The 2017 Tax Cuts and Jobs Act is set to expire by year's end, potentially leading to a significant tax increase for small and family-owned businesses, which operate on tight margins and rely on tax relief to invest in their workforce and operations, writes Kathryn Poehling Seymour, CEO of First Supply and a board member of the National Association of Wholesaler-Distributors. Without an extension, businesses like First Supply face financial challenges, which will affect their ability to invest in job creation and community support, Seymour writes.

Sonepar's Codale Electric Supply is marking its 50th anniversary with significant expansion plans, including a 150,000-square-foot distribution center in Las Vegas and three new branches in Saratoga Springs and Draper, Utah, and Idaho Falls, Idaho. The new distribution center includes an automated warehouse and picking process for quick, accurate order fulfillment.

Distributors need to implement a thoughtful rebate strategy to protect margin and price competitively, writes Kevin Betts, a senior manager with Enable. "Rather than allowing rebates to dictate pricing strategy, distributors must ensure that pricing remains transparent, competitive, and aligned with their overall business goals," Betts writes.

Labor shortages were a key topic at a recent LBM CEO Summit in New York, with attendees highlighting how technology can enhance efficiency. Technologies such as 3D modeling and efforts to boost off-site construction could alleviate labor constraints and give rise to innovation and problem-solving in the industry. "We rely heavily on institutional knowledge, but as soon as it disappears, people are gonna rely more on the 3D model," said US LBM CEO L.T. Gibson. "The only thing standing between us and there are people who don't want to change."

Supply chain cybersecurity remains a significant concern, with 77% of workers worried about risks, yet 42% of organizations are unsure how to respond, writes Apu Pavithran, CEO of Hexnode. Pavithran urges companies to invest in workforce training, vet third-party vendors and integrate new technologies within a comprehensive security framework to address vulnerabilities and protect against digital threats.

Consumer packaged goods companies are using AI to drive growth and enhance supply chain resilience, according to a survey by SAP. Companies such as Henkel and Danone are using AI for personalized marketing, demand forecasting and supply chain optimization, with AI expected to help companies detect consumer trends and customize products more effectively.

Create customers for life by focusing on the success and goals of clients rather than on product sales, writes David Brock. This method fosters strong, lasting relationships with both organizations and individuals, ensuring clients repeatedly seek expertise from sales people.

Federal Reserve officials expressed concern about the impact of President Donald Trump's tariffs on inflation, according to minutes from the January meeting. The Federal Open Market Committee decided to hold interest rates steady after three rate cuts in 2024, citing a need to see more progress on inflation before making further adjustments.

Total M&A value has dropped this year, despite an expected increase in 2025. Buyers are likely delaying their activity due to uncertainty around global economic policy as they wait to see the effect of US tariffs abroad. "Dealmakers and markets are still digesting the outcomes of the elections that took place in many countries during 2024 and the resulting changes to policy direction; in particular, the impact of the new Trump administration in the US," says Brian Levy, global deals leader at PwC US.

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