US Wholesale Sector NAICS 42

Jun 24, 2026 - AI Adoption Remains in Early Stages

• 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.

• US wholesalers reported strong business conditions in May 2026, leading all service industries in growth as rising demand drove increases in business activity, new orders, employment, inventories, and order backlogs, according to the ISM Services PMI Report. However, the sector also faced mounting supply chain and cost pressures. Supplier deliveries continued to slow, inventories rose sharply, and wholesale firms reported that inventory levels were becoming elevated. Input costs increased across the industry, with fuel, transportation, metals, construction materials, and technology products among the items seeing higher prices. Wholesale respondents cited growing demand from energy and data center projects but also noted reduced inventory availability in some markets. The broader ISM Services PMI rose to 54.5%, indicating continued economic expansion, while the Prices Index reached 71.3%, its highest level since August 2022, underscoring the inflationary environment wholesalers must navigate.
• The US wholesale sector is poised to see near-term but delayed cash flow relief as tariff refunds begin rolling out, according to a Modern Distribution Management report. US Customs and Border Protection began processing International Emergency Economic Powers Act (IEEPA)-related refunds in April, with payments expected in 60–90 days, longer than earlier estimates of up to 45 days. The initial phase applies only to select entries, including those within a 90-day reliquidation window, limiting immediate impact. While the new Consolidated Administration and Processing of Entries (CAPE) system is designed to handle high claim volumes, the phased rollout and extended timelines suggest benefits will be gradual. Overall, the development supports liquidity but is unlikely to materially improve near-term operating conditions.