Treat that as a workforce strategy because that’s what it is. The distributors, wholesalers and merchants that frame AI this way are already pulling ahead. The ones still running AI primarily as an IT project risk losing twice: first the people, then the knowledge they take with them.

Walk into almost any trade counter or branch in the UK and find the person everyone relies on. In a builders’ merchant, electrical wholesaler or industrial distributor, it is often someone in their 50s. They know which fittings actually cross-reference, which customer pays in 30 days and which one needs chasing, and which substitute to offer when a product is out of stock.

Almost none of it is written down.

I ran branch and call center operations at Grainger for the better part of a decade, and those were the people who kept the place standing. Last year, I watched a regional distributor lose three of them in a single quarter to retirement. The replacements were capable. They just didn’t know what the people who left knew. Service scores slipped, returns crept up, and the branch manager spent his days answering questions that used to answer themselves.

That’s the real AI story in our industry right now, and it has almost nothing to do with chatbots.

The Clock You’re Actually Racing

Here’s the uncomfortable part. The retirement wave may be the most important workforce issue on your five-year horizon, and many distribution leaders are managing it primarily as a hiring problem when it is also a knowledge problem. You can’t recruit your way out of a demographic cliff.

Look at the numbers in the trades that feed our sector. In UK construction and building materials, 35% of the workforce is over 50 and only 20% is under 30, with the average bricklayer now 52, according to 2025 data cited by ecomerchant. By 2035, more than a third of today’s workforce will reach retirement age, and roughly 750,000 workers are due to leave by 2036. Over the same period, the sector needs 251,500 additional workers by 2028 just to meet demand, against more than 140,000 unfilled vacancies as of December 2025.

The math doesn’t balance. The people aren’t there to hire.

This runs straight through the broader workforce supporting distributors, wholesalers and merchants. A March 2025 study by Flip and Workplace Intelligence, covering 500 UK frontline managers and employees in manufacturing and retail, found that 57% of the most experienced frontline workers are within five years of retirement. Sixty-eight percent of their managers fear vital expertise will be lost when those people go, and 78% aren’t confident their company is ready for the skills gap that follows.

The Organization for Economic Cooperation and Development made the broader demographic challenge clear in its 2025 Employment Outlook: Developed economies increasingly face labor scarcity as populations age and the ratio of older people to working-age populations rises.

Now set AI against that backdrop.

The Signal in the Data

Read that table from top to bottom and the strategy begins to write itself. The people who hold your operating knowledge are leaving. Distributors, wholesalers and merchants know they face a labor problem, and they increasingly see AI as a way to keep productivity rising with a workforce that may be smaller and less experienced.

What many haven’t done is connect those two problems directly.

Where Distributors Get Stuck

Three hard truths, and I’ve watched all three play out.

They buy tools before they capture knowledge. The instinct is to start with a chatbot or forecasting model. But your veteran employee’s know-how is part of the knowledge base AI needs, and if you don’t capture it while that person is still on the payroll, no model can magically recover it later.

In our December 2025 State of AI in Distribution survey, 52% of distributors named people as the biggest barrier to AI: a skills gap at 33% plus change resistance at 19%. Leadership buy-in ranked last. Read that carefully. The executives are increasingly convinced. The organization is struggling to execute.

They frame AI as replacement, and the workforce hears it. Almost no distributor in our data actually expects AI to become primarily a headcount-cutting exercise. Sixty percent expect it to increase the productivity of the people they retain. But if your branch team believes the model exists to replace them, they have little incentive to feed it what it needs.

That creates a dangerous contradiction. The veteran employees whose knowledge you most need to capture may be the least inclined to share it if the project is presented as a way to eliminate jobs.

They wait for clean data and a big platform. Nearly two-thirds of distributors, 63%, are still exploring or piloting rather than scaling AI. The leaders didn’t wait for perfect conditions.

As Grainger Chief Technology Officer Jonny LeRoy put it: “We’ve learned you’ve got to break down your problem into smaller chunks.”

That’s the difference. This is the kind of problem worth working through with people who have already done it, which is a large part of why we built the AI Forum for Distributors in the first place.

What This Means for Your Operation

Reframe the whole thing.

AI is part of your knowledge-retention strategy and your productivity strategy for a workforce that is going to change whether you prepare for it or not. For a UK builders’ merchant, an electrical wholesaler, a European industrial distributor or a multinational distribution group, the terminology may differ, but the operational challenge is the same.

The companies getting this right treat every approaching retirement as a body of knowledge at risk, and they act while the employee is still there to teach the organization.

They point AI first at high-volume, knowledge-dependent interactions: quoting, substitutions, order entry and technical lookups. Email order automation is already the most widely adopted customer-facing AI application in our survey, at 62%, precisely because it handles high volume and its return is relatively easy to see.

The appetite to invest is there. Sixty-five percent of distributors plan to increase AI spending over the next 24 months, with 88% naming productivity as their No. 1 reason for adopting it.

The leaders prove the point. Of more than 300 distributors we analyzed for The AI Execution Gap, only six reached the top AI maturity tier. One of them is Sonepar, the Paris-based global electrical distributor, which has committed more than €2.5 billion to logistics and €1 billion to its Spark digital platform.

The distance between those six and everyone else comes down to execution discipline, not simply budget or software.

What Changes Monday Morning

You can start this week. Five moves.

1. Build a retirement heat map. List everyone within five years of leaving and identify what only they know. That becomes your knowledge-risk map and helps establish your AI priorities.
2. Pick one knowledge-heavy, high-volume workflow. Product substitutions or quoting are strong first targets. Sit with your best person and capture how they do it, including the decisions, exceptions and judgment calls that never made it into the process manual.
3. Start with retrieval, not transformation. Getting technical product information, previous orders and account history in front of a new employee in seconds is a modest, provable win. It also takes pressure off your veterans immediately.
4. Put one senior owner on it. Don’t leave it to IT alone. Our data shows that technology-led efforts can stall when they aren’t tied closely enough to business outcomes. Name a senior person accountable for the result.
5. Measure a commercial number, not activity. Quote turnaround time, first-contact resolution or return rate. If you can’t tie the work to a number a branch manager, managing director or commercial director cares about, it won’t hold.

Notice what’s not on that list: a moonshot, a platform overhaul or a two-year roadmap.

Individually, these moves are modest. Running together, they build the muscle to capture institutional knowledge faster than your people retire.

That’s the game.

Come Work It Through With Your Peers

None of this is theoretical, and none of it is easy to build from a report alone. It is much easier in a room full of leaders wrestling with the same demographic math you are.

That’s what the AI Forum for Distributors, UK and EU is built for. It takes place Oct. 15, 2026, at the National Conference Centre in Birmingham, England, bringing together managing directors and senior commercial, operations, technology and digital leaders from distributors, wholesalers and merchants across the UK, Ireland and continental Europe.

The focus is practical: what’s actually working in distribution, lessons directly from distribution leaders, and a vetted group of technology companies already working in the sector.

Whether your company calls itself a distributor, wholesaler, builders’ merchant, electrical wholesaler or merchanting group, the problem is the same. If some of your best people are within five years of walking out the door, the time to build the capability that preserves what they know is now, not after they’ve gone.

Register for the AI Forum for Distributors, UK and EU, and come build it with people facing the same challenge.

The post Your Best People Are Retiring, But Your Best New Hire Is AI appeared first on Distribution Strategy Group.

Crescent Electric Supply Co. has promoted Kristee Mitchell to chief supply chain officer, putting her in charge of key supply chain and distribution operations across one of the nation’s largest independent electrical distributors.

Mitchell, who joined Crescent in 2023, moved into the newly expanded role Aug. 31 after most recently serving as vice president of supply chain fulfillment.

She will oversee supplier partnerships, supply chain fulfillment, distribution center operations, transportation management, and operational excellence across the company. The responsibilities give Mitchell broad oversight of the operations that move products from suppliers through Crescent’s distribution network and to customers.

The East Dubuque, Illinois-based distributor said the promotion is part of its continuing effort to evolve its organizational structure and improve operational performance.

“We congratulate Kristee on this well-deserved promotion and look forward to the results that she will drive,” CEO Penny Cotner said.

Mitchell holds an executive Master of Business Administration in global supply chain management from the University of Tennessee and a bachelor’s degree in supply chain management from Michigan State University.

Crescent operates at more than 140 branches in 28 states and serves contractors, original equipment manufacturers and maintenance, repair, and operations customers in commercial, industrial, institutional, and utility markets.

In addition to its Crescent Electric operations, the company’s regional brands include BA Supply in Missouri; Interstate Electric Supply in Idaho and Oregon; Mesco Electrical Supply in Ohio; National Electric Supply in New Mexico; Womack Electric Supply in Virginia and North Carolina; Stoneway Electric in Washington and Idaho; and Lowe Electric in Georgia and South Carolina.

The promotion puts Mitchell at the center of Crescent’s efforts to coordinate suppliers, inventory movement, distribution center operations and transportation across that multistate network, functions that directly affect product availability, delivery performance, and customer service.

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U.S. employers added 162,000 jobs in August, with manufacturers increasing payrolls and the unemployment rate holding steady as the labor market posted its strongest monthly gain in more than a year.

Manufacturing added 16,000 jobs during the month, continuing a recovery that has added 58,000 jobs since manufacturing employment reached a recent low in December 2025, the U.S. Bureau of Labor Statistics said Sept. 4.

The gains were concentrated in sectors closely tied to industrial distribution. Machinery manufacturers added 6,000 jobs, while fabricated metal products manufacturers added another 6,000.

The manufacturing gains came as overall nonfarm payroll employment increased by 162,000 in August. That compares with an average monthly gain of just 31,000 over the previous 12 months.

The unemployment rate remained at 4.1%, with about 7 million people unemployed.

The August numbers offer a stronger labor market signal for the industrial economy after several months of weak overall job growth. They also come as other economic indicators point to a more uneven manufacturing environment.

The Institute for Supply Management reported this week that U.S. manufacturing continued to expand in August, although growth in new orders, employment and order backlogs slowed from July. The latest employment data suggests manufacturers are still adding workers despite that moderation in demand.

Hiring among distributors was more subdued.

Wholesale trade employment changed little in August, according to BLS. Transportation and warehousing, another sector closely tied to distribution activity, also recorded minor change.

Construction employment increased by 22,000, which BLS characterized as little changed. Nonresidential specialty trade contractors added 8,000 jobs and continued an upward employment trend.

The combination presents a mixed picture for distributors. Manufacturers are adding workers to machinery and fabricated metals, while construction remains stable. Those sectors represent significant customers for industrial, electrical, construction and maintenance, repair, and operations distributors.

Distributors themselves, however, are not adding workers at the same pace.

Outside the industrial economy, job growth was concentrated in several sectors. Food services and drinking places added 59,000 jobs, compared with an average monthly increase of 12,000 during the previous 12 months. Local government education added 42,000 jobs, reversing a decline in July.

Health care employment continued to trend higher, adding 13,000 jobs in August.

Information was a significant weak spot, shedding 23,000 jobs. Employment declined by 8,000 in computing infrastructure providers, data processing, web hosting, and related services, 7,000 in publishing and 5,000 in broadcasting and content providers.

The labor force also expanded. The labor force participation rate increased to 61.6% from 61.4% in July, although it remained 0.5 percentage points below its January level.

The number of people working part time for economic reasons declined by 414,000 to 4.4 million. Those workers wanted full-time employment but were working fewer hours because their hours had been reduced or they could not find full-time jobs.

Wages continued to rise. Average hourly earnings for private sector workers increased 10 cents, or 0.3%, to $37.75 in August. Average hourly earnings were up 3.1% from a year earlier.

BLS also revised previous payroll estimates higher. July employment was revised to a gain of 21,000 from a previously reported decline of 23,000. Combined revisions to June and July added 55,000 jobs to previously reported payroll levels.

For distributors, the August report points to continued demand across important industrial end markets without a corresponding surge in distributor hiring. Manufacturing employment is moving higher, particularly in machinery and fabricated metals, while wholesale trade and transportation and warehousing payrolls remain flat.

That gap could indicate distributors are taking a cautious approach to labor even as activity among some of their customers improves. It also puts a greater emphasis on productivity as distributors look to handle demand without significantly expanding payrolls.

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Lowe’s Companies Inc. has reshuffled its senior leadership team, moving executives into new roles overseeing Pro, stores and artificial intelligence and making two additional executive appointments as the home improvement retailer looks to accelerate its next phase of growth.

The changes took effect Sept. 1 and span five executive vice president positions, according to a filing with the Securities and Exchange Commission. Lowe’s approved the appointments Aug. 28 and disclosed them in a Form 8-K filed Sept. 2.

Joseph M. McFarland III, previously executive vice president of stores, was named executive vice president of Pro and Home Services. Quonta D. Vance, previously executive vice president of Pro and Home Services, was named executive vice president of stores.

The moves put McFarland in charge of one of Lowe’s most important growth areas as the company continues expanding its business with professional contractors.

Lowe’s has been building out its Pro capabilities with expanded product access, digital quoting and purchasing tools, job-lot quantities, and direct-to-jobsite delivery. Its Pro Extended Aisle includes an expanded digital catalog with real-time inventory and pricing and a growing supplier network.

Lowe’s also elevated artificial intelligence within its technology organization. Seemantini Godbole, previously executive vice president and chief digital and information officer, was named executive vice president and chief information and AI officer.

In the expanded position, Godbole leads Lowe’s global technology organization, including engineering, product roadmaps, artificial intelligence, data and analytics, information security, and innovation, according to the company.

Lowe’s also appointed Adam D. Filipponi executive vice president of strategy and business development and Jennifer E. Wilson executive vice president and chief marketing officer.

The executive changes come after several years of investment by Lowe’s in Pro, digital, loyalty, fulfillment, and Home Services. The company said the appointments are intended to better connect those capabilities, establish clearer accountability, and allow Lowe’s to move faster on its largest growth opportunities.

The restructuring also puts Lowe’s Pro strategy under new leadership at a time when the retailer is expanding beyond the traditional store-based home improvement model. Its growing emphasis on professional contractors, larger orders, expanded supplier access and jobsite delivery increasingly puts Lowe’s into markets also served by building products and specialty distributors.

Lowe’s said the broader leadership changes are designed to strengthen execution of its Total Home strategy and position the company for its next phase of growth.

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The Lowe’s Foundation has launched a national coalition with NVIDIA, AT&T, Bank of America, Carrier, General Motors, DEWALT and Duke Energy that aims to help train and develop 1 million people for skilled trades careers by 2035.

The Building Futures Skilled Trades Coalition includes more than 75 businesses, educators, workforce organizations and industry groups, the foundation said Sept. 1. The initiative is designed to expand existing training programs, attract more workers to the trades and better connect training with available jobs.

The coalition comes as contractors, manufacturers and other employers contend with a shortage of qualified tradespeople. The Lowe’s Foundation cited U.S. Department of Education estimates that 2.1 million skilled trades jobs could go unfilled by 2030, potentially creating as much as $1 trillion in annual economic losses.

For distributors, the labor shortage extends beyond their own hiring needs. Electricians, HVAC technicians, construction workers, mechanics and other skilled tradespeople make up a significant portion of the customer base for electrical, industrial, building materials, HVAC and automotive distributors. A shortage of those workers can limit contractors’ capacity to take on projects and ultimately constrain product demand.

The coalition will focus on three areas: changing perceptions of skilled trades careers, expanding training and credentialing programs, and establishing common measurements to track participants from training through employment.

The initiative builds on the Lowe’s Foundation’s Gable Grants program, launched in 2023. The foundation now works with 73 community colleges and nonprofit organizations across 30 states on skilled trades training.

Lowe’s recently committed $250 million to expand that work, with a goal of helping train and develop 250,000 tradespeople by 2035. The new coalition extends the effort beyond Lowe’s by bringing together employers and industry groups around a broader 1 million-worker target.

“The next industrial revolution won’t be built by algorithms alone. It will be built by the millions of skilled trade professionals who power, connect and move this country forward,” Lowe’s CEO Marvin Ellison said.

The companies participating in the coalition represent industries facing different versions of the same workforce problem.

AT&T Chairman and CEO John Stankey said telecommunications companies will need skilled workers to build and maintain broadband infrastructure as artificial intelligence and other technologies increase demands on networks.

“As AI and other emerging technologies become more deeply embedded in everyday life, the resilient broadband networks that underpin them will be more important than ever, and those networks can’t be built or maintained without skilled workers,” Stankey said.

Carrier Chairman and CEO David Gitlin pointed to the need to develop workers for skilled trades careers, while Duke Energy President and CEO Harry Sideris said collaboration across industries could create more pathways into the trades and strengthen the workforce needed for infrastructure and energy projects.

Other coalition members include the National Association of Home Builders, the National Center for Construction Education and Research, SkillsUSA and Carhartt.

The coalition plans to share case studies, pilot programs and training models that members can use to expand successful workforce programs rather than develop new approaches independently. It also intends to establish common measurements for training, credentials and employment outcomes.

The effort will span construction, automotive manufacturing, telecommunications, energy, HVAC, technology and financial services.

The Lowe’s Foundation is an independent nonprofit organization founded by Lowe’s. The foundation said additional coalition members, commitments and progress updates will be announced as the initiative moves into broader implementation.

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HVAC distributor mSupply has named Richard Garza vice president of HR operations, adding an executive with mergers and acquisitions and systems experience to the HVAC, appliance, and plumbing distributor.

St. Louis-based mSupply said Garza will lead its total rewards and payroll teams.

Garza has more than a decade of human resources leadership experience, including work on mergers and acquisitions, HR information system implementations and migrations, and compensation and benefits strategy, according to the company. He also has experience scaling HR operations during periods of organizational growth and change.

Garza has held senior HR positions across several industries. He earned a bachelor’s degree in business administration with a focus on human resources management from the University of Texas and pursued graduate studies in mergers and acquisitions and HR information systems at Houston Christian University.

mSupply is a North American distributor of original equipment manufacturer repair parts and equipment serving the appliance, HVAC, and plumbing industries. The company has about 2,000 employees across the U.S. and Canada and operates a national distribution network.

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SupplyHouse has launched a national contest that will award $100,000 to 10 skilled tradespeople as the ecommerce distributor expands its marketing and outreach to plumbing, HVAC and electrical professionals.

The Melville, New York-based company said its Day Savers contest will award $10,000 each to 10 tradespeople nominated for helping customers, families, coworkers, or communities.

Nominations opened Aug. 24 and run through Sept. 9. SupplyHouse plans to announce the winners Sept. 18, which is National Tradesmen Day.

Participants can nominate a tradesperson by posting a short video describing how that person helped them. Entries can be submitted through Instagram, TikTok, X or Facebook by tagging the appropriate SupplyHouse account and using #TheDaySaversContest.

Public engagement, including likes, comments and shares, will determine the 25 entries that advance to a SupplyHouse judging panel.

The panel will evaluate finalists based on impact on others, which accounts for 40% of the score; demonstration of what SupplyHouse calls an “Always Shows Up” spirit, at 35%; and the strength and authenticity of the story, at 25%.

Each of the 10 winners will receive $10,000 and be named to the company’s 2026 Day Savers Crew.

SupplyHouse also brought in country music singer Tim McGraw to promote the campaign and encourage nominations. McGraw has a family connection to the trades through his nephew, Matthew, who the company said has built a career in the trades and operates his own business.

“Tradesmen are at the heart of everything we do at SupplyHouse, and we see every day how much people rely on their skill, dedication and willingness to show up when it matters most,” Chief Marketing Officer Kaylin Staub said.

The contest is part of a broader SupplyHouse effort targeting skilled-trades professionals and people entering the industry.

SupplyHouse also operates TradeMaster, a program for trade professionals, and Track to the Trades, a national scholarship program. The company also operates the SupplyHouse Foundation.

Founded in 2004, SupplyHouse sells plumbing, HVAC, and electrical supplies online. The company is headquartered in Melville and has distribution centers in Nevada, Texas, Ohio, and New Jersey.

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QXO Inc. has named Honeywell executive Ken West president and chief operating officer as the building products distributor works to integrate acquisitions and expand its operations.

West will join QXO effective Sept. 1 and report to Chairman and CEO Brad Jacobs, the Greenwich, Connecticut-based company said Aug. 24. He will oversee QXO’s day-to-day operations.

West most recently served as president and CEO of Honeywell Process Technology. He joined Honeywell in 2018 and held leadership positions across several of its industrial businesses during a period in which the company began separating into three publicly traded companies.

His experience includes integrating large acquisitions, an area that will be important as QXO combines businesses acquired through its expansion in building products distribution.

At Honeywell, West led the company’s 2025 acquisition of Sundyne and its integration with Honeywell’s automation and digital operations. More recently, he led the acquisition of Johnson Matthey’s Catalyst Technologies business and the subsequent integration process.

“Ken is an exceptional operator with the executional rigor to lead QXO’s operations,” Jacobs said. “He has demonstrated an ability to achieve outstanding results across a number of industrial businesses.”

QXO said West’s integration experience will support its efforts to combine acquired businesses with the technology systems it is developing across the company. The distributor has identified pricing, procurement, and sales as areas where it expects integration and technology to improve operating performance and customer experience.

The appointment comes as QXO manages a larger building products distribution business following a series of acquisitions.

QXO acquired Beacon Roofing Supply in 2025, establishing a large national roofing and building products distribution network. The company has since continued its expansion through transactions involving Kodiak Building Partners and TopBuild.

Those deals have increased the importance of integrating purchasing, pricing, sales, technology, logistics and other operations across businesses that previously operated independently.

West has more than 20 years of experience in operations, strategy, finance, and integration.

During his six years at Honeywell, he rose to lead three major business segments. Before heading Honeywell Process Technology, West served as president and CEO of Energy and Sustainability Solutions, president and CEO of Honeywell UOP, and president of Honeywell Advanced Materials.

In his most recent role, he also helped oversee changes to Honeywell’s process technology operations, including the separation of the business now known as Solstice Advanced Materials.

Before joining Honeywell, West spent 13 years at PPG Industries. He served as global vice president of packaging coatings and held positions in operations, integration, corporate planning, and finance.

West also led the integration of AkzoNobel’s North American architectural coatings business following PPG’s acquisition of the operations.

“I’m excited to join QXO at this pivotal moment in its growth,” West said. “We have an extraordinary opportunity to build the preeminent company in the building products industry, and I’m eager to help transform the QXO team’s bold vision into reality.”

QXO is North America’s largest distributor and installer of insulation and the second-largest distributor of roofing products. The company also describes itself as the second largest publicly traded distributor of lumber and building materials and the largest distributor of waterproofing products.

QXO has set a goal of reaching $50 billion in annual revenue within the decade through acquisitions and growth from its existing businesses.

West holds an MBA from Carnegie Mellon University’s Tepper School of Business and a bachelor’s degree in mechanical engineering from Purdue University.

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Midland Industries has named Mark Roszkowski CEO, putting the former Quill president in charge of an industrial distributor with 11 facilities in the U.S. and Canada.

Midland announced the appointment on Aug. 13. The company did not identify Roszkowski’s predecessor or disclose additional details about the leadership change.

Roszkowski joined Midland in June after serving as president of Quill, the business supplies distributor, according to his professional profile. His background also includes executive roles spanning sales, operations, engineering, finance, and corporate strategy.

At Midland, Roszkowski will oversee a business that distributes fittings, valves, hoses, clamps and related flow-control and connection products. The company serves customers in manufacturing, plumbing, utilities, HVAC, fluid power, and other industrial markets.

Founded in 1919 and based in Kansas City, Midland markets about 37,000 products through 11 facilities across the U.S. and Canada.

Roszkowski said his priorities will include the company’s growth strategy and operations, as well as investments in employees and customer and supplier relationships.

“Mark is an accomplished leader with the experience, commercial orientation and operational discipline to help Midland continue building on its established foundation,” said Alex Funk, managing director at Gemspring Capital.

Roszkowski said he plans to work with Midland employees, customers, and business partners as he takes over the company.

“I look forward to working closely with the Midland team, our customers and our partners to build on the company’s momentum,” he said.

Midland is a portfolio company of Gemspring Capital, a Westport, Connecticut-based private equity firm with $5.1 billion in capital under management.

The appointment puts Roszkowski at the head of Midland as the distributor continues to build its position across industrial flow-control and connection-product markets.

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Essendant is eliminating another 103 jobs in California, bringing confirmed workforce reductions across six states to 1,278 as the national wholesaler closes facilities and considers potential sales and new capital to avoid liquidation.

The latest California WARN records cover 99 employees at Essendant’s Sacramento distribution center and four employees at its Perris operation. The cuts are scheduled to take effect Oct. 3.

Distribution Strategy Group continues to reach out to Essendant for comment on the layoffs, facility closures and the company’s plans but has yet to receive a response.

The California cuts expand a restructuring that already covers 1,175 employees in Illinois, Pennsylvania, Georgia, Texas, and Arizona. The actions include Essendant’s corporate offices and several distribution operations.

The latest filings provide further evidence of the scale of the restructuring less than a year after Essendant announced plans to reshape its business around janitorial and sanitation products, food service and technology and reduce its exposure to traditional office supplies.

Essendant plans to eliminate 99 jobs at its distribution center at 7021 Roseville Road in Sacramento and four positions at 4555 Redlands Ave. in Perris, according to California WARN data.

Both actions are scheduled to take effect Oct. 3.

The four Perris positions are separate from a much larger workforce reduction Essendant announced there last year. California Employment Development Department records show Essendant filed a WARN notice in September 2025 covering 146 employees at the Perris facility, with those layoffs effective Dec. 31, 2025.

Those 146 positions are not included in the 1,278 jobs covered by the current multistate restructuring.

Illinois has the largest number of affected employees in the current round of reductions.

State WARN records show Essendant plans to eliminate 510 jobs at its offices at 200 Tri-State International in Lincolnshire and 134 jobs at its Carol Stream operation, for a combined 644 positions. The first layoffs are scheduled for Oct. 3.

The Illinois actions alone account for slightly more than half of the 1,278 positions identified in the six states.

Outside Illinois and California, WARN records show Essendant-related actions affecting 192 employees in Georgia, 150 in Pennsylvania, 136 in Texas and 53 in Arizona.

In Georgia, Essendant is permanently closing its operation at 125 Horizon Drive in Suwanee, affecting 192 employees. The closure is scheduled for Oct. 3.

In Pennsylvania, Essendant Management Services LLC plans to close its facility at 125 Green Tree Road in Phoenixville, affecting 150 employees. That closure also is scheduled for Oct. 3.

The Texas action affects 136 employees in Irving, while an Arizona WARN notice covers 53 employees at Essendant’s Phoenix operation.

Combined with the 644 Illinois positions and 103 California positions, the actions bring the confirmed total to 1,278 jobs across six states.

The WARN notices are significant beyond the number of jobs being eliminated.

In notices reviewed by Distribution Strategy Group, Essendant said it has been exploring strategic alternatives, including potential sale transactions, while seeking additional capital to avoid liquidation.

The language indicates that the company’s restructuring has moved beyond a conventional distribution network consolidation.

Essendant has not announced a buyer, new financing, bankruptcy filing or a decision to liquidate.

The company’s future therefore remains uncertain as the Oct. 3 effective date for many of the layoffs approaches.

The latest cuts come less than a year after Essendant began a major overhaul of its product strategy and distribution network.

The company moved away from much of its traditional office-products business and said it would concentrate on categories including janitorial and sanitation supplies, foodservice, and technology. It also outlined plans for a streamlined distribution network intended to support that strategy.

The WARN actions now reach several markets that were part of that network.

The scale and timing of the cuts suggest Essendant is moving rapidly to reduce operations. Many of the announced layoffs and closures are scheduled for Oct. 3, including actions in Illinois, California, Pennsylvania, Georgia, and Texas.

Essendant has not publicly detailed what its distribution network will look like after the restructuring or which operations will remain open.

For customers, suppliers and independent dealers, the growing number of WARN filings leaves a larger question unresolved: whether Essendant will emerge as a smaller national distributor, find a buyer or source of new capital, or cease operations.

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