Friday, June 8, 2018

Oregon’s Wholesale Trade Industry

Wholesale trade companies are an integral part of the economy, functioning as intermediaries between manufacturers and the final end user customers. Another function is to store goods that neither the manufacturer nor the retailer can hold until consumers demand those products. From a manufacturer’s perspective, wholesalers create a manageable network of distribution channels to get their products into the hands of consumers.

In 2017, there were about 76,500 nonfarm payroll jobs in Oregon’s wholesale trade industry, representing about 4.1 percent of Oregon’s payroll employment. Due to higher than average wages, this industry accounts for 5.6 percent of Oregon’s total payroll. About 33,500 jobs were in merchant wholesalers of durable goods, another 28,700 in merchant wholesalers of nondurable goods. The smallest portion was electronic markets, agents and brokers with about 14,300 jobs in Oregon.

Employment with merchant wholesalers generally trended with the overall business cycle. Durable goods employment peaked in 2007 at 37,300 and then contracted to reach 30,700 in 2010. By 2017, employment rebounded, but still lags the previous pre-recession peak by about 3,800 jobs. On the other hand, merchant wholesalers of nondurable goods employment is above the previous pre-recession peak by about 2,500 jobs. Employment reached a prior peak in 2005 of 26,200 jobs and then declined to 23,600 in 2010. Employment rose steadily after 2010 to hit 28,700 by 2017. Electronic markets agents and brokers charted a more recession-resistant path since about the year 2000 in Oregon. After declining slightly from 1990 to 2000 when there were 8,700 payroll jobs, employment in this wholesale trade component climbed steadily to reach 14,300 jobs in 2017.
For information about the industry, read the full article written by Regional Economist Guy Tauer

No comments: