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 12.2% during November 2022. The average annual sales growth for the 12 months through November 2022 is 21.5%.

“The 12% sales growth during November was the slowest monthly increase since July of 2021,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “The annual growth rate has been declining for four consecutive months and is losing its grip on that 20 handle.”

The Days Sales Outstanding, a measure of how quickly customers pay their bills, is near 43.5 days as of November 2022.

“The DSO this month was comparable to the rate during November 2021,” said Loftus. “Pre-COVID the November DSO was near 49 days. As our economy moves beyond these COVID distortions we expect the DSO to move towards the normal pre-COVID pace, but that is not happening yet.”

“The annual sales growth of HARDI distributors is clearly slowing,” said Loftus. “This is a function of the unsustainable rate of price increases rolling over, the burden of higher interest rates on the overall economy, and being compared to the elevated level of activity last year at this time. These are tough comps.”

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.