Convenience Distribution Industry Adds $100B in Overall Spending to U.S. Economy

RESTON, Va. — The convenience distribution industry has an overall impact on the overall U.S. economy reaching into the billions, according to a new report by the Convenience Distribution Association (CDA).

As detailed in the report, total business sales — economy-wide — supported by convenience distribution sector activities totaled more than $102 billion of overall spending in the United States in 2017.

Distributors also directly employ nearly 59,000 people across the U.S., with an additional 114,000 jobs supported in the sector's supply chain and through employee spending.

Looking at specific numbers, the report found the convenience distributor industry's contributions to the economic and fiscal activities include:

• $30 billion in tobacco excise tax collected;
• $13 billion in sales output throughout the U.S. economy;
• $8.2 billion in new economic activity;
• $4.5 billion in labor income; and
• $2.3 billion in total tax collected by federal, state and local governments.

"Convenience distribution's influence is widespread across the U.S. economy, having an impact in every state. This study demonstrates the enormous impact that the convenience distribution sector has on the overall economy," said Charlie Casper, CDA chairman.

The research for CDA's report was conducted by McLean-based FTI Consulting, an independent global business advisory firm.

"Convenience distributors contribute to the U.S. economy beyond their important logistical role," said Scott Nystrom, director at FTI Consulting. "The sector supports over $30 billion in excise taxes and an additional $2.3 billion in federal, state and local tax revenues."

The report comes ahead of the association's Day on the Hill event in May, where distributor members meet with their legislators in an effort to influence actions that can affect their businesses, and the Convenience Distribution Business Exchange in September, where members meet with key trading partners.

"The member companies of the CDA form a vital bridge between consumable goods manufacturers and retailers," said Kevin Barney, chair of CDA's Past Chairs Advisory Council. "CDA member companies process and make daily deliveries to over 154,000 convenience stores throughout the U.S. and supply the average store with over 3,000 specific items. Our member companies are the vital link that keeps America moving and on the go. The information from the report demonstrates our value to the overall U.S. economy."

For more on the report, click here.

The Reston-based Convenience Distribution Association is the trade organization working on behalf of convenience product distributors in the United States. Its distributor members represent more than $92 billion in U.S. convenience product sales, serving a wide variety of small retail formats.