ST. PAUL, MN (August 16, 2004)- Power Systems Research has concluded its power generation survey for the second quarter of 2004. Continued growth in the American gen set markets looks like it is positioned to stay on track for awhile according to respondents from the ongoing PowerTracker™ quarterly survey conducted by Power Systems Research. Dealers and distributors reported sales up by 6.4% in the second quarter while inventories actually declined for the third consecutive quarter. The hangover from the Y2K and dotcom bust never really has worn off until just recently. Finally, for the first time in several years, the critical inventory-to-sales ratio has taken a strong and prolonged plunge.

According to anecdotal reports from survey respondents, the upshot is that lead times are soaring and pricing is strengthening. Suppliers can take some comfort that business will be sustainable even if the demand softens a bit as supply patterns fallback into line.

Many of the survey respondents reflected on the massive power outages experienced in the Eastern part of the United States and Canada in August of 2003 as a motivator for their decision to get more serious about buying or investigating the purchase of a generator set for standby purposes. This is an attitude reversal from a trend that has gone the other way since the Y2K boom and the California power shortages.

Strong business outlook and the warm months of summer ahead have teamed up to provide an increase in demand for generator sets in the second quarter. Orders are increasing and quotes are being issued. With the economy gaining strength, the market for generator sets is on the rise.

PowerTracker™ monitors the market developments for all engine-powered generator sets sold in the United States and Canada. Gen set dealers, distributors, business consumers and household consumers are surveyed quarterly to determine their short-term expectations for the market. PowerTracker™ analyzes market activity and industry developments for various gen set applications, brands and customer groups. The core data for this gen set study originates from a series of 1400 interviews conducted on a quarterly basis with potential and actual users of gen sets as well as key dealership and distributor personnel. Further information about this survey and other MarketTracker™ surveys is available at http://www.powersys.com/sur_track.html.

Power Systems Research is a global market research and consulting company specializing in the engine, original equipment, and components industries. Since the company was founded in 1976, Power Systems Research has been the authoritative source of market information and business intelligence to the power products and drivetrain industry. Power Systems Research is headquartered in St. Paul, Minnesota and provides market data and customized project work to the world's leading vehicle and equipment OEMs and component suppliers. The company has a global presence with operations in Detroit, Brussels and Tokyo. Further information is available at http://www.powersys.com.