Heating, Airconditioning and Refrigeration Distributors International (HARDI) announced U.S. HVACR average distributor sales for April were up 8.3 percent. HARDI’s Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) Report showed growth in six of seven U.S. regions, with three in double-digits.
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“April marked the fourth consecutive month of an improving annual growth rate,” said HARDI economist Andrew Duguay. “The 3.5 percent average annual growth reported by members was the highest since November 2011. The 8.3 percent average improvement in sales over April 2011 was also a promising sign for the industry, suggesting that the modestly improving consumer spending and commercial and residential construction trends are having a positive impact on equipment and parts sales. Notably, this is the first spring season that all three of these sectors have been expanding since 2006.”
Days Sales Outstanding (a measure of how quickly customers pay their bills) crept up for the eighth time in nine months, increasing to over 53 days. Distributor productivity reflected by sales per employee expanded on last month’s emphatic turnaround by growing another 3.5 percent.
“The gap between the highest and lowest performing regions widened significantly this month helping to explain why it seemed like every distributor we talked to was having a different kind of April,” said HARDI Executive Vice President and COO Talbot Gee. “That being said, only one region was down, and our annual growth rate and inventory levels continue to inch up further supporting our bullish outlook for 2012.”
“Distributors’ unitary sales continued their strong start to 2012’s season up double-digits from last April, including another month of growing R-22 unit sales,” said Gee.