HARDI Distributors Report 4.5% Percent Revenue increase in August
Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing the average sales performance by HARDI distributors was an increase of 4.5 percent during August 2020.
The average annual sales growth for the 12 months through August 2020 is 2.5 percent.
“August 2020 had about the same number of cooling degree days, but one less billing day than August 2019,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “We estimate sales growth with the same number of billing days was more than 9%.”
The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, is now at 40 days. “The normal August DSO is in the range of 42 to 44 days so this was another unusually brisk report,” said Loftus. “Members have told us they presume their customers participated in some of the economic relief programs that has allowed them to quickly pay for their supplies.”
“The recovery continues with most economic indicators progressing forward slowly, and slowly is the key word,” said Loftus. “The rolling three-week average of the University of Michigan Consumer Sentiment Index is now 75, at a level it has not seen since early 2013, after cruising at 95 to 100 from 2017-19. The Conference Board’s Leading Economic Index indicates the summer’s rebound is losing steam and we see that in the weekly state unemployment claims. Good to see small steps forward but no signs of acceleration either.”
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 480 distributor members representing more than 5,000 branch locations, and close to 500 suppliers, manufacturer representatives and service vendors.