Inventory Carrying Cost benchmark
Inventory Carrying Cost Benchmark for Chemical & Process Manufacturing (2026)
Last updated September 2026
In chemical & process manufacturing, inventory carrying cost typically runs 25–35% / yr — above the cross-industry band of 20–30% / yr. Reliability spares raise the obsolescence component.
Carrying Cost % = (Capital + Storage + Service + Risk costs) ÷ Average Inventory Value Chemical & process against the cross-industry band
| Industry | Typical Inventory Carrying Cost | What good looks like |
|---|---|---|
| All industrial distribution | 20–30% / yr | Under 20% is well-managed |
| Chemical & Process Manufacturing | 25–35% / yr | Reliability spares raise the obsolescence component |
Lower is better on this metric. Every other industry benchmarked for inventory carrying cost is in the full benchmark table.
What inventory carrying cost measures
Inventory carrying cost is the total annual cost of holding stock — capital, storage, insurance, shrinkage, and obsolescence — expressed as a percentage of inventory value. It typically runs 20–30% per year.
The sectors landing closest to Chemical & process on this metric are MRO Distribution and PVF Distribution. A sector further away is not doing better or worse by definition — the band reflects what the work requires, which is why the comparison that matters is against your own history as much as against the industry.
Sources: Institute for Supply Management (via NetSuite), Industrial Supply Magazine
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