Home About PTDA Press Releases

PT/MC Distributors Experience Tough November with Double-Digit Drop in Sales According to PTDA's November 2008 Market Outlook Report

Chicago, Ill. — January 15, 2009 — The Power Transmission Distributors Association (PTDA) today released November 2008 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products.

In November 2008, U.S. distributors’ overall sales of PT/MC products experienced the largest month-to-month decrease in sales since January 2002, falling 16.0 percent when compared to October 2008.  When matched up against sales in the same month last year, sales in November 2008 were down by 4.1 percent.  Accounts receivable collection days rose 7.8 percent since October 2008.  The confidence index of U.S. distributors for November was also unchanged for the third consecutive month, remaining at 5.2 (on a 10-point scale).

Canadian distributors reported a 12.8 percent drop in sales in November 2008.  Sales over the same period last year were down 11.2 percent.  Accounts receivable collection days increased 18.8 percent over October 2008, the largest month-to-month increase in more than eight years.  For the fourth consecutive month, the confidence level of Canadian distributors remained steady at 5.3 (on a 10-point scale).

After two months of sales growth, U.S. manufacturers’ sales dropped 16.8 percent in November 2008 when compared to October 2008.  Compared to the same period last year, sales in November 2008 were virtually unchanged, decreasing 0.2 percent.  Orders in November 2008 were down 23.7 percent over October 2008.  The confidence level of U.S. manufacturers was unchanged at 4.9 (on a 10-point scale).

Canadian manufacturers’ sales were down 18.6 percent compared to October 2008.  Sales were down 21.1 percent when compared to the same period last year.  The confidence level of Canadian manufacturers rebounded to 4.8, up 0.4 points from last month’s level (on a 10-point scale). 

Sales between October 2008 and November 2008 in specific product categories reflect the change in sales experienced by U.S. and Canadian manufacturers.  Only one product category for U.S. manufacturers—shaft couplings—posted an increase in sales.  For Canadian manufacturers, all product categories posted a decrease in sales.

U.S. Manufacturer Percent Change in Product Sales (October 2008 vs. November 2008)

Canadian Manufacturer Percent Change in Product Sales (October 2008 vs. November 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 at www.ptda.org/store or call PTDA at +1.312.516.2100.  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 204 power transmission/motion control distribution firms that generate more than $10 billion in sales and span 3,500 locations in North America and 12 other countries.  PTDA members also include 198 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.