COLUMBUS, Ohio — Heating, Air-conditioning and Refrigeration Distributors International (HARDI) released its monthly TRENDS report indicating that average sales growth for reporting HVACR distributor members increased by 19.5 percent in December 2013. The strong results were widespread, with five of the seven reporting regions reporting sales growth in the 20 percent area versus -1.8 percent during December 2012.
“The month to month performance can be volatile. The strong growth report for December reflects a couple factors,” noted Brian Loftus, HARDI market research and benchmarking analyst. “This year had one extra billing day than the prior year; we had an extremely cold period that stretched across much of the country this season, and the December 2012 sales were quite weak across the majority of the country.”
HARDI noted that the annualized growth rate is a better measure of overall industry trend. That growth rate was in the 5 percent to 6 percent range for most of 2013. “The annual sales growth or 12/12 rate-of-change improved to 7.3 percent after the strong December,” said Andrew Duguay, HARDI senior economist. “A full 80 percent of members reported higher sales in 2013 versus the year prior.”
Inventory levels are understandably modest after the busy December and the Days Sales Outstanding, a measure of how quickly customers pay their bills, indicates a healthy financial profile for contractors. “The DSO is at a lower point for this time of year than in 2011 or 2012,” said Loftus.
“The cold weather helped in December, but construction activity and consumer spending was improving during the year also,” said Duguay.
For more information, visit www.hardinet.org.
Publication date: 2/10/2014