PT/MC Industry sees general decline in sales.

Press Release Summary:



According to month-end trend data for distributors and manufacturers of power transmission/motion control products, U.S. distributors' overall sales of PT/MC products declined 7.2% in May 2008 compared to April 2008. Canadian distributors also reported decrease, dropping 5.4% in May 2008. U.S. manufacturers' sales increased slightly in May 2008, with 0.9% gain compared to April 2008, while Canadian manufacturer's sales declined in May 2008 with 10.3% loss compared to March 2008.



Original Press Release:



PT/MC Industry Sees General Decline in Sales



July 10, 2008-Chicago, IL: 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% 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%. Accounts receivable collection days rose 7.8% 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% in May 2008. Sales over the same period last year were down 6.8 %. Accounts receivable collection days rose 2.5% 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% gain compared to April 2008. Sales in May 2008 climbed 3.8% compared to the same period last year. Orders in May 2008 were up 10.9% 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% loss compared to March 2008. Sales were down 11.1% 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 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.

U.S. Manufacturer Percent Change in Product Sales (April 2008 vs. May 2008)

Product                                          Percent Change
Gear Products -13.5%
Mechanical Drive Systems and Other PT Products -5.4%
Mounted Bearings -4.0%
Shaft Couplings -1.3%
Standard Industrial Motors -1.2%
Clutches & Brakes 0.3%
Unmounted Bearings 8.2%
Positioning Systems/Linear Motion Products 12.8%
Variable Speed Drives 30.5%


Canadian Manufacturer Percent Change in Product Sales (April 2008 vs. May 2008)

Product                                     Percent Change
Mounted Bearings -18.7%
Gear Products -16.0%
Positioning Systems/Linear Motion Products -14.0%
Mechanical Drive Systems & Other PT Products -10.0%
Unmounted Bearings -8.4 %
Standard Industrial Motors -6.3%
Shaft Couplings 2.9%
Variable Speed Drives 3.3%
Clutches & Brakes 5.8%


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 email or mail. To purchase the year-end data or to begin a subscription to the monthly data, order online or call PTDA at 312-516-2100. PTDA members may download the report at no charge through the PTDA website.

All Topics