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Motion Control Market Continues to Trend Upward

POSTED 08/05/2008

MCA’s New Trend Analysis Reveals Strong Performance in 1st Quarter 2008

According to a new Trend Analysis prepared by the Motion Control Association, the market is up significantly in first quarter 2008 compared to the same quarter one year earlier. For the market as a whole, Motion Control (MC) product orders were up 18.8 percent over 1st quarter 2007. Shipments also achieved double-digit growth at 11.2 percent. Remarkably, these results come at a time of weakness in the overall manufacturing sector of North America, as measured by such indicators as the Institute for Supply Management’s PMI (Purchasing Managers Index). However MC products which are used in automation are in demand and rising due to the desire for improving capital efficiency, reducing labor costs, and replacement of obsolete mechanical equipment with more versatile equipment.

These and other MC market results are in MCA’s new Trend Analysis, which examines orders and shipments by major product category and by quarter for 2007 and 1st quarter 2008. The data is available to MCA members.

The Trend Analysis exams sales and orders, and presents graphic data by quarter, by product category, and by book to bill for each major product category. Additionally a real growth rate analysis for each product category is presented.

This new Trend Analysis presents the relative size of all product segments comprising the MC market, and also the performance rates.  MC companies can use this information to determine market growth rates, and zero in on their performance and market share in the segments they participate.  These segments are motion controllers (positioners), electronic drives (amplifiers), AC drives (inverter/vectors), motors (DC/AC servomotors), AC motors (induction), actuators & mechanical systems (mechanical drivers, gearboxes, etc), sensors & feedback devices, other ancillary components; and support & services. With the growth statistics of MCA’s Trend Analysis used as benchmarks, comparative performance measurements are now easy.

MCA prepares two versions of the new Trend Analysis, “Full” and “Abbreviated”.  The Abbreviated version consists of 4 pages presenting a summary of shipment data, and is available to all MCA members.  The Full version is more comprehensive, containing 14 pages of order and shipment data analyzed with tables/charts presenting dollars, distribution by product, quarterly category sales and book to bill ratios.  To receive the Full version, members report company data every quarter to MCA under the protection of a Non-Disclosure Agreement (NDA).  MCA safeguards all submitted data by displaying only aggregated, industry-wide data in its reports and by strictly adhering to the stringent legal protections of the MCA NDA.

The new Trend Analysis supplements MCA’s quarterly and annual reports, also issued in  “Full Summary” and “Abbreviated Summary”. These quarterly reports were first distributed to MCA members beginning with 2006 annual figures and focused on a single point in time, ie only one quarter. According to MCA President, John Mazurkiewicz, “Motion control companies who have joined MCA have found these reports very helpful. These timely statistics provide valuable insight on market size, regional sales performance, and growth rates of major products and services. I have found that the new Trend Analysis supplement an important tool in identifying and keeping abreast of market trends. These statistics indicate the health of our business.”

Mazurkiewicz continues, “Motion control and automation is increasing as manufacturers face challenges to satisfy market demands and these MC products remain as one of the bet investment a manufacturer can make in order to maintain a competitive edge and keep business profitable. The MCA statistical information can be used by suppliers as a tool in product planning and as an aid in making market decisions.”

Companies wishing to be included on MCA’s distribution list and interested in receiving the Trend Analysis and Full and Abbreviated Summaries should contact Paul Kellett via email ([email protected]) or telephone (734-994-6088).  MCA is a global not-for-profit trade group.