Distributors are responding to significant social, technological, and economic shifts, including omnichannel distribution, cost volatility, and cybersecurity threats, according to research by Modern Distribution Management. However, the study finds that many distributors are focused on immediate issues and may underestimate long-term disruptive trends. A recent survey found that distributors prioritize predictive analytics and cybersecurity over emerging technologies like automation and AI, and many are concerned about economic uncertainty, volatile supply chains and rising competition.

Distributor-supplier relationships have largely stabilized following previous disruptions, with 25% of distributors noting improvement, 14% reporting worsening relations and 62% indicating no change, according to the Industrial Distribution's Survey of Distributor Operations. Suppliers are offering cooperative marketing programs, new product introductions and extended payment terms to mitigate price increases, though 55% of distributors feel these actions are insufficient. Quality, on-time delivery and service/support remain top criteria for supplier selection. The survey also found that workforce challenges persist, with 16% of respondents reducing staff levels over the past year and 17% expecting to do so.

US construction spending declined by 0.4% in April, driven by a 1.1% decrease in single-family housing projects as higher borrowing costs continue and home inventory increases. The April decline follows a revised 0.8% drop in spending the previous month. Spending on private construction slipped 0.7%, while public construction spending rose 0.4%, with federal projects seeing a 2.7% increase.

Item-level visibility is becoming a foundational aspect of supply chain management, allowing companies to track individual products in real time. This approach provides detailed insights into each item's location, condition and status, which helps businesses react quickly and intelligently to supply chain challenges. It's particularly beneficial for operations that require precise tracking, such as food safety and inventory management.

Walmart is integrating agentic AI into daily operations, transitioning from generative AI to create autonomous solutions. This includes upgrading customer support tools to handle tasks such as order tracking and returns without intervention, allowing human staff to engage in more complex roles.

B2B marketers are shifting from traditional search-engine optimization to answer-engine optimization as zero-click searches become more common, Angela Hill of Chief Outsiders writes. Only 36% of US searches lead to clicks to the open web, with the rest staying within the Google ecosystem, according to a SparkToro study, and AEO helps businesses appear in search results even if users don't visit their websites.

Wall Street is increasingly sounding the alarm on US debt, with interest costs surpassing $1 trillion annually. Influential voices like Ray Dalio, Peter Orszag and Jamie Dimon are raising alarms about the sustainability of current fiscal policies. Dalio warned of a potential economic crisis within the next three years, while Dimon expressed concerns about bond market instability.

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.

Interested in membership with NAW? Reach out and let us know how we can help you.