NHRAW sales continue to grow amid a slowing economy
The annual sales survey of members of the Northamerican Heating, Refrigeration and Airconditioning Wholesalers Association (NHRAW) indicates an overall growth rate of 4.5% in 2000 over 1999 results. Sales of hvacr equipment, accessories and supplies in 2000 are reported to be nearly $14.75 billion. Survey results were in line with wholesaler distributor participants in the association’s monthly Sales Trends (up 4.5%) and in the annual Profit Planning Study (up 6.0%).
While the increase of $650,000,000 for the year is impressive, it represents a decline of nearly 3% from the growth patterns seen in the proceeding year. In 1997 and 1998 NHRAW wholesalers posted sales growth increases of 5.7% and 7.4% respectively. Donald Frendberg, NHRAW Executive Vice President /COO noted that the growth reduction is reflective of other industry indices for 2000 which also showed significant softening as compared to previous years. Housing starts for example were down 5.2% compare to 1999 while unitary air conditioning units increased 2% and central heating units remained unchanged from the previous year.
How does the hvacr distribution growth compare to the total distribution industry? In 1999 (the latest data available) the total sales in wholesale distribution grew to $2.74 trillion, which was a 7.3% increase over 1998. As mentioned previously, NHRAW member wholesale distributors reported a similar growth of 7.4% for the same period. What is perhaps even more significant is the fact that wholesale distribution industry in total contributed 7% of the U.S. national income in 1999 and accounts for one in every 20 jobs in the U.S.
NHRAW is the largest hvacr marketing trade association representing over 800 firms, which includes both, integrated and traditional wholesale distributors, manufacturers, plan and spec representatives and service vendors. The 350 wholesale members operate over 2,600 branch locations and employ in excess of 32,000 employees.
For more information concerning NHRAW and its programs and services, visit or call 614-488-1835.