US Wholesale Sector NAICS 42

Jul 21, 2026 - Wholesale Industry Awaits Oregon Ruling

• A federal judge's pending decision on Oregon's Recycling Modernization Act could have significant implications for the US wholesale distribution industry, as the law requires manufacturers and distributors to help fund the recycling and disposal of product packaging, according to an Oregon Capital Chronicle report. The National Association of Wholesaler-Distributors (NAWD) argues the law is unconstitutional, lacks transparency, and could increase compliance costs while complicating interstate commerce. Because six other states have adopted similar extended producer responsibility (EPR) laws, the ruling—expected by the end of August—could influence legal challenges nationwide and shape future packaging regulations. If upheld, the law may increase costs for wholesalers selling into affected states, encourage packaging redesigns to reduce fees, and add compliance requirements as distributors navigate an expanding patchwork of state EPR regulations.
• Wholesale Trade remained one of the strongest-performing segments of the US services economy in June, even as the overall ISM Services PMI eased to 54.0 from 54.5, marking the sector's 24th consecutive month of expansion, according to the ISM Services PMI Report. Wholesale businesses ranked among the top five industries reporting growth and showed broad-based strength across business activity, new orders, employment, inventories, imports, and order backlogs, while also experiencing slower supplier deliveries, a sign of healthy demand. In comparison, the broader services sector saw business activity and new orders moderate, while employment returned to growth after three months of contraction. Wholesale respondents cited tariffs, import constraints, and duty recovery programs as increasing supply chain complexity, while another reported continued revenue growth driven primarily by higher prices. Overall, wholesalers outperformed many service industries but continued to contend with elevated costs and trade-related uncertainty.

• AI adoption is creating opportunities for the US wholesale sector to improve efficiency, but implementation challenges are slowing progress, according to The Loadstar's State of AI in Supply Chain report. The report found that only 22.2% of organizations have deployed AI at scale, while 43.2% remain in the experimentation phase or have not started adoption. The biggest barriers are organizational rather than technical, with 53.8% citing a lack of AI expertise and change-management capabilities and 48.7% reporting integration challenges with existing systems. For wholesalers, AI is delivering the greatest benefits in document processing and administrative tasks, with 79.7% of respondents reporting measurable operational impact and 89.5% citing productivity gains. However, 62.8% have not measured or cannot quantify AI's return on investment, making it difficult to justify broader deployment. As AI becomes more common, wholesalers that successfully integrate the technology and improve data quality may gain competitive advantages through lower operating costs, faster order processing, and improved supply chain efficiency.
• US wholesalers are facing renewed supply chain pressures as manufacturers worldwide accelerate purchasing and build inventory buffers ahead of expected inflation and potential disruptions, according to the May 2026 GEP Global Supply Chain Volatility Index. Safety stockpiling reached its highest level since January 2023, while material shortages climbed to a three-and-a-half-year high. North American supply chain pressures rose to 1.69, the highest level since August 2022, driven by stronger purchasing activity and inventory accumulation. Elevated transportation costs, which have remained unusually high for three consecutive months, are also increasing procurement and distribution expenses. While stockpiling may help wholesalers secure product availability in the near term, the buildup of inventories could lead to slower purchasing activity and weaker demand later in 2026 as businesses work through excess stock. The result is a challenging environment marked by higher costs, tighter supply conditions, and increased inventory management risks.