PTDA Report Market Outlook 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 216 power transmission/motion control distributor firms with over 3,500 locations throughout North America and 13 other countries as well as 200 manufacturers that supply the PT/MC industry. Following last month’s jump in sales, U.S. distributors’ sales of PT/MC products continue to increase with a 2.2% growth from May to June. Year-to-year comparisons remain positive with sales in June 2007 coming in 4.7% higher than in June 2006. Accounts receivable collection days continue to decline, dropping 1.4% when compared to May. The June 2007 confidence index for U.S. distributors remained unchanged for the fourth month in a row at 6.6 (on a 10-point scale). Canadian distributors’ sales in PT/MC products fell 2.1% from May to June after a rise in last month’s sales. Year-to-year comparisons were relatively stable with a 0.3% increase over sales in June of 2006. Account receivables collection days rose 3.6% over May 2007. The confidence level of Canadian distributors remained stable, staying at 6.0 for June 2007 (on a 10-point scale). U.S. manufacturers’sales continued to increase gaining 5.0% from May to June 2007. Sales growth over the same period last year was also up 3.6%. Despite these positive results, the confidence level of U.S. manufacturers’ dropped 0.2 points to 5.3 (on a 10-point scale) from May to June 2007. Following a decline in last month’s sales, Canadian manufacturers’ sales remained unchanged increasing 0.1%from May to June 2007. Sales growth over the same period last year was also unchanged with a 0.1% increase. The confidence level of Canadian manufactures in 2007 continues to fluctuate between 5.2 and 5.5, dropping 0.1 points to 5.2 (on a 10-point scale) from May to June 2007. Between May and June 2007, U.S. manufacturers experienced an overall positive change in sales in several product categories, while their Canadian counterparts experienced decreasing sales in the majority of product categories. For U.S. manufacturers, only two product categories - positioning systems/linear motion products and mechanical drives systems & other PT products - experienced a decrease in sales. Canadian manufacturers experienced growth in four out of nine product categories - standard industrial motors, positioning systems/linear motion products, gear products and mechanical drives systems & other PT products. 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 in sales, inventory and accounts receivables data 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 breaks, shaft couplings and mechanical drive systems and other PT products. The report is available by annual subscription Speed Link InfoService Request more information by e-mail Reader Service No. Reader Number Email Address 00873

Copyright © 2007 Thomas Publishing Company