PT/MC releases 2009 PT Distributor Performance Report.
Press Release Summary:
Revealing profit challenges and opportunities in power transmission/motion control industry, 2009 PT Distributor Performance Report indicates that typical PT/MC distributor experienced increase in gross margins but slower sales growth than anticipated at beginning of year. Actual sales growth rate for median PTDA distributor was 1.7%, while gross margins beat expectations with increase of 3.0%. Most successful firms continue to exhibit critical profit variables well above typical firms.
Original Press Release:
PT/MC Distributors' Sales and Gross Margins Experienced Growth in 2008
Chicago, Ill. - May 5, 2009 - The Power Transmission Distributors Association (PTDA) recently announced the results of its 2009 PT Distributor Performance Report (based on 2008 data). Revealing the profit challenges and opportunities in the power transmission/motion control (PT/MC) industry, the report indicates that the typical PT/MC distributor experienced an increase in gross margins but slower sales growth than anticipated at the beginning of the year.
When asked in October 2007 to forecast sales for 2008, just over 50 percent of distribution firms anticipated growth in sales of between 5.0 and 14.9 percent. The actual sales growth rate for the median PTDA distributor, as reported in the 2009 PT Distributor Performance Report, was lower than anticipated at 1.7 percent. As for gross margins, 80 percent forecasted growth in gross margins in the range of 0.0 to 1.9 percent. According to the data collected for the PT Distributor Performance Report, gross margins as a percent of net sales beat expectations with an increase of 3.0 percent.
The 2009 PT Distributor Performance Report also provides a comparison of the median "high profit" distribution firm versus the median "typical" firm. The results suggest the most successful firms continue to exhibit critical profit variables well above those of the typical firm.
The PT Distributor Performance Report, conducted annually for PTDA by Profit Planning Group of Boulder, Colo., is a compilation of operational statistics from 49 PTDA members throughout North America. This valuable resource examines five-year distributor performance trends in return on investment, income statement, and balance sheet line items and examines financial ratios, asset productivity ratios, growth and cash sufficiency ratios and employee productivity ratios.
Data is reported for typical PT/MC distributors and high-profit firms (top 25 percent of firms based on ROA). Data also is reported for five U.S. regions (Eastern, Southern, Midwest, South Central and Western) and Canada, and four sales volume categories, ranging from less than $10 million to over $75 million. Additional breakouts include machinery, repair and operations (MRO) emphasis versus original equipment manufacturer (OEM) emphasis, and product mix (percentage of sales by bearings, power transmission and other).
The report is designed for distributors seeking information to benchmark their company's performance against that of the industry as well as manufacturers looking to obtain insight into the operational and business needs of their distributors.
The report is available for purchase to PTDA members for $169.95 and to non-members for $299.95. For more information, contact PTDA at +1.312.516.2100 or visit the PTDA Store at www.ptda.org/store.
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.
