The Heating, Airconditioning and Refrigeration Distributors International is reporting that HVACR distributor sales in North American for December 2010 is in line with the association’s forecast. However, the association says the numbers failed short of most manufacturer and analyst projections going into the year.
HARDI’s Monthly Targeted
and Regional Economic News for Distribution Strategies (TRENDS) report showed
average growth for the month of 17 percent versus December 2009. HARDI reps
believe this was driven by the impending expiration of the full $1,500
residential tax credits. The running twelve month sales improved for the fifth
consecutive month meeting the top end of HARDI’s 2010 growth projections at
just over 10 percent. Four U.S. HARDI regions and Canada finished the year up double
For the second consecutive month, average days sales
outstanding continued to decline falling much more in-line with distribution
averages. Average distributor sales per employee inched up again after a modest
increase last month.
“As expected, the pending reduction of
the $1,500 tax credits effective January 1, pulled early 2011 demand into
December giving our members a great close to what was generally an
underperforming 2010,” said Talbot H. Gee, HARDI executive vice president and COO.
“December’s distributor sales mix of cooling equipment was nearly 50 percent 14
SEER and higher which will most certainly not be the case next month or likely
any of 2011. The question moving forward isn’t whether but how much
high-efficiency sales will drop if we’re unable to fully reinstate the 25c tax
credits or grow other efficiency incentives.”