Digital revenue penetration tiers show concentrated distribution patterns and progression across three measurement periods. Firms achieving more than 10% e-commerce revenue increased from 28% in 2023 to 33% in 2024 and 41% in 2025, representing a 13 percentage point gain over two years. The more than 20% tier grew from 13% to 19% and stabilized, while the more than 30% tier progressed from 8% to 10% before declining to 7% in 2025.
Lock Supply Co.’s Tim Savage breaks down how practical AI tools are accelerating quoting, closing knowledge gaps, and strengthening contractor trust — without replacing the human side of sales.
It's critically important for all of us to see ourselves as industry stewards. We are an essential industry for the future of our nation. We are necessary even though we might not always see ourselves that way.
A recent American Supply Association report finds that nearly 75% of companies are experimenting with AI, with 38% exploring use cases, 34% piloting tools, and 19% implementing AI for operations like data forecasting and process automation, reflecting a shift towards technology to meet rising demands.
With supply chain volatility easing but labor and regulatory pressures mounting, distributors lean on data, partnerships, and smarter inventory strategy.
According to the American Supply Association’s Monthly Economic Report, forecasting shows GDP growth moderating, oil and freight costs stabilizing, and key construction indicators posting mixed signals heading into mid-2026. Economists contributing to ASA’s reports note that "economic risk remains elevated, but channel fundamentals are stronger than national headlines suggest," pointing to continued resilience in wholesale sales trends and contractor backlogs.
The warehousing industry faces a significant labor issue, accounting for 50% to 70% of total budgets, as noted by a Bostontec study. Manual order picking is a major expense, comprising around half of warehouse operating costs. Factors such as rising hiring costs, a shrinking labor pool, and the demanding nature of the work contribute to this problem. In 2023, the industry reported 4.7 nonfatal injuries and illnesses per 100 full-time workers (BLS).
Nearly three in four ASA members say their companies are already experimenting with AI, while 38 percent report they are exploring use cases, while 34 percent are piloting one or more AI tools.