Growth Trend Continues for ASA members in August 2010.
Press Release Summary:
American Supply Association members reported growth for fourth consecutive month, showing 2.3% improvement in per-workday revenues during August 2010 compared to same month in 2009. However, plumbing, heating and pipe, valve, and fitting distributors are behind last year by 1.4% and 17.3% compared to 2008. Better than 2/3 of distributors report improved profitability compared to 2009, when almost all of the members reported reduced profitability.
Original Press Release:
ASA Members Continue Growth Trend in August
For the fourth consecutive month, members of the American Supply Association have reported growth, showing a 2.3% improvement in per-workday revenues during the month of August 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 1.4% and behind by 17.3% as compared to 2008. With one additional workday in August 2010 than in 2009, the raw monthly revenues for the industry members were up 7.2% for the month vs. 2009 and down 13.2% as compared to two years ago.
More distributors continue to report improved margins in 2010 as compared to 2009. The larger distributors also continue to be doing better on general profitability than the rest of the distributors serving this industry.
Inventory reduction continues to march on as another 1.4% drop has been achieved as compared to 2009, and 14.4% drop as compared to 2008. However, when compared to 2008, inventory turns continue their reduction as the drop in sales exceeds the inventory reduction. In accounts receivable, days sales outstanding continues to be about the same as previous year, as the industry stands at 47.1 days. The trend of reduced head count continues for the second consecutive year.
The slow, grinding recovery continues for the PHCP industry with better than two-thirds of the distributors report improved profitability, as compared to 2009 when almost all 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."
