Heating, Air-conditioning & Refrigeration Distributors International (HARDI), Columbus, Ohio, released its monthly TRENDS report Monday, which showed the average sales performance by HARDI distributors increased 26.4% in August after posting a modest increase of 9.3% the prior month.
The average annual sales growth for the 12 months through August was 18.7% percent, a new record for HARDI’s average annual growth rate, said Brian Loftus, HARDI’s market research and benchmarking analyst.
“August was the sixth month this year with sales growth that exceeded 20%,” Loftus said in a statement. “Along with the continued underlying strong demand, this month was helped by an extra billing day, warmer than normal temps in five-of-seven regions, and passing through the price increases.”
The Days Sales Outstanding, a measure of how quickly customers pay their bills, was 40 days at the end of August 2021.
“Like July, the 40-day DSO is about four days quicker than this time of year before the COVID related business interruptions,” Loftus said.
The annual sales growth of 18.7% is a new best for HARDI’s average annual growth rate, though next year could look “much different,” he said.
“This record growth rate is a result of the easy comparison last year when sales were interrupted, followed by a demand jolt from the stimulus dollars, and then 8% to 10% from price increases that are being passed through,” Loftus said.