“After March was about flat and the -4% decline last month, it was nice to see some modest growth during May against a very strong prior year,” said HARDI Macroeconomic & Residential Market Analyst Brian Loftus. “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 -2.5% area.”
The Days Sales Outstanding, 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,” said Loftus. “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 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.
ABOUT HARDI
HARDI (Heating, Air-conditioning and Refrigeration Distributors International) is the single voice of wholesale distribution within the HVACR industry. HARDI members market, distribute, and support heating, air-conditioning, and refrigeration equipment, parts and supplies. HARDI Distributor members serve installation and service/replacement contractors in residential and commercial markets, as well as commercial/industrial and institutional maintenance staffs. HARDI proudly represents more than 460 distributor members representing more than 5,000 branch locations, and close to 500 supplier, manufacturer representative and service vendor members.
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