Wholesale distributors will be pulled more deeply into manufacturers’ planning and execution in 2026 as producers lean harder on artificial intelligence, reshoring, and tighter inventory control to navigate an uncertain economic and policy environment.
That outlook comes from BDO USA, a professional services firm that provides assurance, tax, and advisory services to companies across industries. In a new industry forecast, the firm said manufacturers will prioritize operational agility, domestic supply chains and automation, moves that are likely to shift new expectations — and new work — onto distributors.
Real-Time Supply Visibility Becomes a Requirement
As manufacturers expand use of predictive analytics and scenario planning, distributors will face growing pressure to provide accurate, current visibility into inventory, lead times, and fill rates. BDO’s report frames agility as a “survival requirement” in 2026, driven by shifting policies, fluctuating interest rates, tax incentives, and supply-chain disruption.
For distributors, that translates into higher stakes for data quality and faster coordination with suppliers and customers — especially when manufacturers attempt to protect service levels without carrying more inventory.
Reshoring Widens Assortments and Raises Onboarding Demands
BDO expects reshoring and regional supply chains to rise in 2026, particularly in “mission-critical” markets such as defense and security, electrical transmission, rail infrastructure, data centers and building materials.
Distributors serving those end markets should be ready for faster supplier onboarding, more frequent product substitutions, and larger regional differences in availability as domestic sources replace imports. The operational burden often lands in distribution first: qualifying suppliers, updating product content, adjusting safety stock, and communicating changes to customers.
Data Center Construction Drives Project-Style Buying
The report also flags data centers as a major growth area linked to AI-driven infrastructure demand. BDO cites more than 47,000 megawatts of new data center capacity under construction worldwide, referencing MSCI research.
For distributors, the implication is more project-driven demand — larger orders, tighter delivery windows and increased coordination across job sites, manufacturers, and logistics partners. It also increases attention on equipment attributes tied to energy and water constraints, which BDO said will be under greater scrutiny.
Private Equity’s Playbook Ripples into The Channel
BDO expects private equity interest in midmarket manufacturing to increase in 2026, with buyers targeting companies that have “solid data infrastructure” but incomplete technology integration — leaving room to standardize systems and drive efficiencies.
That standardization push can spill into distribution: suppliers may expect distributors to exchange cleaner product and order data, integrate more tightly, and meet stricter performance measures as portfolio companies adopt common operating and reporting models.
Labor Mismatches Push More Work Downstream
BDO also points to labor constraints that are less about total headcount than where workers live. The report cites about 409,000 open manufacturing jobs and about 571,000 unemployed manufacturing workers nationwide, attributing both figures to the U.S. Bureau of Labor Statistics.
As manufacturers struggle to staff plants in growth regions, more configuration, kitting, and light value-added work can migrate to distributors — especially those that can automate warehouse and assembly tasks or provide technical support closer to the jobsite.
The Bottom Line for Distributors
BDO’s forecast amounts to a clear message for wholesale distributors: the channel’s value is increasingly measured by speed, accuracy, and coordination, not just product availability. Manufacturers’ push for agility, domestic sourcing and tighter working capital management is likely to reward distributors that can provide real-time visibility, rapid supplier onboarding, stronger product data governance, and reliable execution for project-heavy end markets.
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