Heating, Air-conditioning & Refrigeration Distributors International (HARDI) shared its monthly TRENDS report on Jan. 21, showing that November sales by distributors decreased by 1.1% year-over-year.
November had one less billing day vs. a year earlier, and HARDI estimated that sales growth would have been closer to 3.9% with an equal number of billing days.
On an annual basis, the growth rate for the 12 months through November 2024 was 3.0%, unchanged from December.
“A sales decline could indicate a pause to our annual sales growth rate recovery, but not in this case,” HARDI Macroeconomic & Residential Market Analyst Brian Loftus said in the report.
The Days Sales Outstanding — which measures how quickly customers pay their bills — was less than 40 during November.
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“During the past year we have seen inventories decline, and the sales-to-inventory ratio increase, as distributor’s confidence in the supply chain recovered,” Loftus added. “Inventories have been increasing to prepare for the equipment transition. It looks like the supply chain is back to normal.”
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