HARDI Update: June Numbers Slow
Heating, Air-conditioning and Refrigeration Distributors International (HARDI) announced U.S. HVACR average distributor sales for June 2012 down 1.8 percent, the first month-over-month decline this year. HARDI’s monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) Report showed declines in five of the seven U.S. regions.
“June numbers were underwhelming, a likely correction for the strong May and unseasonably early heat in 2012. Members reported a 1.8 percent decline in sales versus last June on average,” said Andrew Duguay, HARDI economist. “The weak June should be taken into context of the strong May and sales are still up 3.5 percent on average over the past year. The Southwest continues to be the best performing region over the past 12 months, up 10.6 percent, but June came in flat (-0.2 percent) versus last June.”
Days Sales Outstanding - a measure of how quickly customers pay their bills - declined for the second consecutive month, the third decline in the last ten months. Distributor productivity reflected by sales per employee continued its third consecutive month of growth by exceeding May’s figures by another 6 percent.
“The roller coaster that is 2012 continues. May’s eye-popping numbers have been tempered by June’s modest decline, and I expect yet another reversal when we likely see strong July numbers,” said Talbot Gee, HARDI executive vice president and COO. “It is, however, time to consider the potential for ‘election paralysis’ until November’s outcome provides some general direction to business owners and homeowners as to what the economic and tax environment is likely to be next year.”