ASA Distributor Members Enjoy Major October Sales Rebound

Respondents to ASA’s Monthly Sales Report reported median year-over-year sales growth of 3% for October 2023 vs. October 2022.

By primary business emphasis, industrial PVF firms reported year-over-year monthly growth of more than 6%, while PHCP and PVF firms reported median growth of 3.8% and 1.4%, respectively.

On a month-to-month basis, comparing October 2023 numbers to September 2023 numbers, all respondents reported growth of 8%. This follows a double-digit decrease of 11% in September vs. August.

Year-to-date sales through October 2023 remained in positive territory at 2% vs. 2022.

Additionally, on a trailing 12-month basis, respondents reported sales growth of 3%, with half the respondents reporting trailing 12-month sales change between minus-2% and 10%.

Inventory contracted (-4.5%) for October 2023 vs. October 2022. The median three-month average days sales outstanding edged back up to 41 days in October.

What ASA Distributors Are Saying:
“Beating year-over-year numbers is getting incredibly difficult. We are happy with most of our locations if they can even post flat sales figures.”

“Plumbing sales are doing well while HVAC sales are flat or slightly down. Our margin percentage is down from last year, but steady. We attribute that to a higher percent of commercial jobs and more margin pressure from competitors.”

“Retiring workforce. More and more each month.”

“Sales have softened toward the tail-end of the year, which is not unusual historically for our region. We are heavy in inventory, which we hope to push out by year end. Staffing continues to be a challenge. We are hoping to see improvement in that area in 2024.”

“Staffing difficult still, though better than past couple of years. Compensation too high.”

“We are pleasantly surprised that our sales are close to last year. Last year was a record year and we really expected a slowdown.”

“While activity was steady during the month, overall sales were lighter than budget and the prior year as several projects have been delayed or adjusted given the impact of high interest rates and persistent inflation. Staffing continues to be a significant challenge with several positions remaining unfilled over the past six months.”

To access the new ASA Monthly Sales Report, visit the MyASA member portal at www.asa.net. To be added to the mailing list each month to alert you that a new report is available, contact Bri Baresel at bbaresel@asa.net.