While other industries may be experiencing slowdowns leading to recessionary forecasts, sales trends for distributors and manufacturers in the power transmission/motion control industry are still strong, reporting month-to-month sales gains in both U.S. and Canadian markets, according to the February Power Transmission Distributors Association month-end trend data report.
Continuing the upward trend of last month, U.S. distributors'sales of PT/MC products were up 11.6 percent in February 2008 compared to January 2008. When matched up against sales in the same month last year, sales in February 2008 gained 6.7 percent. Accounts receivable collection days were down 5.4 percent from January 2008. The confidence index of U.S. distributors remained flat for the third month in a row at 5.8 (on a 10-point scale).
Canadian distributors also continue to post positive gains in PT/MC sales, rising 10.1 percent in February 2008. Sales growth over the same period last year was up 1.1 percent. Days sales in account receivables dropped 2.7 percent as compared to January 2008. In February 2008, the confidence level of Canadian distributors rose to 5.7 (on a 10-point scale), its highest level since September 2007.
U.S. manufacturers'sales were up again for the second month. Sales in February 2008 increased 8.5 percent compared to January 2008. Orders were also up, posting a 6.3 percent gain over January 2008. The confidence level of U.S. manufacturers held steady at 5.5 (on a 10-point) for the eighth month in a row.
Canadian manufacturer's sales were also positive in February, posting a 6.8 percent gain over January 2008. Sales were also up compared to the same period last year with a gain of 3.5 percent over February 2007. The confidence level of Canadian manufacturers showed a decrease, dropping 0.1 to 5.1 (on a 10-point scale) from January 2008.
Product-by-product sales between January 2008 and February 2008 reflect the overall growth in sales experienced by both U.S. and Canadian manufacturers. All product categories for U.S. manufacturers experienced sales growth. For Canadian manufacturers, all product categories, except shaft couplings and variable speed drives, experienced a positive change in sales.
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 for the current and the previous year in sales, inventory and accounts receivables 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 sales and order trends for mounted bearings, unmounted bearings, standard industrial motors, variable speed drives, positioning systems/linear motion products, gear products, clutches and brakes, shaft couplings and mechanical drive systems and other PT products.
Year-end data for 2006 and 2007 is available in a complete report. The monthly data is available by subscription via e-mail or mail. Order online at www.ptda.org/store or call PTDA at 312-516-2100.