After a 1.8% decline in June, Heating, Air-conditioning and Refrigeration Distributors International (HARDI) saw a 13.3% sales growth in July. Also, all seven regions in HARDI’s Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) Report announced strong growth during July, including three regions with mid-to-high teens percentage growth.

“July was a notable improvement from June. The positive sales environment was widespread, across every geographic region and company size category. Over 80% of participating HARDI members reported numbers were higher this July than last year,” said HARDI economist Andrew Duguay. “The resumption of the growth on a rolling 12-month basis being experienced by HARDI members concurs with the improving trends we are seeing in US Industrial Production, Housing Starts, Retail Sales and Commercial Construction.”

Days Sales Outstanding - a measure of how quickly customers pay their bills - in 2012 has improved slightly compared to 2011 and July 2012 showed more improvement. In July, the measure decreased to 48 days. Distributor productivity based on sales per employee saw a 7% increase over July 2011, up more than 4% sequentially.

“While it’s great to see June’s slide be temporary and for July to rebound so strongly, 2012 is showing signs of further declines in replacement rates and accelerating declines in commercial business,” said HARDI executive vice president Talbot Gee. “Customers and the entire supply chain appear to be increasingly paralyzed by the current economic and political uncertainty.”


Source: HARDI

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