Tariffs are driving up prices on a range of products in stores and online as distributors and retailers are forced to reticket millions of units with price increases between 8% and 15%, mirroring pandemic-related price hikes, says Ryan Martin, president of distribution and fulfillment at ITS Logistics. Meanwhile, retailers are managing inventory by reducing SKU counts, with typical inventory on hand dropping from six months to three, warehouse inventory levels declining 6% month over month and the overall footprint of goods in distribution shrinking.
Online shopping has experienced its most significant slowdown in more than 10 years amid US tariffs and trade disputes, AlixPartners recently found. The company's survey shows double-digit declines in online purchases for home delivery in major categories and 34% of consumers have delayed purchases because of price uncertainty. Two-thirds of consumers would seek domestic options if overseas prices rose by 10%. The survey also notes a sizable group seeking to "Buy American" and many pulling forward purchases to avoid tariff costs.
Construction spending declined by 0.3% in the US in May, according to the Commerce Department. Private construction spending dropped 0.5%, with residential construction down 0.5% and nonresidential construction down 0.4%. Public construction spending rose 0.1%, with educational construction up 0.2% and highway construction down 0.3%.
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Supply chain circularity shifts the focus from one-time sales to ongoing product performance and fostering stronger customer relationships. Leaders should identify the best areas to implement this using existing inventory and materials before designing "virtuous loops" such as donation and reuse systems as default options. Tracking data to measure return on investment will also be an important part of the process, according to Kevin O'Donnell, vice president of corporate sustainability at Southern Glazer's Wine and Spirits.
Supply chain executives often overlook yard operations when searching for performance gains, typically outsourcing them and accepting inefficiencies as inevitable, writes Bart De Muynck, logistics expert. "In today's high-pressure logistics environment, where next-day delivery is expected, precision fulfillment is non-negotiable, and sustainability is under constant scrutiny, the yard can no longer operate as a blind spot," De Muynck writes.
Brands are facing a new era in digital marketing as generative search engines and AI agents reshape consumer interactions. AI-driven platforms necessitate website optimization for natural-language queries and structured data, requiring brand coherence and personalization, while building trust and authority to remain competitive.
The Senate narrowly approved the "One Big Beautiful Bill," with Vice President JD Vance casting the tie-breaking vote. The tax and spending legislation extends tax cuts from President Trump's first term, eliminates income taxes on tips and overtime, increases defense and immigration spending, and cuts $1 trillion from Medicaid and other health programs. It now moves to the House, where growing Republican opposition threatens the chances of meeting Trump's July 4 deadline.
Accelerate your team's adoption of generative AI by using peer mentoring, writes Gleb Tsipursky, the CEO of Disaster Avoidance Experts, who notes the strategy leverages internal talent, providing personalized learning experiences that are more relevant than traditional training. "When employees learn from colleagues who have already mastered Gen AI, they acquire not only technical skills but also context-specific insights directly relevant to their roles," Tsipursky notes.
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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.
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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