LeadSmart Technologies

Are tariffs here to stay?

Tariffs from previous administrations are still in place, and it often takes a major economic event to change tariff policy in a meaningful way.

That does not mean nothing will change. Countries may negotiate. Trade agreements may shift. Some tariffs may be adjusted.

But for distributors and manufacturers, the safer assumption may be that tariffs remain part of the business environment.

That means tariffs become a business planning issue.

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The economy can look strong and still feel painful.

In the new episode of Around The Horn in Wholesale Distribution, Taylor St. Germain of ITR Economics explains the “tale of two economies.”

The bottom 40% of earners are feeling the pressure of inflation most directly. At the same time, the top 60% are generally seeing income growth outpace inflation, and many are also benefiting from stock market gains, investments, and the wealth effect.

For distributors and manufacturers, this is an important signal. Not every customer, market, or industry will respond to inflation the same way.

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What happens when more sales don't automatically mean more profit?

In the new episode of Around The Horn in Wholesale Distribution, Taylor St. Germain of ITR Economics explains the idea of “profitless prosperity.”

The outlook for distributors and manufacturers includes growth into 2026 and 2027, but that growth is coming with higher costs.

Labor, electricity, tariffs, materials, and operating expenses are all putting pressure on margins.

That means business leaders cannot just focus on growing revenue. They have to focus on protecting profit.

The companies that do well in this environment will be the ones that use better data, stronger forecasting, pricing discipline, AI-enabled tools, and operational efficiency to manage costs while taking advantage of growth opportunities.

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AI could change how manufacturers and distributors make decisions together.

Mark Gilham of Enable had an interesting point about how AI may affect both sides of the manufacturer-distributor relationship.

For a long time, many supplier relationships have been built on history, trust, product familiarity, and brand strength.

And though those things still matter, AI may start making recommendations based on data, cost, quality, margin, and measurable performance.

If a product is 10% cheaper and offers 99% of the quality, AI may question whether the branded option is still the best choice.

This means manufacturers and distributors may need to prove value more clearly than ever.

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Here's how you help manufacturers and distributors bring more clarity to the way they trade together.

Many businesses have already squeezed the obvious areas of their profit and loss statement.

They have looked at labor.

They have looked at operations.

They have looked at pricing.

They have looked at cost control.

But there are still major opportunities in the spaces between manufacturers and distributors — in rebates, pricing ex*****on, trading agreements, commercial programs, and the way both sides understand the value of the relationship.

As Mark Gilhasm explains on the latest episode of Around The Horn, this is *exactly* what Enable does.

Sometimes it is about finding the small gaps, improving visibility, and turning better commercial clarity into better profitability.

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Your barber might understand the economy better than the headlines.

Mark Gilham of Enable recently shared a conversation with his barber about how people are feeling in the local community.

The takeaway was simple: people are feeling the squeeze.

That matters because economic reports do not always match what customers, workers, and business owners are feeling day to day.

For distributors and manufacturers, those real-world signals matter. If people are confused by the numbers, worried about costs, or changing how they spend, that can affect demand, pricing, customer confidence, and business planning.

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AI can help improve supply chain profitability...but only if you ask it the right question.

On today's new episode of Around The Horn in Wholesale Distribution, Kevin Brown, Tom Burton, and Mark Gilham of Enable talk about how AI could change the way manufacturers and distributors evaluate profitability, pricing, rebates, and relationships.

The key point is simple: AI is only as useful as the brief it is given.

Are you asking AI to improve profitability for one company? Or are you asking it to improve the profitability and health of the entire supply chain relationship?

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AI tools aren't enough. You need an AI strategy.

Businesses can't build long-term AI success with disconnected workflows, siloed data, separate security systems, and unclear governance. It needs a strong foundation.

That means a centralized framework for data, workflow, governance, security, and platform management. Without that, AI is just another layer of complexity instead of a driver of growth.

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Buying software is not the same thing as building a business platform.

In this clip from Around The Horn in Wholesale Distribution, Tom talks about a conversation with a Salesforce executive and the shift happening in how enterprise technology is being sold.

Instead of leading with individual products like sales, service, or other separate tools, the bigger question is how the platform fits into the organization and how the business can build on top of it.

That is an important lesson for distributors and manufacturers.

Technology should not live in silos. CRM, ERP, customer service, sales, marketing, and AI-enabled systems need to work together as part of a connected growth strategy.

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AI is a teammate, not a replacement.

You do not have to be a technical person to use AI well.

In this clip from Around The Horn in Wholesale Distribution, Kevin Brown and Tom Burton talk about a better way to think about AI at work. It is not about letting a chatbot do all the thinking for you. It is about using AI as another seat at the table.

AI can help organize ideas, speed up research, improve deliverables, and support better decision-making — but the human still needs to provide direction, judgment, and strategy.

For distributors and manufacturers, that distinction matters. The companies that use AI well will not simply automate everything. They will use it to make their people more effective.

Listen and subscribe on your favorite platform: https://podlink.com/1669657224