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October 15, 2007

PT/MC Product Sales Rise Nearly 10% in August

U.S. distributors’ sales of Power Transmission/Motion Control products continue to fluctuate, rising 9.9% from July to August after a 7% drop in sales the prior month, according to recent Power Transmission Distributors Association month-end trend data. Year-to-year comparisons remain positive with sales in August 2007 coming in 6.0% higher than in August 2006.
 
Accounts receivable collection days were down 5.5% over July 2007. The August 2007 confidence index for U.S. distributors remained unchanged for the sixth month in a row at 6.6 (on a 10-point scale).
 
Canadian distributors’ sales in PT/MC products were also up, increasing 1.5% from July to August 2007. Year-to-year comparisons continued to rise, gaining 1.1% over sales in August of 2006. Account receivables collection days continue to decline, dropping 4.7% over July 2007. After last month’s dip, the confidence level of Canadian distributors increased 0.6 points to 5.3. (on a 10-point scale)
 
U.S. manufacturers’ sales reversed last month’s decline, jumping 10.1% from July to August 2007. Sales growth over the same period last year was also up 8.1%. The confidence level of U.S. manufacturers’ remained flat at 5.5 (on a 10-point scale) from July to August 2007.
 
Mirroring their U.S. counterparts, Canadian manufacturers’ month-to-month sales rose 5.8 percent in August after a drop in sales the month before. Year-to-year sales growth continued to increase with a 1.7% increase over August 2006. The confidence level of Canadian manufactures also remained flat at 5.2 on a 10-point scale.
 
Between July and August 2007, U.S. manufacturers experienced an overall increase in sales with only one product category — standard industrial motors — experiencing a decrease in sales. Canadian manufacturers experienced an overall decline in sales with only three product categories showing an increase in sales — unmounted bearings, variable speed drives and gear products.
 
The Market Outlook Report is published monthly by the Power Transmission Distributors Association. The full report is available by annual subscription via e-mail or mail by contacting
1.312.516.2100 or may be ordered online at www.ptda.org/store; PTDA members may download the report at no charge.

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