PTDA Members Positive Despite Q4 Sales Declines In PT/MC

PTDA members' Q4 power transmission/motion control distributor sales declined 3.6 percent from Q3, a typical decline for that period, while leading market indicators suggest sales will rise through 2017 and 2018.

Id 27951 Ptda

CHICAGO —The fourth quarter 2016 Sales History & Outlook Report (SHOR) released by the Power Transmission Distributors Association (PTDA) shows power transmission/motion control (PT/MC) distributor sales declined 3.6 percent from the Q3 2016 level, a typical decline for that time period. However, leading indicators for PT/MC products suggest sales will rise through 2017 and 2018 before declining in 2019 as the macro-economy heads into a mild recession.

The Q1 2017 PTDA Business Index supports this forecast for improvement as it climbed exponentially to 69.3, a significant improvement compared to last year’s first quarter reading of 46.9. The PTDA Business Index is also higher than the April 2017 PMI Index of 54.8.

Manufacturers reported a 70.2 reading in 1Q2017, up from 49.1 in Q4 2016 representing the largest quarter-to-quarter increase in the PTDA Business Index data history. Distributors also indicated a significantly higher reading of 68.2 in Q1 2017, up from a 47.0 reading in Q4 2016. PTDA members are benefiting from a general rise in U.S. corporate profits, capital expenditures and industrial utilization rates.

PTDA members participating in SHOR receive the results at no charge approximately 30 days after the close of the calendar quarter. For more specifics on the forecast for power transmission/motion control sales through distribution as well as forecasts for manufacturer sales, purchase the Q4 2016 SHOR at ptda.org/SHOR.

The PTDA Business Index is modeled after the widely respected Purchasing Managers Index (PMI) 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. The entire 1Q2017 PTDA Business Index report is available through PTDA’s website at ptda.org/Index.

The Power Transmission Distributors Association (PTDA) is a global association for the industrial power transmission/motion control (PT/MC) distribution channel. Headquartered in Chicago, Illinois, USA, PTDA represents power transmission/motion control distribution firms that generate more than $16 billion in sales and span over 2,500 locations. PTDA members also include manufacturers that supply the PT/MC industry.

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