COLUMBUS, Ohio — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing the average sales performance by HARDI distributors was an increase of 60.6% during April 2021.
The average annual sales growth for the 12 months through April 2021 is 13.7%.
“The 60% gain reflects stimulus-driven demand being compared against a -19% sales decline after the April 2020 COVID interruptions,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “The sales growth is nearly 30% versus April 2019 and about 21% 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,” said Loftus. “The normal rate of DSO would be in the high-90s.”
13.7% 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,” said Loftus. “The annual growth through May 2021 will probably be more than 15% 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.”
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