Quarterly Business Index reveals distributor/manufacturer growth.
Press Release Summary:
With 122 companies participating (55 distributors and 67 manufacturing firms), inaugural Quarterly Business Index shows expansion for transmission/motion control (PT/MC) industry in second quarter. Overall reading of distributor and manufacturer members revealed 77.0 reading; reading above 50 indicates growth. Conducted by PTDA and Cleveland Research Company, index tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices, and backlog in PT/MC market.
Original Press Release:
New PTDA Quarterly Business Index Reveals Growth for Distributors and Manufacturers in the Second Quarter of 2010
Chicago, Ill.-The inaugural Quarterly Business Index released by the Power Transmission Distributors Association (PTDA) shows rapid expansion for the transmission/motion control (PT/MC) industry in the second quarter of the year. The overall reading of the association's distributor and manufacturer members revealed an impressive reading of 77.0, where a reading above 50 indicates growth.
Conducted jointly by PTDA and Cleveland Research Company, the new PTDA Quarterly Business Index was modeled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC market to arrive at an overall index.
"In a survey, nine in 10 PTDA members indicated interest in a forward-looking snapshot of the performance of the power transmission/motion control industry. A task force of the PTDA Marketing Committee worked with Cleveland Research to develop the new Quarterly Business Index," said Don Lanser, chair of the PTDA Marketing Committee and director of industrial marketing motors and systems for U.S. Motors/Nidec Motor Corporation. "The strong participation in the first survey is a great indication that we're now meeting that need."
The initial survey showed a robust response, with 122 companies participating - comprised of 55 distributors and 67 manufacturing firms. A comparative review of the results reveals that manufacturer respondents are expanding at a more aggressive rate with an index of 81.6, with distributor respondents showing a growth index of 71.1. In addition to improving sales and production, the survey results also anticipated continued strength in the near-term.
Participants were also asked to provide their perspective on the remainder of 2010. The positive momentum in the survey results appears to be reflected in the full-year outlook, which calls for 12 percent growth in sales on average. This is comprised of expectations for 8 percent growth on average for distributor participants and 16 percent growth for manufacturers.
The tables below show an overview of the results and provide a breakout reading of the PTDA Quarterly Business Index by distributor and manufacturer.
PTDA Quarterly Business Index - 2Q2010
All Respondents Distributors Manufacturers
Business Activity 82.1 73.1 89.2
New Orders 81.8 75.4 86.9
Employment 67.8 59.6 74.4
Supplier Deliveries 76.3 76.5 76.1
Inventories 54.4 51.3 56.8
Prices 72.9 77.2 69.5
Backlog 79.2 67 88.8
Overall PTDA Index 77 71.1 81.6
The Quarterly Business Index is available at no charge through the PTDA Web site at www.ptda.org/Index. The full report includes U.S. and Canadian breakout data, as well as distributor and manufacturer expectations in business activity, new orders, employment, supplier deliveries, inventories, prices and backlogs.
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 185 power transmission/motion control distribution firms that generate more than $10 billion in sales and span 3,500 locations in North America and 11 other countries. PTDA members also include 181 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.
