Fluctuating tariff policies have created significant uncertainty for US businesses, particularly manufacturers, retailers, port operators and ocean container lines, leading to inconsistent trade flows, increased costs and disrupted supply chain planning. Ports such as those in New York, New Jersey and Long Beach have implemented action plans to handle sudden drops and surges in cargo, while companies like Maersk and Hapag-Lloyd have rapidly redeployed ships and recalibrated networks to maintain reliability.
AI is addressing labor shortages and operational demands in intralogistics by automating repetitive and physically demanding tasks, opening up more engaging career moves as it allows employees to shift into roles that require analytical, creative and technical skills, writes Scott Walker of Dematic. Companies like Amazon have implemented programs to upskill employees, creating new opportunities such as AI trainers and automation specialists, ensuring workers can focus on higher-value activities that use human judgment and collaboration.
Importers are increasing cash reserves and reducing inventory in response to tariffs and ongoing trade uncertainty. To avoid tying up capital and to manage cash flow, importers are increasingly using third-party financing and off-balance-sheet solutions to move inventory, with the third party serving as the beneficial cargo owner until the goods are needed. Wells Fargo reports a 5% to 10% rise in the use of such programs, with significant interest from the health care sector, which faces potential targeted tariffs.
MSC has transformed operations! Partnering with Bastian Solutions, they've added robot-powered automation at two fulfillment centers. This upgrade boosts speed and accuracy, handling 2.4 million products flawlessly, no expansion needed.
Nearly all large American companies report negative impacts on operations from tariffs, with 96% citing adverse effects and 84% struggling with ongoing shortages. Despite these challenges, most companies are not undertaking sweeping operational overhauls. Instead, they are focusing on tactical responses such as cost-cutting, cautious pricing adjustments and renegotiating supplier contracts. Major changes like reshoring or redesigning products remain rare, as companies weigh the complexity and costs.
Global supply chains are on the front line of modern warfare, facing cyberthreats and state-sponsored disruptions, writes TransVoyant CEO Dennis Groseclose. Recent real-world incidents, such as a cyberattack on Australian ports that affected agricultural exports and costly attacks on Red Sea shipping, exemplify how non-kinetic tactics can cripple commercial flows, Groseclose writes.
Generative AI is changing how consumers find information, with platforms such as ChatGPT and Google AI Overviews providing answers directly, reducing the need for website visits, giving a rise in zero-click searches, now at 68% since the launch of AI Overviews. Website Planet researchers found that in 39% of searches, Google's AI Overviews surfaced answers from a single source, while 33% of searches included multiple sources with less definitive guidance, encouraging users to explore further.
US employers are planning to keep salary budgets flat at 3.5% for 2026, mirroring 2025, according to a WTW report. Employers cite economic uncertainty for the stagnant budgets, while those planning higher budgets cite labor market pressures. Despite flat pay increases, employee retention has improved, with fewer organizations reporting challenges in attracting or retaining staff.
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.
David Gergen, US presidential adviser, political commentator, editor, writer 1942-2025
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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