The wholesale industries have an intermediate place in the distribution chain, between producers and consumers of goods. They purchase and resell goods, such as the output of agriculture, mining, or manufacturing, generally without making any substantial changes to the goods.  Vault.

In 2014, wholesalers made nearly $7.7 trillion in sales. These sales are divided into durable goods (approximately $3.4 trillion in sales) and nondurable goods (more than $4.3 trillion). These two sectors make up the largest shares of the industry, accounting for more than 2.9 million employees in durable goods and more than 2 million employees in nondurable goods.  Vault.

The ratio of inventory to sales (I/S), especially for durable goods, is often examined as a measure of the health of the economy because during recessions, those who buy from wholesalers curtail their purchases and wholesalers’ inventories pile up.

Retailers generally place orders in advance of the shipping date, so it takes months or years for their purchase cutbacks to become evident as wholesalers’ excess inventory. As a result, the I/S ratio usually reaches its peak well after the recession has started, and it is considered a lagging indicator of economic health.