Distribution and industrial manufacturing merger and acquisition activity fell in the second quarter, with global transaction volume dropping to 149 from 217 a year earlier, according to PMCF. In the distribution sector, 149 transactions closed globally, down from 217 a year ago, and the industrial manufacturing sector saw 368 transactions, down from 397 the previous year. The report attributes the slowdown primarily to tariff uncertainty and broader macroeconomic and policy headwinds as companies shifted their focus to internal operations rather than new deals.

TopBuild has acquired Specialty Products and Insulation for $1 billion. North Carolina-based SPI includes 90 branches and roughly 1,000 employees, and the deal is part of TopBuild's strategy to expand its North American footprint, said TopBuild President and CEO Robert Buck. The acquisition excludes SPI's metal building insulation business.

Many retailers intentionally increased inventory levels ahead of the holidays to hedge against new tariffs. Strategies largely focused on bringing in core, evergreen items with low markdown risk, an approach that ties up capital and increases storage costs. Retailers are banking on the advanced stockpiling buffering against potential disruptions and higher costs, but the tactic's success will depend on consumer demand holding up through the holiday season.

Ocean shipping rates have dropped to their lowest since January 2024 due to declining demand following the implementation of higher tariffs. The Drewry World Container Index shows spot rates at $1,669 per 40-foot container, below the $2,200 break-even point for major carriers such as Maersk and Hapag-Lloyd. The trend threatens carrier profits as retailers might reduce shipments.

Grupo Petropolis has partnered with Descartes Systems Group to maximize the efficiency of its fleet of nearly 3,000 vehicles and streamline nationwide beverage distribution, aiming to improve customer service and sustainability. The Descartes routing and fleet management solution enables real-time tracking, route intelligence and swift responses to route deviations, resulting in a 98% on-time delivery rate, 9% reduction in overtime and 5% decrease in fuel consumption.

AI is transforming supply chains from reactive to predictive and autonomous, writes Sahil Chandawale, who works in ERP architecture and supplier automation. Chandawale highlights how AI bridges data silos, enhances demand forecasting and automates decision-making, citing examples from Amazon's eero division and noting the importance of data quality and change management for successful AI integration.

Brands are increasingly turning to Generation Z-focused agencies and market research firms to ensure relevance as the digitally native generation's spending power grows. Firms such as NinetyEight and Cafeteria offer services like qualitative research, customized surveys and focus groups to provide insights into Gen Z preferences and behaviors, while legacy firms like Edelman have created internal Gen Z divisions. The strategy is aimed at offering insights and helping brands adapt marketing strategies and connect with a generation whose consumption habits and expectations differ markedly from those of previous cohorts.

President Donald Trump indicated that the US may pursue separate trade agreements with Canada and Mexico instead of renegotiating the existing trilateral pact. During a meeting with Canadian Prime Minister Mark Carney, Trump emphasized that the US has the flexibility to negotiate individual deals if desired, a possible shift from the current approach as the USMCA review process begins.

Future-of-work expert Cali Yost warns that the workforce is about to contract significantly, as retirements among Generation X outpace the influx of Gen Z and Gen Alpha workers. Over the next five to seven years, an estimated six million workers are expected to exit the labor force without sufficient replacements from younger generations. Yost highlights the urgency for companies to adapt by enhancing benefits, pay, flexibility, and professional development to remain competitive as the pool of available talent shrinks.

If you're feeling drained and disengaged at work, but you're not feeling burned out by too much work on your plate, you could be experiencing "rust out," writes executive coach Kelli Thompson. This happens when you feel you're not able to use all of your skills, and Thompson's advice is to identify what stalls, sucks or surges your energy, delegate what drains you and talk with your bosses about doing more of the type of work that energizes you.

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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