Inventory Carrying Cost benchmark
Inventory Carrying Cost Benchmark for Utilities & Power (2026)
Last updated September 2026
In utilities & power, inventory carrying cost typically runs 25–40% / yr — above the cross-industry band of 20–30% / yr. Long-held critical spares raise carrying cost.
Carrying Cost % = (Capital + Storage + Service + Risk costs) ÷ Average Inventory Value Utilities 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 |
| Utilities & Power | 25–40% / yr | Long-held critical spares raise carrying cost |
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 Utilities on this metric are Oil & Gas Distribution, Industrial 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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