Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing the average sales performance by HARDI distributors was an increase of 16.8% percent during July 2022.
The average annual sales growth for the 12 months through July 2022 is 24.3% percent.
“July 2022 had one less billing day and a difficult weather comp for most regions but continues to benefit from the aggressive price increases that have been passed through,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “What goes up must slow down and this cycle has clearly peaked. The average annual sales growth by participants has been in the 24% to 25% range since January.”
The Days Sales Outstanding, a measure of how quickly customers pay their bills, was 40 days at the end of June 2022. “The June 2022 DSO is comparable to June 2020 and 2021. The pre-COVID DSO for June was closer to 45 days,” said Loftus.
The job market is strong but other leading indicators for our industry like Consumer Sentiment, housing permits and existing home sales are not as encouraging. “Inflation has been in the news and in our industry also,” said Loftus. “The annual increase for the HVACR primary products price index has been near 25% since April and helping to support distributor’s sales growth.”
HARDI members do not receive financial compensation in exchange for their monthly sales data and can discontinue their participation without prior notice or penalty. Participation is voluntary, and the depth of market coverage varies from region to region. An independent entity collects and compiles the data that can include products not directly associated with the HVACR industry.
HARDI (Heating, Air-conditioning and Refrigeration Distributors International) is the single voice of wholesale distribution within the HVACR industry. HARDI members market, distribute, and support heating, air-conditioning, and refrigeration equipment, parts and supplies. HARDI Distributor members serve installation and service/replacement contractors in residential and commercial markets, as well as commercial/industrial and institutional maintenance staffs. HARDI proudly represents more than 460 distributor members representing more than 5,000 branch locations, and close to 500 supplier, manufacturer representative and service vendor members.