Distributor Center / News

HARDI Distributors Report Modest Growth

HARDI reportCOLUMBUS, Ohio — Heating, Air-conditioning and Refrigeration Distributors International (HARDI) announced North American HVACR average distributor sales for October were up 3.4 percent from the same month last year, which is down from last month’s 5.6 percent growth.

October finally reversed a seven-month decline in the annual distributor growth rate, perhaps signaling a positive turn in the business cycle. HARDI’s Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) report showed growth in six of eight North American regions, though none achieved double digit improvement compared to October 2010. U.S.-only distributor sales growth averaged 3.6 percent for the month.

“Inventories are trending slimmer compared to last year for an increasing number of distributors, with 50 percent of companies reporting inventory levels lower than last year, 46 percent reporting inventory levels higher and 4 percent reporting level inventories,” reported HARDI economist, Andrew Duguay of the Institute for Trend Research (ITR).

Duguay continued, “the 7.2 percent growth rate is a tentative turning point in the business cycle for HARDI members, however knowing that November and December 2010 were strong sales months for most members due to expiring tax credits, I would not be surprised to see the growth rate lower again in the coming surveys. Either way, seeing October 2011 outpace October 2010 is a positive sign for the industry.”

Days Sales Outstanding (a measure of how quickly customers pay their bills) continued a third consecutive month of increases up almost 1.5 percent from last month. Distributor productivity reflected by sales per employee backtracked for the fourth consecutive month down 24 percent from its July peak.

“Like much in today’s economy, signals are mixed and our October report is no different,” said HARDI executive vice president and COO Talbot Gee.

“Seeing a rebound in the annual growth rate is encouraging, but it seems to be at the expense of some fundamentals with higher DSO and lower sales per employee.

“Margin pressures are certainly intense this year, so I’ll be anxious to see our annual profitability survey mid-next year. We still see 2012 as a year for strong growth, but only those right-sized and optimized distributors will grow real profits.”

Publication date: 12/12/2011

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2015 HARDI Fly-In

Highlights from HARDI's Congressional Fly-In in Washington, D.C. Post date: May 28, 2015.

Podcasts

NEWSMakers: Kevin Conrad
Kevin Conrad, president, Kevin Conrad Heating and Cooling Inc., Nantucket, Massachusetts, breaks down working in the New England climate, the benefits of insulation foam, and more.


More Podcasts

ACHRNEWS

NEWS 06-29-15 cover

2015 June 29

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Online Reviews

Do you track online review sites like Yelp to look for comments on your company’s performance?
View Results Poll Archive

HVACR INDUSTRY STORE

2015.jpg
2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con