PT/MC industry sees general decline in sales, says latest market

Tag : Clutches And Brakes
The Power Transmission Distributors Association(PTDA) predicted a general decline in the sales in its May 2008month-end trend data report for distributors and manufacturers ofpower transmission/motion control (PT/MC) products.

U.S. distributors' overall sales of PT/MC products declined 7.2% inMay 2008 compared to April 2008. When matched up against sales inthe same month last year, sales in May 2008 were up 1.0%. Accountsreceivable collection days rose 7.8% since April 2008. Theconfidence index of U.S. distributors dropped to 5.6 in May 2008from 5.8 in April 2008 (on a 10-point scale) the first declinesince February 2007.

Canadian distributors also reported a decrease in PT/MC sales,dropping 5.4% in May 2008. Sales over the same period last yearwere down 6.8%. Accounts receivable collection days rose 2.5%compared to April 2008. In May 2008, the confidence level ofCanadian distributors was held constant for the fourth month in arow at 5.7 (on a 10-point scale).

U.S. manufacturers' sales increased slightly in May 2008, with a0.9% gain compared to April 2008. Sales in May 2008 climbed 3.8%compared to the same period last year. Orders in May 2008 were up10.9% over April 2008. The confidence level of U.S. manufacturersrose 0.3 in May 2008 to 5.4 (on a 10-point).

Canadian manufacturer's sales declined significantly in May 2008with a 10.3% loss compared to March 2008. Sales were down 11.1%when compared to the same period last year. The confidence level ofCanadian manufacturers decreased 0.1 to 4.9 (on a 10-point scale)from April 2008 to May 2008. This is the first time the confidencelevel has fallen below 5.0 since January 2003.

Product-by-product sales between April 2008 and May 2008 reflectthe overall increase in sales experienced by U.S. manufacturers andthe decline of sales experienced by Canadian manufacturers. Four ofnine product categories for U.S. manufacturers -- variable speeddrives, clutches and brakes, unmounted bearings and positioningsystems/linear motion products -- posted sales gains. For Canadianmanufacturers, three manufactured products posted a positive gain-- variable speed drives, shaft couplings, and clutches and brakes.