ASA Distributors Predict Increased Sales for 2024

From ASA’s final Quarterly Market Survey of 2023, 64 percent of ASA distributor respondents predict their sales will increase in 2024, while 28 percent predict flat sales next year, but only 8 percent predicted their sales will decrease.

“Always the intangible that we cannot predict, however, with easing interest rates and the continued demand in housing and subsequent commercial projects that follow, we predict a 3-5% growth,” one distributor wrote.

“I think there will be a fair amount of work in our market next year,” another distributor explained. “However, we have started to see invoicing outpacing orders written monthly. I anticipate a slower start to the year that will pick up as the weather improves. The unionized workforce shortage may constrain some planned construction.”

The survey also asked ASA member distributors what percent of contractors are buying through their website or e-commerce site vs. traditional order entry means. On average, only 7.9 percent of contractor sales were done through web and e-commerce, while 44% of respondents reported no web or e-commerce sales.

When asked if expansion was in the plans in 2024, 55 percent of ASA distributor respondents say they plan to expand whether through acquisition, opening a new branch or expanding their internal operations.

On the hiring front, 69.3 percent of respondents say they plan on hiring more people in 2024, including one distributor that says they are looking for “hunter” sales associates and a corporate technical trainer.
Along those same lines, 56% of respondents say it will be easier to hire employees next year.

Staying with the employee theme, 71% of respondents say there will continue to be wage inflation next year.

“To get good people, you need to pay them,” one distributor noted. “We will need people.”

“Yes, as the choice candidates rise to the top so do their competition,” another distributor wrote.

The survey also dives into topics such 2024 concerns, 2024 business prospects, commercial construction, product inflation/deflation, inventory investments and capital expenditures.

To receive a copy of the Quarterly Market Survey, contact ASA’s Bri Baresel at bbaresel@asa.net.