Leaders of major companies are observing a consumer spending pullback in the US and China that is impacting revenue and profits. In the US, high inflation and borrowing costs are squeezing household budgets, while in China, a troubled housing market and economic uncertainty are causing consumers to save rather than spend. A wide range of companies have reported declines in sales and earnings, and the dual pressures are forcing multinationals to seek creative strategies for growth.

Brooks Hamilton, founder of Hamilton AI Strategy Advisors, addresses the challenges and opportunities AI presents for distributors, highlighting its widespread adoption and apprehension about its implementation and competitive pressures. Hamilton offers advice on how AI can enhance operations and help distributors stay ahead in the market, pointing to augmented and automated sales processes and consolidating information as particularly relevant areas AI can contribute in the coming months.

Industrial and fluid power distributor Motion & Control Enterprises has expanded its automation solutions portfolio through its acquisition of Air Automation Engineering, a Minnesota-based distributor of automation products and tooling solutions. Air Automation, which offers expertise in robotic programming and tool repair, will retain its name and leadership under Brian Steele and Paul Wood.

Construction supplies and building materials distributor L&W Supply has opened a location in Yuma, Ariz., and appointed Matias Arreola as branch manager. With over 15 years at L&W Supply, Arreola's leadership is expected to drive branch growth and boost customer satisfaction.

Getting team buy-in from the start for logistics projects, using a collaborative leadership style and being open to feedback raise the likelihood that such transformation projects will succeed, says Gartner in a study that found 76% of projects did not completely achieve their potential. "Resistance can be productive or unproductive, but leaders must shift from viewing resistance as a barrier to seeing it as a source of valuable insights and learn how to leverage it," said Snigdha Dewal of Gartner.

Spot rates fell by 1% this week, with the Drewry World Container Index composite of eight trade lanes reporting rates of $5,736 per 40-foot container. The report estimates this figure is a peak, while also noting that "continued shipping disruptions will keep a floor under the spot rates for some time."

Supply chain disruptions from the COVID-19 pandemic could continue to affect inflation, according to the Brookings Institution, due to long lags despite a recovery in delivery times. "The underlying issue, besides recognizing the importance of residual seasonality post-COVID, has been how much weight to put on supply chain normalization as a disinflation drive," write Robin Brooks, Peter Orszag and William Murdock III.

A strong brand identity is essential to help business-to-business marketers keep their brand top of mind with buyers during an increasingly longer purchasing cycle. JK Design CEO Martha Marchesi offers advice on creating an effective visual brand and building its identity using the right type of content and storytelling.

Economists with Goldman Sachs Group now forecast a 25% chance of recession during the next year, up from a prior estimate of 15%, amid a market global downturn. Still, the economists noted that "we continue to see recession risk as limited."

Attending the Innovators Summit lets you stay updated with the latest industry developments and remain ahead of your competitors. By being aware of emerging trends and disruptive technologies, you can proactively adapt your business strategies, identify new revenue streams, and gain a competitive edge in the market. Learn more here.

In today's competitive labor market, understanding compensation trends is essential. MDM is pleased to present a free webcast discussing detailed findings from NAW's 2024 compensation study. This essential tool offers unparalleled insights into current salary and benefit trends within the wholesale distribution industry. This session will be moderated by MDM Senior Editor Vesna Brajkovic and will feature expert panelists Greg Manns of Industry Insights and Mike Emerson from Indian River Consulting. Learn more here.

The NAW Company Roundtables are an exclusive community of thought leaders from Billion Dollar and Large Company distribution enterprises who congregate to network with non-competing peers in multiple lines of trade on key issues. Learn more about the many Roundtable event opportunities we offer, and how your leaders can get involved. Learn more.