‘Mixed Results’ in January for ASA Members - Modern Distribution Management

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‘Mixed Results’ in January for ASA Members

Members report another strong month compared to the same period in 2021, but most respondents say sales were down from December.
ASA mixed results January 2022

The American Supply Association says members reported “mixed results” from January, as ASA’s monthly sales report revealed another strong performance compared to January 2021 but most respondents cited declines in sales when compared to this past December.

For the 12-month period ending January 2022, sales remained strong compared to most of 2020, when there were multiple weeks and months of closures or partial closures, ASA said.

ASA members reported a median sales increase of 20.9% for January 2022 compared to January 2021, but respondents reported a “significant decline” in sales of 8.9%. compared to this past December.

The ASA is an advocacy group that serves wholesaler-distributors and their supply chain partners in the plumbing-heating-cooling-piping and industrial pipe-valve-fitting industry. The organization provides business intelligence services, employee training and education, peer-to-peer networking, and legislative and regulatory advice.

Approximately half of respondents reported sales growth for the trailing 12 months between 15.5% to 29.6%, ASA said. Inventory rose 37% for January 2022 compared to January 2021, and the median three-months-average days sales outstanding remained steady at 40 days.

“It was another strong month in terms of year-over-year sales performance, though it is concerning that the January vs. December figures were down for most respondents,” said Greg Manns, senior vice president of Industry Insights, ASA’s business intelligence partner that prepares the report each month for member distributors.

Industrial PVF distribution firm respondents reported a median sales increase of 36.8% for January 2022 compared to January 2021. On a trailing-12-month basis, industrial PVF respondents reported a median sales increase of 25.7%. Inventory rose 35.5% for January 2022 compared to January 2021, while the three-months-average days sales outstanding rose decently to 51.1, ASA said.

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