2007 Growth and the 2008 Economic Outlook

As we start to get ready for 2008, it’s a good time to check in the state of wholesale distribution in 2007 so far.

The overall news is very good. Total sales of wholesale distribution companies are on track to exceed $4 trillion dollars based on the first three quarters of the year (January through September). Once again, the wholesale distribution industry is growing faster than the overall U.S. economy’s Gross Domestic Product (GDP). (See chart below. Click to enlarge.)
Growth varies widely between the 19 major sectors. The table below (click to enlarge) compares 2006 to 2007 using the sectors covered in my 2007 Wholesale Distribution Economic Reports, which are available from the NAW Institute for Distribution Excellence.
Wholesale distributors of building materials and construction supplies had the biggest decline in revenues due to the residential real estate downturn. Other sectors continue to benefit from commodity price inflation, including agricultural products and finished food products. Industrial distributors continue to enjoy healthy growth due to strength in U.S. manufacturing, which is enjoying the export-driven benefits of a weaker dollar.

Getting Ready for 2008

As you start planning for 2008, I want to let you know about my Wholesale Distribution Economic Outlook audio conference on December 6, 2007.

During this call, I’ll give you my exclusive first look analysis at how U.S. economic trends are shaping up for wholesaler-distributors in 2008. I’m partnering with Modern Distribution Management to provide this cost-effective planning tool for wholesale distribution companies. We arranged the conference so that there is only one fee per dial-in number, so an entire management team can listen for just one price.

This will be a live event, so you’ll be able to ask me real-time questions. As always, I welcome your feedback and questions on macro-economic trends and their impact for wholesale distribution. Please be sure to email me your 2008 economic question at least one week prior to December 6. I’ll try to answer as many as possible during the event.