QXO has finalized its $11 billion deal for Beacon Roofing Supply, marking its first major distributor acquisition and establishing itself as a key player in business-to-business distribution. With nearly 600 branches and $9.76 billion in revenue last year, Beacon will serve as the foundation for QXO's growth strategy, and the deal is a critical step forward for the upstart distributor. "Acquiring Beacon is a major step forward in our strategy to make QXO the leading tech-enabled company in the $800 billion building products distribution industry," said QXO Chairman and CEO Brad Jacobs.

The 2017 Tax Cuts and Jobs Act has been notably positive for wholesale distributors, and many are voicing concerns that its potential expiration could lead to higher taxes, affecting business investments and operations. Jim Derry of Field Fastener says that the legislation has allowed his company to invest in hiring, increasing wages and absorbing health care costs without passing them onto employees. Similarly, Kathryn Poehling Seymour of First Supply credits the tax cuts with enabling significant investments in infrastructure and job creation.

Distributors are facing tariff-induced challenges, including supply chain disruptions and margin compression, according to a Baird-MDM survey. Distributors can manage these challenges by anticipating volatility through trade policy monitoring and scenario planning, implementing strategic pricing agility with advanced software and internal collaboration, and maintaining flexibility by evaluating cost absorption and exploring alternative solutions, writes Michelle Duffy of Pricefx.

The temperature-controlled logistics industry has changed significantly, driven by demand, sustainability requirements and digital transformation, writes Sara Stickler, president and CEO of the Global Cold Chain Alliance. This shift has created a need for new skills, particularly in data analysis, sustainability and automation. Companies are addressing this by hiring specialists and offering customized training.

US industrial and logistics vacancy rates rose to 6.3% in the first quarter, the highest since Q2 of 2014, as demand declined faster than construction, according to CBRE. Construction completions reached their lowest level since Q2 of 2018, and future completions are expected to drop further as starts have also significantly decreased, and many occupiers are delaying real estate decisions, partly due to tariffs, the report says.

B2B marketers can differentiate themselves by adopting B2C strategies to build meaningful connections with potential clients, writes Madhu Balakrishnan. Experiential marketing and personalization can enhance brand recognition and engagement, Balakrishnan writes.

In a volatile political landscape, leaders may find their companies in the crosshairs from a variety of sources, including policymakers, consumers or the media, writes Ken Spain, the CEO of Narrative Strategies, who recommends conducting a threat assessment by analyzing company statements and initiatives and mapping friendly stakeholders who may have political influence. "Companies serious about managing political risks must have this essential exercise completed before issues arise, not after," Spain writes.

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.

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