COLUMBUS, Ohio — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) members’ average sales increased 12.1 percent in September, according to the association’s monthly TRENDS report. The average annualized growth for the 12 months through September 2018 registered at 9.8 percent.
“September was another strong month and for the same reasons as August, warmer than normal temperatures against a weak prior year,” said Brian Loftus, market research and benchmarking analyst, HARDI. “The 9.8 percent annual sales growth is the best annual pace since eight years ago, when we began to move beyond the Great Recession.”
HARDI members enjoyed beneficial weather and robust economic conditions in September, said Paul Hallmann, economist, HARDI.
“Based on initial estimates, the U.S. economy grew at an annualized rate of 3.5 percent in Q3,” he said. “Unemployment remains at 3.7 percent, a 49-year low, and consumer confidence reached an 18-year high. HARDI members should prepare for more strong economic growth early in 2019 before things start to cool down by year end.”
Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, spiked up with the strong sales this past spring.
“The DSO is unusually high this month but that happens after unusually busy months like September or May of this year,” said Loftus. “One month is not a trend, and this spike is explainable, if it corrects with the next report.”
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: 11/15/18
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