February Market Insights

WarehouseQuote’s Recap from the Retail Industry Leaders Association (RILA) Conference

WarehouseQuote's attendance at the RILA Link conference was an insightful experience filled with discussions on the latest trends and challenges in retail logistics. Throughout the conference, key themes emerged, particularly around redundancy and resiliency in uncertain times.

We heard industry leaders discuss automation, and how advancements are making shipment procurement and execution more seamless.?

Conversations surrounding the impact of Trump-era tariffs could not be missed in many seminars, one of which highlighted the affected value of the Canadian dollar.??

AI was another major topic, with discussions not only focusing on its capabilities but also its inherent limitations.?

The conference highlighted that AI will not replace people, but skilled individuals equipped with AI have the potential to do more with less. Additionally, the discussions emphasized that the advancements in AI, automation, and strategic shifts within the retail supply chain are only achievable with skilled professionals in place.

Lastly, we learned that though safety stock levels won’t reach the heights seen during COVID, large shippers likely will still maintain higher stock in specific SKUs where it makes the most sense. This balance of efficiency and preparedness reflects how retailers are adapting post-pandemic.

Tariffs on Steel and Aluminum Could Increase Vehicle Production Costs

President Donald Trump has signed an executive order imposing a 25% tariff on all steel and aluminum imports into the U.S. This move could make imported steel and aluminum more expensive for automakers, adding another layer of difficulty to an already challenging market. Experts predict that these tariffs could raise the cost of individual vehicles by up to $1,500 due to increased production costs for steel, which is heavily used in vehicle manufacturing. As the situation develops, automakers may seek to secure more domestic steel, but increased demand could lead to higher prices from U.S. producers as well.

Source: https://www.supplychaindive.com/news/trump-tariffs-steel-aluminum-automotive-industry-production/739945/

US Box Imports Reach Record High in January Amid Tariff Uncertainty

US box imports surged to a record high of 2,487,470 TEUs in January, surpassing the previous record set in January 2022 by over 21,000 TEUs. Industry experts suggest that the combination of new tariffs and increased demand could be driving the import spike. Despite the elevated import volumes, transit times at the top 10 US ports remained stable, with delays not significantly worsening.

Source: https://splash247.com/us-box-imports-soar-ahead-of-new-tariffs/

Manufacturing Sector Shows Signs of Rebound in January Amid Growing Demand and Tariff Concerns

Confidence in the manufacturing sector is on the rise as demand and production saw positive growth in January, signaling a potential industry rebound. The Institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) registered 50.9%, marking the first growth in over two years. A PMI above 50% indicates economic expansion, reflecting improved consumer demand and production.

Key indicators from ISM showed growth: the new orders index rose to 55.1%, and the production index increased to 52.5%. Supplier delivery speeds slowed, a sign that the supply chain is tightening as orders grow. Additionally, eight manufacturing industries, including textile mills, primary metals, and transportation equipment, reported growth.

S&P Global’s PMI was even higher at 51.2%, showing further optimism, with manufacturers feeling more positive about growth under the Trump administration. Factory output and job creation are also on the upswing, driven by rising domestic sales.

Source: https://www.supplychaindive.com/news/january-2025-pmi-donald-trump-tariffs-demand-production/739156/

WarehouseQuote Operations Spotlight: The Importance of Exception Management in Driving Operational Excellence

Exception management is a vital component of effectively managing warehousing and fulfillment operations. When deviations from standard operating procedures or unforeseen events occur (example: Missed pickup appointments), logging that information helps identify bottlenecks and improve supply chain performance.

We sat down with Paul Harris , VP of Operations at WarehouseQuote, to discuss the importance of exception management:?

“Tracking exceptions over time enables us to identify root causes and opportunities within the supply chain, uncovering trends that are particularly valuable in retail for managing chargebacks. This allows for detailed analysis of exception events by date, time, and responsible party, a capability that sets WarehouseQuote apart from most traditional 3PLs.”?

WarehouseQuote Operations works on behalf of our clients to identify and log order exceptions within our technology portal. We collect and analyze that data, then provide our clients with consultative recommendations during business reviews to improve supply chain performance.?

Below is a quick video of how WarehouseQuote's Client Portal allows you to add an exception to an order:

The reporting functionality within our portal allows you to easily identify the root causes and responsible parties over time so that you're able to make informed decisions:

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