Delivering for Best-in-Class Wholesaler-Distributors
December 14, 2016  |  ByNAW Staff
NAW-5 Key Facts About the Wholesale Distribution Industry

5 Key Facts About the Wholesale Distribution Industry

NAW’s Government Relations team has recently created an infographic to illustrate the story of the successes and key economic impact of the wholesale distribution industry to the U.S. economy.

Among the data are 5 key facts about the Wholesale Distribution (W-D) Industry which include:

  • W-D Industry represents $5.6 Trillion in annual sales volume.
  • W-D Industry pays a 30% effective income tax rate.
  • W-D Industry has a 2% average after-tax profit margin.
  • W-D Industry pays an average hourly wage of $29.31 for all employees ($23.98 for all non-supervisory employees).
  • W-D Industry employees 5.920 million workers, and 4.732 million of these workers are production and non-supervisory.

Another compelling fact from this illustration relates to the stratification of wholesale distribution company.  While the W-D industry’s sales volume is 120% of the retail’s industry sales volume ($4.6 Trillion), 83% of the companies/firms in the W-D industry are considered small business – having annual sales of $10 Million or less.

A closing fact from this graphic shows that the W-D industry is also very employee-centered.  In addition to the high hourly wages paid to employees, half to three-fourths of company expenses are attributable to employee costs like salaries, wages, benefits and related taxes.

**This blog post was inspired by recent presentations from the NAW Roundtables including the “A Preview of the Presidential Nominees’ Business Agenda” sessions by Jade West, SVP-Government Relations at NAW.  During the 2016 Presidential Election, the interconnection of politics and industry has been a key subject area at all of the Billion Dollar Roundtables (CEO, CFO, CHRO, CIO, CLO and Operations) and Large Company Roundtables (CEO, CFO and Operations).  If you are interested of which topics are “top of mind” for NAW thought leaders, you are encouraged to view all of the Fall 2016 NAW Roundtable agendas at NAW Events.

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