COLUMBUS, Ohio — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report showing average sales for HARDI distributor members declined by 2.8 percent in December 2017.

The average annualized growth for the 12 months through December 2017 was 5.3 percent.

“December is not a seasonally significant month,” said Brian Loftus, market research & benchmarking analyst, HARDI. “The decline is associated with very strong prior year sales and one less billing day this year. That is difficult to overcome. The 5.3 percent growth in 2017 is the slowest calendar year since 2011.”

Connor Lokar, senior economist, HARDI, said the December data is somewhat at odds with the other strong signs economists see, like the positive slope to the leading indicators.

“HARDI members did post strong growth in November and December 2016 and January 2017, so they set themselves up with some tall bars to clear,” Lokar said. “The decelerating growth is a noteworthy trend to watch.”

The days sales outstanding (DSO), a measure of how quickly customers pay their bills, is near 45 days.

“The DSO is at the midpoint of recent performance for this time of year,” said Loftus. “Softer sales helped the dip from last month. We would welcome an extra day or two in the months ahead because it would be normal seasonal pattern and indicate resumption of sales growth.”

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.”

For more information, visit http://hardinet.org/benchmarking.

Publication date: 02/01/18