Average distributor sales growth resumed in July 2012,
increasing 13.3 percent after a 1.8 percent dip in June. What else has improved
and what does Talbot Gee think is on the horizon? Read the full story to find
out.
The U.S. HVACR average distributor sales growth resumed
in July 2012, increasing 13.3 percent after a 1.8 percent dip in June,
according to Heating, Air-conditioning and Refrigeration Distributors International
(HARDI). All seven of the regions in HARDI’s Monthly Targeted and Regional
Economic News for Distribution Strategies (TRENDS) Report reported healthy
growth during the month. Three of the 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 U.S. 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 was also impressive with 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, HARDI executive vice president. “Customers and the entire supply
chain appear to be increasingly paralyzed by the current economic and political
uncertainty.”
For more information, visit www.hardinet.org.