News and Trends

• U.S. factory orders edged upward in December
  U.S. factory orders increased more than forecast in December, as bookings rose 1% for the month. Orders for durable goods and nondurable goods rose 1% in December. "We're starting to see some real traction in terms of orders and shipments," said Stephen Stanley, chief economist at RBS Greenwich Capital. Bloomberg (2/4)

• Q4 labor productivity was up, labor costs were down
  Labor productivity climbed 6.2% while labor costs dropped 4.4% for the fourth quarter, according to the Bureau of Labor Statistics. Labor productivity generally increases during recessions as businesses are reluctant to hire more workers. "You're getting close to the point where the output increases will generate jobs," says Daniel Meckstroth, chief economist at the Manufacturers Alliance. USA TODAY (2/5)

• Free trade will help double U.S. exports, says Locke
  The U.S. will enforce trade agreements to reach President Barack Obama's goal of doubling exports over the next five years, according to Commerce Secretary Gary Locke. "Free trade only works in a system of rules where all parties live up to their obligations," Locke said. He estimates less than 1% of U.S. companies export their goods. Reuters (2/4) , The Dallas Morning News (2/5)

• Other News

• Bell Microproducts to distribute Force10 Networks
  TMCNet.com (2/4)

• Sally Beauty Q1 earnings increase 63% on record revenue
  The Wall Street Journal/Dow Jones Newswires (2/4)

• Baker & Taylor to fulfill orders for PublishAmerica
  American City Business Journals/Charlotte, N.C. (2/4)

HBR's Must-Reads on Leadership How does a good manager transform into an extraordinary leader? This collection of best-selling Harvard Business Review articles includes: "What Makes a Leader?," "What Leaders Really Do," "The Work of Leadership," "Why Should Anyone Be Led by You?," and "Crucibles of Leadership." Order here in print or PDF.

Best Practices

• What wholesaler-distributors can learn from athletes
  Athletes have much in common with wholesaler-distributors, say Caliper's founder and CEO, Herb Greenberg, and the company's president, Patrick Sweeney. The two leaders gave a keynote address on the subject late last month at NAW's annual summit. Modern Distribution Management/Management & Strategy blog (2/2)

• Leaner staffs require review of wage compliance
  Law firm Seyfarth Shaw reports there was a 44% hike in the number of wage-and-hour lawsuits last year, and rising unemployment might mean that trend continues. Human resources departments should review practices to make sure they are in compliance with the law. "Now's the time to take a close look at what duties are being done and by whom with the slimmer staff," says Michael J. Gray, an employment lawyer. Human Resource Executive (1/29)

Sales

• How social media can be a direct-response marketing tool
  Businesses can use social media to obtain valuable customer feedback, writes Matt McCullough. This tool is only effective, however, if the data obtained from it is properly interpreted. BtoB Magazine (2/1)

Hot Topics

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

• Recovery may be slow for some distributors, economist says(Modern Distribution Management)

• Recession spurs major changes in manufacturing(The Wall Street Journal)

• 9 common sales mistakes, and how to avoid them(BNET)

• 10 strategies for striking a good work-life balance(Small Business Trends)

• How managers earn team members' respect(BretLSimmons.com)

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

Small Business Manager

• How to turn bad news into a good thing
  Bill Bartmann, author of "Bailout Riches," passes on five lessons about encouraging employees to speak up -- lessons he says cost him more than $1 billion to learn. Bartmann advises that employers state their "bad news" policy in writing, come down hard on managers who punish employees for speaking up, make sure customer remarks are heard, turn mistakes into teaching moments and quickly put negativity in the past. Entrepreneur.com (2/2)

Featured Content

Executive Life

• Hotels offer rewards to guests who forgo housekeeping
  Hotels have asked guests to skip daily towel replacement and changing of the bed linens. Now, they're encouraging guests to opt out of housekeeping by offering hotel credit or points toward the hotel's rewards program. While there is an environmental benefit, hotels can save a considerable amount of money when guests forgo housekeeping. The Wall Street Journal (2/4)

• Orlando is the ideal location for corporate events, study finds
  Orlando, Fla., is the best city in which to hold corporate conventions, conferences and seminars, according to a study by Metropoll. Its relevant virtues include high-quality food and hotel services, and a helpful convention bureau. American City Business Journals/Orlando, Fla. (2/4)

NAW Insider

• Optimizing Distributor Profitability: Best Practices to a Stronger Bottom Line
  "Optimizing Distributor Profitability: Best Practices to a Stronger Bottom Line" -- The best practices in this book were developed from actual experiences of real distribution firms. This is not academic modeling or theory. This book includes a five-step methodology with how to implement ideas and tools; more than 120 exhibits; and a separate distributor-profitability-framework map showing how distributors identify and implement process improvements and the impact those improvements have on shareholder value.

• NAW Roundtables: Exclusive opportunities to network
  NAW's Billion Dollar Company Chief Legal Officer Roundtable is a unique and valuable business meeting that allows senior distribution executives to benchmark and meet with executives from other noncompeting billion-dollar distribution firms. Relationships and trust built during these events are conduits to learning from noncompeting peers and are unique to this forum. See group members and join now.

• Train inside sales reps how to generate profitable sales
  In today's economic climate, inside sales personnel are responsible for generating sales and making sure those sales are profitable. "Essentials of Profitable Inside Sales in Distribution" provides a real-world, in-depth understanding of the expanded role of inside sales. Use this training workbook to show your inside sales staff exactly how they contribute to the health and well-being of your company.