Report examines onshoring's future in US | New York Fed factory index down on lower orders, shipments | Performance Food Group posts $14.87B Q4 revenue, $150M profit
The Commerce Department reported unchanged US business inventories for the second consecutive month in June. Retail inventories increased by 0.7% in June, while wholesale inventories decreased by 0.5%. Business sales dipped by 0.1%, and at the current sales rate, it would take 1.4 months for businesses to clear their shelves.
Changes in trade policies and automation could finally cause onshoring and nearshoring to take off in the US, according to a recent report by AlixPartners. Manufacturing footprints have to be reconsidered as the geopolitical climate and many issues intensified by the COVID-19 pandemic have shown problems with the global supply chain, the report states.
The New York Federal Reserve's Empire State factory index returned to a negative reading this month for the first time since May. The gauge of manufacturing activity was down 20.1 to -19 as new orders and shipments dropped, but the six-month outlook jumped to its highest level in over a year.
Mexican imports are up almost 6% over the past year, Bloomberg says, and US-Mexico trade in 2022 hit $863.4 billion, making the country the US' second-largest trading partner. Many companies minimize customs slowdowns by using just one logistics company to reduce lost documents, miscommunication and other delays, Demetri Venetis of RXO writes.
Most US ports are slow to automate compared to those in Asia and Europe due to space and economic constraints and opposition from organized labor, say experts. Turloch Mooney, a S&P Global Market Intelligence director, says while automation helps ports use land more efficiently and deliver more operating consistency notes, "the idea that automation automatically leads to faster vessel turnaround times certainly isn't the case."
Supply chain innovation should include initiatives that help skilled workers hone their craft, regenerate local communities and use data to enhance customer relationships, writes Mark Dancer, a National Association of Wholesaler-Distributors fellow and CEO of Network for Business Innovation. "Distributors have always been people-centered businesses, and in the digital age, they offer the perfect platform for creating partnerships around human values -- including trust, commitment, resiliency and more," Dancer writes.
App and website experiences are "very important" to 65% of people in a recent HubSpot survey when they decide whether or not to recommend brands. Alana Chinn recommends tools that companies can use to learn about their audiences, factors for creating omnichannel experiences and useful testing and analytics features, as well as stressing the need for mobile-friendly structure and futuristic thinking.
Google Ads is testing an AI-powered assistant among select users that answers questions and helps resolve related account issues. Google notes the assistant "may make some mistakes" and asks testers to report those issues with other feedback.
Eighty percent of leaders say they would have taken a very different approach to return-to-office mandates if they'd had access to the right workplace data, according to an Envoy report. Separate research from Unispace found that one-third of employees feel "happy, motivated and excited" about going back to the office -- but only if it's their choice and not forced.
Companies can boost both innovation and productivity by adopting and implementing digital tools to automate tasks, streamline processes and foster ongoing learning and development, writes Patrik Wilkens, the vice president of operations at TheSoul Publishing. "Encouraging a culture of continuous curiosity and flexibility helps businesses to stay ahead of industry trends, embrace new technologies and continually enhance operational efficiency," Wilkens writes.
