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NAW SmartBrief

July 24, 2009

News and Trends

Crude oil falls to $64.75 a barrel, stockpiles increase
The price of crude oil for September delivery fell to $64.75 a barrel on the New York Mercantile Exchange, in spite of traditional heightened demand in the summer. "Inventories should be going down because this is the demand season for the U.S.," said Tetsu Emori, a commodity fund manager at Astmax Ltd., Tokyo. Instead, U.S. crude oil stockpiles rose 3.1 million barrels to 349.9 million barrels last week, according to the API. Bloomberg (7/22) The Wall Street Journal/Dow Jones Newswires (7/21)

U.S. production indicators up for June, says Chicago Fed
U.S. production indicators strengthened in June to their highest level since October 2008, according to a report from the Federal Reserve Bank of Chicago. The June reading of -1.8 still indicates recession, but marked an improvement over May's reading of -2.3. Reuters (7/21)

Caterpillar releases earnings guidance for this year
Caterpillar released earnings guidance for the year of between $32 billion and $36 billion, as compared with $51.3 billion in 2008. The equipment manufacturer also predicted that the global economy will decline 2% this year and warned of a possible loss in output in the third quarter, before a slight moderation in the fourth. Caterpillar also announced that the company has completed most of its headcount reduction for the year. The Wall Street Journal/Real Time Economics blog (7/21) Bloomberg (7/21)

Survey: Manufacturing executives cautiously optimistic about economy
Fifty-seven percent of manufacturing executives queried said they have a "somewhat optimistic" or "very optimistic" view of where the U.S. economy is headed over the next six months, according to a survey by accounting and consulting firm Baker Tilly. Seventy percent of survey respondents said their companies plan to maintain current staffing levels, while 20% plan to make staffing cuts and 9% intend to add personnel over the next six months. Modern Distribution Management (7/21)

Other News

Canadian wholesale sales fall 0.3% for May
Modern Distribution Management (7/21)

Best Practices

Meaningful work breeds happy workers
Giving employees meaningful roles is critical if you want happy and loyal workers, Anthony Tjan writes. The keys, he says: Explaining the employee's vital role in bottom-line success; providing regular, thoughtful feedback; offering professional development; and saying "thank you." Harvard Business Review online/Upstarts and Titans blog (7/21)

Good communication between distributors, suppliers is of mutual benefit
Suppliers and distributors may be unwilling to share strategies, but good communication between the two parties is essential in terms of ensuring mutual success, an industry consultant writes. Respect and a high level of trust between the two are necessary, as are realistic expectations of one another. Industrial Distribution online (7/21)

Sales

Lost orders can offer wealth of useful information
Information on why and how orders were lost is critical in preventing future order losses. Gathering lost-order information can shed light on important areas, including how to retain customers, who your most valuable customers are, which sales reps are having difficulty, which models may not have a competitive advantage and the impact of price. DO NOT USE Sales & Marketing Management (7/20)

Small Business Manager

Some customer-management tasks can be automated
USA TODAY's Steve Strauss suggests there is a way a small-business owner can make money while sleeping: software automation. Strauss says e-mail and sales leads can be followed up through automated responses as can many functions of customer-relationship management and invoicing. USA TODAY (7/20)

Executive Life

New hotels offer luxury, lower rates across the Hudson
Two new luxury hotels in New Jersey are hoping to attract business travelers to New York to cross the Hudson River and enjoy lower rates and views of the Manhattan skyline. The new 429-room Westin Jersey City Newport and 225-room W Hoboken Hotel were planned when Manhattan hotels were packed and enjoying sky-high rates. But now that occupancies have sunk and unprecedented low rates are prevailing in the city, the New Jersey hotels will have some tougher competition to contend with. USA TODAY/The Associated Press (7/20)

New tool can remotely prevent stolen cars from being started
OnStar just launched a new vehicle security tool that is designed to allow law enforcement agencies to send a remote signal to a stolen car that prevents the vehicle from being restarted once the ignition is turned off. The tool joins OnStar's suite of stolen-vehicle-assistance tools that also include Stolen Vehicle Slowdown, a remote means of slowing a stolen vehicle down to an idle, and GPS technology that reveals the location of a stolen vehicle. CNET/cartech blog (7/21)

NAW Insider

NAW's Large Company CEO/COO Roundtable -- Sept. 16 and 17
Benchmark and network with CEOs and COOs of wholesale distribution companies with revenues of more than $100 million up to $1 billion. This CEO/COO Roundtable is a valuable business tool where you will learn about cutting-edge business strategies. Executives will share how they are surviving this economy and how they are positioning their companies for the rebound. NAW members receive one free registration. Register now.

Order Brent Grover's new book "Strategic Pricing for Distributors"

For many distributors, gaining control over pricing is their last "unplowed field." Strategic Pricing for Distributors: Tools and Rules for Building Higher Margins is a combination of business novel and guidebook with real-world lessons for distribution managers. It takes you through a plan using market-driven pricing guidelines and tools for reaching and sustaining strategic pricing improvement -- and ultimately, increased profitability.

Weekly Poll

Have discounted flights convinced you to take a trip?
Yes -- I have already bought some tickets.
Yes -- I'm developing plans now.
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