The 2020 Mid-Year Economic Update_long

HARDI Distributors Report 24.3% Revenue Jump in June

Heating, Air-conditioning & Refrigeration Distributors International’s monthly TRENDS report shows a huge spike in HVAC distributors’ revenue, marking a “solid start for the cooling season,” says HARDI analyst Brian Loftus.
HARDI June TRENDS

Heating, Air-conditioning & Refrigeration Distributors International (HARDI), Columbus, Ohio, last week released its monthly TRENDS report, showing the average sales performance by HARDI distributors was an increase of 24.3% during June 2020.

The average annual sales growth for the 12 months through June 2020 is 3.4%.

HARDI June TRENDS graph

“The strong report this month was as expected and a welcome relief after two very challenging months,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “We were hoping for a gain in the 20s because this month had two extra billing days than June 2019 when five of our seven regions had fewer than normal cooling degree days and two important markets struggled with very heavy rain. Even after adjusting for the number of billing days and comparing the year-to-year cooling degree days per region, the report looks like a solid start for cooling season.”

The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, is now at 42 days. “The DSO had increased by a couple days this spring which would be consistent with an economic slowdown,” said Loftus.  “The DSO is now at or below where it was during June 2018 and June 2019.  Maybe the increase this spring had more to do with COVID-19 operational disruptions than economic weakness or fatigue.”

“This week we see GDP is down by -33% and HARDI distributors sales growth is 24%.  That is quite a contrast,” said Loftus.  “Both these numbers are exaggerated by special factors.  Both were as expected and that is a relief.  Both numbers will remain under pressure while the COVID-19 risk persists.  That uncertainty will suppress confidence, demand and employment, GDP growth and HARDI distributor sales.”

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