228% Surge in Inventory Levels as Companies Brace for Tariff Impact: Deposco Data

Data from Deposco shows a 228% increase in Days of Inventory on Hand (DIOH) between February and April 2025, as companies race to stockpile goods ahead of the Trump administration's tariffs.

"This significant inventory build-up represents a strategic pivot by companies attempting to mitigate the impact of impending tariffs," says Reid Bishop, senior director of data science at Deposco. "What's particularly notable is the speed and scale of this adjustment. We saw weeks of inventory go up 60% with the pandemic and it has shot up well past 200% with companies front running tariffs."

Key takeaways:

• Brands and consumer packaged goods companies are rapidly filling available warehousing space to beat tariff deadlines, creating a nationwide capacity challenge.
• Logistics providers face reduced revenue potential as warehouse space fills with static inventory rather than flowing through for fulfillment, where margins are highest.
• The data reveals significant variations in inventory strategy by sector, with consumer electronics, apparel, and home goods seeing the most aggressive stockpiling behaviors.
• Detailed analysis shows how storage costs, insurance, and financing expenses are dramatically increasing as a percentage of product value across nearly all categories.
• The initial pre-buying surge is likely to be followed by a period of margin compression as carrying costs eat into profits, potentially forcing businesses to discount heavily to move excess inventory later in 2025.