Wholesale inventories fell 0.2% in Nov. | Delays, increased costs put strain on US importers | DXP completes acquisition of Ariz.-based Hennesy Mechanical Sales
Wholesale inventories fell in November for a second straight month, notching a 0.2% decline after a 0.3% decline in October, according to the Commerce Department. Year-over-year inventories declined 3%. Excluding a 1.1% decline in wholesale motor vehicle inventories, broader wholesale inventories fell 0.1% in November, with declines in metals, lumber, computer and electrical equipment and groceries, and gains in machinery and professional equipment.
Ocean shipping rates are surging and delays are increasing as carriers divert ships from the Red Sea to avoid Houthi rebel attacks, with the average worldwide shipping costs for a 40-foot container nearly doubling since late November. Disruptions in the critical trade route are impacting global trade, complicating supply chains and leading to friction in the already strained relationships between importers and ocean carriers that just recently moved past pandemic-era strife.
Houston-based DXP Enterprises finalized its acquisition of Ariz.-based Hennesy Mechanical Sales, which offers industrial pump sales, service and repair in Arizona, New Mexico and Texas. Hennesy Mechanical recorded more than $10 million in sales in the 12 months ending Nov. 30. DXP said the acquisition, which follows three deals completed in 2023, would bolster its aftermarket and service capabilities.
Manufacturing energy transformation and supply chain traceability technologies promise to empower food manufacturers to actively pursue sustainability goals. New supply chain traceability technologies are crucial for more efficient operations, allowing businesses to reduce recalls and decrease food waste, writes Doug Lawson, CEO of smart manufacturing firm ThinkIQ.
FTR's Shippers Conditions Index jumped from .35 in September to 4.3 in October, which the analysis firm attributes to lower diesel prices and predicts will continue. "Key freight dynamics -- rates, utilization, and volume -- have been mostly stable over the past several months and look to be so for at least a few months of 2024," said FTR's Avery Vise in a release.
The shift in trade from China to Vietnam, Mexico and other countries has escalated but research indicates "derisking" supply chains does not necessarily translate into improved resiliency and can result in longer supply chains and increased costs, writes Nathaniel Taplin. "Moreover, more-complicated global supply chains are creating new risks, which policymakers might not fully appreciate."
It can be a challenge for newcomers to the sales industry to establish relationships and forge connections that lay the groundwork for long-term success, writes Frank Hurtte, an industry veteran with four-plus decades in knowledge-based distribution. His new book, "The New Sales Guy Project," is described by Hurtte as a "guided workbook" covering information needed to set a sales newcomer up for success, first-time sales call assistance and more.
New AI capabilities will be among the top nine tech trends for 2024, say experts, who predict a rise in text-to-video generators and quick ad campaign-creation capabilities, coupled with a rise in deepfakes and more regulator and watchdog attention. Other trends include more shopping via streaming media and social apps, longer TikTok videos and the full deprecation of cookies that will drive Apple to become more aggressive with its ad business.
Forecasts from the World Bank say global economic growth is set for its worst half-decade in 30 years. The forecasts show global GDP growing 2.4% this year, compared with 2.6% last year, which would mark the third consecutive year of declines. "Without a major course correction, the 2020s will go down as a decade of wasted opportunity," said World Bank Chief Economist Indermit Gill.
Central banks worldwide embarked on their most aggressive rate hiking campaign in decades over the last two years, but are due to reverse these in 2024. Bloomberg Economics' aggregate gauge of rates across the world expects rates to decline by 128 basis points throughout the year. Central banks in Brazil and the Czech Republic have already started cutting rates, while the US Federal Reserve estimated 75 basis points of cuts for the year.
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