Census of Distribution

Distribution 2008, based on the 2007 Census of Distribution, is the second annual survey of the warehousing and distribution industry conducted by The MPI Group, Industry Insights, and Material Handling Management magazine. It explores performance in this critical sector by surveying metrics, management practices and business concerns at more than 200 warehouse/distribution facilities in the United States. Distribution 2008 examines the survey responses of distribution managers around the country and defines the practices and performances that correlate with success - and stronger supply chains - as well as offering benchmark metrics for key areas of operation.
 
   
Highlights of Distribution 2008 include:

• Warehouse employment levels continue to grow, but so does annual labor turnover as job openings spur employee searches for greener pastures.
• The most widely adopted best practices in the distribution industry are continuous-improvement programs, benchmarking and lean-material management.
• The top value-added activities performed for customers continue to be re-labeling/repackaging, product returns, kitting and light manufacturing/assembly.
• International business is growing. A median 25 percent of respondents' materials came from overseas (average 36.7 percent). About a quarter of facilities import 60 percent of their goods and 84 percent import at least some percentage of goods.
• Information technology (IT) and capital equipment spending is expected to continue to rise. About 10 percent of managers said their IT spending would increase by more than 20 percent. Eleven percent reported that their capital equipment expenditures would see a similar rise.
• Health care costs continue to rise - 85 percent of facilities reported an increase in the past 12 months. But managers say the top three threats to profitability are finding skilled labor, energy/fuel costs and health of the economy.