HVACR Distributor Sales Jump 13.3% in July - Modern Distribution Management

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HVACR Distributor Sales Jump 13.3% in July

All seven regions in HARDIs Monthly TRENDS Report reported healthy July growth.

U.S. HVACR average distributor sales growth resumed in July, increasing 13.3 percent after a 1.8 percent dip in June, according to Heating, Air-conditioning and Refrigeration Distributors International.

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All seven regions in HARDI’s Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) Report reported healthy growth during the month. Three regions experienced growth in the mid-to-high teens range.

“July was a notable improvement from June. The positive sales environment was widespread, across every geographic region and company size category. Over 80 percent of participating HARDI members reported numbers were higher this July than last year,” said HARDI economist Andrew Duguay. “The resumption of the growth on a rolling 12-month basis being experienced by HARDI members concurs with the improving trends we are seeing in US Industrial Production, Housing Starts, Retail Sales and Commercial Construction.”

Days Sales Outstanding (a measure of how quickly customers pay their bills) in 2012 has generally been better than the prior year. This occurred again in July with a dip below 48 days. Distributor productivity reflected by sales per employee posted 7 percent improvement over July 2011, and up more than 4 percent sequentially.


“While it’s great to see June’s slide be temporary and for July to rebound so strongly, 2012 is showing signs of further declines in replacement rates and accelerating declines in commercial business,” said Talbot Gee, Executive VP for HARDI. “Customers and the entire supply chain appear to be increasingly paralyzed by the current economic and political uncertainty.”

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