News and Trends

• Avnet launches Beijing-based technology solutions distribution business
  Avnet Inc. is launching a distribution business in China under its Technology Solutions unit. The new business from the electronics distributor will be headquartered in Beijing. "We believe China has a strong and promising future as part of the world economy and Avnet is continuing to invest in the region," said Rick Hamada, chief operating officer of Avnet. The Arizona Republic (Phoenix) (12/10), Industrial Distribution online (12/10), American City Business Journals/Phoenix (12/10)

• Praxair plans to lay off 1,600 employees
  Praxair, Danbury, Conn., is set to let go 1,600 employees and discontinue some underperforming product lines, according to this report. "The slowdown in commodity production and manufacturing has been unprecedented and we believe customers are reducing inventory down the supply chain," CEO Steve Angel said. Modern Distribution Management (12/10)

• Global trends affecting distributors in U.S.
  In a survey of readers, Modern Distribution Management asked how global trends are affecting U.S. distributors. Some of the responding distributors said they weren't seeing any effects, while some others noted such changes as more manufacturers moving production offshore, some communications difficulties between U.S. and overseas buyers and private-label parts "eating" into margins. Modern Distribution Management (12/10)

• Other News

• Report: Wholesale revenues drop 4.1% in October
  Modern Distribution Management (12/10)

• Office Depot to shutter 112 stores, 6 distribution centers in North America
  American City Business Journals/Charlotte, N.C. (12/10)

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Best Practices

• Cut back strategically during tough times
  Cutting back during tough times may be inevitable, but companies should use caution and not compromise their position in making the cuts. Three places to consider cutting are costly customers, underperforming personnel and tech expenditures while cuts to avoid include good workers and benefits. Entrepreneur magazine (12/2008)

• 10 creative ideas for rewarding employees on a tight budget
  Companies can find creative ways to thank employees for a job well done at the end of the year without blowing the budget. A list of 10 low-budget ideas includes fireside mug sets, affirmation boxes or paid time off. Manage Smarter (12/10)

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Sales

• Meet customer needs in ways your competition can't
  Companies can beat the competition by creating new offerings that meet customers' needs in ways their rivals' goods or services do not. Take a fresh look at your customer portfolio and decide which segments deserve the greatest focus, and which can be divested. Harvard Business Review (12/2008)

	Feeling the Pinch in Today's Difficult Credit Market? Increasing credit costs can ripple through your business to affect longer-term plans that are essential to growth. Download the CFO Research Services report produced in collaboration with American Express: No Stone Unturned: Strategies for Cash Management in Hard Times to gain insight on how midsize companies are adapting in order to maintain their competitive positions under tough circumstances.

Hot Topics

Top five news stories selected by NAW SmartBrief readers in the past week.

• Five key actions to stay afloat during the recession (Business Finance)

• Distributors' local knowledge of markets, customers a prime asset (Modern Distribution Management)

• The stupidest gifts this holiday season (Reuters)

• Claim of great customer relationships may mask poor sales skill (DaveKahle.com)

• Cummins to cut 500 jobs through early retirement, layoffs (The Courier-Journal (Louisville, Ky.))

• Results based on number of times each story was clicked by readers.

Small Business Manager

• Analysis: SBA loan caps hinder women, minorities
  The Wall Street Journal examines how women and minority owners of small businesses are affected by new rules put into effect two months ago for Small Business Administration loans. The loans have been capped and their number reduced. Although they originally targeted veterans, women and minorities in low- and middle-income areas, all small-business owners looking for less than $25,000 are eligible. The Wall Street Journal (tiered subscription model) (12/9)

Executive Life

• Companies not expected to reverse year-end travel cutbacks
  Many companies are not expecting business to rebound in the first quarter of next year and therefore are not likely to reverse travel budget reductions. "In the United States, there is no question it's going to take a little while. People aren't resetting their budgets in the first quarter to normal levels," said Louise Miller, an executive with BCD Travel. "The days of having an annual budget and quarterly forecasts were pretty important, but I think we're down to monthly forecasts." BusinessTravelNews.com (12/8)

• Democrats are expediting health care reform
  The Democratic-controlled Congress is using lessons from the Clinton administration to muster the kind of alliances needed to pass health care reform this time around, including courting the "Divided We Fail" coalition. The Wall Street Journal says talk in Congress about being able to pass "budget reconciliation" with simple majority rule is disturbing. Democrats "know that a health-care entitlement for the middle class will never be removed once it is in place; and that government will then dominate American health-care choices for decades to come," the Journal writes. The Wall Street Journal (tiered subscription model) (12/9)

NAW Insider

Weekly Poll

• Is your company providing any employee bonuses or rewards this year?
  After voting once, check out the real-time poll results on NAW's All Access page as often as you'd like.

	Yes, we are distributing cash bonuses.
	No, we are nixing bonuses this year.
	We have an alternative employee recognition program planned.
	I don't know yet.

Vice President of Distribution Uline Waukegan, IL Corporate Procurement Manager Gas and Supply Baton Rouge, Louisiana Technical Customer Service Representative RAASM USA, Inc. Charlotte (Southend), NC Customer service representative/Export division Summit Electric Supply Houston, TX

SmartQuote

Right or wrong, the customer is always right." --Marshall Field, department store developer