ASA Members continue with small growth in July.
Press Release Summary:
For third consecutive month, ASA members reported 3.3% improvement in per-workday revenues during month of July in 2010 compared to July 2009. Year-to-date values for plumbing, heating and pipe, valve, and fitting distributors are still behind last year by 0.2% and 17.4% compared to 2008. As there was one less workday in July and year-to-date 2010 than in 2009, raw monthly revenues for industry members were down 1.5% for month, 1.0% year-to-date, and 17.4% compared to 2 years ago.
Original Press Release:
ASA Members Continue Small Growth in July
Chicago, IL - For the third consecutive month, the American Supply Association members reported a 3.3% improvement in per-workday revenues during the month of July 2010 as compared to the same month in 2009, although year-to-date the plumbing, heating and pipe, valve and fitting distributors are still behind last year by 0.2% and behind by 17.4% as compared to 2008. As there was one less workday in July and year-to-date 2010 than in 2009, the raw monthly revenues for the industry members were down 1.5% for the month, down 1.0% year-to-date and down 17.4% as compared to two years ago.
Although more distributors reported improved margins in 2010 as compared to 2009, the differential is evening-out. And the larger, more specialized distributors are doing better on the gross profit margins and general profitability than the generalist distributor serving the heating, plumbing and industrial sectors of this industry.
Inventory reduction continues as another 1.1% drop has been achieved as compared to 2009, and 11.2% drop as compared to 2008, although as compared to 2008, the inventory turns continue in negative territory. Days sales outstanding is now about the same as previous year, as the industry stands at 46.9 days in its receivables. The trend for reduced headcount continues for the second consecutive year.
All of this points to a continued, albeit slow recovery for the PHCP/PVF industry with about two-thirds of the distributors reporting improved profitability, as compared to 2009 when over 90% of the members reported reduced profitability.
For a full report containing statistical evaluation by regions of the country, market segments and distributor size, companies should contact Chris Murin at cmurin@asa.net or 312.464.0090 ext. 204.
"ASA strives to drive the effective and consistent implementation of quality programs and services which improve the operational efficiency and marketing effectiveness of the wholesale distribution channel, resulting in market share growth and return-on-investment improvement for its members."
