On Nov. 3, Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing sales by HARDI distributors declined 4% during September.
The annual sales growth for the 12 months through September 2023 is 3.5%.
“Distributor sales during September were off by -4% from September 2022, but that number needs some context,” said HARDI Macroeconomic & Residential Market Analyst Brian Loftus. “September this year had one less billing day than the prior year. We estimate the sales growth was near 1% with the same number of billing days versus September 2022 when sales were up by 17.6%. Sales this month are up by 12.9% versus September of 2021.”
The Days Sales Outstanding, a measure of how quickly customers pay their bills, was near 41 days during September 2023.
“The DSO has a normal seasonality throughout the calendar year,” said Loftus. “The post-Covid DSO for September has remained near 41. There is still no sign of stress from distributor customers despite the Fed’s actions to slow the economy.”
HARDI is expected to host its annual conference Dec. 2-5 in Phoenix.