The 2020 Mid-Year Economic Update_long

PTDA Business Index Shows Hastening Growth in 4Q

Eighty-three percent of distributors surveyed expect positive growth in 2013.

The power transmission/motion control industry in the fourth quarter 2012 expanded for the eleventh consecutive quarter, at a slightly faster pace than the prior quarter, according to the PTDA Business Index.

The fourth-quarter index produced a reading of 50.7, a slight increase over last quarter’s reading of 50.3. This indicates that on average, sales rose 6 percent, up from the 5 percent growth seen in the third quarter.

Distributor sales growth was also 6 percent in the fourth quarter, up from 5 percent in the previous quarter. Manufacturers also reported sales growth of 6 percent, flat from the third quarter.

New to this report are trends in 14 end markets where members were asked to rate the strength of each market they serve. Thirteen of the 14 end markets were reported in positive territory. Pulp, paper & board mills production was reported as the weakest category, while oil & gas production was the best performing end market in the fourth quarter.

(Note: The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.)

The table below provides an overview of the results from the 4Q2012 index and a comparison with 3Q2012. 

PTDA  Quarterly Business Index

 

4Q2012

3Q2012

Business Activity

50.1

48.2

New Orders

45.7

45.0

Employment

56.3

59.5

Supplier Deliveries

50.9

48.6

Inventories

59.4

65.9

Prices

76.8

71.2

Backlog

40.0

41.8

Overall PTDA Index

50.7

50.3

PTDA members expect 2013 to be another year of growth, with an average forecast of 7 percent. Notably, 83 percent of distributors and 78 percent of manufacturers surveyed expect positive growth in 2013.

The PTDA Business Index full report is available through PTDA’s website.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.