ASA: Plumbing, Piping, PVF Distributor and Supplier Sales Grow in April - Modern Distribution Management

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ASA: Plumbing, Piping, PVF Distributor and Supplier Sales Grow in April

Inventories and gross margins continue to grow for American Supply Association members.

American Supply Association members – distributors and manufacturers of plumbing, heating, cooling, piping and industrial PVF products – are reporting growth, showing a 7.8 percent improvement in per day work day revenues in the month of April 2011 as compared with the same month in 2010.

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Sales were up 7.3 percent as compared with 2009 and down 10.8 percent as compared with 2008.

The plumbing, heating and pipe, valve and fitting distributors are up 7.3 percent YTD and 5.9 percent on a rolling 12-month basis.

Gross profit margins were stronger as compared with last year. According to ASA, small distributors, with revenues under $10 million, are still seeing declining revenues. Those in the midsized category of $10 million to $25 million are seeing the greatest growth.

The North Central region (Indiana, Michigan, Ohio, Western Pennsylvania and West Virginia) along with Texas and New York are leading the way with the largest increases in almost every measurement.

Positive industry feelings and concern of shortages have driven ASA members to the largest monthly inventory rebuild in many years. This marks the seventh consecutive month of increases after 20 months of declining inventories.

On a year-over-year basis, inventory grew at a 9.1 percent rate in April vs. 2010. Inventory was up 4 percent as compared with 2009, but down 5.2 percent as compared with 2008. This leaves distributors with decreasing inventory turns versus every time period since 2008, according to ASA.

Days sales outstanding at 47.8 days is also better than last year by 1.8 days due primarily to improved current sales. This is a 0.4 day improvement over 2009.

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