Supply chain index hits new low; some green shoots noted | ADP: Private sector gained 497K jobs last month | Inflation is global problem, but US consumers expect improvement
Supply chain activity reached a new low in June, according to the Logistics Managers' Index, which stood at 45.6, indicating contraction for the fourth consecutive month. Inventory levels declined rapidly and warehousing capacity grew at the fastest pace ever recorded, while transportation prices fell at a slower pace and transportation utilization improved slightly. The LMI's one-year outlook was positive overall, with respondents anticipating more stable conditions and indicating expectations of a freight market rebalancing.
The US economy gained 497,000 private-sector jobs last month, according to ADP data, marking the largest gain in over a year. The leisure and hospitality sector showed the largest gains with 232,000 added jobs, followed by more than 90,000 each from construction and trade, transportation and utilities, while the manufacturing sector shed 42,000 jobs.
Price inflation is an issue around the world, not just in the US, and the pressure is on policymakers to clamp down on inflation without pushing too hard and forcing a deep, protracted recession. On a positive note, US consumers believe inflation will measure 4.1% a year from now and decline further in the years after that, according to a survey by the Federal Reserve Bank of New York.
A strike by more than 300,000 UPS workers looks increasingly likely after talks between the employer and the International Brotherhood of Teamsters ended without resolution on Wednesday. An agreement has not been ruled out entirely, as the current labor contract expires on July 31, but union leaders say they would need time to explain any new deal to members and secure their support.
Stalled negotiations between UPS and the International Brotherhood of Teamsters and a looming potential strike should prompt shippers to solidify alternative carriers to handle diverted packages, say experts. Inmar Intelligence's Michael Foy says FedEx and other carriers will limit diversion activity that they're willing to accept and says shifts will be easier for shippers that have relationships with UPS competitors.
It is important for companies to ensure global trade compliance is part of their digital supply chains and strategic sourcing programs, writes Steve Banker, vice president of supply chain services at ARC Advisory Group. Not only can it aid companies in navigating potential legal issues and ramifications, but Banker notes it can also assist with complex tariffs and international freight costs that can make what seems to be a cheaper product more expensive.
Nick Mason, CEO of Turtl, offers six tips for an effective content strategy, based on his company's research. The most successful marketers incorporate behavioral psychology into their content, Mason writes, and draw more engagement with content of varying lengths that includes interactive elements.
As business-to-business buyers get younger, social media strategies are essential, with around half of marketers saying social is the most effective channel at the start and end of the B2B journey, per Wpromote and Ascend2. Insider Intelligence predicts more than 61% of LinkedIn users this year will be millennials or Generation Z, while GoodFirms reports 46% of B2B buyers globally engage with B2B companies using social media.
Leaders often take a downward trend in their company personally, triggering feelings of being an imposter, but Steve McKee, the co-founder of McKee Wallwork, recommends putting things in perspective and separating your feelings about your leadership from things beyond your control, like market conditions. "In the midst of a turn, just when we need to be levelheaded in our evaluation of what's happening, our emotions can gum up the works, often without our realizing it. That can lead to some bad decision making, not to mention an ulcer," McKee writes.
Whether a business thrives depends on more than sales and market share, writes John Peitzman, performance coach and creator of The Build Framework. "Enthusiasm, inspiration, creativity, connectivity and value" are five factors that propel a business forward, Peitzman writes.
