In the recently published 100-plus-page 2023 ASA annual Operating Performance Report, responding distributors firms reported a 14.9% after-tax return on assets and a 28% after-tax return on net worth, compared to 15.6% and 26.4% respectively in the previous years.

Industry Insights, ASA’s business intelligence partner that has been publishing ASA’s Operating Performance Report for four decades, noted these results demonstrate a positive trend in profitability, with considerably higher levels achieved over the past two years of the study compared to previous years.

Other highlights from the report saw plumbing firms report a 15.3% sales increase in 2022, vs. an 18.2% sales gain in 2021. PVF firms reported a 29.9% sales gain in 2022 vs. a 17.8% sales increase in 2021, while HVAC/other firms experienced a 15.8% sales increase in 2022, vs. a 22% sales gain in 2021.

Overall, all survey participants reported before-tax return on net worth of 30.5% in 2022 vs. 33.2% in 2021, and 24.4% in 2020.

Industry Insights noted this is nearly $5 billion more than the $19.1 billion or prior-year total sales dollars reported by the 124 participants in the 2023 survey — 24.8% composite sales growth for the total sales dollars reported by survey participants for 2022 vs. 2021.

Of note, Industry Insights reports the median overall sales increase in the report (16.7%) because it is a better figure for benchmarking purposes, and because it is not skewed by larger-volume companies.

 “I always tell folks when evaluating the report and its data, that distributors should always look at the median score, which is a better benchmark of ‘company’ performance, whereas the composite is a better indicator of overall ‘industry’ performance,” said Industry Insights Senior Vice President Greg Manns, who authored the report. “These are two years of very significant increases, albeit somewhat ‘artificial’ growth due to the inflationary environment in which we have been operating. Over the last 10 years prior to 2021, annual sales growth typically fell in the 2% to 7% range for all respondents.”

The 2023 ASA Operating Performance Report, regarded as the gold standard in benchmarking in the PHCP-PVF industry, is an annual 100-plus-page report that represents the most complete, accurate and up-to-date comparative financial performance data and 20-year trends published anywhere about the PHCP, and industrial and mechanical PVF supply chain.

How do I get a copy?If you submitted data into the OPR study and paid your participation fee, you already have a copy of the 2023 report.

If you are a distributor that did not participate in the survey, the report is available for purchase by contacting Bri Baresel at bbaresel@asa.netCheck Out an OPR Sample:To view a sample of the new report, click here.