HVACR Distributor Sales Up Less Than Percent in April - Modern Distribution Management

Log In

HVACR Distributor Sales Up Less Than Percent in April

HARDI's monthly trends report shows uneven results among 8 North American regions.
Author
Date

Heating, Airconditioning and Refrigeration Distributors International (HARDI) announced North American HVACR average distributor sales for April 2011 up just less than a percent from the same month last year snapping a string of 10 consecutive months with an average 10 percent annual growth rate.

We Deliver Distribution News to Your Inbox
Sign up below to receive MDM Update, your free weekly distribution news update by email.

\"\"

HARDI’s Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) Report showed uneven results among HARDI’s eight North American regions with April 2011 to April 2010 growth averages ranging from +8.6 percent to -11.7 percent. Canada led in declines continuing its sixth month of annual growth rate declines.

Inventory levels were higher than last year for the majority of HARDI distributors, though Days Sales Outstanding continued its third consecutive month of increases.

“The construction markets for commercial and single-unit housing have failed to make substantial gains so far in 2011, and this is no doubt having a negative effect on member sales. After five consecutive months of same-month sales growth vs last year, sales in April were flat (+0.1 percent on average). It has been traditionally difficult for member sales to improve when the market for new single family homes is stagnant, but some opportunities for growth can be found in the smaller, but booming, multi-unit housing market, up 39 percent from last year and growing” said HARDI Chief Economist Alan Beaulieu of the Institute for Trend Research (ITR).

“When we started our TRENDS program three years ago with ITR, we purposely invested in a high level of regionalization precisely for months like this one,” said HARDI Executive Vice President and COO Talbot Gee. “Had we only been looking at the national numbers which were basically flat in April, we’d miss the strong turnaround we’re seeing in our Western region and the significant falloff experienced in the Mid-West regions.

“We’re continuing to see a slide in the sale of high-efficiency air-conditioning and heat pump unitary products with minimum efficiency units comprising over 70 percent of sales, and this is before the true busy season has really started.”

HARDI cites the introduction of “dry-shipped” R-22 units this year and the significant reduction in the 25C tax credit as the main causes of this trend.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.