COLUMBUS, OH — Heating, Air-conditioning and Refrigeration Distributors International (HARDI) released their monthly TRENDS report, showing average sales for HARDI distributor members increased 9.4 percent in November 2014.
The annualized growth through November is now 6.9 percent and at the upper edge of the 6-percent to 7-percent range where it has been throughout 2014.
HARDI Senior Economist Danielle Marceau said, “The continuously improving health of the U.S. consumer is supporting growth in the retail industry, as well as residential construction.”
“November was the third strong month in a row for average sales,” said HARDI Market Research and Benchmarking analyst Brian Loftus, adding, “November 2013 showed low single-digit growth but November 2014 had one less billing day than last year. The high single-digit performance this year was widely dispersed.”
Marceau offered another factor contributing to the recent performance. “Oil prices are contributing to low gasoline and heating fuel costs as we head into the winter season. That is great for the U.S. consumer who will spend less on these necessities and have more money in their pocket for home improvements,” she said.
The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, is now at 46.1 days, the shortest collection time we have seen for this time of year. The typical seasonal increase has been slow to develop. Given the strong top-line report, we believe the DSO reflects healthier customers paying their bills more quickly instead of stricter credit standards.
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.