HARDI distributors have increased sales growth in August
Heating, Air-conditioning and Refrigeration Distributors International (HARDI) reported a small, 2.2% increase in sales growth in August for HVACR distributors after a large, 13.3% increase in July. HARDI’s Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) Report showed that four of the seven regions contracted in August after strong growth in each region in July.
Despite growth tapering off for a month, HARDI is pleased with the positives it has seen through the past calendar year.
“Sales over the past 12 months are up 3.8%,” said Andrew Duguay, a HARDI economist. “The improving results on a 12-month basis since the recent low point of 2.7% in February show a modest, stable growth trend this year that is consistent with the macroeconomic trends we are witnessing in U.S. Industrial Production and Retail Sales so far in 2012.”
The Days Sales Outstanding (a measure of how quickly customers pay their bills) also shows some modest improvement. The DSO was more than 50 days during the spring, but has shrunk to less than 45 days according to the August survey. The steady overall performance of sales per employee hides the impressive improvement in the Northeast and Great Lakes regions, against flat results of small declines of sales per employee from other areas.
“The performance is encouraging and consistent with recent consumer confidence and housing data,” said Brian Loftus, market research and benchmarking analyst.