HVAC distributor sales dip in August

A monthly survey of HARDI members released Friday shows that sales by its distributors declined by 0.5 percent year-over-year in August. 

What’s happening: “We attribute the sales decline to cooling degree days being off by 10%,” said HARDI analyst Brian Loftus in a news release, adding that the month had one less billing day than last year. “We estimate the sales growth was more than 4% with the same number of billing days.”

Zoom out: HARDI distributors’ annual sales growth (for the 12 months through August) was 4.2 percent, per the release. 

• “Sales growth has been steady this year despite big declines of cooling degree days in many regions and economic headwinds in all, while navigating the A2L transition,” Loftus added. 
• “The next challenge of the year is working off the excess inventory during the next few months. After these challenges, next year will be so much easier.”

The big picture: From January through July, the latest available data, manufacturer shipments of air conditioners and heat pumps are down seven percent compared to last year, while the average wholesale price of HVAC equipment is up four percent year-over-year as of August. 

• While HARDI’s monthly sales figures don’t include unit volumes, the data suggests distributors’ annual sales growth is being driven at least partly by higher prices rather than increased unit sales. 

What’s next: September distributor sales will be published in early November, while August manufacturer shipments are expected to be released this week.