Heating, Air-conditioning & Refrigeration Distributors International released its monthly TRENDS report, showing the average sales performance by HARDI distributors was an increase of 14.9% during July 2019.
The average annualized sales growth for the 12 months through July 2019 is 8.7%.
“It is nice to see mid-teens growth after two soft months,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “Distributors were busy during July of 2018, so it was not an easy comparison. Demand this month got a boost from 10% to 20% more cooling degree days in four of our seven regions, and an extra billing day versus last year.”
The days sales outstanding, a measure of how quickly customers pay their bills, is now 44.6 days. “The DSO is about equal to this time last year,” said Loftus. “There is no hint of fiscal stress in the marketplace with this metric.”
“The duration of our economic expansion is historic, but economic cycles are not extinct,” said Loftus. “The inverted yield curve and other indicators have inspired the Fed to change course with their tightening program. That stimulus takes time, so with more difficult comparisons ahead we expect the TRENDS annual growth rate will remain under pressure.”