Manufacturers, distributors, and B2B retailers in the U.S. managed to grow their combined sales in 2024 — including those via ecommerce — but only marginally.
Total sales reached $22.419 trillion, marking a modest 1.5% increase from $22.092 trillion in 2023, according to projections by Digital Commerce 360 B2B based on 10 months of data from the U.S. Department of Commerce.
Several factors contributed to the sluggish growth, including persistently high interest rates, uncertainty surrounding the upcoming election, potential tariffs, and restrained spending by many business organizations. These challenges created a rough environment for both manufacturers and distributors and their ecommerce sales.
Manufacturing sales grew 1.5% year over year, climbing to $7.031 trillion in 2024 from $6.938 trillion in 2023. Meanwhile, distributor sales saw an even smaller uptick, rising just 1% to $8.030 trillion from $7.940 trillion in 2023.
Some distributors faced pronounced difficulties, particularly with smaller and mid-sized business clients. For instance, Global Industrial observed a significant slowdown in orders from this segment.
“We’re seeing fewer large projects as customers appear hesitant to commit to bigger opportunities,” said chief financial officer Tex Clark on a recent earnings call. “This softness is more evident among our smaller customers.”
Manufacturers’ and distributors’ ecommerce sales
Despite the overall slowdown, manufacturers and distributors are prioritizing digital commerce initiatives to stimulate future growth. Watsco Inc., a leading distributor of HVAC equipment, is one such company doubling down on digital innovation.
CEO Albert Nahmad highlighted the importance of digital technology in driving Watsco’s market gains.
“We continue to invest in the industry’s most innovative technology platforms for HVAC contractors,” Nahmad told analysts, as reported by Seeking Alpha. “Annualized ecommerce sales now exceed $2.5 billion, with active users growing faster than non-users.”
Watsco’s focus on digital tools and platforms is a testament to a broader trend across the industry: Manufacturing and distribution companies are leveraging ecommerce and advanced technologies to offset broader economic headwinds and position themselves for long-term sales success.
While 2024 proved to be a challenging year, the emphasis on digital transformation could lay the groundwork for stronger growth in the future. As manufacturers and distributors navigate economic and political uncertainties, their ability to adapt and innovate will be key to driving sustainable performance in 2025 and beyond.
More Charts & Data articles
Check back soon for more Charts & Data articles, like our weekly B2B infographics. Here’s the last one. We add new content regularly.
Sign up
Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at [email protected]. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.