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.
For distributors, the August report points to continued demand across important industrial end markets without a corresponding surge in distributor hiring.
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 Illinois actions are particularly significant because Lincolnshire is home to Essendant’s corporate headquarters and the Chicago area was one of six markets the company identified last year as the foundation of its redesigned national distribution network.
Distribution leaders have worried about the silver tsunami for years, usually in the context of ownership transitions and the labor force in the warehouse and on the counter. It applies just as much to the sales force, and the numbers say it’s not a distant problem.
The company said the expansion is designed to provide more strategic support to local company presidents as they grow market share, scale their businesses and develop future leaders.
Southern Glazer’s said the restructuring reflects changing customer engagement preferences and increased use of digital commerce and data-driven selling.
The labor shortage has emerged as a growing concern for both technology companies and contractors as billions of dollars flow into AI-related infrastructure projects.
The next phase of competition may depend less on which AI tools distributors purchase and more on whether they can recruit, train and retain employees capable of turning those tools into measurable business results.
The initiative, called “Careers with Power,” is designed to increase awareness of career opportunities in electrical distribution and connect prospective employees with jobs throughout the industry.