PTDA reports growth for power transmission/motion control industry in 2007

The Power Transmission Distributors Association released this week year-end sales data for distributors and manufacturers of power transmission/motion control products, reporting that distributors and manufacturers in North America experienced overall growth in sales in 2007.
By Plant Engineering Staff February 15, 2008

The Power Transmission Distributors Association released this week year-end sales data for distributors and manufacturers of power transmission/motion control products, reporting that distributors and manufacturers in North America experienced overall growth in sales in 2007.
The report shows confidence in the market has eroded slightly, holding a current neutral position between 5.0 and 5.8 versus a range of 5.1 to 6.6, on a 10-point scale where 10 is high, at year-end 2006. And while still in the positive, growth in sales of PT/MC products is definitely slowing. Following three years of double-digit growth, U.S. distributors’ saw a 6.8% increase in PT/MC product sales in 2007. The annualized sales-to-inventory ratio for 2007 was up to 7.6, compared to 7.3 in 2006.
Canadian distributors also continued to experience growth in PT/MC sales, again at a slower rate than in the previous three years. Distributors of PT/MC products in Canada ended 2007 with an increase in sales of 1.7%. The annualized sales-to-inventory ratio for Canadian distributors showed a slight decline from 7.1 in 2006 to 6.4 in 2007.
U.S. manufacturers of PT/MC products experienced year-to-date sales growth of 3.7% versus a more robust growth rate of 7.1% in 2006. The same trend holds true for year-to-date orders of PT/MC products for U.S. manufacturers, gaining 1.1% in 2007 as compared to 3.8% in 2006. The annualized sales-to-inventory ratio increased to 10.0 at year-end 2007 from 9.0 in 2006.
Canadian manufacturers’ sales remained relatively flat in 2007, with a change in sales of less than 1%. Year-to-date sales of PT/MC products by Canadian manufacturers in 2007 increased 0.2% versus a 0.5 decline in 2006. The annualized sales-to-inventory ratio decreased to 6.9 for Canadian manufacturers, compared to 7.4 at the end of 2006.
In considering sales growth on a product-by-product basis for 2007, product categories for U.S. manufacturers showed an overall growth in sales, with only two product categories experiencing sales declines %%MDASSML%% variable speed drives and positioning systems/linear motion products. Canadian manufacturers, on the other hand, showed an overall reduction in sales with only three product categories showing sales growth %%MDASSML%% unmounted bearings, clutches and brakes and standard industrial motors.
Year-end data for 2006 and 2007 is available in a complete report, which PTDA members can download at no charge through the PTDA Website at www.ptda.org/MOR . Non-members can purchase the year-end data online at www.ptda.org/store .