Yes, Recovery Will Take Longer and Be Harder Than We Thought

First and foremost, I hope this finds everyone safe and well. The pride, empathy and hope I feel for everyone in the promotional products industry during this unimaginable time cannot be overstated. This crisis continues to impact just about every entrepreneur, sales rep and small-business owner, personally and professionally, and I know it feels like it will never end.

It will. But it will take longer than we first expected, and it may prove harder than we anticipated. First, a few facts:

ASI’s latest second-quarter sales survey shows that distributor sales are down on average over 44% compared to the same period last year. This is a historic drop. We’re now predicting that total 2020 sales of promo products will be down at least 35%.

To put this into perspective, industry sales after the 2001 recession dropped 5.4%. After the 2008 recession, they were down 19.7%. During those two periods we endured 9/11 and then the highest recorded rates of unemployment and home foreclosures in the U.S. since the Great Depression.

The difference between then and now, of course, is that business did not grind to a halt because of a terrible pandemic. Nor did we experience the awful seesaw of re-openings followed quickly by closings due to spikes in the coronavirus, which we’re now seeing in the West and South – regions where promo sales are historically strong.

No doubt, if it wasn’t for sales of PPE, things would be even worse. I’m happy that some distributors and suppliers are reporting record sales through this period, thanks to PPE items like face masks, shields and hand sanitizers. But we don’t know how long that will last.

Surviving this economic crisis will take every bit of mettle we can muster. To help, ASI is doubling down on our commitment to our members, starting with the publication of a comprehensive package of stories in our annual State of the Industry report. Read the report, data, tips and strategies on ASI’s website, asicentral.com/news.

We include solutions for keeping your business going, along with suggestions on ways to adapt to evolving consumer spending habits and new markets to target in this new normal, along with ways to keep marketing, prospecting and diversifying your client base.

While the state of many schools and universities remains in flux for fall, many distributors are finding ways to help institutions connect with students. We’re also hopeful for a bump once the fall election season kicks off in full after the Democratic and Republican conventions, along with the many state and local races.

No matter what, as our industry has proven time and again, creativity always finds a way. Many in our industry are transforming face masks from sterile medical supplies to clever decorated pieces of essential clothing – the biggest in-demand wearable of the year and a major new apparel category.

We must keep evolving.

Yes, there are probably even tougher days ahead. But I’m certain that together, we can accomplish anything.

P.S. To watch my message, click here.

Timothy M. Andrews is president and chief executive officer of the Advertising Specialty Institute (ASI; www.asicentral.com), the largest membership organization in the promotional products industry