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Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing average sales for HARDI distributor members increased by 9.1 percent in July 2015.
The annualized growth through July 2015 was 6.4 percent. This is the best annual growth rate of 2015 for HVAC distributors.
“The July result was helped by the unremarkable 0.5 percent prior year comparison,” said HARDI Market Research and Benchmarking Analyst Brian Loftus. “Regardless, 9.1 percent growth in a seasonally significant month is definitely helpful for HVACR distributors.” Six of the seven regions reported positive sales growth -- four achieved double-digit growth rates.
“The growth rate this quarter reflects Residential Construction activity and the associated consumer spending,” said HARDI Senior Economist Connor Lokar. “Annual Retail Sales of Building Material and Supplies Stores have increased 5.5 percent over the past 12 months.”
The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, is now at 48. “The overall participant DSO is tracing its normal seasonal pattern,” said Loftus, “but was 46 days by now the past two years.”
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.