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Top Stories
Global companies have reported more than $35 billion in combined financial hits from US tariffs, with expectations for 2025 ranging from $21.0 billion to $22.9 billion and nearly $15 billion projected for next year. While Toyota's $9.5 billion estimate is the largest single impact, many other companies have recently reduced initial forecasts as new trade deals and tariff carve-outs have lessened the overall financial burden. The concentration of costs remains highest for firms reliant on markets without trade agreements, but overall, the ability to plan for tariffs has improved.
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Nearly two-thirds of SMBs report their operations have been affected by tariffs, according to Netstock's 2025 Benchmark Report. Forty-four percent of SMBs report paying higher prices for inventory but not adjusting prices, while 19% are reducing inventories to manage costs. Many SMBs have struggled to adapt, with only 36% using long-term supplier contracts and nearly half lacking formal risk management practices. While lead times are easing, the report notes that SMBs remain vulnerable to changing trade policies and tariff-related volatility.
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A 15-hour outage in AWS's US-East-1 region on Monday disrupted logistics and supply chain operations across various industries. The incident led to widespread operational slowdowns and delivery delays, as organizations experienced throttled functions and high error rates that impacted logistics workflows. The event emphasized the vulnerability of businesses reliant on cloud infrastructure and underscored the need for robust contingency measures and risk management to maintain business continuity during cloud service interruptions.
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The White House's intensified immigration crackdown is affecting the US labor market, with aggressive deportations, stricter enforcement -- and most recently a major fee hike on H-1B visas -- driving out low-wage and skilled immigrant workers. Employers across sectors report acute labor shortages as the loss of immigrant labor makes it increasingly difficult for industries such as agriculture, construction and health care to fill essential roles, leading to a nationwide slowdown in hiring and job growth.
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Join our exclusive webinar for a can't-miss conversation on how Graybar is transforming its 156-year-old business model. Discover how this industry leader is using cloud ERP and AI to boost efficiency, expand into new markets, and deliver smarter customer experiences.
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Operations and Technology
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(Vithun Khamsong/Getty Images) |
Gartner analyst Wade McDaniel warns that the current surge in AI investment far exceeds projected AI-driven revenue growth, creating a financially unsustainable environment over the next three to five years and potentially leading to delays and price increases. McDaniel advises chief supply chain officers to focus on solving well-defined problems with AI rather than searching for use cases, emphasizing the importance of selective and frugal adoption.
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Amazon delivery partners face shrinking profits, with many reporting that operational costs like insurance and vehicle maintenance have outpaced their earnings. Although Amazon claims that most contractors remain profitable, interviews reveal that a significant number are earning less over time, and some have exited the Delivery Service Partner program altogether.
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Sales and Marketing
LinkedIn has released a guide outlining a new framework for B2B marketing measurement, in response to evolving technologies and user behaviors as well as the fact 87% of B2B decision-makers find measuring long-term impact a struggle. Advice includes replacing vanity metrics with metrics such as customer lifetime value and how to use the right tools to capture and activate data.
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The Business Leader
S&P 500 companies have significantly increased disclosures of AI-related risks in their annual reports, with 72% of companies that have filed 2025 annual reports by Aug. 15 disclosing at least one material AI risk, according to a study from The Conference Board and Esgauge. That figure is up from 12% two years ago and 58% last year, reflecting the rapid integration of AI into business operations. The primary risks cited are reputational damage, cybersecurity threats and regulatory uncertainties.
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Employees who take the initiative to integrate AI into their roles are more motivated and engaged, according to a study by Multiverse. The study highlights "task crafting," where employees use AI to reduce manual tasks and focus on more important work, as a key behavior that enhances productivity. "The benefits are activated by giving employees agency to shape their role around AI," says Barry Goulding, an organizational psychologist at Multiverse. "This means they can transform their work from a collection of demands into a series of engaging challenges."
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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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There were no role models for me. |
Susan Stamberg, radio journalist 1938-2025 |
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