News

Now in its 19th year, the annual Leadership Development Workshop (LDW) is under way this week at the DFW Hilton in Grapevine, Texas. Hosted by PPAI and the Regional Association Council (RAC), the multi-day event kicked off on Sunday evening with a reception and dinner for regional association executive directors. Monday’s schedule featured an executive director’s symposium with training designed for their specific needs and the workshop continues today and tomorrow with an extensive curriculum designed to provide regional association leadership with numerous learning opportunities through general sessions, breakout discussions and idea-sharing activities.

Regional association volunteers arrived on Monday for the RAC delegate orientation followed by a reception and the LDW opening dinner. The conference officially got under way for all attendees this morning with an opening keynote by Jess Ekstrom, founder and CEO of Headbands of Hope.

“LDW is so important to the regional community because it is a time to learn together and inspire each other as we prepare for the year ahead,” says Lindsey Davs, MAS, RAC president. “When I attended this event as a regional board member, I took so much knowledge away from the breakout sessions, but some of my best ideas came from conversations in between the sessions with my fellow attendees.”

Bill Petrie, RAC vice president, adds, “LDW is the foundation of grass-roots volunteerism in the industry and where professionals across the country assemble, share best practices and leave with a clear knowledge of how to best serve their regional communities. The 2018 LDW should truly stand out with a fantastic mix of specific education and tremendous networking opportunities. As a long-time attendee of this event, it’s wonderful to see it evolve to better provide the guidance each regional board needs to succeed.”

This year, LDW welcomes nearly 150 volunteer leaders representing all 27 regional associations as well as PPAI board members. Today and Wednesday they will participate in their choice of 21 education sessions presented by regional leaders, PPAI staff and outside subject matter experts, plus take part in the many opportunities for idea sharing and networking.

“While every regional is unique, the challenges they face are not and LDW serves as a think tank of sorts to tackle some of the community’s largest challenges,” says Dana Geiger, PPAI regional relations manager. “It is also an opportunity to network and meet like-minded professionals. Many will say that the relationships created at LDW have been vital in their professional careers.”

Davis says, “This year’s stand-out aspect for me is watching new attendees have their ‘aha’ moment about what makes this community so special. LDW is a great event for inspiring new leaders in the regional community and it is a pleasure to watch it happen!”

At an off-site reception and dinner this evening, Roger Burnett, vice president of sales and marketing at Fort Collins, Colorado, supplier Branded Logistics, LLC, and Steven Meyer, MAS, vice president of sales at Dallas, Texas-based supplier RiteLine, will be formally recognized as the 2018 PPAI RAC Volunteers of the Year for their leadership and contributions to the regional association community. Also tonight, RAC will present Lisa Bibb, MAS, executive director for the Virginia Promotional Products Association (VAPPA) and the Georgia Association of Promotional Products Professionals (GAPPP), with the 2018 Donna Hall Memorial Grant. Established by the RAC board in 2013, the grant provides regional association executive directors with financial support to attend education conferences and events and advance their education and careers. Read more about the award winners in Thursday’s PPB Newslink.

IMAGEN Brands, parent company of suppliers Crown Products (PPAI 113430) and Vitronic (PPAI 114197), has announced a new partnership with Portland, Oregon, supplier ShedRain (PPAI 112963) as part of its continued expansion strategy. IMAGEN Brands is now the exclusive supplier of all ShedRain products in the promotional products industry; it will no longer supply any other brands of rainwear.
 
"Shedrain is an umbrella brand with a global retail presence who recognized that IMAGEN Brands is known as a successful brand champion in the promotional products industry," says Paul Lage MAS, president of IMAGEN Brands. "We are excited that we could create this strong partnership with a company that shares the same standards and values. Our customers will be the true beneficiaries of this relationship for years to come."

IMAGEN Brands will assume all sales, marketing and decorating of ShedRain products and will move production to Missouri to create more centralized distribution with shorter delivery times nationwide.

The construction industry is one of the top buyers of promotional products; PPAI’s Sales Volume Study, released earlier this year, found that it accounted for 6.1 percent of 2017’s $23.3 billion in promotional product sales. Analysis from the Associated General Contractors of America (AGC), however, suggests some segments of the industry may be squeezed by rising fuel, materials and labor costs.

Drawing from Labor Department data, AGC reports that the cost of many products used in construction climbed 7.4 percent over the past year due to double digit increases in commonly-used construction materials. Ken Simonson, the association’s chief economist, says “The new construction materials cost data likely under-reports actual price increases, since federal officials collected most of their data in the first half of the month, before new tariffs affecting many construction materials started. Contractors are paying more for the materials they use and workers they employ but aren’t able to pass most of those new costs on to their clients.”

The Labor Department’s producer price index with inputs to construction industries, a weighted average of all goods and services used in construction, increased 0.2 percent from August to September and is up a significant 6.2 percent since September 2017, while the index for goods except services rose at a faster pace of 7.4 percent. In contrast, an index that measures what contractors say they would charge to construct five types of nonresidential buildings rose just 3.5 percent over the year, which Simonson notes is an indicator that contractors were absorbing more of the costs than they were passing on to owners.

Simonson’s analysis highlights that diesel fuel, steel pipe and tube, asphalt paving mixtures and aluminum products were among the products that contributed to the large year-over-year cost increases. From September 2017 to September 2018, there were producer price index increases of 29.3 percent for diesel fuel, 22.1 percent for steel pipe and tube, 11.7 percent for fabricated structural metal, 11.2 percent for asphalt paving mixtures and blocks, and 10.7 percent for aluminum mill shapes. Additionally, Simonson notes that the Trump administration’s tariff on $200 billion worth of Chinese imports include diverse goods important to the construction industry.

These material costs come as the industry is wrestling with labor issues as well. In August, the AGC’s released the results of a survey that found that 80 percent of respondents reported difficulty filling hourly craft worker positions. As a result, 62 percent of firms report they are paying higher salaries to attract and retain workers. Stephen E. Sandherr, the association’s chief executive officer, adds, “The more firms get squeezed by higher materials and labor costs, the less likely they are to continue hiring and investing in new equipment.”

DTG2Go, LLC, a subsidiary of industry supplier Delta Apparel (PPAI 188431) has acquired substantially all assets of Silk Screen Ink, Ltd., which does business as SSI Digital Print Services and is a provider of digital print services. The deal is reportedly worth $12 million.

“We look forward to the opportunities the acquisition of SSI Digital Print Services provides our company, including increasing our digital print capacity and enhancing our strategic footprint so that we now service over 90 percent of the U.S. population with one- to two-day shipping,” says Deborah H. Merrill, Delta Apparel’s chief financial officer and president, Delta Group. “Our vertically-integrated platform utilizing Delta Apparel’s broad range of blank garments provides customers with a seamless supply chain for on-demand, digitally printed garments fulfilled directly to their consumers. This level of customer offering and consumer reach is unmatched in the digital print space. We believe the on-demand market is in a rapid growth stage and we are committed to being the leading digital print and fulfillment service provider in this evolving industry.”

Jay Butterfield, owner of SSI Digital Print Services, adds, “We have known the leadership team of DTG2Go for a long time and have always admired the innovative business model they operate. I am pleased that the SSI team is now a part of DTG2Go, and believe the transaction provides great synergies for the company, our customers and our employees.”

Hurricane Michael hit the Florida Panhandle on Wednesday at almost Category Five strength, with winds gusting to 155 mph and storm surges of up to 14 feet, making it one of the strongest landfalls the U.S. has ever seen. Although it has weakened since coming ashore, the storm is expected to remain at tropical storm strength as it moves through Georgia and the Carolinas. Millions of Americans and hundreds of promotional products businesses in its path have been affected by wind damage, flooding and power outages.

Speaking to PPB Newslink before the storm made landfall, Tom Perrin with American Solutions for Business in Tallahassee, Florida, noted, “We’re waiting on landfall and the severity of the storm surge and wind. Downed trees and power outages will be the major issues.”

Logistics companies are expecting service delays and disruptions in affected areas. FedEx and UPS have both posted alerts warning that shipments to and from Alabama, Florida, Georgia, Mississippi, and South Carolina may be impacted by Hurricane Michael and its effects.

News reports have made clear the devastation of the hurricane on the Florida Panhandle, and the its impact on the communities on its inland path will become more clear in the days ahead. Business is as normal at supplier Fresh Beginnings in Valdosta, Georgia, which reported heavy rain but no real disruptions to their operations, while Prime Line’s South Carolina facility, which took several precautions last month as Hurricane Florence approached, is operating normally as well.

Industry businesses that are evacuating, or are experiencing delays or disruptions due to the hurricane, can share their status with PPAI through the Association’s Emergency Closures Form. The form helps businesses in the storm’s path share updates on their situation and inform customers of alternate ways to contact them or check orders during or after the hurricane. To see the list of businesses that have reported a delay or closure, click here.

If the impact of Hurricane Michael results in a federal disaster declaration, PPAI, in conjunction with the Regional Association Council (RAC), will offer disaster relief to assist promotional products industry members seriously affected in the form of the Promotional Products Disaster Recovery Foundation (PPDRF) Business Recovery Fund. To apply for funds, please click here.

Financial contributions to support the program are being collected now and should be directed to the Promotional Products Business Recovery Fund, care of PPAI RAC, 3125 Skyway Circle North, Irving, Texas 75038. This fund is a 501(c)(3) organization and all contributions will be tax deductible. A tax-deductible receipt will be mailed to each donor. Or, donate online here.

Unfortunately, this is not the first hurricane that industry professionals and coastal communities across the U.S. have had to recover from, and a body of experience and expertise has grown as a result. When the Houston area suffered massive flooding following the impact of Hurricane Harvey in 2017, industry companies and professionals in the area went to work immediately afterwards to help their communities recover. Read some of the critical lessons industry pro and storm clean-up volunteer Kim Reinecker learned during the massive process.

October 2018.  Beacon Promotions, Inc. of New Ulm, MN is a supporter of their local Brown County United Way.  The programs supported are primarily in the areas of education, health, self-sufficiency and basic needs.  

The week started with a presentation from several United Way representatives.  The presenters talked about just two of the 30+ non-profit agencies that are supported by United Way.  The two non-profits featured this year were NUMAS House, which provides emergency shelter and support services to homeless women and children in the Brown County area.  The 2^nd agency is CADA (Committee Against Domestic Abuse), which provides safety and healing to victims of domestic and sexual violence through support, education, advocacy and shelter.  These two agencies, often times, work very closely together. 

Employees had numerous ways they could support the United Way.  Employees could purchase raffle tickets for the chance to win additional PTO hours , purchase popcorn from a local popcorn truck, and ended the week with a silent auction/bake sale.  The employees enjoyed the opportunity to outbid their co-workers on the delicious baked goods and homemade items. 

Many employees contributed to the United Way through payroll deductions this year.   The combined fund raising efforts brought in $2,600.  The fundraising efforts were fun for all and a huge success for the United Way of Brown County!

About Beacon; We are a multiple Star Supplier Winner with a great reputation for service.  Our customers have rated us “A+” on the SAGE rating system and 5 out of 5 stars on ESP.   Beacon offers a wide selection of products, such as:  Calendars, table covers, housewares, tools, techie, auto, highlighters and Name badges.  You will also find premium leather products in our Canyon Outback Leather line and Name Brand products for executive gifts and incentives.   For more information on Beacon, visit our website at beaconpromotions.com  or call customer service at 800-628-9979. 

iPROMOTEu (PPAI 218870) has obtained new financing that will provide the Wayland, Massachusetts-headquartered distributor with growth capital that will allow it to accelerate investment in initiatives that will benefit its affiliate network. The company says that the additional capital will be used to enhance systems and technology, strengthen recruiting efforts, streamline internal operations and potentially fund acquisitions, and that nothing will change from an operational standpoint as a result of the financing.

Ross Silverstein, iPROMOTEu’s founder, will remain the distributor’s largest individual stockholder and will continue in his role as president and chief executive officer. All management personnel and staff will remain in their current positions at the company. iPROMOTEu notes that in connection with the financing, its senior management team now has a broader and more significant ownership interest in the company.

“Since its inception more than 18 years ago as a start-up company offering a unique, independent ‘affiliate’ distributor model, iPROMOTEu has grown into an industry powerhouse with a network of more than 650 independent distributor affiliates and a projected 2018 aggregate order volume in excess of $200 million,” says Silverstein. “Now, I want to propel iPROMOTEu to even greater growth and success, and I want our affiliates, suppliers, staff and all those who support us and work with us to benefit as a result.”

PPAI has updated its Master Advertising Specialist (MAS) program to better engage and support industry professionals pursuing career improvement and industry education. The changes to the MAS program, which follows revisions to the Trained Advertising Specialist (TAS) and Certified Advertising Specialist (CAS) programs announced earlier this year, are designed with a focus on learning and testing on specific content, and on the pursuit of electives that best suit professionals’ specific learning needs. The Master Advertising Specialist Plus (MAS+) program remains unchanged.

The MAS program is now open to industry professionals with three years of experience rather than five, and candidates are required to earn 50 credits through completion of dedicated courses and electives. They must complete courses that provide 15 dedicated MAS credits, and each includes a quiz upon completion through PPAI’s online education platform. Candidates can take the quizzes at any time. No paper or online proctored exams are offered with the new program. The 35 MAS-level electives do not require quizzes.

The MAS program also requires candidates to earn one industry service credit. Industry service credits recognize and honor professionals’ contributions to the industry. They can be earned through service on the PPAI, PPPC or regional association boards; participation in PPAI or regional association committees and advisory groups; or serving as a volunteer speaker for a PPAI webinar or live events, or as an industry ADvocate. All industry service credits are awarded at the end of the completed term of service and/or at the completion of the service activity.

MAS-certified industry professionals must be recertified every three years by completing 25 CAS/MAS credits and complete the application with a fee for recertification.

More information on the full certification program can be found here. For additional information or to ask questions, email certification@ppai.org.

Terry Town (PPAI 230911) has announced that it will open its doors to a new, larger, state-of-the-art facility in Southern California on October 12. The San Diego, California, supplier says that the larger facility will increase its decorating capabilities and distribution capacity.

“This new facility will allow us to support and manage our rapid growth by adding increased inventory and additional decorating equipment and technology,” says Jeff Erdogmus, operations director. “We are confident the move will be seamless, and we will continue to provide the same exceptional quality and service that our customers are accustomed to.”

Matt Bitran, sales manager, adds, ““We want to personally thank all of our distributor partners for their continued support. We are extremely excited and cannot wait to relocate in order to better serve our customers and manage future growth opportunities.”

Terry Town will be closed on Thursday, October 11, and will be back to normal operating hours on Friday, October 12. Its new address will be 8851 Kerns St. Suite 100, San Diego, California 92154. Phone numbers will remain the same.

This holiday season, shifting shopping demographics and motivations are opening opportunities for businesses to connect with customers in new and meaningful ways. Drawing from the results of its 12th Annual Holiday Shopping Survey, Accenture reports that during the holidays, Millennials are expected to lead an uptick in spending, and retailers’ inclusion and diversity practices will play an important role in their purchasing decisions.

Survey results reveal that Americans will spend $658 on holiday shopping this year, on average, compared with $632 in the 2017 survey—almost nine in 10 respondents said they plan to spend as much (53 percent) or more than (36 percent) than they did last year. Older Millennials will spend $779, on average, and 49 percent of younger Millennials—compared to 13 percent of Baby Boomers—plan to spend more this holiday season.

Accenture’s research found that retailers’ inclusion and diversity policies regarding age, gender, ethnicity and disability, are factoring into Millennial shoppers’ decisions. According to the survey, 54 percent of younger Millennials surveyed believe that retailers have a responsibility and duty toward addressing wider social and political issues with regards to diversity, and that 51 percent of younger Millennials are more likely to shop at a retailer that demonstrates awareness of such issues. The survey also shows that Millennials are more likely to choose one brand over another if that brand demonstrates inclusion and diversity in terms of its promotions and offers (cited by 70 percent of younger Millennial respondents and 69 percent of older Millennials); their in-store experience (66 percent of younger and 72 percent of older Millennials), their product range (68 percent of younger and 70 percent of older Millennials), and their environmental awareness (61 percent of younger and 57 percent of older Millennials). Also, 31 percent of younger Millennials see diversity in the workplace, with regards to staffing, as an important attribute when it comes to deciding where to shop.

“Our research suggests that the Millennial generation has high expectations when it comes to retailers’ commitment to inclusion and diversity, and those values are influencing their decision-making in choosing one brand over another,” says Jill Standish, senior managing director and head of Accenture’s Retail practice. “National and multinational retailers serve diverse customer bases, so they need to position the brand accordingly—its messaging as well as its product selection. That will require not just more local decision-making, but also assistance from analytics tools that enable retailers to build a granular picture of their customers.”

Accenture reports that consumers appear less concerned with the economy and their overall financial situation than they were last year—with one-third less likely (15 percent, versus 23 percent last year) to cite “a concern about the economy” as a factor negatively affecting their holiday shopping this year. They were also less likely to cite “healthcare costs,” “mortgage payments,” “the prospect of higher taxes,” and “a recent job loss or the fear of losing their job.” Accenture suggests that this could be one reason why fewer shoppers plan to take advantage of retailers’ cost-savings programs or benefits— such as loyalty programs, on-the-spot competitor price-matching, special e-mail offers, Amazon Prime Day and deal sites such as Groupon or Living Social.

Also on the rise in this year’s survey are service and/or “experience” gift-buying. The research identified a growing trend away from product gifts such as toys, clothes and household appliances and toward “experience” gifts such as travel, dining out, concerts and the theatre, as well as toward “services” gifts such as lawncare, home cleaning and spa treatments. In fact, the number of shoppers who said they plan to buy physical products as gifts this year dropped 11 percentage points from last year, to 73 percent, and the number who said they planned to buy experience or service gifts increased five percentage points, to 49 percent.