SALES TRENDS FOR PREMIER 150

(Year-To-Year Comparison And Projection)

Soft and sluggish

Many wholesaler-distributors reported a slower year in 2024, but most of them said down numbers were expected. All eyes are on the Trump Administration to see how its tariff agenda will impact business in 2025. Again, expectations are all over the map.

Bob Mucciarone, COO of F.W. Webb said, “2024 was sluggish, as expected. High interest rates dampened growth and new projects. While top-line sales were up, bottom-line profit suffered a bit. We have high expectations for 2025, as we expect interest rates to begin to drop as the impacts of the new administration policies start to take hold.”

Morris Cregger, chairman, Cregger Co. also said 2025 will present political challenges. “We were short of our goal of double-digit growth in 2024 after experiencing five consecutive years in which time we basically tripled our volume through acquisitions and new openings. We anticipate sales growth in high single digits 8-9 % growth in 2025 based on our internal projections, but recognize the many geo-political hurdles we will face in 2025.”

Amelia Kittson, marketing director, KIE Supply Corp. says 2025 could be better than 2024 if businesses can get some clarity and consistency on the tariffs.

“The inconsistent messaging and extreme price increases are making a lot of builders and distributors nervous. Customers have indicated they are willing to absorb the tariff-driven price increases to a certain point,” she said. “I'm concerned that if we exceed that point, the market will significantly slow down. We need a clear and consistent message of what is happening so that we can all plan accordingly.”

Andrew Moss, vice president, operations, Advance Plumbing & Heating Supply, also anticipates growth in 2025, but uncertainty surrounding tariffs could change that. “2024 was a strong year marked by growth through targeted investment. We will likely increase in 2025, but uncertain market conditions due to tariffs may impact that.”

Cautiously optimistic is how Edmund Long, vice president, BR Supply, describes his feelings about 2025 numbers. “Our sales remained steady throughout 2024; despite the obvious pain of inflation and the palpable disruption caused by the Presidential Election.  We are cautiously optimistic about 2025, but remain cognizant of the effect that tariffs could have on our sales volume and the price of the products we sell.”

All over the map

Despite a slower year, some PHCP-PVF distributors made major gains throughout 2024.

Sid Harvey, president, Sid Harvey’s said the company’s sales were up about 10% last year and he expects to grow similarly in 2025, or more, if there are more price increases or product shortages.

Similarly, Team Air Distributing experienced a tremendous year of growth and expansion, according to  Jeff Wallace, president & CEO. “We grew at close to 30% YOY and acquired one distributor. In 2025 we are opening four additional locations to further expand and better serve our customers,” he said.

Masters’ Supply also made a couple acquisitions this year. “We acquired two businesses in 2024 and expect to open a large location in 2025. We have a lot of commercial work ongoing and in the future,” said Jack Bell, president and CEO. “We also expect single family housing to increase as rates lower. Our market areas all have had housing shortages for years. With that said, our multi-family business continues to be strong.”

Some distributors had increased sales, but still faced deflation and commodity pricing validity that made 2024 a challenge all year long. One industry soured shared, “2024 was not a great year for us - while sales increased YoY, we struggled to fight deflation, particularly amongst commodities. A generally restrictive interest rate policy led to demand being lower than we expected. We think some of these challenges will slowly dissipate in 2025, and we have an 8% sales increase budgeted. We are expecting prices to stay flat overall, with some disparities in different segments.”

Fiscal sales increase isn’t the only measure of success distributors used to reflect on 2024. For example, Michael Federico, HVAC director, Coastal Supply Group said the company was able to expand lines and increase purchasing power.

“2024 was a flat year in sales with a slightly high GP%. For 2025 we expect a big increase in sales, especially during the summer months as we as a Comfort-Aire distributor loaded up on 410a equipment,” he said. “Coastal Supply Group at the end of 2024 was acquired and now operates under Hills Distribution, where we still are operating and growing our business for years to come. This is give us more purchasing power, and it will broaden our line card.”

Several distributors noted that continuous adoption of technology will be key to growth in 2025 and beyond.

“Continued adoption of our various customer-facing technology platforms gained adoption and produced share gains. 2025 should continue this trend and reflect the impact of the transition to A2L (new refrigerant) products across our network,” shared Barry Logan, executive vice president, Watsco.

Stan Allen, president, Northeastern Supply summarized PHCP-PVF wholesaler-distributors’ position well, advising that through challenges, you must stay ahead of the pack. “2025 will have challenges due to the tariffs and uncertainty,” he said. “In a soft market, you have to be aggressive to take your market share.”