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Top Stories
US consumer sentiment declined in September, falling to 55.1 from 58.2 in August, according to the University of Michigan. While overall sentiment weakened, the decline was not uniform across all groups. Those with higher incomes and significant stock holdings maintained steady sentiment, buoyed by strong stock market performance. However, most Americans expressed diminishing confidence about the future, with concerns about labor market conditions contributing to the negative outlook.
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Cameron Ashley Building Products opened a distribution center in Omaha, Neb., to strengthen its Midwest presence and serve Nebraska, southwest Iowa and surrounding areas, which the company sees as a region for growth. "With this new location, we can provide local customers with quicker access to our products and services, supported by a dedicated team that truly understands the market," says Warren Michaelson, regional vice president.
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President Donald Trump announced a new 100% tariff on branded or patented pharmaceutical products from companies that aren't building US factories. Trump also announced other tariffs -- including duties on upholstered furniture, kitchen cabinets and heavy trucks -- beginning Oct. 1.
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Operations and Technology
In most distributors, 20% to 30% of customers generate 150% to 200% of net profit, while the bottom 30% to 50% destroy value, writes David Bauders, CEO of SPARXiQ and Trade Hounds. Structural issues such as pricing leakage, service intensity and operational inefficiencies contribute to this disparity. AI can address these challenges by integrating data, diagnosing profitability issues and providing actionable recommendations in real time, says Bauders, who encourages distributors to embrace technology to turn the whale curve into a strategic operating discipline.
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US business activity is clearly decelerating as economic uncertainty rises, according to the latest ITS Logistics report. Despite the slowdown, the report suggests that a recession is not imminent. Key indicators such as persistent inflation above the Federal Reserve's target and minimal shifts in trucking rates point to ongoing challenges for businesses as they approach the fourth quarter.
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Sales and Marketing
B2B marketers are increasingly pressured to achieve more with fewer resources, as highlighted by Marketing Week's 2025 State of B2B Marketing report. Marketers such as Graham Wylie of Activpayroll and Samantha Gare of SS&C Blue Prism emphasize the importance of a data-driven approach and prioritization to demonstrate success. The use of AI has surged to bridge resource gaps, but marketers note the importance of mental health and the need to set realistic expectations to prevent burnout.
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The Business Leader
Walmart CEO Doug McMillon shared thoughts on the way that AI is set to fundamentally change every job at the company, with some positions likely to be eliminated and others created. The retailer has already automated parts of its warehouses using AI, and Walmart leaders emphasize that the goal is to help employees adapt. They track which jobs decrease, increase or remain steady to guide workforce support and retraining. "Our goal is to create the opportunity for everybody to make it to the other side," McMillon said.
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While over half of business leaders anticipate three or more major changes within the next two years, most employees report being able to handle only one or two each year, according to a report from The Grossman Group. This gap highlights the risk of overwhelming staff, emphasizing the need for organizations to carefully manage the pace and volume of change.
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NAW Insider
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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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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A spinning coin, still balanced on its rim, may fall in either direction. |
Annie Proulx, writer, journalist |
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