US non-farm productivity increased at an annualized rate of 2.2% during the third quarter of 2024, per data from the Bureau of Labor Statistics. Unit labor costs grew at a 0.8% annualized rate in Q3, significantly lower than initially estimated. "With productivity data like these in hand, the hawks at the Fed can argue that interest rates are closer to neutral than the committee previously believed," says Christopher Rupkey, chief economist at FWDBONDS.

PrimeSource Brands, a residential building products distributor based in Texas, has acquired Harney Hardware, a Florida-based distributor of door and bathroom hardware, strengthening its kitchen and bath business. "The acquisition of Harney further advances our mission to create the leading branded specialty building products platform with the most extensive service network in the industry," says PrimeSource CEO Tom Koos.

Retailers are preparing for a potential strike at East and Gulf Coast ports, which could begin as soon as January 15. Talks between the International Longshoremen's Association and the US Maritime Alliance have stalled, increasing the likelihood of a strike. Retailers are frontloading imports to mitigate potential disruptions.

The potential for increased tariffs under President-elect Donald Trump could significantly affect procurement and supply chains, raising prices for imported goods and prompting companies to seek alternative sourcing, writes Bertrand Maltaverne. Procurement professionals must manage tariff exposure and disruptions, and technology can aid in real-time tariff tracking and risk assessment, Maltaverne notes.

Holiday decorations and gifts from China are expected to become more expensive due to import tariffs promised by the incoming Trump administration, writes Rosemary Coates, the executive director of the Reshoring Institute. Importers are likely to explore alternative sourcing options from countries with lower or zero US import tariffs, such as Vietnam, Mexico and India. These countries offer lower labor costs compared to China, making them attractive alternatives for manufacturing low-cost goods, Coates notes.

Anthony Iannarino emphasizes the importance of personal growth and leadership transformation by breaking old habits and raising standards. Iannarino shares personal experiences of elevating standards and the necessity of embracing discomfort to achieve meaningful change, highlighting the role of identity and habits in personal and leadership success.

Continuous learning is essential for staying updated with AI advancements, writes Ayman Sayed, CEO of BMC Software. Employees should be encouraged to engage in lifelong learning through online courses and workshops to remain adaptable and knowledgeable in AI applications.

Distributors are optimistic about next year, adapting their pricing strategies to align with anticipated market improvements. Nearly half of distributors feel confident about the coming year, with many introducing new products and pricing models, according to a recent study. Distributors are focusing on value-based pricing, leveraging customer insights and market data to set competitive prices, with AI and software playing a crucial role.

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.

Prioritize your organization's greatest asset — your people. NAW’s premier education programs, such as the online Management Academy and the in-depth Distribution Leadership Program at THE Ohio State University, are designed to equip your high-potential employees with the skills and insights they need to lead and succeed. Ensure your rising stars are prepared to drive your business forward by investing in their growth today. Learn more about how NAW can help you develop the leaders of tomorrow.