Distributionand LogisticsSubsector Outlook
SURVEY RESPONSES
OVERVIEW
Citrin Cooperman’s 2024 Manufacturing and Distribution Pulse Survey Report unveiled several key opportunities and challenges for the distribution and logistics subsector. Emerging from years of market volatility, distribution and logistics companies have been challenged to think creatively to manage rising costs and interest rates, utilize thirdparties to fill operational gaps, and leverage sophisticated technologies to stay ahead of the competition
HOW CITRIN COOPERMAN CAN HELP
Citrin Cooperman’s dedicated Manufacturing and Distribution Industry Practice has a core focus in helping distribution and logistics companies achieve their strategic visions Our team of professionals are here to provide innovative, actionable solutions to today’s most pressing issues
John Giordano
Partner and Co-Leader
Manufacturing and Distribution Industry Practice jgiordano@citrincooperman.com
Mark Henry Partner and Co-Leader
Manufacturing and Distribution Industry Practice mhenry@citrincooperman.com
59%
50%
44%
profitability information at the product level 82%
tended to perform better in 2023 compared to 2022 76%
Report they are using thirdparty warehouses to help manage, store, and/or fulfill their products
Note they are managing their product costs by renegotiating freight contracts
Report that over half of their current sales are done by e-commerce/online
Have ERP systems that provide
Indicate their products
Manufacturing and Distribution Pulse Survey Report 2024
Interested in how this subsector compares to the full industry? Access the 2024 Manufacturing and Distribution Survey Report here.
DISTRIBUTION AND LOGISTICS SUBSECTOR CHALLENGES
Inflation has been top of mind for distribution and logistics companies in 2024. Leaders in this subsector must continually evaluate how to effectively manage ongoing disruptions in the supply chain and increased cost of inventory without harming customer loyalty or damaging the company’s reputation Seventy-three percent of our survey respondents anticipate that the cost of inventory will go up in the next twelve months Does your business have the systems and plans in place to respond to the effects of these rising costs?
SURVEY RESPONSES
Report rising inflation is the biggest challenge their company is facing in 2024
Indicate the cost of U.S. labor is the top hurdle to reshoring 41% 71% 50% 65%
Believe that the cost of inventory will increase over the next 12 months
Report their product performance was impacted due to supply chain issues that affected product availability
DISTRIBUTION AND LOGISTICS SUBSECTOR DEMOGRAPHICS
Position/job title
Owners and C-suite: 97
Revenue:
Less than $10M: 0%
$10M - $99 9M: 21%
$100M - $249 9M: 6%
$250M - $499 9M: 15%
$500M - $1B: 29%
More than $1B: 29%
Physical presence or inventory in multiple states: Yes: 74% | No: 26%
Company employee size: 0 - 100: 15% 101 - 500: 12% 501 - 1,000: 12%
1,001 - 2,500: 15%
2,501 - 5,000: 20% 5,001 - 10,000: 15%
More than 10,000: 11%
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