Plus: Lawmakers face tight timeline to prevent another shutdown
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December 24, 2025
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GDP growth hits 2-year high on consumer strength
US GDP grew at a seasonally and inflation-adjusted annual rate of 4.3% in the third quarter, marking the fastest pace in two years, according to the Commerce Department. The growth exceeded the prior quarter's 3.8% and surpassed economists' expectations of 3.2%. The report attributes the robust expansion to strong consumer activity and a boost from trade as exports rose and imports fell. However, the momentum is waning amid rising living costs and the recent government shutdown, which is expected to dent fourth-quarter growth.
Full Story: The Wall Street Journal (12/23), Yahoo/Reuters (12/23)
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Top MDM podcasts highlight distribution trends, strategies
Modern Distribution Management has released its top podcasts of 2025, featuring in-depth discussions with distribution executives and industry consultants. Popular episodes include analyses of QXO's acquisition of Beacon, Parts Town's growth and Rexel's strategies in mergers and acquisitions and talent management. The MDM Amplify channel debuted this year, and the National Association of Wholesaler-Distributors launched the "Distributors Deliver" podcast series.
Full Story: Modern Distribution Management (tiered subscription model) (12/22)
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US factory output steady in Nov. as vehicle output drops
US manufacturing production remained flat in November after a 0.4% decline in October, according to the Federal Reserve. A 1% drop in motor vehicle output after the expiration of electric vehicle tax credits was offset by a 0.1% increase in other factory output. Overall industrial production rose 0.2%, with mining output up 1.7%.
Full Story: Reuters (12/23)
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Operations and Technology
 
AI helps companies navigate supply chain complexities
 
A network of logistics and supply chain icons superimposed over a blurred warehouse, illustrating interconnected systems, transportation, and global distribution.
(Bymuratdeniz/Getty Images)
Corporations are increasingly turning to AI to manage supply chain risks amid rising regulatory scrutiny and geopolitical challenges. AI enables real-time, comprehensive due diligence, helping companies identify and mitigate risks related to human rights violations and regulatory compliance. "Now, thanks to AI, companies are able to conduct immediate and comprehensive semantic searches across all corporate records and automatically surface red flags and data anomalies that require more thorough human review," writes Laura Clayton McDonnell.
Full Story: Forbes (tiered subscription model) (12/19)
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UPS' Happy Returns uses AI to flag suspicious returns
Happy Returns, a UPS-owned company, is piloting an AI tool called Return Vision to help identify and prevent return fraud, which is costing US retailers an estimated $76.5 billion in 2025. The AI flags suspicious returns by analyzing patterns such as early or frequent return requests, linked email addresses and past suspicious activity. The system is being tested with retailers, such as Everlane, Revolve and Under Armour, aiming to detect sophisticated fraudulent activity that might evade human detection.
Full Story: Reuters (12/18)
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USPS to expand last-mile delivery to more shippers
The US Postal Service plans to expand its last-mile delivery network to include more shippers, aiming to boost revenue by leveraging its extensive delivery network. The USPS will accept bids from shippers in early 2026, offering access to more than 18,000 delivery distribution sites.
Full Story: Transport Topics/The Associated Press (12/18)
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Sales and Marketing
 
B2B CMOs lack readiness for AI-driven competition
A recent report from 3Thinkrs reveals that 62% of B2B chief marketing officers feel unprepared to compete with AI-enabled companies, citing gaps in skills, budget and resources. The study also highlights weaknesses in crisis readiness for AI-specific threats, with only a small fraction of organizations having formal response plans in place.
Full Story: MarTech (12/17)
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Policy Watch
 
Lawmakers face tight timeline to prevent another shutdown
Lawmakers are under pressure to avert another government shutdown, as some key House Republicans insist on keeping spending at current levels. Meanwhile, House Speaker Mike Johnson, R-La., aims to pass funding bills by Jan. 30, a target that many Republican lawmakers doubt is achievable. Senate Majority Leader John Thune, R-S.D., and Minority Leader Chuck Schumer, D-N.Y., have said they will work together to complete the appropriations process.
Full Story: The Hill (12/22), Politico (12/22)
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The Business Leader
 
Create moments of wonder to boost team engagement
 
Create moments of wonder to boost team engagement
(Tim Robberts/Getty Images)
A Gallup report states that "The world is on an emotional edge," with some 39% reporting that they spend many days filled with worry. This is why leadership coach Lisa Bennett recommends that leaders begin a practice of savoring the positive things in life and passing that sense of wonder on to their teams in small gestures. Some leaders make it a point to tell team members what they genuinely appreciate about them, while others find positive ways to personally connect with their teams, in an effort to build emotional bandwidth into their culture, Bennett writes.
Full Story: Big Think (12/23)
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New from MDM
 
NAW Members - did you know that you now have access to MDM Premium? MDM Premium offers reporting, benchmarking, and business intelligence to help you stay competitive, anticipate market shifts, and make informed business decisions. Click here to activate your MDM Premium subscription.
 
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Singer puts cultural fit at center of acquisition strategy
Singer Equipment has grown from $250 million to nearly $1 billion in revenue over the past decade through a merger-and-acquisition strategy that prioritizes cultural alignment over financial metrics, with Singer spending months assessing whether a potential target's values, leadership style and people practices are compatible with its own. This focus on culture is seen as a strategic safeguard, preserving trust, engagement and leadership credibility, and by rigorously evaluating cultural fit and walking away from deals that don't align, Singer ensures that its acquisitions strengthen, rather than dilute, its organizational fabric.
Full Story: Modern Distribution Management (tiered subscription model) (12/19)
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Stellar Industrial's DCS program drives national growth
Stellar Industrial Supply has differentiated itself with its Documented Cost Savings program, which has delivered over $218 million in verified customer savings since 2010. The program quantifies and reports tangible financial outcomes for customers, shifting the sales focus from unit pricing to total cost of ownership and operational efficiency, fostering long-term partnerships. The program has helped Stellar grow from a regional distributor to a national competitor.
Full Story: Modern Distribution Management (tiered subscription model) (12/16)
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Invest in Your Future Leaders with NAW Education Programs
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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Editor's Note
 
SmartBrief will not publish Dec. 25
SmartBrief will not publish Thursday, Dec. 25, in observance of Christmas Day.
 
 
 
 
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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