News

The economy is showing signs of a strong recovery, but businesses are managing several new challenges as that recovery pushes up against the ebbing pandemic, changes in consumer behavior and a taut labor market. Promotional products companies haven’t escaped those issues as 2021 progresses, and one of the industry’s most recent concerns is a tight cardboard supply chain.

The pandemic and the growth in ecommerce it spurred has elevated the demand for corrugated cardboard to unprecedented levels. Rising prices followed. Industry trade publication Pulp Paper News reported that in the first three months of 2021, the global price of wood pulp, a primary component in manufacturing cardboard, was up 30 percent.

The weather has also hampered cardboard production. International Paper, which produces one-third of the cardboard boxes used in the U.S., says that severe winter weather in the southern U.S. cost it 145,000 tons of production as supplies of various manufacturing inputs like fiber and petroleum-derived adhesives tightened.

“[Cardboard supply] is truly a concern and we have taken steps to lessen the challenges,” says Mary Dobsch, president of supplier The Chest. “Currently, we are now warehousing a much larger quantity of corrugate than we have had in the past. In addition, we have increased our reorder point. This has worked extremely well to date.”

Dobsch adds, “We do have a wonderful relationship with the paper mill and have had for years. This has certainly been a benefit this year. Having an established vendor that knows us does make doing business much easier.”

Cardboard supply chain issues and price increases are only one piece of the puzzle promotional products companies are working on as production levels ramp back up this year. Brandon Mackay, MAS, president and CEO of supplier SnugZ USA, points out, “I think the big question we’re trying to get our arms around is, will inflation hit every aspect of our business or just odds and ends? We’re experiencing pricing increases, not just in shipping materials, but almost across our entire business. The only way we feel we can combat pricing increases and much longer-than-expected lead times is to hedge where we can. Order more, store more and hope to sell, sell, sell in the third and fourth quarters.”

Two new officers for PPAI’s 2022 Board of Directors have been selected; they are Kevin Walsh, CAS, chair-elect, and Andrew Spellman, vice chair, financial services. They join Dawn Olds, MAS (top left), who was announced last summer as incoming chair of the board for 2022. Current Board Chair Todd Pottebaum, MAS+, will assume the role of immediate past chair. The new board officers will begin their one-year terms immediately following The PPAI Expo 2022, which will run January 10-13, 2022.

“I’m very pleased that Dawn, Kevin and Andrew will be serving on the board in these important roles. They have all brought a great deal of expertise and leadership to the Association and I look forward to their guidance and direction as we continue to lead our industry through this post-COVID environment,” says Pottebaum.

Olds is senior vice president of operations for distributor HALO in Sterling, Illinois, and has been in management for over 20 years, spanning three focus areas including accounting, information technology and general operations. She was elected to the PPAI board in 2019 and selected as chair elect in 2020.

Walsh, president of supplier Showdown Displays in Brooklyn Center, Minnesota, has been with the company for almost 10 years and has held several leadership roles with the organization. His background includes positions with numerous industry suppliers, including New Buffalo Shirt Factory, Lee Printwear, VF Imagewear and Wrangler Jeans and Shirts. He was elected to the PPAI board in 2019 and is currently vice chair, financial services.

Spellman is vice president of Los Angeles, California-based supplier Therabody. He was elected to the PPAI board in October 2020 and began his four-year term in January. During his 28 years in the industry, Spellman spent more than 14 years as vice president of corporate markets for Victorinox Swiss Army and was SVP and general manager at The Magnet Group before joining Therabody earlier this year.

Pottebaum is president of distributor Quality Resource Group, Inc., in Plymouth, Minnesota. He has spent more than 21 years in the promotional products industry and served on a number of PPAI committees before being elected to the board in 2018. He is also former board president of the Upper Midwest Association of Promotional Professionals (UMAPP) and was named UMAPP Volunteer of the Year in 2015.

PPAI board officers are selected by the PPAI Board Officer Nominating Committee and voted on by the PPAI board.

PCNA is excited to announce the launch of four CamelBak Tritan Renew water bottles. The new Tritan Renew styles are made from 50% recycled material, supporting the company’s focus on bringing more sustainable styles to the promotional products market.

Liz Haesler, Chief Merchandising Officer for PCNA says, “We are extremely fortunate that we have a brand partner like CamelBak who is continuously looking to improve their eco footprint. We have had huge success with our CamelBak drinkware line and know this shift toward sustainable styles will only continue to drive demand,” continues Haesler. “These new pieces have the same style and durability that our customers love about CamelBak which is why we’ve made a conscious shift to only offer the Tritan Renew styles as part of our CamelBak plastic bottle collection.”

“We have seen the shift that PCNA has made toward sustainability, so we couldn’t think of a better company to offer our Tritan Renew styles,” says Phil Notheis, Director of Product Management for CamelBak. “The call to climate action asks for continued innovation and unique sustainable solutions. We will continue to evolve our most sustainable products, knowing we can always do better,” continues Notheis. “Introducing a 50% recycled material in our best-selling bottles while maintaining durable integrity is something we are thrilled to bring to the promotional products marketplace.”

PCNA will be replacing their Chute and Eddy®+ styles with new Tritan Renew pieces. The Tritan Renew styles are highly durable, dishwasher safe and free of BPA, BPS and BPF chemicals. All four styles will be sold in the U.S. and Canada and are available now at PCNA.com.

The Promotional Products Education Foundation (PPEF), the promotional products industry’s nonprofit dedicated to recognizing and encouraging scholastic excellence and academic performance among promotional products industry employees and their college-aged children, will award $278,750 in scholarships for the 2021-2022 academic year.

“Very few industries are as close-knit and deliberate about the success of others as the promotional products industry,” says Dustin Wicks, vice chair of PPEF’s scholarship committee. “It’s inspiring to see moments when our industry truly comes together to stand behind a great cause. PPEF is one of these efforts that directly contributes to the future success of both our industry and the students that will help lead us into an even better tomorrow. And it’s all made possible by the generous donation of those in the promotional products industry. Our industry continues to step up to help each other and this generous support of PPEF solidifies a very promising future.”

This year PPEF is awarding 130 new and 31 renewal scholarships to selected recipients who have displayed remarkable academic achievement, extracurricular participation and community service. Each will receive between $1,000 and $9,000 to support their college educations. Since the PPEF was founded in 1989 it has awarded $2,726,750 in financial assistance to 1,488 recipients.

Funded by Promotional Products Association International (PPAI) and generous donations from companies and individuals within the promotional products industry, the scholarship program enables youth and professionals to continue their education at the collegiate level. The Association and industry patrons have a long-standing commitment to service of the promotional products industry and this fund supports those who demonstrate that same commitment.

“We are so grateful for those who continue to support the efforts of the Foundation,” says Sara Besly, PPEF executive director, “and so honored to be able to recognize our recipients with these scholarships.”

Maple Ridge Farms presented a check for $7,000 to Habitat for Humanity of Wausau.  The donation was the result of the company’s “Give Back” program for 2020.  In that program, Maple Ridge Farms donates a percentage of the profits from a specially selected line of gifts. 

Presenting the check were Shana Gardner, one of the main architects of the program, Jodie Schillinger, Executive Vice President, and Tom Riordan, the company’s president.

Chris Frost, Executive Director of Habitat for Humanity of Wausau, explained how thrilled they were to receive the contribution: “Maple Ridge Farm’s generosity in donating $7,000 to Habitat for Humanity of Wausau’s home build program will help low-income families in our area living in substandard conditions to obtain safe and affordable shelter.  It will have a life-changing impact on our partner families and will help Habitat achieve its vision of a world where everyone has a decent place to live.”

Jodie Schillinger stated, “Affordable housing and employment are very intertwined.  Affordable housing can significantly impact employment opportunities, and in turn has the potential to create sustainability for a family and one’s career path.  We are thrilled to partner with Habitat for Humanity.”

Riordan added, “We were able to increase our donation to Habitat for Humanity of Wausau by 40% this year because of the great success of the program.”  Riordan also acknowledged and thanked all of the distributors who worked to make the program a success.

3M has announced that it is collaborating with the Pandemic Action Network to help stem the spread of COVID-19 and to help prepare for future pandemics. St. Paul, Minnesota-based 3M operates in the promotional products market through its 3M Promotional Markets Dept. (PPAI 113638, S11).

Pandemic Action Network is a coalition of more than 100 global multi-sector organizations that are driving collective action to bring an end to COVID-19 and to ensure the world is prepared for the next pandemic. 3M and Pandemic Action Network will work together on programming to support vulnerable communities that continue to bear the brunt of COVID-19.

"We're staying true to our 3M vision to improve every life, as we take steps today to prepare for and help protect against future pandemics," says Denise Rutherford, SVP and chief corporate affairs officer, 3M. "No stakeholder or sector can tackle the enormity of this alone. The challenge demands bold collaboration on solutions and innovative approaches with governments, NGOs, academic organizations and other companies because that's how we will build a stronger and more resilient future."

Gabrielle Fitzgerald, CEO of Panorama Global and co-founder of Pandemic Action Network, adds, “With the mass roll-out of vaccines and the U.S. CDC's recent guidance on masking, many people are understandably hopeful that the worst is behind us—but the COVID-19 pandemic is not over and now is not the time to let our guard down. So far in 2021, there have been more cases and deaths reported compared to the whole of 2020. We must act on lessons learned, and continue to promote and inspire healthy behaviors while ensuring the world is better prepared for pandemic threats. Through our partnership with 3M, we will mobilize public support and catalyze action until the world has fully crushed this pandemic."

PPAI’s Legislative Education And Action Day (L.E.A.D) got under way on Wednesday for two days of virtual meetings between industry leaders from 20 states and legislators on Capitol Hill. The annual series of in-person meetings intended to inform and educate legislators about legislation and issues affecting the promotional products industry was suspended in 2020 because of the pandemic and PPAI organizers were glad to be able to restart the program this year, albeit virtually.

“Although we’re not physically in D.C. this year, it’s critical to keep the promotional products industry’s message top-of-mind for members of Congress and their staffers, especially considering the developments we’ve been seeing regarding labor, trade and tax issues affecting the industry this year,” says Maurice Norris, PPAI public affairs manager. “We couldn’t be more grateful for the volunteers who stepped in to convey our industry’s message through virtual channels.”

Turnout was enthusiastic for the program with 25 industry leaders from supplier and distributor companies along with several PPAI staff members taking part in 51 pre-scheduled and confirmed meetings with their legislators.

Among key topics discussed was the PRO Act (H.R. 842) which, if passed, would significantly change how independent contractors operate in the promotional products industry and would result in significant job losses. L.E.A.D. volunteers also talked with their legislators about the value of global supply chains and how they work in the promo industry to bring a product from conception to the end user, as well as how American workers are involved in decorating and selling imported promotional products and how those products are used to promote U.S. goods and services. The issue of tariffs was another major discussion point and L.E.A.D. volunteers asked their legislators to say no to any proposed taxes or restrictions on promotional products, citing how bad taxes and restrictions are for our medium because they could prompt end buyers to shift their budgets to an advertising medium not subject to tariffs or trade restrictions. L.E.A.D. participants also used the face-to-face opportunity to educate their legislators about the strength of the promotional products industry with its more than 37,000 U.S.-based companies that employ more than half a million American workers and generated $19.6 billion in distributor sales in 2020.

“LEAD continues to be impactful for our industry,” says Virginia-based Harold Wood, strategic account manager at Koozie Group, who participated at L.E.A.D. this week. “The event empowers leaders throughout the industry to meet and discuss important topics with legislators. My meetings with members of Congress and staff were great. They were engaged and interested in our industry and listened about our concerns and issues affecting it. Meeting with them renews my energy and hope for the future of the promotional products industry and all its members.”

Bill Petrie, managing partner at Tennessee-based Brandivate, visited Wednesday with legislators representing his state. “While the remote nature of the event presented challenges, all of the meetings were extremely productive. Every legislator and staffer I met with was not only engaged, but they truly understand the value of promotional products and the needs of our industry—one that is truly comprised of small businesses,” he says.

Longtime L.E.A.D. participant Eric Ekstrand, MAS+, regional VP at HALO, who lives in Columbus, Ohio, met on Wednesday with his congressman, Rep. Troy Balderson (R-OH). “We had a surprise as we thought our meeting was with a staff member when Rep. Balderson’s face popped up on the screen. My being in his district helped make an immediate connection,” he says.

Utah-based Brittany David, MAS, chief revenue officer at SnugZ USA, who is a past chair of PPAI and a frequent participant at L.E.A.D., met with Rep. Burgess Owens (R-UT) and his assistant on Wednesday. “This is the first year we have held the event virtually and I felt that it was still extremely impactful even though some of us are across the country,” she says. “The meeting we had yesterday with Congressman Owens and his Legislative Assistant Ray Phillips was productive. Both of them are more aware of our hidden gem of an industry, the people and the jobs, the value of our medium and the issues that affect us. In addition, the meeting resulted in an invitation to participate in future roundtables with them and in setting up a factory tour in August when they are in town. Thank you to PPAI and all the volunteers who have made time over the past few days to make sure our industry is represented on the Hill and our voices and concerns are heard.”

Industry members who are not participating in L.E.A.D. can still have a voice in the conversation. Use this link to call or send a pre-written email your members of Congress in support of the same issues addressed during this week’s virtual meetings. Find more information on the issues here.

Gemline (PPAI 113948, S11) has formed a strategic long‐term partnership with retail brand Slowtide, adding the company’s towels and blankets, made from sustainable materials, to the Lawrence, Massachusetts-headquartered supplier’s product portfolio.

Slowtide is known for its commitment to minimize the effect of manufacturing on the environment. Its cotton is certifiably sourced through the Cotton LEADS program, assuring the material is responsibly produced and its polyester products are made from 100-percent recycled post‐consumer waste, primarily plastic bottles, that have been transformed into premium polyester fibers.

Slowtide products are sold in a variety of retail locations, from local surf shops to large outdoor retailers such as REI, and department stores including Bloomingdale’s, Neiman Marcus and Nordstrom.

Distributor Boundless Network (PPAI 267078, D11), headquartered in Austin, Texas, has been acquired by Point Rider Capital and Treaty Oak Equity, two private investment firms also based in Austin. The company had been operating as a subsidiary of Zazzle.com (PPAI 391384, D3) since 2014.

“We are thrilled to be partnering with Point Rider and Treaty Oak during this next chapter for Boundless,” says Pat Barry, EVP of sales at Boundless. “The resources and focus that these new partners bring will allow Boundless to invest for the future, reach new heights as a company and continue to provide industry-leading service to our ecosystem of customers, suppliers and sales professionals. We look forward to the exciting growth to come.”

When Henrik Johansson, co-founder and then-CEO of Boundless, stepped down in September 2020, Bridget Smith, chief of special operations at Zazzle, was tapped to lead the distributor. With ownership transitioning to Point Rider Capital and Treaty Oak Equity, Smith has resumed her responsibilities at Zazzle and will not be affiliated with Boundless going forward. Charley Dean, president of Point Rider, who first worked with Boundless in 2005 as an early investor, has been appointed chairman and interim president of the company.

Dean says, “As an early investor in Boundless through Silverton Partners, it has been inspiring to watch this company grow over the past 15 years from under $1 million in sales to a leading promotional products distributor. I am excited to rejoin the Boundless team and look forward to helping the company achieve its goals in this next chapter.”

Ben Williams, founder and managing director of Treaty Oak, adds, “Boundless represents an ideal opportunity to invest in a storied company and leading team within the promotional products industry. Boundless is known industry-wide for its creativity, technology and commitment to quality and customer service, and we look forward to continuing that legacy. Furthermore, under Treaty Oak and Point Rider’s ownership, Boundless will remain deeply committed to providing salespeople, partners and suppliers opportunities to continue growing their businesses.”

PCNA is excited to announce the addition of Bose, the leaders of sound innovation, to their industry-leading technology lineup. PCNA now offer select Bluetooth® speakers, which are stocked in-house at PCNA’s Pittsburgh warehouse and are available for quick turn through the company’s SureShip® service.

When asked about their newest retail brand, Liz Haesler, Chief Merchandising Officer for PCNA explains, “This is about more than just offering products from one of the greatest sound companies in the world, it’s about making sure our customers can rely on PCNA for all their needs. Bose is a brand known around the globe for their unmatched sound quality and PCNA is known in the industry for our dedication to technology and product safety, with an entire team in place who works solely on this product category,” Haesler continues. “We are extremely honored to offer Bose products as part of our tech assortment.”

“It gives us great pleasure to align with PCNA to bring a selection of Bose speakers to the promotional products market,” according to a representative of Bose’s authorized distributor for corporate gifts and incentives. “We are a company that prides ourselves on representing Bose for corporate gifts, incentives and rewards. In talking with the PCNA tech team, we understand that they share those same values through both product development and decoration. We have full trust in them to bring these products to promo.”

By housing Bose inventory at their warehouse, PCNA can accommodate large orders through both inventory and their best-in-class decorating capacity. Better yet, by inventorying products on-site, PCNA will be able to accommodate quick-turn orders through their SureShip service so customer orders can ship out next-day if needed.

“We have also received feedback from customers that a brand like Bose would be a great addition to our Perfectly Packaged™ offering,” Haesler mentions. “A brand as recognizable and sought after as Bose makes a great gift on its own but we love that we can take it one step further by having an option to pair a Bose speaker with other PCNA items for a custom gift set that can be drop shipped right to people’s homes.”

PCNA currently has two Bose Bluetooth® speaker styles available, the Bose Soundlink Micro Bluetooth® Speaker and the Bose Soundlink Revolve II Bluetooth® Speaker, with plans to expand the product selection in the future. Both speakers are sold decorated. You can view the Bose collection at PCNA.com.