PTDA Business Index Indicates Continued Moderate Growth

The 4Q12 PTDA Business Index produced a reading of 50.7, which represents a very slight increase over last quarter’s reading of 50.3. This indicates that the power transmission/motion control (PT/MC) industry expanded for the eleventh consecutive quarter at a slightly faster pace compared with 3Q12.

Chicago, IL  The 4Q12 PTDA Business Indexproduced a reading of 50.7, which represents a very slight increase over last quarter’s reading of 50.3. This indicates that the power transmission/motion control (PT/MC) industry expanded for the eleventh consecutive quarter at a slightly faster pace compared with 3Q12. 

On average, sales rose 6 percent in 4Q12, up from the 5 percent growth seen in 3Q12. Distributor sales growth was also 6 percent in 4Q, up from 5 percent in 3Q, while manufacturers also reported sales of 6 percent, flat from 3Q. PTDA members expect 2013 to be another year of growth, with an average projection of 7 percent, up from the 6 percent outlook last 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 4Q.

[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 at www.ptda.org/Index. It includes U.S. and Canadian breakout data in addition to historical data. Conducted jointly by PTDA and Cleveland Research Company, the PTDA Quarterly Business Index is modeled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC industry to arrive at an overall index.

Founded in 1960, the Power Transmission Distributors Association (PTDA) is the leading association for the industrial power transmission/motion control (PT/MC) distribution channel. A U.S.-based trade association, PTDA represents 174 power transmission/motion control distribution firms that generate more than $11 billion in sales and span just over 3,400 locations in the United States, Canada and eight other countries. PTDA members also include 184 manufacturers that supply the PT/MC industry.

PTDA is dedicated to providing exceptional networking, targeted education, relevant information and leading-edge business tools to help distributors and manufacturers meet marketplace demands competitively and profitably. For more information, call +1.312.516.2100 or visit www.ptda.org.

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