1/4/2016
HEADLINES
STAFDA Distributors Report Q3 Sales Decline 1.3%
Distributors reported an average sales decline of 1.3% during the third quarter of 2015 compared to the same period of 2014, according to the Specialty Tools & Fasteners Distributors Association Q3 Trend Report.
Robert Murray, chief economist for Dodge Data & Analytics noted that a softness in manufacturing plant construction was due to a “sluggish global economy and falling energy prices.” An “exceptional amount of non building construction starts in the first half of 2015 wasn’t sustainable and activity is now proceeding at a more moderate pace.”
• The strongest region was the Northeast where distributors reported Q3 2015 sales up 10.6% over the same period of 2014.
• The sharpest decline was in the South Central where sales plummeted 18.4%.
Other regions with sales increasing were: Southeast 6.9% up; Pacific 0.3%; and Canada 7.9%.
Regions with negative sales levels were: Rocky Mountain, down 8.9%; North Central 5.0%; Northwest 3.6%; and Mid Atlantic 3.1%.
The Midwest averaged 0.0% change in sales.
• Multifamily housing is on track for double-digit growth in 2015 – though the third quarter rate declined. Single family housing has been up from 1% to 3% during 2015 periods.
• Non-building construction jumped 35% – led by electric utilities and gas plants up 205%.
• A 30% drop in manufacturing building brought overall nonresidential building down 7%. Commercial building and institutional building is virtually unchanged thus far this year.
Construction starts were up 24% in the South Central region for 2015 through September and 22% in the Northeast; South Atlantic up 9%; West +4% and Midwest +2%.
For information: STAFDA.org.
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