{"id":8577,"date":"2025-12-04T09:07:28","date_gmt":"2025-12-04T14:07:28","guid":{"rendered":"https:\/\/distributionstrategy.com\/?p=8577"},"modified":"2026-09-11T10:45:54","modified_gmt":"2026-09-11T14:45:54","slug":"hardi-distributors-see-slight-sales-decline-as-inventory-pressures-grow","status":"publish","type":"post","link":"https:\/\/distributionstrategy.com\/2025\/12\/hardi-distributors-see-slight-sales-decline-as-inventory-pressures-grow\/","title":{"rendered":"HARDI Distributors See Slight Sales Decline as Inventory Pressures Grow"},"content":{"rendered":"<p>Heating, cooling, and refrigeration distributors reported a modest revenue dip in October as the HVACR industry manages high inventories, shifting refrigerant regulations and a slower start to the heating season.<\/p>\n<p>Sales among members of Heating, Air Conditioning and Refrigeration Distributors International (HARDI) decreased 1% year over year in October, according to the association\u2019s latest TRENDS report released Dec. 3. Annual growth remained positive, however, up 3.5% for the 12 months through October.<\/p>\n<p>\u201cIt was a difficult comparison,\u201d said Brian Loftus, HARDI\u2019s macroeconomic and residential market analyst. \u201cFive of our seven regions had double-digit sales growth during October of 2024 after the trail of damage left by hurricanes Helene and then Milton.\u201d<\/p>\n<p>Even so, the underlying data underscores a cooling market. Distributors have been contending with inventory carried over from a sluggish summer demand cycle \u2014 monthly shipments fell around 20% in June, July, and August \u2014 before plunging 33% in October, according to the report.<\/p>\n<p>Loftus said those elevated stock positions are still a drag on new orders. \u201cThe ordering pause has allowed the Sales-to-Inventory ratio to begin to recover, but it remains well below pre-Covid normal levels,\u201d he said.<\/p>\n<p>The report arrives as the industry continues its shift to lower-global-warming-potential refrigerants such as R-454B, which are replacing R-410A under phasedown mandates. Contractors and distributors say the transition has created mismatches between the equipment being installed and the systems still widely in service \u2014 contributing to uneven demand and caution around replenishing inventory.<\/p>\n<p>Despite the softening top line, payment behavior remains stable. Days sales outstanding \u2014 which tracks how quickly customers pay their invoices \u2014 held near 38 days in October, unchanged from a year ago.<\/p>\n<p>\u201cThe top-line growth could inspire concerns about economic vitality, but that is offset by the steady payment timeline by HARDI customers,\u201d Loftus said.<\/p>\n<p>HARDI represents more than 490 wholesale distributors and over 5,000 branch locations across North America and Latin America. The monthly sales survey is voluntary, with data collected by an independent entity and inclusive of some product categories outside traditional HVACR.<\/p>\n<p><a href=\"https:\/\/distributionstrategy.com\/subscribe\/\">Don\u2019t miss any content from Distribution Strategy Group. Join our list.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Distributors have been contending with inventory carried over from a sluggish summer demand 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