The wholesalers

Although traditionally thought of as the 'middleman' in the supply chain, the modern wholesaler serves a broad range of customers. In recent years, wholesalers have increased their role in the economy by expanding into automated inventory management systems and by using information technology to furnish suppliers with market research to aid product development.

Wholesaling is growing steadily. In 2002, wholesale inventories reached $43 billion. Wholesalers rang up sales in 2002 of close to $419 billion, up from $394 billion in 2001. Much of this growth was fuelled by increased sales of motor vehicles, parts and accessories (16.2%), household goods (14.2%), and lumber and building materials (14.1%).

For a second straight year, the value of e-commerce sales was highest in wholesale trade. Wholesalers sold $3.7 billion worth of goods and services over the Internet in 2002, up 92.9% from 2001. This level represented 1.1% of their total operating revenue. Nearly all (93.9%) of the e-commerce sales by wholesalers were direct to businesses. Only 8.7% went outside the country.