Companies fortify supply chains against geopolitical risks | Imperial Dade buys Canada-based Wolfpack Packaging | US LBM expands in N. Calif. with Better Built Truss deal
Geopolitical issues, such as increased Western tariffs, import restrictions and Houthi attacks on ships, have forced thousands of companies to seek alternative supply chains to source material from more expensive but less risky locations and move away from relying on single countries or regions for sourcing. The situation is particularly complicated for larger firms managing new regulations and large numbers of suppliers, says Evan Smith, CEO of supply chain technology Altana AI.
Foodservice packaging and industrial products distributor Imperial Dade is acquiring Wolfpack Packaging, an Ontario-based distributor of industrial products and janitorial supplies. Wolfpack will become part of Imperial's Canadian unit, and the deal allows the company to scale in Canada while expanding Wolfpack's distribution network.
Specialty building materials distributor US LBM has acquired Better Built Truss, a manufacturer and supplier of structural roof and floor components. The acquisition will boost US LBM's presence in Northern California to 12 locations. Jeff Qualle will continue to run operations at Better Built Truss, where he has been since 1996.
The US economy added 175,000 jobs in April, significantly below the forecasted 241,000, indicating a slowdown in the labor market. Stocks rose on the news, while traders revised their expectations for more rate cuts from the Federal Reserve this year on the softer data.
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The supply chain could be further disrupted if the Houthis carry out a threat to expand their attacks on commercial ships to the eastern Mediterranean. Last fall, the Iran-backed militia began attacking ships linked to Israel, the US and the UK in the Red Sea and Gulf of Aden, forcing shipping companies to avoid the Suez Canal.
Truck freight spending decreased 27.9% in the first quarter and 21.6% year over year, with a decrease in volume in all regions except the Southwest, according to the latest U.S. Bank Freight Payment Index. Truck capacity exceeds available freight, dimming hope for a turnaround.
The Freight Logistics Optimization Works (FLOW) platform enables Home Depot to better communicate with logistics partners about supply chain issues. In this Q&A, Sarah Galica, Home Depot's vice president of transportation, discusses how the company uses FLOW to anticipate supply chain disruptions from global events like the crises with the Red Sea and the Panama Canal.
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Hasty AI development or surface-level inclusion are likely to alienate more customers than they attract, writes Hermana Creatives' Joe Foley. Some claims about AI use have even landed businesses in trouble with the Securities and Exchange Commission.
Data shows the US economy is starting to slow, but overall activity levels remain strong. The slowdown should be welcomed by investors as it increases the likelihood of rate cuts by the Federal Reserve, writes Aaron Back. If data continues to point toward a slowdown, the possibility of a rate cut by July could increase, Back writes.
Agile leadership is a key ingredient for navigating through disruptive change, writes Kiran Mann, president and CEO of M2M Business Solutions, offering five elements necessary for agility. "Leading through disruption requires an agility mindset -- a willingness to accept change, foster innovation and lead with resilience," Mann writes.
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Helen Zia, writer, journalist, activist May is Asian American, Native Hawaiian, and Pacific Islander Heritage Month
About NAW
The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more.
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