PTDA Identifies Future Strategic Issues for Industry
Chicago, Ill.—November 8, 2007—The Power Transmission
Distribution Association (PTDA) announced today the approval of a new
strategic plan for the organization. During the development of the
plan, the association identified critical factors that will affect the
industry over the next three to five years. While many assumptions
about the future of the industry were reviewed, the issues listed below
were considered to have the greatest impact in the near future:
--The business and economic environment will see increased demands
from customers, resulting in the need for closer collaboration between
manufacturers and distributors to increase efficiency and effectiveness
of the channel. Because customers can and will source from
anywhere in the world, the sources of supply and purchasing are now
global. Power is and will continue to shift toward the
customer.
--The employment environment continues to make it tough to attract
and retain talented employees. Not only will there be fewer people
to recruit, competition for the best employees means it will cost more
to secure their services. --
--The technological environment and growing use of the Internet will
increase users’ demand for access to product information,
inventory and pricing, requiring both distributors and manufacturers to
invest in e-commerce to facilitate the sharing of information both
downstream and upstream. “Value added” pressure will
continue as customers question their relationships with distributors due
to the ready availability of information via the Internet.
--Changes in the structure of distribution will force the growth of
demand-driven supply channels, requiring distributors to share
point-of-sale and product movement information with their
suppliers. The use of private label strategies by distributors
will expand substantially over the next few years.
As a result this analysis, the PTDA strategic plan incorporates five
goals and 30 strategies designed to help its
membership—distributors and manufacturers of power
transmission/motion control products—successfully meet their
business challenges. The purpose of PTDA is to advance
distribution and strengthen members to be successful, profitable and
competitive in a changing market environment.
For more information about membership in PTDA, contact the
association at +1.312.516.2100, at ptda@ptda.org or visit the Web site at
www.ptda.org.
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.
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