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Heating, Air-conditioning & Refrigeration Distributors International (HARDI) has released its monthly TRENDS report, showing the average sales performance by HARDI distributors was an increase of 60.6 percent during April 2021. The average annual sales growth for the 12 months through April 2021 is 13.7 percent.
"The 60 percent gain reflects stimulus driven demand being compared against a -19 percent sales decline after the April 2020 COVID interruptions," said HARDI Market Research and Benchmarking Analyst Brian Loftus. "The sales growth is nearly 30 percent versus April 2019 and about 21 percent if adjusted for inflation. Those are still exceptional levels of activity, but they are easier to digest than the distorted month-to-month growth."
The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, was 41 days at the end of April 2021. “The DSO has been faster than normal since June 2020 due to the aggressive policies to support the economy during the COVID related disruptions,” Loftus said. “The normal rate of DSO would be in the high-90s.”
The 13.7 percent average annual sales growth for the twelve months through April 2021 is a record for HARDI distributors. “This achievement is due to the easy prior year comparisons,” Loftus said. “The annual growth through May 2021 will probably be more than 15 percent due to the weak results during May 2020. The recent levels of Employment and Industrial production are lower than before the COVID related interruptions. The economy is recovering but not at the speed implied by these sales growth numbers.”
HARDI members do not receive financial compensation in exchange for their monthly sales data and can discontinue their participation without prior notice or penalty. Participation is voluntary, and the depth of market coverage varies from region to region. An independent entity collects and compiles the data that can include products not directly associated with the HVACR industry.