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 9.7% during December 2022.
The sales growth for the 12 months through December 2022 is 18.8%.
“10% growth is good, especially when you see this was being compared to 26.7% growth last December,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “The annual growth will remain under pressure because there are difficult comparisons through May.”
The Days Sales Outstanding, a measure of how quickly customers pay their bills, remains in the 43 day area.
“The DSO this through November and December remains steady with recent prior year results,” said Loftus. “As our economy moves beyond these COVID distortions we expect the DSO to move higher towards the pre-COVID normal pace but that is not happening yet.”
“Higher interest rates are having their intended effect. Existing home sales are drifting lower and the pace of price increases is also slowing,” said Loftus. “That growth rate line rolling over is the shape of the cycle turning.”
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.