The government shut down on Oct. 1 after Congress failed to pass a funding measure to sustain operations into the new fiscal year, leading to the suspension of most agencies.

While wholesale distribution isn’t as immediately impacted as some industries, extended agency shutdowns could create operational uncertainty. The loss of timely data that the industry uses as economic indicators, for example, could make business planning more challenging in the short term.

Key Economic Indicator Data Paused

On Oct. 1, the U.S. Census Bureau was scheduled to release its latest construction spending data, which MDM reports on monthly as several industrial distribution verticals, including building materials, use it as a critical signal on market conditions.

In the Store: MDM’s 2025 Economic Outlook Report (Premium access) 

During the shut down, this report — and other vital economic data — will not be published. The Bureau of Labor Statistics and Bureau of Economic Analysis have paused operations, meaning employment reports, inflation data, manufacturing shipments and inventories, and international trade statistics will all be delayed.

Most Federal Agency Operations Cease

In a Government Update newsletter provided to its members, the National Association of Wholesaler-Distributors’ Government Relations Team highlighted the effects of the shutdown on the daily operations of several agencies which may impact distributors. The newsletter included the following notable closures, among several others:

• OSHA will pause routine workplace safety visits focusing only on emergencies involving imminent danger and fatalities.
• The Office of Federal Contract Compliance Programs will suspend all operations during the shutdown.
• E-Verify will not be available for employers during the government shutdown.

If you are an NAW member, you can sign up for the Government Relations Updates here.