ASA Distributor Members Chime in with Mixed Feelings on 2023 Performance

As part of ASA’s Monthly Sales Report — a quick-hitter distributor benchmarking report covering 10 financial categories and available as a free member benefit — member distributors are encouraged to provide their thoughts on current market conditions.

From the brand-new Monthly Sales Report, distributors had mixed feelings on their 2023 performance.

“2023 was a challenging year. We anticipated commodity prices falling, but not nearly as much and as quick,” one distributor wrote. “It makes year-over-year comps almost impossible. What made it more challenging is that while the business was impacted from interest rates and overall uncertainty, wage inflation continued to grow. It feels like we need to hire three people just to have two show up, which puts additional pressure on the income statement.”

“Business activity levels remained solid, but softer than expected as construction activity slowed due to the ongoing impact of higher interest rates and inflation,” a distributor stated. “With uncertainty around business conditions over the next quarter or two, this leads to additional challenges related to recruiting and appropriate staff levels to support current and future needs.”

“Business has been stronger than expected, however, our accounts receivable has grown as customers are paying us slower than a year or two ago,” another distributor noted.

Some more comments from ASA member distributors who turned in data for the new sales report.

** “Business seems to have flattened.”

** “Generally, I feel the year was positive. The decrease in sales was similar to other companies I talked to and a result of the current economy.”

** “Interest rate hikes slowed projects, which negatively affected our net sales.”

** “Our business activity definitely slowed down in the fourth quarter in comparison to last year and we are anticipating that sales in the first six months of 2024 will be flat or even down slightly when compared with the first six months of 2023.”

** “The market seems extremely soft, still.”

** “We had another strong year.”

** “While 2023 remained a strong year, the market has softened. The challenge for 2024 will be expense control.”
 

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