Distribution and warehousing companies provide a link between manufacturers and consumers through the pick-up, transport, storage, and delivery of goods. Increasingly, they also provide related "logistics services," such as inventory control and management, order entry and fulfillment, labeling, light assembly, packaging, and price marking.

Although distribution and warehousing are two separate segments, the growth of logistics services has blurred the lines of distinction. Deregulation of interstate trucking in 1980 led companies to compete by offering lower rates and unique services for individual customers, such as computerized inventory and just-in-time shipping. Trucking companies that expand into services encompassing the entire process are now known as "third-party logistics providers."

The number of wage and salary jobs in distribution and warehousing is expected to grow 11 percent from 1998 through 2008. Because the industry is large and many workers--particularly truck drivers--transfer to other industries, there will be a steady number of job openings. However, growth will be subject to changes in the economy. In a recession, this industry is one of the first to slow down as orders for goods decline.

Physical health, strength, and stamina are primary requirements for most distribution and warehouse workers, whether they move materials across the plant floor or from city to city. Although much of their work is repetitive, they must be alert, dependable, and able to perform their jobs accurately, efficiently, and under pressure. Good communication and interpersonal skills are necessary in jobs that involve frequent contact with customers, vendors, and co-workers.

Warehouse workers usually work indoors and are closely supervised. In contrast, transportation workers cope with variable weather and traffic conditions, as well as boredom and fatigue, but often enjoy a great deal of independence.

In 1998, workers in both segments averaged 40 hours per work, compared to an average of 34.6 hours for all private industries. The U.S. Department of Transportation governs work hours and other working conditions of truck drivers engaged in interstate commerce, prohibiting them from working more than 60 hours in any 7-day period. Many drivers, particularly on long runs, work close to this maximum because they are compensated according to the number of miles or hours they drive.

Over 75 percent of trucking and warehousing establishments employ fewer than 10 workers. A small number of large national and regional trucking companies exist, but competition is very stiff. Around 15 percent of all truck drivers operate their own business, but many owner-operators eventually fail, also due to intense competition.