US worker productivity surged by 4.7% in the third quarter, the fastest pace of productivity gains since 2020, according to the Labor Department. Second-quarter gains were also revised upward, from 3.3% to 3.6%, marking two consecutive quarters of solid gains. Unit labor costs, which measure the labor against output, fell 0.8% in the third quarter as hourly wage growth slowed.

Electrical, communications and data networking distributor Graybar reported record third-quarter net sales of $2.9 billion, a 2.3% increase from a year earlier. Net income in the period was $117.7 million, a 6.7% decrease year-over-year. Graybar's year-to-date sales through the end of Q3 is $8.3 billion, a 6% increase from 2022.

KeHE Distributors began shipping out health-forward products to CVS stores last month as part of a national distribution deal. "The assortment available to CVS includes products that support the trends consumers are looking for, including living a sustainable lifestyle," said Kristen Christopher, KeHE's vice president of alternate channels. "Consumers today are more mindful of what they are putting in their bodies. They are taking more control of their health, curating their food and beverage choices for long-term success and results."

Manufactured goods orders increased by 2.8% in September, marking the most significant rise since January 2021, according to Commerce Department data. Boosted by increases in orders of computers and electronics, electrical equipment and appliances, the better-than-expected September follows a 1% jump in factory orders in August.

Distributors and manufacturers can collaborate as innovation partners, sharing ideas and engaging in conversations that develop a mutually beneficial innovation platform, writes NAW Fellow Mark Dancer. Distributors can provide practical knowledge and local market access that aids manufacturers in product testing and development. Benco Dental, a 3M distributor, embodies this approach, integrating innovation into its business model and culture, focusing on metrics that prioritize new product sales and emphasize direct customer engagement to inform strategy.

The Panama Canal plans to incrementally reduce the number of daily vessel booking slots from the current 31 to 18 by February due to record-breaking drought conditions. This follows previous cutbacks that have caused long delays and pushed shipping prices up with one recent bid reaching $2.85 million.

Shipment carriers ABF Freight, Saia and XPO reported substantial volumes and pricing power for the most recent quarter, which indicates manufacturers and retailers are shifting less-than-truckload volumes following Yellow's demise and paying higher rates, writes Paul Berger. Yellow's closure "was a much needed" boost for the sector, says LTL carrier A. Duie Pyle COO John Luciani.

Ground parcel rates dropped 26.9% year-over-year per package in the third quarter, the first decrease since 2019, but remained 23.2% above January 2018, according to the TD Cowen/AFS Freight Index. The report attributes the swing to more significant pricing discounts and the reduction of added fees and fuel surcharges and AFS Logistics President Micheal McDonagh says "after strict pricing discipline by carriers over the past two years, negotiating power is swinging back to shippers."

Merkle, Mondelez and Toyota Motor are among those exploring Google's Demand Gen campaign tool that uses AI and machine learning to target lookalike audiences, and expect it to outshine those of Google's Performance Max, which is designed primarily for search ads and is keyword-reliant. Merkle and other marketers are seeing mixed results with PMax, with some reporting a lack of performance metric visibility and an increase in fraudulent leads.

The Federal Reserve has left its benchmark interest rate unchanged at a 22-year high after a two-day policy meeting while remaining open to further action in the future. "The good news is we're making progress," Chair Jerome Powell says. "The progress is going to come in lumps and be bumpy, but we are making progress."

NAW's Billion Dollar Executive Roundtable event November 8-9 in Dallas offers an opportunity to join other wholesaler-distributor executives in discussions about topics that matter to you and your company. Attendees will hear from leaders in the industry and expand their networking circles. Learn more about this invitation-only event here.

Get ready to supercharge your organization at the Innovators Summit in Austin, TX, from November 14 to 16! Join us to connect with tech innovators, explore emerging trends, and harness cutting-edge technologies that will propel your organization to new heights of growth and transformation.

Experience three days of excellent networking opportunities, cutting-edge content, and educational programming for leaders in the wholesale-distribution industry at NAW's Exective Summit Jan. 30 - Feb. 1. Hear from world-class speakers and explore issues critical to the industry. Be prepared for what's next and learn new strategies to get there first. View agenda and registration information here.