Economic uncertainty and tariffs remain significant issues for distributors, with more than 70% of respondents to Industrial Distribution's 2025 Survey of Distributor Operations expressing anxiety about economic conditions and 56% citing tariffs -- and the subsequent rising costs and price adjustments -- as a significant issue. Distributors are prioritizing technology investments, focusing on CRM and ERP systems and online ordering, with AI and ecommerce poised for substantial growth over the next couple of years.

Around 69% of NetPlus Alliance members anticipate revenue growth of 3% or more this year compared with 2024, according to the group's Industry Outlook report based on a first-quarter survey. The report shows a decline in optimism from the previous survey, when 87% expected growth, reflecting growing concerns over economic conditions and their potential impact on the industrial distribution sector.

US consumer sentiment rebounded modestly in late May, as the University of Michigan's index rose to 52.2. The index recovered from near-record lows earlier in the month as tariff policies weighed on consumers' outlook. Consumers now anticipate prices increasing at an annualized rate of 4.2% over the next 5 to 10 years, down from 4.4% in April.

PepsiCo has converted about 20 semitrucks in Iowa to run on B99 biodiesel, which is 99% biodiesel and 1% diesel, by using engine systems from Optimus Technologies. This move aligns with PepsiCo's sustainability goals and is supported by the installation of a B99 pump at a Pilot Travel Center in Urbandale.

The shift from digital transformation initiatives to building capabilities is crucial for organizations to achieve long-term success. Instead of pursuing tech-led projects that often remain siloed, companies should focus on embedding digital competencies into their operations.

AI is central to several key B2B marketing trends, including the use of AI agents to improve campaign efficiency and quicken development time, writes SmartBrief's Mike Driehorst. AI-generated search results means that site content should be created to address potential follow-up questions to search queries, while Generation Z is accelerating the blending of B2C and B2B tactics, emphasizing personalization and value beyond economics.

Companies should reframe "resistance to change" as a reflection of organizational memory to improve change management, writes Andre Pereira, senior manager at dss+. Employees often resist not the change itself, but poorly implemented ideas and the uncertainty it brings, Pereira writes.

On Friday, President Donald Trump sent the full details of his budget proposal to Congress, specifying which federal programs he aims to scale back or eliminate as lawmakers prepare for fall funding negotiations. The proposal has sparked early pushback from some Republican lawmakers, who are signaling they may oppose parts of the plan. With a potential government shutdown on the horizon, congressional budget talks and ongoing trade tensions with China are expected to be key priorities for the White House this week.

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