Durable goods orders drop, non-defense capital goods up 0.1% | US Foods starts construction on northern N.Y. expansion | Bidding war expected for Yellow's truck terminals
New orders for non-defense capital goods made in the US, excluding aircraft, inched up 0.1% in July, reversing a 0.4% drop in June, the Commerce Department reported. Broader durable goods orders decreased by 5.2% from a month earlier, the most significant decline since April 2020, mainly due to a substantial drop in aircraft bookings after last month's surge. If transportation equipment is excluded, durable goods orders increased by 0.5%.
US Foods announced the start of construction on a major expansion project at its newly acquired Renzi Foodservice distribution center in Watertown, N.Y., that will add 10,000 square feet of additional loading dock space for eight new refrigerated loading bays. US Foods acquired Renzi in July and expects the expansion to be completed in the first quarter of 2024.
Yellow's liquidation means that the trucker's North American freight terminals will be up for auction on Oct. 18, and a bidding war could be forthcoming as Old Dominion Freight Line already offered to buy 170 truck terminals for $1.5 billion. Hundreds of companies have reportedly signed confidentiality agreements to evaluate Yellow's assets, and experts say freight operators are especially interested as real estate availability is one of the most significant barriers to expansion.
How will AI impact your industry now – and in the future? AI Impact is a new, virtual event that separates hype from reality; delivering insights into how industries and business functions will be enhanced and tested in the age of AI. Join globally renowned experts, including Zack Kass (OpenAI), for two days of invaluable discussion. Register Now
So far this year, retailers have announced plans to open about 1,000 net new stores, according to Coresight, and CBRE reports that the rate of available retail space declined to an 18-year low of 4.8% in the second quarter. "Suburbanization, work from home, all these things happened at the same time that there was no new supply," explains John Kite, CEO of Kite Realty Group Trust. In addition, "the consumer is actually healthier than people anticipate," says Conor Flynn, CEO of Kimco Realty. Last year, Macerich had its strongest leasing volume since the financial crisis, and leasing is surpassing that pace in 2023.
Autonomous trucking firms Aurora and Kodiak Robotics aim to have their first self-driving commercial trucks ready for customers next year, while Daimler Trucks aims for a slower rollout. Meanwhile, Waymo has put the brakes on Waymo Via, the company's autonomous trucking division, to focus on robotaxis instead.
Industrial distributors need to address supply chain constraints and the aging labor market, invest in advanced digital solutions and consider consolidation in order to remain competitive, according to the managing directors of L.E.K. Consulting. "[D]igitization of sales channels must be pursued purposefully -- companies need to be digital enough to provide their customers with easy transactions without making it simple for that customer to replace their supplier with a larger e-commerce vendor like Amazon," the authors write, noting that "value-add factors like consultative sales, industrial knowledge, and tools like inventory management" are ways to stand out.
Peter Weinberg and Jon Lombardo of The B2B Institute join others in this video session to discuss the ins and outs of marketing effectiveness, what it actually means and whether the marketers need a more scientific approach. "I think there's a problem in marketing where the answer is always 'it depends'. There's no right or wrong way to do anything," Weinberg says, arguing that "universal principles" for marketing effectiveness would help marketers better drive business outcomes.
The percentage of advertisers considering buying advertising space in podcasts has risen from 18% in 2015 to 62% this year, while spending intent has climbed from 10% to 58% in the same period, reveals a survey by Advertiser Perceptions. The data is encouraging for podcasters, but spending on the medium remains relatively low, says Pierre Bouvard of Cumulus Media/Westwood One.
Business executives in the US are shifting their focus from reacting to external disruptions to transforming their companies, according to a recent PwC Pulse Survey. With the business environment stabilizing and recessionary fears easing, executives are now prioritizing technology and workforce investments. Executives are less concerned about business risks than in previous years, and though half see climate change as a risk, only 19% see it as a serious threat.
The pandemic created an existential crisis around work that can't be solved with the usual tools -- and certainly not by mandating a return to the office or rejiggering other aspects of work without addressing the underlying question of what gives our jobs meaning, says Heidi Brooks, a senior lecturer at Yale School of Management. "We have to learn our way forward, and to be able to discern what of the challenges in front of you are things that you can meet with familiarity and calm and a sense of competence and what are the things that are new, where you don't necessarily know the answer, and yet your leadership, your presence, is still quite central," Brooks says.
Attending the Innovators Summit lets you stay updated with the latest industry developments and remain ahead of your competitors. By being aware of emerging trends and disruptive technologies, you can proactively adapt your business strategies, identify new revenue streams, and gain a competitive edge in the market. Learn more.
