ASA Distributor Members Report Overall Solid Growth in February 2024 VS February 2023

Respondents reported that it's worth noting that even though 2024 is a leap year and has an additional day compared to 2023, it's still encouraging that respondents overall reported median sales growth of over 5% for February 2024 vs. 2023. On a month-to-month basis (February vs. January 2024), overall respondents' sales were relatively flat (-0.1%) and trailing twelve months (TTM) sales increased a modest 1.3%.
 

Industrial PVF:
The Industrial PVF firms had a challenging February as the industrial PVF distributors reported year-over-year monthly sales with a large decline of -6.6%. PHCP reported sales growth for February of a 6.4% and PHCP & PVF firms also reported a sales increase of 5.2%.
 

On the other hand, Inventory contracted (-2%) for February 2024 vs. February 2023. The median
Three-Months Average Days Sales Outstanding pulled back to 40 days after spiking to nearly 42 days in January.
 

Economic Indicators:
The "Real" GDP growth figure for the 4th quarter 2023 was revised down slightly to 3.2%. Total wholesale sales for January decreased -1.5% year-over-year, while inventories decreased -2.5% vs. the prior year. The stronger 0.7% growth in "Real" wholesale sales continues to reinforce signs of inflation softening and that we remain in a disinflationary period. Housing starts and permits both rebounded from January's very low levels. The unemployment rate for February edged up to 3.9% after three consecutive months at 3.7%.
 

What ASA members are saying:
“A few expected projects have delayed starts, due to higher interest rates and economic variables. Election years always affect business, but I believe the higher interest rates are the biggest factor, i.e. one point on a 20 million job will save $200K. It is easy ciphering. If the Fed cuts rates, things will start moving. Private money projects are going strong.”
 

“It's been a slower start to the year, but I think it is weather related. Sales appear to be picking up which will improve our numbers.”
 

“Service and repair sales remained stable and project sales showed some return to life after several months of limited to no activity. Pricing pressures seem to be increasing due to higher material costs, the competitive landscape, and national pricing programs at big box stores. Efforts to hire continue to be difficult and frustrating due to the limited number of candidates overall and the even more limited number of qualified candidates.”
 

“Steady but not growing in Commercial Construction.”
 

“Still growing but growth rates have slowed considerably.”
 

“We are definitely feeling a slowing in sales. Also feel like people are starting to slow pay their accounts.”
 

“We benefited from 1 extra selling day in February, but overall it was a strong month across the board. March has started off slowly.”
 

“No sign of business softening, as yet.”
 

“We have continued to have difficulty finding new equipment, readily available to purchase to fit our needs. Rather than settle for less than adequate features, we have ordered ahead to get exactly what we want and will wait for delivery, six months to a year in most cases. So, there's more pressure on our fleet guys to keep our trucks rolling until replacements arrive.”