COLUMBUS, Ohio — The May TRENDS report from Heating, Air-conditioning & Refrigeration Distributors International (HARDI) showed participating members' sales increased by 2.3% during May.
The annual sales growth for the 12 months through May 2023 was 9.1%.
“After March was about flat, and the 4% decline” in April, “it was nice to see some modest growth during May against a very strong prior year,” said Brian Loftus, HARDI’s macroeconomic and residential market analyst. “We had an extra billing day during May of 2023 to help the sales comparison against the 26% gain during May of 2022. Without the extra day, we estimate sales were off in the minus 2.5% area.”
The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, was 40 days in May.
“Distributor sales growth is slowing but customers are not showing any strain,” said Loftus. “DSO has a seasonal pattern, so we compare it to the corresponding prior year. The DSO was 40 during April and May as it has been during April and May of 2021 and 2022. No warning signs here.
“May is one of the most important months of the year for AC sales at HARDI distributors, and the weather was not helpful for the start of cooling season this year,” Loftus continued. “Cooling degree days were off by -41% versus May 2022 and below normal in six of our seven regions.”
HARDI members do not receive financial compensation in exchange for 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, which can include data on products not directly associated with the HVACR industry.
