 1.0 percent in February, but were up slightly (0.5 percent) as compared to the same month last year.  The confidence level of Canadian distributors in February remained flat at 6.0 on a 10-point scale for the eighth consecutive month.

U.S. manufacturers’ sales continued to increase after a significant jump last month, rising 6.4 percent in February.  Sales growth over the same period last year followed this trend, with an increase 7.3 percent.   The confidence level of U.S. manufacturers continues to fluctuate between 5.4 and 5.6, with a 0.1 decrease (to 5.5) on a 10-point scale from January 2007 to February 2007.

Canadian manufacturers’ sales showed a decrease in sales across the board in February.  After a one-month increase of 17.0 percent in January 2007, sales fell 3.0 percent in February.  Year-to-year sales  decreased 7.6 percent as compared to February 2006.  The confidence level of Canadian manufacturers for February also fell 0.1 point (to 5.4) on a 10-point scale compared to January 2007.

In considering sales growth on a product-by-product basis between January and February 2007, product categories for U.S. and Canadian manufacturers both experienced an overall positive change in sales.  For U.S. manufacturers only three categories — clutches and brakes, standard industrial motors, and variable speed drives — showed a reduction in sales.  Canadian manufacturers also experience negative growth in three product categories — unmounted bearings, variable speed drives, and positioning

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

Canadian Manufacturer Percent Change in Product Sales (January 2007 vs. February 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.