Expect industrial distribution M&A to normalize in 2024 | NAW recognizes MDM's Tom Hale with Distributors Deliver Award | Report: Logistics jobs see modest gains in Jan.
Mergers and acquisitions among industrial distributors were slower in 2023 compared with the year before but are expected to grow this year amid receding recession fears and expectations of interest-rate cuts, writes Kevin Sargent, a managing director at Brown Gibbons Lang & Co. Key trends expected to drive the sector in 2024 include infrastructure investments, sustainability-focused products and solutions, technology and repair and replacement businesses, Sargent writes.
Tom Gale, CEO and former owner of Modern Distribution Management, was recognized by the National Association of Wholesaler-Distributors with the Distributors Deliver Award at NAW's Executive Summit. Gale, who purchased MDM in 1992 and has served as publisher, president and CEO, has been a critical voice in the distribution industry over three-plus decades, and the award recognizes those efforts and his positive impact on wholesalers and distributors.
Trucking, warehouse and parcel-delivery firms added 10,700 jobs and tallied an overall workforce decrease of 117,300 from January 2022, according to the US Bureau of Labor Statistics. Experts believe these modest gains demonstrate a right-sizing following the e-commerce boon and ShipMatrix President Satish Jindel notes, "The whole industry is struggling from a volume perspective."
Building products distributor Beacon completed its first acquisition of 2024 with a deal to buy Roofers Supply in Greenville, S.C., including its branches in North Carolina. The deal allows Beacon to expand its commercial roofing design services in the Carolinas with a team that offers "unparalleled technical knowledge, product range and service reliability," says Munroe Best, South division president for Beacon.
Automating with AI at the industrial edge Cloud resources remain a vital tool for manufacturers, but on-site edge devices are now capable of AI inferencing to help reduce latency, save on bandwidth costs, and allow businesses to retain full ownership of their data. Join experts from Red Hat, OnLogic, and Guise AI, as they discuss AI in factory automation. Register now.
Automating customer service tasks can free human agents to focus on more complex responsibilities such as upselling and customer engagement while offering customers enhanced self-service options and quick responses, writes Rick Pozniak, founder of the Move78 consulting and integration services company. Distributors looking to create an automation strategy need to identify the customer service team's major activities, who performs them, and how long it takes before breaking them down into automatable and nonautomatable categories, Pozniak writes.
The supply chain industry is experiencing rapid growth in robotics and automation, with companies focusing on specialized applications and AI to improve efficiency. This growth is driven by labor constraints, the prospect of more operational flexibility, and the potential of AI to transform various aspects of the industry, including warehouse operations and customer service.
Business-to-business marketers should incorporate more playful creative strategies into campaigns to surprise and engage buyers, such as Google's recent "AI pit stop" at New York's Advertising Week, writes Garrett Brooks, creative director at MAS. "Play and adventure doesn't get in the way of business messaging. It provides a creative wrapper that enhances the experience and can make it more memorable," Brooks writes.
An interim outlook from the Organization for Economic Cooperation and Development projects US inflation of 2.2% in 2024 and 2% in 2025, which could pave the way for interest-rate cuts. The OECD expects inflation to fall faster in only Italy among Group of Seven economies. The UK is expected to have the highest G7 inflation rate, with 2.8% in 2024 and 2.4% in 2025. The OECD expects inflation to hit Group of 20 countries' targets by the end of 2025.
"To-do" lists can be helpful tools, but often, life interrupts, and all those tasks get shifted to another day. However, a "done" list is an alternative that can keep discouragement at bay and build confidence.
MDM’s 2024 AI for Distributors Summit on Wednesday, Feb. 7 connects leaders of the $9-trillion North American wholesale distribution industry to share what’s on the horizon for applied and generative AI models for distributors, as well as the latest strategy, integration and implementation guidance to innovate and create meaningful transformation in organizations today. The event is designed to help leadership teams evaluate, assess and scale their AI investments successfully. Register for the free, six-hour live session or on-demand access.
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