Global uncertainties fuel supply chain complexity | Construction spending increased 0.4% in Nov. | United Electric Supply, Rochester-based Kovalsky-Carr strike deal
Manufacturers and logistics companies are dusting off their post-pandemic supply chain contingency planning in the face of snarl-ups on major trade corridors like the Panama and Suez Canals as geopolitical tensions rise. This situation is weighing on sectors from semiconductors to clean energy and forcing manufacturers to adapt quickly to a dynamic and complex environment.
US construction spending increased by 0.4% in November, marking the 11th consecutive month of spending growth, according to the Commerce Department. October's spending increase was revised to a 1.2% gain from the initial 0.6% increase. Private construction project spending increased by 0.7% in November, while residential construction spending jumped by 1.1%.
United Electric Supply announced a merger agreement with Rochester, N.Y.-based Kovalsky-Carr Electric Supply. Under the deal, Kovalsky-Carr will become an independent subsidiary of United Electric that serves residential, commercial and industrial sectors. Kovalsky-Carr leadership will remain in place and focus on expanding its reach in Rochester and the surrounding region.
Shapewear brand Spanx is using humanoid robots from GXO Logistics in its warehouse in Flowery Branch, Ga., to perform repetitive tasks, such as moving boxes, to help free human workers to complete more advanced tasks and reduce strain. Dubbed "Digit," the robots' role could expand this year if the proof-of-concept pilot goes well, according to GXO.
Amazon's fulfillment center in Aurora, Colo., will be able to power up to 400 forklifts with an in-house electrolyzer system, which uses water and electricity to produce low-carbon hydrogen fuel. "Hydrogen is an important tool in our efforts to decarbonize our operations by 2040 in support of The Climate Pledge, and we're excited about our ability to produce hydrogen at Amazon facilities through this partnership with Plug [Power]," says Amazon's Asad Jafry. Amazon previously used hydrogen compressed and stored in tanks to power the forklifts.
Many organizations are exceeding the 80% to 85% capacity target for warehouse operations due to strong warehouse demand and supply chain headwinds that include inflationary pressures and consumer demand for quick delivery, writes Rachel Trindade, chief marketing officer of Extensiv. Merchants facing at-capacity or overflow should consider third-party logistics partners, using lower-cost external storage and optimizing shipping locations to reduce costs and boost efficiency, Trindade writes.
The key to planning a successful year is cross collaboration between the sales and marketing teams, starting with a shared strategy, including customer personas and messaging, writes Lisa Box, SVP of strategic alliances and business development at Identity Digital. As this continues, take steps to open communication channels between teams to regularly make adjustments to the strategy and host joint training for the teams to promote further collaboration, Box advises.
Wall Street's outlook for 2024 is cautiously optimistic, with major banks and asset managers foreseeing lower growth, a mild recession and a central bank pivot to easier policy. While there are bearish outliers, most experts stress the importance of seeking quality in stocks, diversifying portfolios and exploring opportunities in fixed income as they navigate a year with economic uncertainty and potential challenges.
Get past old assumptions by asking the right questions of yourself and your staff. The questions include "how would our competitors approach this problem?" and "how would we handle this issue if our budget was cut in half?"
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.
