June 9, 2025 - Citrin Cooperman’s recent survey of 500 manufacturing and distribution business leaders explores the outlook of the industry as a whole and companies in the distribution and logistics subsector. To stay competitive today, companies in this subsector are embracing technology, investing in infrastructure, and preparing for future expansion and market diversification. Our 2025 Manufacturing and Distribution Pulse Survey Report explores these and other key considerations of business leaders, as well as a look at factors affecting the distribution and logistics subsector.

Key Challenges and Emerging Concerns

The distribution and logistics industry is showing resilience and cautious growth amid a complex operating environment shaped by rising costs and ongoing global supply chain disruptions. Some distribution and logistics companies are experiencing mostly modest growth, highlighting that margin pressures are a top concern.

Distribution and logistics companies are highly exposed to inflation and trade-related risks. Sixty-eight percent of respondents expect direct or indirect impacts from tariffs in 2025, leading them to explore mitigation strategies such as freight consolidation, alternative sourcing, and tariff schedule review.

Meanwhile, other businesses are passing inflation-related costs to customers to mitigate rising costs, with 34% adjusting pricing quarterly, 23% monthly, and only 13% choosing not to pass along costs. With growth stabilizing within the industry, this is a great opportunity for companies to explore solutions related to their rising costs as margins begin to slim down.

Strengths and Growth Momentum

Successful distribution and logistics companies are closely aligned with customer and supplier priorities. Respondents note customer service (34%), product availability (33%), and product pricing (32%) as the most important factors to their customers. On the supplier side, environmental, social, and governance (ESG) policies (36%), technical knowledge (33%), and product availability (31%) are the most important. This highlights the growing importance of sustainability and operational expertise in maintaining strategic partnerships if business leaders want to set their company up for success.

The Road Ahead

Distribution and logistics companies are preparing for a significant transformation over the next three years. Forty-one percent anticipate expanding into new facilities or plants, 37% expect to significantly increase their workforce, and 35% project capital investments of over $1M. Meanwhile, 48% are considering selling their business, signaling that many leaders are evaluating exit strategies amid a consolidating market. Regardless of sale intentions, companies are prioritizing upgrades in research and development (R&D), sales infrastructure, organizational structure and talent, and enterprise resource planning (ERP) systems to enhance their business value.

While economic and trade-related challenges remain persistent, distribution and logistics companies are demonstrating resilience through strategic cost management and infrastructure expansion. As companies prepare for the future, those that effectively balance operational efficiency and cost management will be best positioned to lead. With deep experience working with companies in the distribution and logistics subsector, our highly specialized team is well-equipped to help your business stay at the forefront of these quickly evolving issues.

Citrin Cooperman’s Manufacturing and Distribution Pulse Survey Report

Citrin Cooperman’s Distribution and Logistics Industry Practice is a core focus of our Manufacturing and Distribution Industry Practice. Our team of professionals provides innovative, actionable solutions to help companies navigate the complexities of the global supply chain to achieve their strategic vision. Explore how this subsector compares to the full industry by accessing the 2025 Manufacturing and Distribution Survey Report.

Access the 2025 Manufacturing and Distribution Pulse Survey Report