Wholesale inventories fell 0.2% in November from a month earlier and 3.1% from a year earlier, the ninth decline in 11 months, according to Census Bureau data. Retail inventories dropped 0.1% from a month earlier to an estimated $794.9 billion, marking a 5.1% year-over-year increase. The US trade deficit was $90.3 billion, up $700 million from the previous month as exports fell $6.2 billion and imports dropped $5.5 billion.
Returns cut into profits and create an enormous logistical challenge as Americans return roughly 16.5% of items amid shifting consumer behavior. Reverse logistics hubs, such as those run by Inmar Intelligence, can sort through close to 1 million products a week that are destined for resale, donation, liquidation or landfills. Tom Enright, a retail analyst at Gartner, suggests that companies lose around 50% of their margin on returns, causing retailers to reexamine return policies.
Gypsum Management & Supply announced the acquisition of Brooklyn-based Kamco Supply Corporation and its affiliates, a move that will expand GMS' share in core product categories and boost its presence in the New York market. Kamco operates five distribution facilities in the greater New York City market and the tri-state region, supplying ceilings, wallboard, steel, lumber and other construction products. Financial terms of the deal were not disclosed.
The market for autonomous trucks that move trailers around warehouses and freight yards is poised to increase 53% annually between 2022 and 2030, per ABI Research, as businesses grapple with worker shortages and rising wages. Kimberly Clark's Sarah Haffer says the robotic vehicles, such as autonomous forklifts, helped "to manage through COVID with real stability" and Newell Brands' Chris Peterson says they've helped reduce damage to products and yield "significant cost savings."
Several firms plan to deploy humanoid robots this year to replace repetitive human tasks. Robotics experts say the technology offers scalability and profitability gains and could lead to a significant transformation in the role of human workers, who could take on more specialized and strategic thinking tasks.
Business leaders and some Republicans are objecting as the Securities and Exchange Commission prepares to decide this spring on a rule requiring public companies to disclose the volume of greenhouse gases they generate. The rule, as proposed, would require disclosure of pollution generated by operations across three categories and the physical risks posed to operations due to the changing climate.
EMarketer analyst Kelsey Voss offers three generative AI tips for business-to-business marketers, including establishing guidelines for its use, creating a data strategy and ensuring the brand's human voice isn't lost. "We need to balance technological advancements with genuine human-centric marketing. This is crucial for trust-building," Voss says.
Despite improving economic conditions throughout the year, US corporate bankruptcies were among their highest in over a decade in 2023. There were 591 corporate bankruptcies recorded during the year, according to S&P Global Intelligence, the second-highest total since 2011, behind 639 in 2020.
Corporate borrowers must price in the risk that interest rates will remain higher than the near-zero levels experienced after the 2008 financial crisis. The Federal Reserve is expected to slash its key rate to around 3.75% this year, but expectations are rates will remain about 3% at the end of 2026. "It's just normalizing policy. It's not going into easy monetary policy," says Mike Riddell, a senior portfolio manager with Allianz Global Investors.
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.
