PTDA positively adjusts 2021 outlook
The third quarter 2020 Sales History & Outlook Report (SHOR) released by the Power Transmission Distributors Association (PTDA) indicates the severity of the year-over-year decline in U.S. industrial production.
However, the PTDA Distributor and Manufacturer Total Sales Indices are easing relative to tentative second-quarter lows.
The PTDA Distributors Total Sales Index in the third quarter was 7.5 percent below the same quarter a year ago, halving the severity of the second quarter’s 15 percent year-over-year decline. Therefore, the PTDA Distributors Total Sales Index annual average is up 7.2 percent and 5.0 percent for 2020 and 2021, respectively.
The PTDA Business Index for distributors rose in the third quarter of 2020 to 69.8 while the manufacturer Business Index rose to 50.1, indicating both PTDA distributor and manufacturing activity picked up in the latter half of the year. As the PTDA Manufacturer and Distributor Business Indexes are leading indicators to the PTDA SHOR Indexes, upward momentum in both is consistent with the expectation of early-2021 business cycle lows in the SHOR Indexes. However, renewed shutdowns in several European countries and recently implemented restrictions in several U.S. states may negatively impact activity in the near term.
PTDA members participating in SHOR receive the results and forecasts through 2022 at no charge 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 3Q2020 SHOR at ptda.org/SHOR.
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The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
