ASA Distributor Members Report Positive 2023 Year-to-Date Sales

Respondents to ASA’s monthly sales survey reported year-over-year sales dropped -2% for December 2023 vs. 2022. On a month-to-month basis (December vs. November 2023), all respondents reported sales decline of -9% -- the second consecutive month of declines. Year-to-date sales through December 2023 remained in positive territory at nearly 2% growth vs. 2022.
 

Industrial PVF:
The news was positive for industrial PVF distributors. Year-to-date sales through December 2023 remained in positive territory at 4.2% vs. 2022. Additionally, on a trailing-12-month basis, respondents reported the same sales growth of 4.2%.
 

On the other hand, inventory contracted (-2%) for December 2023 vs. December 2022. The median three-months average days sales outstanding improved slightly, falling to 40 days in December.
 

Economic indicators:
Despite a somewhat stagnant November (0.1%) and declining December (-1.8%), the responding firms managed to achieve a commendable 1.6% sales growth for the year. Although sales figures remained in positive territory, it's notable that more than half (61%) of participants observed a decline in their profits before taxes for 2023 compared to 2022. With that being said, there are some economic indicators that have many approaching 2024 with cautious optimism.
 

What ASA members are saying:
“Business activity levels remained solid, but softer than expected as construction activity slowed due to the ongoing impact of higher interest rates and inflation. With uncertainty around business conditions over the next quarter or two, this leads to additional challenges related to recruiting and appropriate staffing 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.”
 

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

“Our business activity definitely slowed down in the fourth quarter in comparison to last year and we are anticipating that sales in the first 6 months of 2024 will be flat to even down slightly when compared with the first 6 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.”