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June 4, 2025

Distribution Sector Spotlight - Summer 2025

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Report Highlights

Recent Elements Affecting the Dynamics and Outlook of the Distribution Sector


  • The Distribution industry indicated mixed results in Q1 2025 due to labor shortages and an uncertain economic climate. However, trends such as infrastructure investment, supply chain stability, and focus on reshoring are expected to drive growth through 2025 and beyond.
  • Growth within the industry was driven by the Automotive, Specialty Chemical, and Healthcare subsectors which experienced an average growth of 10.6% in EV/EBITDA multiples.
  • The Building Products, General & Industrial, and Foodservice sectors experienced an average multiple depreciation of 2.5% in Q1 2025 following a relatively strong FY 2024.
    • However, Fitch Ratings forecasts a modest demand recovery for North American building products and materials issuers in 2025, supported by a rebound in residential remodeling activity and increased U.S. housing starts.
  • Globally, the Distribution industry is expected to experience growth in 2025, as President Trump's recent reciprocal tariffs create uncertainty, leading businesses to increasingly rely on distribution services. As companies await clarity on tariff classifications and rates, the demand for last-minute distribution solutions is expected to rise, driving an increase in distribution rates..

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Our Distribution Sector Spotlight provides an overview of key trends and developments affecting the industry, covering market performance, economic indicators, and emerging opportunities.

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Learn More

Reach out to Dinan Capital Advisors Managing Director Tom Gerlacher for more report insights.

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