Wholesale inventories inch upward in Sept. as sales surge | NAW urges Labor Department against salaried worker OT proposal | Report: Logistics pros expect lingering freight recession
US wholesale inventories increased slightly, though unexpectedly, in September, according to Commerce Department data. Wholesale inventories jumped 0.2% after a 0.1% decrease a month earlier, driven by inventory of durable goods, which increased 0.2%, while inventory of non-durable goods increased 0.1%. Wholesale sales jumped 2.2% in September, following a strong 2% increase in August.
The National Association of Wholesaler-Distributors is asking the Labor Department not to move forward with a proposal to broaden overtime pay rules to include salaried workers with weekly wages under $1,059, or roughly $55,000 annually, a sizeable jump from the current $35,568 annual limit. "The proposed overtime rule will negatively impact the wholesale distribution industry, especially at a time when the economy is vulnerable and we continue to deal with pervasive inflation and the ongoing threat of a recession," said NAW Chief Government Relations Officer Brian Wild, adding the nearly 70% threshold increase would result in reduced opportunities and flexibility for employees.
Logistics professionals expect the current freight recession will continue at least into the first half of 2024 due to high inventories and declining consumer demand, which translates into low freight volumes and rates across air, truck and sea pipelines, according to a CNBC Supply Chain Survey. "No one is projecting confidence about a surge in demand during peak season or into next year," says Tim Robertson, DHL Global Forwarding Americas chief executive officer.
Supply chain trends 2024: What lies ahead Supply chain managers have spent 2023 recovering from the issues of the last couple of years that have weighed on the supply chain. This webinar will bring together industry experts who will explore the lessons learned this year and the challenges and opportunities ahead in 2024. Register here.
A tight real estate market in the US will "push significant rental rate increases" within logistics properties that renters will face at lease renewal time, predicts Prologis. The real estate firm believes this will be an ongoing trend and says renters should "quickly take advantage of increased availabilities."
Enable, a startup that developed software that companies use to manage rebate programs in their supply chains, raised $120 million in a funding round that gave it a $1 billion valuation. The company is considering geographic expansion and intends to pursue research and development to apply artificial intelligence features.
The number of 20-foot equivalent units of containerized goods handled by US ports during October increased 3.9% year-over-year and 4.7% over September and besting February's low by 33%, according to Descartes Systems Group. China accounted for the most significant share of US imports for the month and sent its highest volume of goods to the US since August 2022.
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So-called intelligent automation can help a business improve efficiency and output while enabling its human workforce to focus on innovation, writes Serenity Gibbons, a consultant and the local unit lead for the NAACP in Northern California. "By analyzing customer data and behaviors, the automation system can help target high-quality leads and nurture them through the sales funnel," Gibbons writes.
The labor market is cooling, while unemployment remains low, and the ratio of job openings to unemployed people has decreased in the past few months, Federal Reserve Governor Christopher Waller says. "We're looking at the labor market, we're seeing it normalized" and getting into "better balance between supply and demand," Waller says.
Options about work hours and location have become essential parts of compensation for today's employees, and those employers who offer it are more competitive in attracting talent, a new survey from The Conference Board indicates. Nearly 2 in 3 workers say "workplace flexibility" is crucial to them, which is a higher ranking than bonuses, paid time off, retirement plans, and health care options.
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NAW's Bart Tessel and Applico's Alex Moazed share thoughts on distribution innovation and technology today as critical differentiators, and where they're headed. Listen Now!
The NAW Innovators Summit, powered by Applico, is a nexus of forward-thinking strategies and discussions in the Wholesale-Distributor industry. By attending this event, November 14-16 in Austin, TX, you’ll have unparalleled networking opportunities, hear thought-leaders discuss the evolution of the sector, and learn how to better position your enterprise at the forefront of innovation.
