March Sales Up Double Digits, DSO Hits 2024 High

By primary business emphasis the industrial PVF distributors said March sales 10.7% year-over-year (y/y). Year-to-date (YTD) sales +6.2% and trailing twelve months (TTM) sales +9.4%.
 

All respondents overall reported a Median March sales increased +10.3% year-over-year and +15.5% compared with February 2026. Calendar-year YTD sales +6.2%; TTM sales +8.0%. Inventory: +8.2% versus March 2025. Cash cycle: Median three-month average Days Sales Outstanding (DSO) edged up to 42.5 days. DSO is worth monitoring closely over the coming months as this is the highest level it has reached since early 2024.

Economic Indicators:
Recent economic data suggest the U.S. economy entered 2026 with less momentum than previously estimated, as fourth-quarter 2025 real GDP has now been revised down to approximately 0.5%, indicating broader softness in demand late in the year. While some rebound in early 2026 is possible as temporary distortions related to the government shutdown unwind, the overall outlook remains uncertain.
 

At the same time, geopolitical tensions stemming from the war with Iran have pushed energy prices higher, with gasoline prices rising sharply during March and approaching $4 per gallon nationally by month-end, contributing to renewed inflation concerns. These pressures have helped keep longer-term interest rates elevated, even as the yield curve has returned to positive territory, signaling ongoing uncertainty around the path of monetary policy.
 

Housing continues to act as a modest headwind; while the housing data is currently available only through January, other recent indicators point to ongoing softness in builder sentiment, mortgage demand, and home sales activity.
 

Despite this more cautious macroeconomic backdrop, ASA distributors reported solid performance through the first quarter, with year-to date sales up 6.2% and roughly two-thirds of firms reporting improved profitability. This divergence suggests that underlying demand in the industry remains resilient, even as organizations navigate increasing risks related to project timing, customer spending, and cost pressures.
 

What ASA members are saying:

“Our 1st quarter is always our weakest quarter, and this year was no different, basically our results are the same as last year.”
 

“March was a very strong sales month boosted by some sales which were pushed from February but we are growing more concerned about our future location.”
 

“March was weaker than expected, coming in below both budget and the same month last year. However, despite missing budget, gross profit exceeded the prior year’s March, driven by a 1 percentage point improvement in gross margin.”
 

“We are feeling a slowing down, but our sales are still steady.”

By Bri Dovichi, Director of BI & Vendor Engagement