The 2020 Mid-Year Economic Update_long

HARDI Distributors Report 14.9% Revenue Increase in July

Annualized growth through July was 8.7%.

Sales for HARDI distributor members increased by 14.9% in July 2019, according to its monthly TRENDS report. The average annualized sales growth for the 12 months through July 2019 was 8.7%. 

“It is nice to see mid-teens growth after two soft months,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “Distributors were busy during July of 2018, so it was not an easy comparison.  Demand this month got a boost from 10% to 20% more cooling degree days in four of our seven regions, and an extra billing day versus last year.”

The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, is now 44.6 days. “The DSO is about equal to this time last year,” said Loftus. “There is no hint of fiscal stress in the marketplace with this metric.”

“The duration of our economic expansion is historic, but economic cycles are not extinct,” said Loftus.  “The inverted yield curve and other indicators have inspired the Fed to change course with their tightening program.  That stimulus takes time, so with more difficult comparisons ahead we expect the TRENDS annual growth rate will remain under pressure.” 

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.

View the HARDI June report here.

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