Posted May 12, 2017

PTDA members feel positive about 2017

Despite a decline of 3.6 percent in the fourth quarter report released by the Power Transmission Distributors Association, PTDA members are positive about the outlook for 2017.

The fourth quarter 2016 Sales History & Outlook Report (SHOR) shows power transmission/motion control (PT/MC) distributor sales declined 3.6 percent from the 3Q16 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 1Q2017 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 4Q2016 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 1Q2017, up from a 47.0 reading in 4Q2016. 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 4Q2016 SHOR at