ASA Distributor Members Report April Bouncing Back Strong, with Double Digit Sales Growth!

Following March, which was a challenging month for most respondents, it was encouraging to see over half of the respondents report double digit sales growth for April. Additionally, sales increased over 7% on a month-to-month basis (April vs. March 2024). Year-to date (YTD) sales through April 30, 2024, vs. 2023 and trailing twelve months (TTM) sales both remained in positive territory with growth of 1.4% and 1.6%, respectively. Inventory contracted -2% for April 2024 vs. April 2023. The median Three-Months Average Days Sales Outstanding pulled back to 42 days for April, after jumping to nearly 43 days in March.

Industrial PVF:

By primary business emphasis, the Industrial PVF firms reported that year over-year monthly sales grew 10.1%. PHCP reported sales growth for April of 9.9% and PHCP & PVF firms reported a sales increase of 10.5%. All respondents overall reported median sales growth of 10.1% for April 2024 vs. 2023.

Economic Indicators:
The advance "Real" GDP growth figure for the 1st quarter 2024 was released at a soft 1.6%. Total wholesale sales for March increased 1.4% year-over-year, while inventories decreased -2.3% vs. the prior year.

The growth in "Real" wholesale sales came in at 1.4% as well, continuing the recent signs of inflation softening and we remain in a disinflationary period. After a disappointing March, housing starts edged up in April but permits reported a second consecutive month of declines. There are numerous uncertainties that continue to produce headwinds for the already struggling housing market.

In addition to the anticipated Fed rate reductions, many potential buyers and sellers now are waiting it out to see how the settlement against the realtor commission system will impact future sales. The unemployment rate for April increased to

3.9%.

What ASA members are saying:
“Commodity attrition leading to deflation in key basket of goods. Increased competition in utility, telecom and HVAC resulting in smaller margins in these segments.”

“Current business conditions are actually better than anticipated with same store sales up YTD.”

“Our decorative business remains very strong and non-residential is nicely picking up.”

“Our service and repair customers are staying busy and seem to be stable with hiring. Auto/truck maintenance and fuel costs seem to be a big issue for the company and our employees right now.”

“Really busy with underground projects, Industrial projects are lagging and being put off not cancelled.”