PTDA Business Index indicates growth.
Press Release Summary:
According to PTDA Business Index, 4Q2011 was the seventh consecutive quarter for business growth among PTDA members, with reading of 67.3. Compared with reading of 68.1 for 3Q2011, fourth-quarter results indicate power transmission/motion control industry is expanding at a slightly slower pace than before. Both distributors and manufacturers saw growth in 4Q11, and distributors outpaced manufacturers for first quarter in survey's history.
Original Press Release:
4Q11 PTDA Business Index Indicates Growth But at a Slightly Decelerated Rate
2012 Expected to be Another Growth Year
Chicago, Ill.- The PTDA Business Index indicated 4Q2011 was the seventh consecutive quarter for business growth among PTDA members, with a reading of 67.3. Compared with a reading of 68.1 for 3Q2011, the recently released fourth-quarter results indicate the power transmission/motion control industry is expanding at a slightly slower pace than before.
Both distributors and manufacturers saw growth in 4Q11. Distributors outpaced manufacturers for the first quarter in the survey's history.
[Note: The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.]
The table below provides an overview of the results from the 4Q2011 index and a comparison with 3Q2011.
PTDA Quarterly Business Index
3Q2011 4Q2011
Business Activity 72.3 68.6
New Orders 72.6 72.8
Employment 66.7 65.9
Supplier Deliveries 60.9 61.9
Inventories 70.7 64.7
Prices 89.7 83.7
Backlog 64.7 55.8
Overall PTDA Index 68.1 67.3
PTDA members participating in the Business Index expect 2012 to be another year of growth with an average forecast of 9 percent, up from 8 percent in the 3Q11 survey.
The PTDA Business Index full report is available through PTDA's website at www.ptda.org/Index. It includes U.S. and Canadian breakout data in addition to historical data. Conducted jointly by PTDA and Cleveland Research Company, the 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.
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 178 power transmission/motion control distribution firms that generate more than $10 billion in sales and span just over 3,500 locations in North America and 11 other countries. PTDA members also include 180 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, call +1.312.516.2100 or visit www.ptda.org.
