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The transmission/motion control (PT/MC) industry experienced rapid expansion during the second quarter, according to the inaugural Quarterly Business Index released by the Power Transmission Distributors Association. The overall reading of the association’s distributor and manufacturer members revealed an index of 77.0. A reading above 50 indicates growth.
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The new PTDA Quarterly Business Index, conducted jointly by PTDA and Cleveland Research Company, was modeled after the Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC market.
The initial survey had 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, while distributor respondents posted a growth index of 71.1. In addition to improving sales and production, the survey results also anticipated continued strength in the near-term.
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.
Download the full report, including U.S. and Canadian breakout data, from www.ptda.org/Index.