Heating, Air-conditioning & Refrigeration Distributors International released its monthly TRENDS report, showing the average sales performance by HARDI distributors was an increase of 27.1% during February. The average annual sales growth for the 12 months through February 2022 is 25.1%.
“The sales gain this month was not a surprise, but it is not normal just because 10 of the past 12 months have been increased by at least 20%,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “This has occurred only 15 times during the past 10 years. The unusual growth began with the very easy comparisons versus the COVID interruptions, then received an extra boost by the extraordinary price increases that are being passed through. What goes up must slow down and it looks like this annual growth rate line has peaked.”
The days sales outstanding, a measure of how quickly customers pay their bills, was 43.2 days at the end of February 2022. “The February 2022 DSO is comparable to February 2021. This rate is considerably better than the pre-pandemic norm for February in the 49-day area,” said Loftus.
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.