Performance Food begins construction on new Mo. facility | How distributors can add value for buyers' needs | US manufacturers staged a modest comeback in Nov.
Virginia-based Performance Food Group plans to relocate its warehouse in St. Louis to a nearly 350,000-square-foot facility under construction in nearby Ferguson slated to open in spring 2025. The food distributor received tax incentives and financing for the new property, which is expected to bring $120 million in investment and 100 new jobs to the area.
Distributors eyeing improved opportunity management practices should start with a deep understanding of buyers' needs, maintain a consultative mindset and focus on value from the customer's point of view, writes Mike Kunkle, vice president of sales effectiveness services for SPARXiQ. Kunkle details several steps sales teams should take, including assessing buyers' needs, qualifying opportunities, planning sales calls, managing meetings and collaborating on solutions.
US factory production in November staged a modest recovery, rising 0.3% overall amid a 7.1% increase in motor-vehicle production that followed the end of the United Auto Workers' strike, Federal Reserve data show. Excluding the automotive sector, manufacturing was down for the second consecutive month, reflecting ongoing challenges. Overall manufacturing output is down 0.8% from a year ago.
COVID-19, the war in Ukraine and other supply chain disrupting events have given rise to the "great reallocation" of manufacturing and supply chain operations to Mexico, Vietnam and other seemingly low-cost countries that could help weather the next "shock" while also potentially resulting in increased costs and prices, according to research conducted by Harvard Business School Professor Laura Alfaro and Davin Chor, an associate professor at Dartmouth College's Tuck School of Business. This shift "means that the US could well remain indirectly connected to China through its trade and [global-value chain] links with these third-party countries."
The US and allies are struggling to secure critical shipping lanes as Yemen's Houthi forces, an Iran ally, increase attacks on commercial ships in response to fighting in Gaza. The escalation is driving up cargo rates, forcing shippers to increase drone support and other safety measures and sparked a call among US leaders for a maritime coalition that can bolster Red Sea security.
US Bankruptcy Court for the District of Delaware approved XPO's $870 million offer to acquire 28 of Yellow's service centers and assume the existing two leases. Less-than-truckload carrier XPO was one of 20 firms that struck deals at a recent auction of Yellow's real estate totaling $1.88 billion.
Agency creatives talk about the campaigns that made them jealous this year, with many choosing the marketing for "Barbie." Anomaly L.A.'s Jeremy Wirth selects TBWA\MAL's "Fuzzy Feelings" for Apple, saying, "There is no artifice, it's simple, it's charming and it just works in not just telling a human story but showcasing how the brand plays a part in that."
Global financial conditions are loosening as investors expect central banks to begin lowering interest rates next year. A Goldman Sachs index that tracks corporate borrowing costs and capital markets conditions showed on Friday global financial conditions at their most accommodating level since early August.
Federal Reserve Bank of Chicago President Austan Goolsbee said there has been significant progress in the inflation fight in 2023 but cautioned that it is too early to declare victory. As a result, "the data is going to drive what's going to happen to rates," Goolsbee said. Meanwhile, Federal Reserve Bank of New York President John Williams said policymakers "aren't really talking about rate cuts right now."
Experience three days of excellent networking opportunities, cutting-edge content, and educational programming for leaders in the wholesale-distribution industry at NAW's Executive 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.
