COLUMBUS, Ohio — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) distributor members’ average sales increased 12.2 percent in February, according to HARDI’s monthly TRENDS report.
“Sales were light last February, when it was warmer than normal in six of our seven economic regions,” said Brian Loftus, market research and benchmarking analyst, HARDI. “Five of our regions experienced more heating degree days in February this year than in 2017.”
A surging U.S. economy is partially responsible for the increase.
“U.S. gross domestic product for the fourth quarter of 2017 was up by 2.5 percent over the previous year, while U.S. industrial production was up 1.8 percent year-over-year in December,” said Connor Lokar, senior economist, HARDI. “We can expect a strong macroeconomy in the coming one to two quarters; however, that comes with its challenges as inflation is picking up and the Federal Reserve has matched that with ongoing interest rate increases, most recently another 25-basis-point increase this week.”
The Day Sales Outstanding (DSO), a measure of how quickly customers pay their bills, settled in at approximately 46 days.
“This is more than a day faster than 2016 and almost two days better than 2015,” Loftus said.
HARDI members do not receive financial compensation in exchange for their monthly sales data and can discontinue their participation without prior notice or penalty. Participation is voluntary, and the depth of market coverage varies from region to region. An independent entity collects and compiles the data that can include products not directly associated with the HVACR industry.
For more information, visit www.hardinet.org/benchmarking.
Publication date: 03/29/18