FEIN: 2008 WILL BE BANNER YEAR FOR PRIVATE LABELS
Growth in private label will be driven by customer demands for lower-cost alternatives in a weakening economic environment, says Pembroke Consulting's Adam Fein in his latest blog on distributiontrends.com. And, he says, the U.S. dollar's decline will not necessarily slow import-led private label growth.

"As customers start to feel more economic pressure, they often trade down to private labels," he writes, and says that the pattern is playing out in consumer products, where private label says for a set of products grew 21% in the second half of 2007, compared with overall industry sales up 1 percent to 2 percent. Fein sees the same pattern occurring in business-to-business markets. More...

BUSINESSES PREPARE FOR AN ECONOMIC SLOWDOWN
Companies in all industries are bracing for a slowdown, if they haven't already prepared. A transportation-services company tells the Wall Street Journal that it has responded toa slowdown in shipments with a 10% layoff, and parking some of its vehicles over the holidays instead of renting extra trucks like it usually does. Global companies are shifting their focus to high-growth regions, such as Russia, Eastern Europe and India.

Companies must plan in advance when the economy is showing signs of a slowdown, according to Bain. "They take a bet early on which way the economy is going and quickly identify which costs they can manage aggressively and where they should use cost savings to fund new growth," a Bain partner tells WSJ. Subscription to WSJ required. More...

WHOLESALER EVOLVES OVER 70 YEARS OF BUSINESS
Evolving over 70 years of business, Hagerstown, MD-based packaging, paper and janitorial supplies distributor Weiss Bros. knows the importance of knowing its market. It started selling to a mix of customers, which included corner grocery stores. But those stores – beat by the chains – started closing shop in the 1960s, according to this article from the local paper.

Many of Weiss' competitors have closed or been bought out over the years. "Part of the business' success is tied to the company's ability to anticipate changes in customers and their needs," the article says. For example, when a need for hands-free in public restrooms came up, the distributor responded with automatic paper towel and soap dispensers. It's recently started selling environmentally friendly products, as well. More...

ARE PERSONALITY TESTS USEFUL IN SCREENING CANDIDATES?
More and more employers are using online personality tests to screen candidates, according to this article from the Chicago Tribune. The tests are designed to "predict success" by measuring traits and comparing that profile with those of people who have succeeded in similar jobs. Some companies, like Home Depot, Whole Food and Best Buy, use the tests as a sort of entry point; if candidates don't answer the questions or answer them "incorrectly," that application may not even make it to the human resources manager, according to the Tribune.

A little less than half of large U.S. companies use these assessments to screen new hires. Though many companies "swear by them," critics say that the surveys are "little better than coin tosses." If you are considering such a move for your company, this article says that credible assessment firms publish research showing validity of the tests, and monitor results to ensure they are valid for the companies where they are used. More...