PTDA Market Outlook for January

U.S. distributors' sales of PT/MC products rose 7.1 percent over the previous month and also increased 1.7 percent as compared to January 2002. Days sales in accounts receivables declined 0.6 percent over December 2002 but grew 1.3 percent as compared to the same month last year. Annualized inventory turnover in January was 3.9 turns, compared to 3.5 turns in 2002.

For January, the confidence level of U.S. distributors fell to 4.6 on a 10-point scale.

Canadian distributors' sales of PT/MC products gained 15.9 over the previous month and increased 11.7 percent as compared to January 2002. Days sales in accounts receivables declined 13.0 percent over December 2002 and rose 3.0 percent as compared to the same month last year. Annualized inventory turnover in January was 6.0 turns, compared to 5.7 turns in 2002.

For December, the confidence level of Canadian distributors dropped to 5.5 on a 10-point scale.

Overall, U.S. manufacturers' sales of PT/MC products decreased 10.8 percent over the previous month and were down 9.8 percent as compared to January 2002. As compared to December, sales of standard industrial motors, variable speed drives, positioning systems/linear motion products, and gear products were up. Sales mounted bearings, unmounted bearings, mechanical drives systems and other PT products, clutches and brakes, and shaft couplings dropped.

Total orders of PT/MC products from U.S. manufacturers fell 3.4 percent over December and decreased 7.8 percent as compared to January 2002. Annualized inventory turnover in January was 5.1 turns, compared to 5.1 turns in 2001.

For January, the confidence level of U.S. manufacturers remained flat at 5.2 on a 10-point scale.

Canadian manufacturers' sales of PT/MC products grew 1.7 percent over the previous month and gained 1.5 percent as compared to January 2002. As compared to December, sales of unmounted bearings, gear products, and shaft couplings were up. Sales of mounted bearings, variable speed drives, mechanical drive systems and other PT products, and clutches and brakes declined.

For January, the confidence level of Canadian manufacturers dropped to 4.8 on a 10-point scale.

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 in sales, inventory and accounts receivables data 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 trends for mounted bearings, unmounted bearings, standard industrial motors, variable speed drives, positioning systems/linear motion products, gear products, mechanical drive systems and other PT products, clutches and brakes and shaft couplings.

The report is available by annual subscription via e-mail or mail by contacting +1.312.876.9461 or may be ordered online at www.ptda.org/catalog; PTDA members may download the report at no charge through the Members Only area of the PTDA web site, at www.ptda.org.

Founded in 1960, PTDA is an US-based trade association representing 220 power transmission/motion control (PT/MC) distributor firms with almost 3,000 locations throughout North America and 14 other countries, as well as over 190 manufacturers that supply the PT/MC industry. PTDA is a member-driven organization dedicated to advancing distribution and strengthening members to be successful, profitable and competitive in a changing market environment.