September 3, 2014
For the 18th consecutive quarter, suppliers in the $20.5 billion promotional products industry are reporting bigger sales, with revenues jumping an average of 5.1% in Q2.
Data shows more than half of suppliers (59%) improved Q2 sales, with 23% reporting revenues were unchanged and 18% with declining sales. At the same time, the U.S. is reporting a healthier job market, a recent surge in stocks and buoyed consumer confidence.
Such confidence is also being felt by six in 10 industry suppliers, who tell ASI they expect 2014 sales to be even better than 2013. More than three-quarters (78%) of supplier firms with $5 million or more in annual sales believe their revenues will improve in 2014. About 58% of smaller suppliers (less than $5 million in annual sales) anticipate their sales will increase this year.
Suppliers quoted in the latest Counselor PromoGram sound cautiously bullish:
The 5.1% quarterly growth among suppliers was a stronger showing than in Q1, when average sales increased by 4.8%. Last month, Counselor reported Q2 distributor sales rose by 6.1%.
August 6, 2014
To most people, summer means family road trips, zeppelin-sized zucchini, backyard barbecues and lightning bugs. Here at ASI, summer means all that and more, since summer is when we produce our annual State of the Industry report.
While it doesn’t yet come with a free umbrella drink, Counselor magazine’s industry MRI does pack a ton of info designed to help any sized company plan strategically for the future, grow their business, streamline operations and tap new and emerging markets.
If you haven’t read the issue yet (available in print and online at www.asicentral.com/soi), take a hard copy with you to the beach or check it out electronically on your device. ASI editorial staffers spent months gathering and analyzing key sales, marketing and operational metrics used by most of you to provide useable info tailor-made for our industry. The accompanying graphics also provide valuable snapshots of what’s up, down and trending.
Click here to read the report in its entirety.
As a whole, 2013 was a good year, with distributors growing sales by 5.7% to reach a record $20.5 billion. The 40 largest distributor companies in the market hit nearly $4.4 billion in sales, accounting for 21.5% of total industry revenues.
It seems that the top 40 suppliers and distributors are exerting growing influence over the marketplace. Counselor’s editor, Andy Cohen, goes so far as to predict apparel suppliers will continue to consolidate and large distributors will create unique partnerships the likes of which the industry hasn’t seen before. As Andy says, “If you can’t beat competitors, join ’em!”
But there’s still room for nimble and innovative distributors and suppliers of all sizes, and obviously our industry is an exciting place for everyone.
The data also shows the profit pressure distributors face and customer trends that include more price shopping, more interest in additional services and more safety and compliance inquiries.
Our predictions for the industry’s future? While product staples like T-shirts and pens will remain strong, sales of branded technology items like USB cards should increase dramatically in the near future as more millennials enter the workforce. The average order time for suppliers will significantly decrease in today’s “need it now” marketplace, and 90% of the top 40 apparel suppliers will offer in-house decoration in five years.
In addition to winning tips and tactics and growth strategies, the SOI issue profiles the 2014 Counselor Award winners – including Person of the Year Norman Hullinger – and includes revenue and ranking of Top 40 distributor and supplier companies.
I’d love to know what you thought of this year’s issue and if there’s a topic, trend or strategy we might have missed or not given enough attention to, so please either post a comment or email me here. I’m also on Twitter and LinkedIn.
July 17, 2014
ASI celebrated its 15th anniversary of hosting a national trade show in Chicago in a very big way. This show had it all: art, commerce, education, networking and, above all, fun and flair.
The show featured 50 education sessions, leading suppliers, 22 team-building distributor sales meetings and a multimedia keynote by graffiti artist, entrepreneur and motivational speaker Erik Wahl on using creativity to supercharge your potential.
Go to www.asicentral.com for complete coverage of the show, including blogs and videos from ASI’s ace on-site editorial team.
To me, innovation was the word of the day on a bustling show floor. I saw tons of new packaging ideas, along with some traditional decorating techniques applied to new products. And, everyone seemed to really benefit from the new Signage + Decoration pavilion and the two days of demos inside. After seeing the techniques, I’m sure distributors will gain a new appreciation for the decorating suppliers do for them.
The feedback from the Erik Wahl keynote was also tremendous. He actually painted right on the stage and spoke about the importance of creativity to business – which are not two words most of us use together in the same sentence. But it makes sense to think outside the box for inspiring ideas.
I think my favorite part of the show was the heartfelt speeches made by winners at Wednesday night’s 2014 Counselor® Awards. I especially loved the speech by Gary Hellinger, of Gary Plastic Packaging Corp. (asi/55990), who won the Marvin Spike Lifetime Achievement Award. ASI Chicago was the very first trade show he’s ever been to. And I almost choked up as he described his operation in the South Bronx, where he has 600 employees working three shifts. What a sweet guy.
At the ceremony in the very cool Museum of Broadcast Communications in Chicago we also announced the Top 40 Distributor and Top 40 Supplier rankings – the largest companies in the industry based upon 2013 revenue. For more info, go to www.asicentral.com. For the complete list, click here.
Our Counselor Person of the Year, Norman Hullinger, CEO of alphabroder (asi/34063) (pictured with me, right), was loudly applauded by his team members for expertly guiding the company through an unprecedented period of change, acquisitions and re-branding. As I said during my speech, talk about daring!
Throughout the show, it’s been great to talk to people and to hear how bullish they are on the second half of the year. Suppliers and distributors alike are very positive on our industry and are looking forward to a stronger finish than ever.
ASI Chicago took place Tuesday, July 15, through Thursday, July 17, at McCormick Place and featured 750 exhibiting companies – including numerous Counselor Top 40 suppliers and 105 exhibitors new to Chicago this year. Total distributor attendance was more than 4,300, from distributor firms based in 42 states and eight countries. The show is the largest ad specialty trade show of the summer.
The reviews were excellent:
One of many special benefits ASI members could take advantage of included free education, which featured strategic sessions on scoring sales as well as a new Screen-Printing Success Track, part of ASI’s new relationship with ST Media, sponsored by Workhorse Products. We also unveiled the new Signage + Decoration Pavilion, produced in partnership with ST Media, featuring well-known equipment companies and live education allowing attendees to explore niche sales ops and speak to experts in potential new markets.
Exhibitors were delighted with the show because it gave them a terrific opportunity to display their latest, greatest products, talk to numerous distributors and discuss creative ad campaigns. Jennifer Grigorian from Hit Promotional Products (asi/61125), said, “The ASI Shows deliver very good traffic. We always leave with new relationships and really benefit from spending one-on-one time with our customers.”
The show also featured the debut of the #ASIpromocar, an “Art Car” decorated with a variety of promotional products donated by ASI suppliers and driven 750 miles from ASI headquarters in Philadelphia to the show, where it was on display and available for people to sign and get their photo taken.
The car is intended to drive attention to the creativity and ingenuity in the promotional products industry, and it was a big hit. I sure hope everyone got the chance to see it – and to sign it! (See ASI’s Matthew Cohn signing at top). Now, all we have to do is drive it safely back to ASI headquarters outside Philly. I’m very happy to report we only lost a single pen during the drive out. I’m now taking bets on how many we’ll lose on the trek back.
An unprecedented roster of business and leadership trailblazers includes Steve Wozniak and Peyton Manning. For information on exhibiting or sponsorship opportunities, contact Karen DiTomasso, vice president of sales, at email@example.com.
July 16, 2014
ASI is celebrating its 15th anniversary of hosting a national trade show in the great city of Chicago with a ton of fun and flair. The show features info-packed education sessions, top-flight suppliers, team-building distributor sales meetings and awesome presentations.
ASI Chicago takes place through Thursday, July 17, at McCormick Place and features numerous Counselor® Top 40 suppliers and over 100 exhibitors new to Chicago this year. The show is a big draw to entrepreneurs, CEOs and small business owners located throughout the Midwest, and beyond.
At the traditional ASI Show dinner attended by show employees ASI’s chairman, Norman Cohn, shared some wonderful stories about our 15 years in Chicago, which is one of my all-time favorite cities to visit. We all love coming here and hope everyone is enjoying everything the city has to offer (including those amazing restaurants).
At the show, Thursday’s highlight is sure to be Erik Wahl, a best-selling business author who believes creativity is the new corporate capital, who will actually paint right on stage during his keynote.
ASI’s education featured a special half-day session with business guru Stephen M.R. Covey titled “Selling at the Speed of Trust.” Education also included a new Screen-Printing Success Track, part of ASI’s new relationship with ST Media, sponsored by Workhorse Products.
As part of this new relationship, we also unveiled the news Signage + Decoration Pavilion, featuring well-known equipment companies and live education (both days). I hope you take the time to stop by and check it out.
Chicago is a city that loves its art – both public street art and on display in wonderful museums. In a nod to that creativity, ASI did something really fun: glued a variety of promotional products donated by ASI suppliers to a used Mazda we then drove 750 miles from ASI headquarters in Philadelphia to the show, where it’s on display and available for people to sign and get their photo taken.
The car is intended to drive attention to the industry’s ingenuity and to the products themselves. Nothing says durable like surviving a trip through four states on a high-speed interstate! During the drive we only lost a single product. If you took pics of the car please post to your social media using hashtag #ASIpromocar.
The show excitement continued at the prestigious 2014 Counselor® Awards, held this year at Chicago’s Museum of Broadcast Communications. At the black-tie ceremony, Counselor announced the Top 40 Distributors and Top 40 Suppliers rankings – the largest companies in the $20.5 billion promotional products industry, based upon 2013 revenue. We also named Norman Hullinger, CEO of alphabroder (asi/34063), as Person of the Year and Suzanne Worwood, merchandising VP of 4imprint Inc. (asi/197045), as International Person of the Year.
Go to www.asicentral.com for complete coverage of the show, including blogs and videos from ASI’s on-site editorial team. For more photos, be sure to visit the ASI Show Facebook page and ASI’s Facebook page.
July 8, 2014
There’s no better time than summer to tackle an offbeat project, all in the name of fun. In that spirit, ASI created an “ArtCar” that we’re driving over 750 miles from our headquarters outside Philadelphia to display at ASI Chicago. Think of it as our “moving billboard” advertising the promo industry.
The campaign is called “Driving Serious Fun” – a nod to the industry’s creativity and to the wacky idea of gluing dozens of logoed items to a used Mazda in the hopes of attracting attention via social media. The hashtag is #ASIPromocar and we’d love it if you’d follow/share/like us on ASI’s Facebook page and on Pinterest here and here.
To see how we did it, watch our video on YouTube.
At the Chicago show, the Promocar will be on display in registration. If you’re there, please stop by and check it out. I’m betting you’ll be amazed at how long-familiar items like stress balls can be transformed into something wholly unique.
When we started this project over a month ago, I didn’t know much about ArtCars. Turns out, the ASI Promocar is part of a long, strange tradition, ranging from VW buses decorated by artistic hippies in the ’60s all the way to mutant vehicles on the Playa at the annual Burning Man festival.
As long as sight lines are maintained and vitals like headlights, gas tank and doors remain accessible, there’s no law against painting and decorating your car with pretty much anything you’d like. Who knew?
For our part, we didn’t want to just glue a bunch of stuff to a car. We wanted to maintain the “art” in ArtCar through patterns, color and design.
All told, painting the hood and roof to resemble a road took the better part of a weekend, with the main gluing requiring three days work in our warehouse. The project took nine willing employees, 10 tubes of silicone glue, six rolls of painter’s tape, 50 pairs of gloves, two cases of bottled water, three cans of Rustoleum paint mixed with playground sand to resemble asphalt, a lot of very loud rock and roll, six fans for ventilation, a drill, a sander, a sense of humor and a ton of patience (imagine how long it would take to adhere a pen to the side of your car – then multiply it ten-fold).
To get us started, we put out a call for logoed items to suppliers and the following companies jumped in and donated products like mousepads, key chains, pinwheels, flip-flops and pens:
Having never done anything like this before, we had a lot to learn. Although thoroughly researched, every car and every object is different, and there are a ton of variables – not to mention moving parts, high speeds and weather. We road tested the Promocar at 60 mph on I-95 when we finished and so far, so good.
P.S. You’ll have to look close, inside and out, to see how we used the various products. Hint: Inside, look up and in the back seat. You might even see a few familiar “faces.”
July 7, 2014
When you think it’s Friday though it’s really Tuesday … when you’ve judged a dessert bake-off and participated in a wine tasting … when you’ve stopped in your third time zone in a day … when you’ve talked to more enthusiastic employees than you can count … then you’re officially indoctrinated into the Counselor Best Places to Work Road Tour.
This is the fourth year Counselor has embarked on its cross-country tour, but it was my first time along for the ride. My Road Tour companions, Counselor Editor Andy Cohen and Editor-in-Chief Melinda Ligos, told me it would be fun but tiring – which is exactly true. Logging roughly 5,400 miles by car and plane in the span of five days isn’t easy.
But it’s also a lot of fun. The qualities that make these companies such great places to work – fun, creative, engaging – also makes them excellent hosts. We played soccer with the team from SnugZ USA (asi/88060), celebrated the 20th anniversary of Pinnacle Promotions (asi/295986) and even competed in a Rock-Paper-Scissors tournament at Specialty Incentives (asi/331870). (Should have gone with paper, Andy!) You can read all of our adventures by visiting Counselormag.com/Roadtour.
We’ve featured these companies often in the pages of Counselor and Wearables, but you can’t truly grasp their amazing cultures without visiting them in person. I was struck by many of the things they shared. Their attention to office design, particularly open, airy spaces with inviting meeting areas that foster collaboration. The measured approach they take to hiring the best people instead of rushing to fill a position. Their adherence to a core set of guiding principles – which, in the case of eCompanyStore (asi/185782) and PromoShop (asi/300446), was printed right on the back of their branded shirts.
My Road Tour experience reaffirmed my belief that great places to work aren’t built by accident. They are the product of conscious and thoughtful planning. To learn some of the best practices that make an inviting work environment, you should attend ASI’s second Counselor Best Places to Work Conference Friday, July 18 at the Hotel Chicago Downtown.
Speakers from top industry companies will touch on hot-button issues like health care along with excellent motivation strategies (happy hours, to start). ASI will also recognize the companies on Counselor’s Best Places to Work list that will be present at the conference.
And, be sure to check out Counselor’s annual Best Places to Work issue, which arrives in September. And get ready – next year, we might be visiting you.
In the top pic, I’m celebrating a victory over Danlyn Iantorno, the COO of Specialty Incentives, in Rock-Paper-Scissors. The bottom pic is Melinda and I at the wine tasting at A+ Wine Designs.
June 19, 2014
It’s no wonder polls officially rank Canada as among the happiest countries in the world. In general, Canadians seem like a very happy bunch, and it was a real pleasure to enjoy their company at this year’s ASI Power Summit Canada.
We packed a lot of info and a ton of serious socializing into the gathering in lovely Niagara-on-the-Lake and I want to thank everyone who attended and shared their knowledge with the group, which included entrepreneurs, CEOs and small-business owners from both sides of the border and throughout the promotional products industry.
The Q&A I conducted with Brian Lee Crowley, managing director of business and economic think tank Macdonald-Laurier Institute, tied for highest-rated panel with the social media discussion spearheaded by ASI’s creative director Jake Krolick and two of the savviest social media masters in the industry: Mark Graham, co-owner of distributor firm RIGHTSLEEVE, founding member of PromoKitchen and Counselor’s 2011 Entrepreneur of the Year; and Sarah White, COO and co-founder of distributor Fairware and one of Canada’s leading female entrepreneurs.
In addition to our panel discussions and breaks for golf and a trip to the famous falls, we also broke into smaller groups of suppliers and distributors so they could share their thoughts on the most substantive issues they face. Below is a brief recap, from the two points of view.
Distributors talked about…
Suppliers talked about…
For more info on the Power Summit discussions, please click here for recent Counselor Promogram coverage, including video interviews with some of our speakers. Click here for a Facebook gallery of photos from the event.
You can also click here to read our press release on the 2014 list of top 10 fastest-growing ad specialty companies in Canada, released during the Power Summit. Redwood Classics Apparel (asi/81627), a Toronto, Ontario-based promotional apparel company headed by Kathy Cheng that specializes in goods made in North America, topped the list at No. 1, growing nearly 160% between 2011 and 2013.
If you missed the Power Summit in Canada, there’s plenty of time to plan for next year, when we’ll gather June 21-23 at the Four Seasons Resort in Whistler, British Columbia. (I knew we had a winner with this year’s event when I found out how many of this year’s attendees have already signed up for 2015!).
P.S. The top pic is our group photo and the second pic is me with Dave Saracino, VP of field sales for BIC Graphic USA (asi/40480), left, and Carol de Ville, president of The Branding Company and a former PPPC chairperson.