In April 2025, the logistics labor market sent a clear message: warehousing is on the rise, while transportation is treading water.
According to the latest report from the Bureau of Labor Statistics—highlighted in FreightWaves—the truck transportation sector added just 1,400 jobs in April, a dramatic slowdown compared to the 7,000 added in March. Meanwhile, warehousing and storage surged, gaining nearly 10,000 new jobs last month after a major upward revision in March data.
For convenience distributors, these shifts aren’t just economic footnotes—they’re signals of changing pressure points in your supply chain.
What the Latest Job Data Tells Us
Let’s break down a few key highlights from the FreightWaves report:
- Truck Transportation: Job growth slowed to a crawl, adding only 1,400 positions in April. Compared to the same month in 2023, employment in the sector is down 3.2%.
- Warehousing & Storage: The sector added 9,800 jobs in April, reaching a total of 1.853 million. That’s nearly 30,000 new jobs over two months.
- Tariff-Driven Stockpiling: Companies are pulling forward freight and stocking up inventories ahead of anticipated tariffs, increasing the demand for storage space—and the labor to manage it.
- Courier & Delivery: Steady but volatile, with job numbers bouncing due to data revisions.
These figures reveal a growing emphasis on inventory storage and short-term fulfillment capacity. As more goods move into warehouses ahead of demand, the operational burden shifts downstream—landing squarely in the lap of distributors.
Why Warehousing is Growing—and Why That Matters to Distributors
The surge in warehousing employment isn’t just a seasonal blip—it’s a direct response to shifting global trade dynamics and supply chain strategy.
With the threat of new tariffs looming, many importers are stockpiling goods to get ahead of potential cost increases. That means more inventory is arriving earlier and sitting longer, creating a surge in demand for warehouse space and labor. While that might seem like a win for supply stability, it also creates downstream challenges.
For convenience distributors, this environment leads to several key pressures:
- Space is Tighter Than Ever: Distributors relying on just-in-time inventory are suddenly managing larger stockpiles—or competing for warehouse space with companies doing the same.
- Labor Availability Is Shifting: As more warehouse jobs are created, hiring and retaining skilled warehouse staff becomes more competitive and potentially more expensive.
- inventory Management Gets Harder: Holding more inventory for longer requires greater accuracy in tracking, better forecasting, and tighter control over expiration dates, shrink, and turnover.
- Supply Chain Timing Becomes Less Predictable: Disruptions upstream from bulk ordering and congestion at ports or DCs can ripple down and affect fill rates, customer satisfaction, and service windows.
If you’re a convenience distributor trying to manage rising inventory levels without sacrificing speed or customer experience, these trends matter. They demand sharper visibility into what’s in your warehouse, where it’s located, and how it moves.
Challenges for Convenience Distributors
As warehousing becomes a focal point of the supply chain, convenience distributors are feeling the pressure on multiple fronts. The shifting job market and inventory build-up present both operational hurdles and opportunities for improvement—if you have the right tools in place.
Here are some of the top challenges distributors are now facing:
- Labor Management: With warehousing jobs on the rise, competition for skilled warehouse workers is increasing. Distributors must manage schedules, productivity, and retention more strategically—especially when labor costs are rising and turnover remains a concern.
- Inventory Accuracy: Increased stock levels mean greater complexity. From tracking item-level details to managing expiration dates and seasonal items, the margin for error shrinks quickly when inventory sits longer or moves in larger volumes.
- Space Utilization: Holding excess inventory due to early purchasing or supplier disruptions can strain warehouse layouts. Efficient slotting, replenishment, and space planning become essential to avoid delays and bottlenecks.
- Forecasting & Demand Planning: Volatile supply and unpredictable demand make forecasting harder. Without accurate data and visibility, overordering or stockouts can easily occur—impacting customer satisfaction and profitability.
- Customer Expectations: Even with supply chain disruptions, customers still expect timely deliveries, complete orders, and consistent communication. Balancing operational constraints with service-level expectations is increasingly difficult.
These challenges aren’t new, but they’re magnified in today’s environment. Distributors that rely on disconnected systems or outdated manual processes will find it harder to adapt quickly. Those equipped with modern, integrated solutions will be better positioned to pivot and perform.
How an Industry-Focused ERP Like DAC ERP Helps
In times of rapid change, having the right systems in place can make all the difference. For convenience distributors, an ERP system built specifically for your industry—like DAC ERP from CDR Software—offers the clarity, control, and agility needed to handle these evolving challenges.
Here’s how DAC ERP can help you stay ahead:
- Real-Time Inventory Visibility: Know exactly what’s in stock, where it’s located, and how fast it’s moving. DAC ERP gives you a live view of inventory across all warehouses, helping you avoid overstocking or understocking while managing expiration dates and turnover efficiently.
- Labor Tracking and Efficiency Tools: Streamline warehouse operations by monitoring productivity, managing shifts, and identifying bottlenecks. With built-in tools to track performance and assign tasks, you can do more with the labor you have.
- Advanced Purchasing and Forecasting: DAC ERP helps you anticipate demand with data-driven forecasting tools. Make smarter purchasing decisions even when supplier timelines shift or customer patterns change unexpectedly.
- Optimized Warehouse Space Management: Maximize your warehouse layout with better slotting logic and inventory flow. DAC ERP supports efficient replenishment, picking, and restocking strategies to make full use of your space.
- End-to-End Visibility for Better Decision-Making: From order placement to delivery, DAC ERP connects the dots across your business so you can respond quickly to supply chain disruptions or changing customer needs.
When warehousing becomes the new pressure point, distributors need more than just a general-purpose ERP—they need a system designed for the unique challenges of convenience distribution.
Conclusion: Turning Industry Shifts Into Strategic Advantage
The slowdown in transportation hiring and the sharp rise in warehousing jobs are more than economic signals—they’re a wake-up call for distributors. As inventories grow and warehouse operations take center stage, companies that can adapt quickly will have a competitive edge.
For convenience distributors, the key is clear: greater visibility, stronger inventory control, and smarter labor and space management. DAC ERP from CDR Software delivers all of this in a solution tailored specifically to your industry—so you can stay focused on meeting customer expectations, even as the supply chain shifts around you.
Ready to take control of your warehousing operations?
Learn more about DAC ERP and how it can help your distribution business stay agile and efficient.
