Natalie Forster: From the Editor

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Extreme weather is now colliding with already-tight freight capacity, volatile energy markets and a construction economy that increasingly demands speed, certainty and risk sharing. During the recent cold snap, Financial Times and Reuters reported U.S. natural gas prices surged to their highest levels in more than three years, driven by freeze-offs that curtailed production just as heating demand spiked. 

In wholesale distribution, progress in 2025 rarely came from one sweeping change. It came from smarter forecasting and more accurate data analysis. From incremental improvements in product data that made online searches less frustrating to onboarding processes that got new hires productive faster than before. None of it flashy, but all of it impactful.

The year-end is a time for reflection, and planning for 2026 is already starting. The Gallup Q12 engagement survey measures employees' connection to their workplace through 12 key statements. It highlights aspects such as expectations, tools, valued opinions, and growth opportunities, making it especially valuable in industries where retention depends on clarity, trust, and recognition beyond compensation. The Q12 helps quantify these drivers for better management, which is crucial at year-end.

According to the American Supply Association’s most recent sales report, industrywide wholesale trade in mid-2025 was up just over six percent year-over-year, while inventories climbed a modest 1.3%. That balance suggests something healthy — not overheated, but steady growth with wholesalers staying disciplined on stock levels. In other words, people are buying smart.

Throughout the 1970s-1980s there were four main industry buying groups - AD, Embassy, Omni and WIT & Co. Often referred to as “legacy buying groups,” these groups existed and operated for decades before consolidation began. Here's a quick history lesson on buying group mergers in the sector.

In plumbing, wholesalers are reporting price hikes of 15–35% across copper, steel, and PVC since the tariff chatter began. Distributors caught between rising supplier invoices and contractors reluctant to absorb increases face an unenviable choice: raise prices and risk losing volume, or protect customer relationships and watch margins evaporate.

The Stuarts Draft plant is capable of producing 3,085 different SKUs and has a 40-million-pound capacity when fully staffed.

The 2025 standards are a reminder that regulation is never static. But wholesalers who position themselves as both compliance experts and trusted advisors can turn these challenges into an opportunity to strengthen contractor relationships—and protect their margins in the process.