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Companies stockpiling goods in response to tariff trade policy changes

Photo: Generated by AI. Adobe Stock.

May 9, 2025

There has been a 228% increase in Days of Inventory on Hand between February and April as companies respond to tariff policy impacts, according to a Deposco report.

Deposco is a provider of unified commerce solutions. Days of Inventory on Hand, DIOH, is an economic term used for inventory tracking.

To keep up with tariff policy decisions check out this timeline.

The analysis, based on actual transaction data rather than forecasts, provides a unique window into how companies are responding to trade policy changes across multiple industry sectors.

"This significant inventory build-up represents a strategic pivot by companies attempting to mitigate the impact of impending tariffs," Reid Bishop, senior director of data science at Deposco, said in a press release on the data. "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."

Additional findings include:

• Brands and consumer packaged goods companies are rapidly filling available warehousing space to beat tariff deadlines, creating a nationwide capacity challenge.
• The data reveals significant variations in inventory strategy by sector, with consumer electronics, apparel and home goods seeing the most aggressive stockpiling behaviors.

Deposco's analysis suggests the current inventory surge represents only the first phase of a two-part market reaction. 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, according to the release.