ASA Members Positive About Continued Growth
For the 12th consecutive month, American Supply Associationmembers are reporting growth, showing another strong 7.8% improvement in per day work day revenues in the month of April 2011 as compared to the same month in 2010; up 7.3% as compared to 2009 and down 10.8% as compared to 2008. The plumbing, heating and pipe, valve and fitting distributors are up 7.3 % YTD and 5.9% on a rolling 12‐month basis.
Gross profit margins were stronger as compared to last year. There is a very strong trend with the small distributor, defined as those companies with under $10 million in annual revenues, as still seeing declining revenues. Those in the midsized category of $10‐25 million are seeing the greatest growth. The North Central region (Indiana, Michigan, Ohio, Western Pennsylvania and West Virginia) along with Texas and New York are leading the way with the largest increases in almost every measurement.
Positive industry feelings and concern of shortages have driven ASA members to the largest monthly inventory rebuild in many years. This marks the seventh consecutive month of increases after 20 consecutive months of declining inventories. On a year‐over‐year basis, inventory grew at a 9.1% rate in April vs. 2010; up 4.0% as compared to 2009, but down 5.2% as compared to 2008. This leaves distributors with decreasing inventory turns versus every time period since 2008.
Days sales outstanding at 47.8 days is also better than last year by 1.8 days; due primarily to improved current sales. This is a 0.4 day improvement over 2009. With stronger gross profit margins and employment, the bottom line for distribution is better than 2010.
For a full report which contains the breakdown by regions of the country, by market segment and by distributor size, ASA members can contactChris Murinatcmurin@asa.net.