US companies are increasingly using foreign trade zones and bonded warehouses to defer tariff costs, according to the National Association of Foreign Trade Zones. The zones allow businesses to store imports without paying duties until the goods are moved for consumption, potentially providing cost savings and cash flow benefits. "A year ago, an FTZ was a nonstarter because of the investment a company would have to make," said Jackson Wood of Descartes Global Trade Intelligence. "Now they are crunching the numbers to see if it makes financial sense."
Do it Best received a 2024 Deal of the Year award in the state of Indiana from the Association for Corporate Growth. Do it Best's acquisition of True Value preserved around 2,000 jobs and nearly doubled the company's workforce. Completed as part of True Value's bankruptcy, the deal was recognized as an example of corporate resilience and strategic foresight. "This deal was a win for the Do it Best and True Value teams, and for the thousands of independent retailers who rely on our products and services," Do it Best CEO Dan Starr said.
The National Labor Relations Board has filed a complaint against Amazon, alleging that it violated federal law after refusing to negotiate with Teamsters-represented workers at a warehouse in San Francisco. Amazon has denied any wrongdoing, calling the complaint baseless. The case could challenge the NLRB's Cemex precedent, which requires employers to recognize unions if a majority of workers sign up.
Freight vessel traffic from China to the Ports of Los Angeles and Long Beach fell 29% week-over-week for the week ending May 3 and 44% for May 4-10 from a year ago amid tariff and recession concerns, according to Port Optimizer. Eighty canceled sailings from China were reported recently as carriers adjusted or suspended their transpacific services, however US Treasury Secretary Scott Bessent has reportedly said a de-escalation may come in the "very near future."
Value retailers such as Academy Sports & Outdoors, Dollar Tree and Dollar General are seeing an increase in higher-income shoppers as economic pressures and consumer sentiment near historic lows. These consumers are spending more than their lower-income counterparts, who are pulling back due to financial pressures, and retailers are responding by adjusting product offerings to cater to a more affluent customer base.
DHL Express has suspended deliveries to US consumers for packages worth more than $800 due to increased customs paperwork resulting from President Donald Trump's new tariff regime. Previously, packages up to $2,500 required minimal paperwork. The suspension will remain until further notice.
Marketers increasingly use generative AI to create and manage content, with some companies testing AI agents for tasks such as regulatory compliance and personalization. Prudential Financial's "digital employee" generates personalized web pages, Opella's AI factory produces medical materials and social media content, and companies like Puma have even experimented with using AI to generate entire commercials.
Investors are paying close attention to capital expenditures as companies navigate the unpredictability of President Trump's tariff policies. Firms like JB Hunt, FedEx and United Airlines have already scaled back capital expenditure plans. These companies' cautious approach reflects a broader trend where manufacturers and other large companies are re-evaluating and often reducing their investment strategies.
An "always-on economy" is taking shape as AI enables businesses to operate 24/7, transcending traditional time and capacity constraints. Business leaders can now rely on AI agents to conduct comprehensive research overnight, facilitating faster decision-making, and companies can use AI to provide constant customer interaction to boost sales. This shift is expected to expand to more sectors over the next few years as companies adapt to a new, faster cadence in their operations.
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Pope Francis, head of the Catholic Church and sovereign of the Vatican City State 1936-2025
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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