Industry Outlook
Over the 2004-2014 period, wage and salary employment in wholesale trade is projected to grow by 8 percent, versus 14 percent growth for all industries combined. Consolidation and the spread of new technology are the main reasons for employment to be slower than average. Employment in the industry, however, still depends primarily on overall levels of consumption of goods, which should grow with the economy. Growth will vary, however, depending on the products and sectors of the economy with which individual wholesale trade firms are involved. For example, due to the nation's aging population, growth is expected to be higher than average for wholesale trade firms that distribute pharmaceuticals and medical devices. Additionally, a large number of job openings will arise as people retire or leave the industry for other reasons.
The trend towards consolidation of wholesale trade firms into fewer and larger companies is likely to remain strong. Globalization and cost pressures are likely to continue to force wholesale distributors to merge with other firms or to acquire smaller firms. As retail firms grow, the demand for large, national wholesale distributors to supply them will increase. The differences between large and small firms will become more pronounced as they compete less for the same customers, and instead emphasize their area of expertise. The resulting consolidation of wholesale trade into fewer, larger firms will reduce demand for some workers, especially office and administrative support workers, as merged companies eliminate redundant staff.
New technologies are constantly changing the shape and scope of the workforce in wholesale trade. The internet, e-commerce, and Electronic Data Interchange (EDI) have allowed wholesalers and their customers to better gather price data, track deliveries, obtain product information, and market products. This technology will increasingly allow customers of wholesale firms to purchase goods and track deliveries electronically, thus limiting the growth of sales and customer service workers, who would normally perform these functions. Further automation of recordkeeping, ordering, and processing will result in slower growth for office and administrative support occupations. Customers frequently order and pay for goods electronically, therefore fewer bookkeeping, accounting, and auditing clerks will be needed as fewer paper transactions are conducted.
New radio frequency identification (RFID) technology has the potential to streamline the inventory and ordering process further and replace the need for manual barcode scans and eliminate most counting and packing errors. As RFID spreads it may lessen demand for administrative workers, particularly order, stock, and shipping, receiving, and traffic clerks. Not all wholesalers will implement this technology though, as it may not be cost effective for some firms, and workers will still be needed to maintain these new systems.
This 21st Century supply chain will create a strong demand for computer specialists in the wholesale trade industry. Those computer specialists with knowledge of information technologies have the best chances for employment. Wholesaler's presence in e-commerce and the uses of electronic data interchanges (EDI) will require more computer specialists to develop, maintain, and update these systems. Computer specialists will also be needed to install and develop radio frequency identification systems for those firms that adopt it, and to troubleshoot any problems these systems encounter.
With these new technologies making it easier for firms to bypass the wholesaler and order directly from the manufacturer or supplier, wholesale firms are putting greater emphasis on customer service to differentiate themselves from these other suppliers. Thus, wholesale firms are offering more services such as installation, maintenance, assembly, and repair work and creating many jobs for people that perform these functions. Sales workers will also be in demand to more aggressively develop prospective clients, including demonstrating new products, and offering improved customer service to clients.