Associations, Distributors, Trends

HARDI Distributors Report 8.7% Revenue Decline in March

May 30, 2024

COLUMBUS, May 2, 2024 – Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing sales by HARDI distributors declined by 8.7% during March 2024. The annual sales growth for the 12 months through March 2024 is a decline of 0.3%.

“There were two important factors behind the sales thud at the end of heating season,” said HARDI Macroeconomic & Residential Market Analyst Brian Loftus. “Heating degree days during March of 2024 were off by 16% from the prior
year which may have trimmed sales year-to-year, but the main reason for the decline is March of 2023 had two more billing days. We estimate sales were about flat with the same number of billing days.”

The Days Sales Outstanding, a measure of how quickly customers pay their bills, was near 41 days during March as it was during March of 2023. “41 this month was comparable to March of 2022 and better than March of 2021 and 2022,” said
Loftus. “There has been a lot of market headwinds during the past twelve to eighteen months, but not enough to compromise dealer’s bill paying ability.”

“The annual sales growth has been flat during the past four months, but we expect that to improve,” said Loftus. “The number of home listings is finally starting to improve, and the pace of existing home sales has steadied. Single-unit
permits are increasing, and the Fed’s next move will be a rate cut. It looks like the cycle is turning.” 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 staff.
HARDI proudly represents more than 420 distributor members and their 5,000 + branch locations, and close to 500 suppliers, manufacturer representatives and service vendors.