In 2024, more companies digitally transformed their business. Our clients have leveraged the power of data analytics, artificial intelligence, and automation to improve efficiency and productivity, impacting their bottom line. There has been substantial investment in digital media compared to traditional media, and businesses see this as a primary growth driver. The continued growth of online shopping is driving consumers and industrial product companies to invest in building their direct online relationships and continue integrating their e-commerce platforms with physical retail channels, all to provide a seamless customer experience. In addition, with recent disruptions and vulnerabilities in global supply chains, companies are focusing on increasing resilience through closer supplier collaboration and the diversification of their suppliers.
It will be interesting to see what the new administration does with proposed tariffs. Our clients are already discussing ways to diversify their international suppliers. Lastly, third-party logistics services continue to rise because of the increasing costs of labor and, in some cases, the inaccurate charges for pulling, packing, and assembly. We have seen clients utilize technology and AI platforms to monitor third-party logistic costs using software like Implentio.
As the year ended, Black Friday became a month of bargain sales that started at the beginning of November. The November election results have increased consumer confidence. Consumers are spending at levels not seen before in prior years. That is good news for retailers, but the gross margins will not be there even with increased shoppers. Retailers are moving inventory and creating cash flow to allow them to live for another day. Let’s hope for a good 2025 for retailers.
To learn more about digital transformation in the consumer products industry, please connect with us.
© Copyright CBIZ, Inc. All rights reserved. Use of the material contained herein without the express written consent of the firms is prohibited by law. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Material contained in this publication is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their organization.
“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.