July 29, 2008 – The Power Transmission Distributors Association (PTDA) today released May 2008 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products.U.S. distributors’ overall sales of PT/MC products declined 7.2 percent in May 2008 compared to April 2008.
When matched up against sales in the same month last year, sales in May 2008 were up 1.0 percent. Accounts receivable collection days rose 7.8 percent since April 2008.
The confidence index of U.S. distributors dropped to 5.6 in May 2008 from 5.8 in April 2008 (on a 10-point scale) the first decline since Frebruary 2007.Canadian distributors also reported a decrease in PT/MC sales, dropping 5.4 percent in May 2008.
Sales over the same period last year were down 6.8 percent. Accounts receivable collection days rose 2.5 percent compared to April 2008.
In May 2008, the confidence level of Canadian distributors was held constant for the fourth month in a row at 5.7 (on a 10-point scale).
U.S. manufacturers’ sales increased slightly in May 2008, with a 0.9 percent gain compared to April 2008.
Sales in May 2008 climbed 3.8 percent compared to the same period last year. Orders in May 2008 were up 10.9 percent over April 2008.
The confidence level of U.S. manufacturers rose 0.3 in May 2008 to 5.4 (on a 10-point).
Canadian manufacturer’s sales declined significantly in May 2008 with a 10.3 percent loss compared to March 2008. Sales were down 11.1 percent when compared to the same period last year.
The confidence level of Canadian manufacturers decreased 0.1 to 4.9 (on a 10-point scale) from April 2008 to May 2008.
This is the first time the confidence level has fallen below 5.0 since January 2003.Product-by-product sales between April 2008 and May 2008 reflect the overall increase in sales experienced by U.S. manufacturers and the decline of sales experienced by Canadian manufacturers.
Four of nine product categories for U.S. manufacturers—variable speed drives, clutches & brakes, unmounted bearings and positioning systems/ linear motion products—posted sales gains. For Canadian manufacturers, three manufactured products posted a positive gain—variable speed drives, shaft couplings and clutches & brakes.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.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 205 power transmission/motion control distributor firms with over 3,500 locations throughout North America and 12 other countries as well as 194 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.