Published On: Tue, Oct 28th, 2014

Distribution Industry Bucks Recession

The distribution industry has seen massive growth in the last quarter. The ongoing rise of the distribution sector has enjoyed prosperous growth in the US and the rest of the world. The global impact of this recession bucking industry can be felt global. For many distribution companies, they are feeling the many benefits of this thriving industry. After all, profit is the name of the game. This sector is not succumbing to trends and is beating the recession with aplomb.

 Distribution centre

The industry is worth over £3 billion in the USA alone. Companies like Costco have enjoyed significant profits in the last two years. Online giants such as Amazon are also experiencing increased sales year on year.

So, what can be said about the rise of global distribution industry? How is it managing to buck recessional trends?

Let’s find out.

The Growth of the Internet and E-Commerce

The growth and expansion of e-commerce in the last decade has helped businesses in a real way. This is certainly the case when it comes to bucking the trends of recession. Online goods are typically cheaper than goods in a traditional bricks and mortar shop. With this in mind, more people are buying online. Amazon shows that by just cutting out the middle man, you can make significant savings. Online retailers have huge warehouses. This primarily relies on distribution. So, while they have operatives in their midst, they are not paying out the large sums of money that high street retailers have to.

The growth of e-commerce can be attributed to bucking the recessional trend. Cheap goods and cheap labour result in high-profit margins. But, Amazon is not the only company.

Big Names, Big Profits

Costco, despite being a ‘traditional’ store is seeing prosperous growth too. This warehouse giant is seeing profit margins soaring. The old-school cash and carry is seeing savvy shoppers flock through its doors in a bid to save money. With such big names making big profits, little wonder this industry is booming. As regular consumers want to save money, they are turning to larger corporations with more significant buying power. This is resulting in the distribution industry experiencing unprecedented growth.

It’s Not Just Consumer Lead Businesses That Are Experiencing Growth

In the industrial distribution industry, there are some keen movers and shakers too. Companies such as Wolsey have seen profit margins of $21.6 billion this year alone. So, what is the reason for this? Why is the distribution industry thriving where others are failing?

According to Trivium Equipment, more businesses are tackling growth as a strategy. The consolidation of product lines and the expanse of e-commerce are helping the industry in a significant way.  At one time, the distribution industry though that e-commerce would be a problematic area. But, they have embraced the digital boom and have felt the monetary benefits of doing so.

Many companies, in the world of distribution, are analysing markets and assessing trends in a more robust way. This means that they are now able to capitalise on the markets and ensure that they can see substantial growth. What’s more, they are adopting the right business tools.

It seems the rest of the business world has a lot to learn from the distribution industry.