The second quarter 2020 Sales History & Outlook Report (SHOR) released by the Power Transmission Distributors Association (PTDA) continues to indicate the PTDA Distributors and Manufacturer SHOR Index annual averages will decline into early 2021 with subsequent rising trends lasting through at least year-end 2022. The COVID-19 pandemic has damaged the U.S. and global industrial sectors, bringing challenging conditions in terms of both supply and demand. However, rising leading indicators and government stimulus bode well for the recovery trend. ITR Economics anticipates that the power transmission industry will be nearly completely recovered from the pandemic’s impact by the end of 2022.
The PTDA Business Index for distributors declined in the second quarter of 2020 to 31.3 while the Manufacturer Business Index declined to 25.3. The steep declining trend in the total PTDA Business Index, combined with prior declining trends in US and Canadian leading indicators, suggests business cycle decline is ahead for PTDA members during the coming quarters. However, current trends in the U.S. and Canadian leading indicators suggest recovery will take hold in the industrial sector during 2021.
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 2Q2020 SHOR at ptda.org/SHOR.
The PTDA Business Index is modeled after the widely respected 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 2Q2020 PTDA Business Index report is available through PTDA’s website at ptda.org/Index.
The Power Transmission Distributors Association is the leading global association for the industrial power transmission/motion control (PT/MC) distribution channel. Headquartered in Chicago, PTDA represents power transmission/motion control distribution firms that generate more than $16 billion in sales and span over 2,700 locations. PTDA members also include manufacturers that supply the PT/MC industry.
Filed Under: Commentary • expert insight