Supply chains brace for potential tariffs, port strikes | Major companies challenge NLRB's constitutionality | AFC expands capabilities with deal to acquire CH Peters
US shippers face uncertainty heading into 2025 due to possible new tariffs from the Trump administration and a potential ports strike. Tariffs are anticipated to take effect in late February or early March, prompting companies to consider front-loading inventory. Meanwhile, a possible strike by the International Longshoremen's Association could disrupt ports from New England to Texas starting mid-January. Companies are advising clients on strategies to mitigate these risks, including adjusting inventory management and shipping routes.
SpaceX and Amazon have challenged the constitutionality of the National Labor Relations Board, alleging the agency's structure is contrary to the separation of powers. The outcome of their cases could have significant implications for the future of labor policy, and the Supreme Court may eventually be asked to weigh in on the issue.
AFC Industries, an Ohio-based distributor of tooling, fasteners and industrial supplies, has acquired CH Peters, a Wisconsin distributor of precision tools and solutions. The acquisition is AFC's sixth this year and aims to broaden its capabilities and strengthen its position in the industrial and manufacturing sectors, says AFC President Tom Hagarty. AFC Industries said the integration of the two companies is already taking place as the firms seek a smooth transition.
Distributors are increasingly adopting AI, but enthusiasm varies widely, with some companies fully committed and others cautiously exploring the technology, primarily to aid decision-making and simplify processes and operations. In the first installment of MDM's "Executive Input" blog series, the chief information officer at one redistributor and member of the National Association of Wholesaler-Distributors details some of the ways the company is using AI, noting active brainstorming on AI applications has been ongoing for four years, focusing on optimizing utilization and identifying valuable use cases across the business. "We're using AI to go after efficiency and to solve problems such as demand forecasting," the CIO told MDM.
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Amid concerns over President-elect Donald Trump's proposed tariffs, US firms are stockpiling imports to mitigate potential cost increases. Businesses are ordering large quantities of inventory from China before potential tariffs take effect. Some companies are considering raising prices or shifting supply chains to Southeast Asia, and others have already moved to diversify production.
Container traffic at West Coast ports is expected to remain challenging into December, driven by shippers rerouting to avoid issues in the Red Sea and labor activities on the East and Gulf coasts, according to the ITS Logistics US Port/Rail Ramp Freight Index. The situation is compounded by the recent strike in Vancouver, leading to increased domestic truckload rates and longer dwell times at US entry points.
Cos Mingides, co-founder and head of effectiveness at True, discusses the evolving landscape of B2B marketing and the importance of brand investment in "The Age of B2B Effectiveness." Mingides notes that while more B2B-specific research has been conducted in the past five years than the past five decades, many brands still underspend on brand building. He emphasizes the need for B2B marketers to balance short-term demand with long-term brand investment, using effective measurement to make a compelling case to the C-suite.
US tax policy is at a crossroads with Republicans drafting their 2025 tax plans and making out the case that lower taxes fuel growth, while economists say many proposed individual tax cuts would not significantly boost investment or GDP. While some actions on business taxes, like accelerated depreciation, could boost the economy, individual taxpayer behavior tends to be less affected by tax cuts.
Building a leadership pipeline requires empowering team members through ownership and decision-making, writes Shawn Cole, the president and co-founder of Cowen Partners Executive Search. Leaders can model a growth mindset by embracing challenges, setting stretch goals and supporting external learning, Cole writes, noting that this approach fosters a culture of continuous development and prepares team members for leadership roles.
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.
Join us in Washington, D.C., January 27-29 for NAW's Executive Summit, bringing together the best and brightest leaders from the wholesale distribution industry. Learn more here.
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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