Respondents to ASA’s monthly sales report reported a median sales increase of 22% for June 2022 vs. June 2021. This comes after a 26% bump when comparing May 2022 vs. May 2021 totals, and an 18% increase when comparing April 2022 totals to April 2021 numbers.
Industry Insights, which produces the ASA monthly sales report for ASA distributor members, noted the June 2022 results reflect another month of robust performance compared to the same month a year ago, but when compared to the previous month (May 2022), the median sales growth was a more modest 7.4% sales growth. That 7.4% comes on the heels of a 3.4% increase and a minus-5% dip when looking back the past 90 days (3 reporting cycles). The minus-5% compared April 2022 to March 2022 numbers.
Respondents reported calendar-year-to-date sales growth of 21.7%, flat compared to the last report. For the trailing 12 months ending June 2022, respondents reported strong sales growth of 19.8%.
Given the current high inflationary environment, the comparisons should be viewed with caution, Industry Insights said. Additionally, the current trailing 12-month period contains sales from a period that has experienced significant price inflation, and the comparison 12-month period contains seven months of 2020 that had multiple weeks of closures or partial closures, Industry Insights explained.
Nonetheless, it is encouraging that half the respondents to the monthly sales report survey reported trailing 12-month sales growth between 15.3% to 27.4%— slightly down from the May report’s range of 17.1% to 28.7%, Industry Insights added.
Inventory jumped 34% for June 2022 vs. June 2021. The median three-month average days sales outstanding remained at 41 days in June, the same as reported in May.
“It was another strong month in terms of year-over-year sales performance, though, these figures still should be viewed through a cautionary lens due to inflation, i.e. inflated sales currently vs. low inflation sales last year at this time,” reiterated Greg Manns, senior vice president at Industry Insights.
What ASA distributor members are saying:
Some comments from ASA member distributors that participated in the monthly sales report:
- “Activity level remains stable; however, bid jobs have slowed as releases are being held back due to budgetary and pricing concerns.”
- “Inflation is driving the majority of our sales growth. Rising open orders and inventory values are the biggest concern areas we are facing as we head into a possible slowdown or recessionary period.”
To access the full ASA monthly sales report and to access archived reports, log into your MyASA account at www.asa.net/myasa.