Certain sectors of distribution are more profitable than others, but there is also fragmentation between more successful and less successful companies in the same sector, according to McKinsey partners Alex Abdelnour and Kevin Sachs. The trend "really does come down to top performers doing some things differently and better than others, which enables them to be successful," Sachs says.
WESCO reported second-quarter profit of $206.35 million, almost double its $104.84 million earnings in the year-ago period. The distributor had quarterly revenue of $5.48 billion, up from $4.6 billion in Q2 of 2021.
McKesson earned $768 million in its fiscal first quarter, up from $486 million a year ago, on revenue of $67.2 million, up from $62.7 million. "Our results this quarter demonstrate the strength of our streamlined portfolio and successful execution as a diversified health care services company," CEO Brian Tyler said.
Southern California's Inland Empire region, the largest warehouse market in the US, is operating at a record low vacancy rate of 0.6%, compared with the 3.1% national average, according to Cushman & Wakefield, and the bullwhip effect is being felt as goods continue to flow in from Asia while consumers cut back on spending. Investors are building roughly 40 million more square feet of warehouse space in the region, of which 38% is already claimed, according to Dain Fedora, vice president of research for Southern California at Newmark.
Executives estimate thought leadership drives $2.7 million in annual brand value, and while 40% have increased annual spending on the practice since 2019, only 28% have a robust strategy, according to a Harris Poll. Will Johnson, The Harris Poll CEO, suggests executives break through thought leadership clutter by writing from a place of authority, including an attention-grabbing "value-add or hook" and having a clear argument supported with facts.
In a down economy, brands stand to lose up to 15% of market share if a competitor of a similar size doubles its marketing spending, according to an Analytic Partners' analysis. The firm says long-term approaches, such as through brand-building advertising, ultimately enable companies to fare better than if they focus on short-term ROI through lower-funnel tactics, such as search marketing.
"Why" is a crucial word in leadership, writes Steve McKee, because it can reveal motivation and help teams understand decisions that may affect them. "Helping people understand why you're cutting that product line, why the organization is going remote (or not) or why the company won't take a position on a controversial political issue may not satisfy everyone, but a logical explanation goes a long way in rationalizing even the most potentially unpopular opinion," McKee writes.
All work and no play can make leaders less creative and more susceptible to burnout, writes Runa Bouius, founder of the True Power Institute. "Looking for amusement when weighing challenging situations can inject fun and freedom at work, bringing surprising ease into developing new solutions," Bouius writes.
