ASA distributors report robust sales increase

Respondents to ASA’s monthly sales report survey reported a median sales increase of 28.2% for August 2021 vs. August 2020. In comparison to the previous month (July 2021), respondents reported a more modest median sales increase of 6.3%.

On a year-to-date basis through the end of August, half the respondents reported sales growth of more than 19.5%. On a trailing 12-month basis, respondents reported an average sales growth of 13.5% and a median of 15.6%. Half the respondents reported TTM changes between 8.4% to 20.5% for sales growth.

Inventory rose 30.2% for August 2021 vs. August 2020. The median three-month-average days sales outstanding dropped slightly to 40 days for August.

Industrial PVF distributors reported a median sales increase of 41.4% for August 2021 vs. August 2020. On a year-to-date basis, industrial PVF distributors reported a 10.7% median sales increase. On a trailing 12-month basis, industrial PVF distributors were up 7.1%. Inventories for industrial PVF distributors rose 25.6%, comparing August 2021 to August 2020 totals.

Here’s a snapshot of how survey respondents characterized business for the reporting period:

• “Business is very strong, which was further boosted by the impact of the hurricanes. Supply and staffing is a challenge.”
• “Continued supply chain and inflation pressures along with job market issues.”
• “Our sales and order bookings are recovering nicely each month.”
• “Sales are strong.”
• “Sales are up although inflation is leading to some of the increase. Inventory delivery has improved, but we are still behind on deliveries.”
• “Still dealing with COVID fallout as a well as supply and demand limitations.”
• “Strong sales performance has continued through Q3. Margin remains very strong.”
• “The number one problem/issue at this moment relates to the supply chain and product availability.”