What The Industries Strongest Operators Are Doing Differently

Economic uncertainty has become the new normal. Between tariffs, elevated borrowing costs, shifting construction activity and ongoing market volatility, making informed business decisions isn't getting any easier.

That's exactly why the 2026 ASA Operating Performance Report (OPR) continues to be one of the industry's most valuable business intelligence resources.

Produced in partnership with Industry Insights, the Operating Performance Report has helped PHCP-PVF distributors benchmark their financial and operational performance for more than 40 consecutive years. The 2026 edition continues that tradition, providing the industry's most comprehensive benchmarking study with more than 100 performance measures across 15 key areas of the business.

The 62-page report examines profitability, sales and gross margin, personnel productivity, inventory, receivables and payables, working capital, expense control, and includes a complete income statement and balance sheet analysis. Participants are able to benchmark their results against all participating ASA distributors, companies of similar sales volume, firms with similar product emphasis, and distributors within their region of the country, providing meaningful comparisons that reflect the realities of their business.

This year's report tells an encouraging story.

Despite a year filled with economic headwinds, the industry demonstrated remarkable resilience. According to Industry Insights, overall sales increased 5.6%, profitability remained steady, and distributors finished the year with one of the strongest balance sheets of the past decade.

"It was not an easy year to plan around," said Greg Manns, CPA, Vice President of Research at Industry Insights. "Tariffs, borrowing costs, and the noise out of Washington all worked against confidence. What stands out is that the industry grew and stayed profitable anyway, and strengthened the balance sheet while doing it. That is a sign of operators who have learned to run steady through uncertainty."

While those industry trends provide valuable context, many members find the greatest value in understanding how their own company compares with peers facing similar market conditions.

The report enables distributors to evaluate performance across a broad range of financial and operational metrics, helping leadership teams identify strengths, recognize areas for improvement, and monitor progress over time. Because the benchmarking is specific to the PHCP-PVF distribution industry, the data provides insights that are often more meaningful than general financial benchmarks.

That industry-specific focus is one of the reasons members continue to rely on the report year after year.

One participating member shared:

"We use the report to measure our performance over time and look for opportunities to improve or change our operations. What stands out for us, and what makes this report unique, is that the data is very specific to the industry and therefore more valuable than some other performance reports."

Another member noted:

"The report is great at detailing where we are performing well and identifying areas that we need to look at."

For financially focused leaders, the value extends across every aspect of the business.

"As a financially minded leader, the OPR is the most reliable source of financial information that our company receives," one member explained. "This report helps us understand how we compare to our peers in terms of return on sales, payroll expenses, aged receivables, inventory turns, and many other financial benchmarks. The tool literally provides us insight into where we are strong and where we have room to improve."

The report also provides perspective on broader industry trends. During 2025, growth was strongest among distributors serving commercial and industrial customers, helping offset continued softness in residential construction. Investment in data centers and other large nonresidential projects contributed to demand, while distributors maintained profitability despite operating expenses remaining near the highest levels of the past decade. Strong margin discipline and conservative financial management allowed firms to finish the year with lower debt levels and greater liquidity than at almost any point during the last ten years.

The Operating Performance Report has long served as a resource for companies looking to better understand both their own performance and the overall health of the industry. Whether used for strategic planning, financial analysis, operational reviews, or tracking long-term trends, the report provides a consistent framework for measuring performance against peers and identifying opportunities for continuous improvement.

As one member summarized:

"Very valuable report and information!"

By Brianna Dovichi

To learn more about the 2026 ASA Operating Performance Report or to purchase a copy, contact Brianna Dovichi at bdovichi@asa.net.