“August was the sixth month this year with sales growth that exceeded 20%,” says HARDI Market Research & Benchmarking Analyst Brian Loftus. “Along with the continued underlying strong demand, this month was helped by an extra billing day, warmer than normal temps in five-of-seven regions, and passing through the price increases.”  

The Days Sales Outstanding, a measure of how quickly customers pay their bills, was 40 days at the end of August 2021.  “Like July, the 40-day DSO is about four days quicker than this time of year before the COVID related business interruptions,” Loftus says.

The annual sales growth of 18.7% through August is a new record for HARDI distributor’s average annual growth rate.

“This record growth rate is a result of the easy comparison last year when sales were interrupted, followed by a demand jolt from the stimulus dollars, and then 8% to 10% from price increases that are being passed through,” Loftus says. “Next year will look much different.”

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.