The 2020 Mid-Year Economic Update_long

HARDI Distributors Report 10.2% Revenue Decline in May

The average annual sales growth for the 12 months through May 2020 is 0.4%.
HARDI May TRENDS report

Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing the average sales performance by HARDI distributors was a decrease of 10.2% during May 2020. The average annual sales growth for the 12 months through May 2020 is 0.4%.

HARDI May 2020 Sales Report
Source: HARDI and CoMetrics

“May was a very strange month with cooler than normal temps in much of the eastern part of the country while much of the western half was warmer than normal,” said Brian Loftus, HARDI market research and benchmarking analyst. “Besides the weather and various levels of COVID-19 related challenges, this year May had two fewer billing days than May 2019. When you adjust for the billing days, the sales change for the month across our seven reporting regions ranged from down 20% to up 20%.”

The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, was near 47.5 days. “The DSO increased by 1.5 days versus May of 2019,” said Loftus. “We expected the economy to slow in 2020 so have been concerned about DSO from the start of 2020. This year is tracking a day or two slower than last year which is about as expected.”

“The economic data is volatile and confusing and will remain that way for another couple of months at least,” he added. “Initial Unemployment Claims have declined for five consecutive months; new home sales were strong and retail spending surged in May. We also see that Continuing Unemployment Claims have been about flat for four consecutive weeks and the latest Industrial Production report was disappointing. COVID-19 is still with us and so is the economic uncertainty.”

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