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Quarterly MDM-Baird Distribution Survey

Research: Distributors Rate their Top Workforce Challenges

One-third of distributors polled in the 4Q25 Baird-MDM Industrial Distribution survey say recruiting skilled labor is their biggest workforce challenge this year — and rising wages are forcing some to make cuts. We analyze the data and commentary here.

February 9, 2026

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Distributors are facing mounting workforce pressures in 2026, with recruiting skilled labor and managing wage inflation dominating concerns. The 4Q25 Baird-MDM Industrial Distribution survey asked: “What is your organization’s top workforce challenge to begin 2026?” Nearly 250 respondents — primarily distributors — weighed in during Jan. 5-12. Below are the results of their top selections:

  • Recruiting skilled labor (33%)
  • Managing wage inflation (22%)
  • Upskilling/reskilling workforce (19%)
  • Retaining existing employees (17%)
  • Adapting to new labor regulations (2%)

About 6% of the…

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