August 18, 2020
Try These Promo Items for Hot Home-Building Market
New home starts are surging, creating one of the few bright spots in the coronavirus economy. There’s opportunity in that for promo.
New housing is hot.
While good economic news has been hard to come by since the word “coronavirus” entered the vernacular earlier this year, the housing market just provided a much-needed ray of sunshine – and a high-quality opportunity for promotional products companies.
Just-released data from the U.S. Department of Commerce showed that privately owned housing starts in the U.S. increased by 22.6% in July over June to a seasonally adjusted rate of almost 1.5 million. Outpacing economists’ consensus forecasts of 1.25 million new starts, the July increase was the largest month-over-month rise since October 2016. Low mortgage rates and a release of previously pent-up demand caused by COVID-19 societal shutdowns helped drive the surge.
Housing starts and permits both increased in July and are approaching pre-COVID levels. pic.twitter.com/QPEJuoiv25
— CEA (@WhiteHouseCEA) August 18, 2020
There are signs, too, that the momentum within new housing will continue. New building permits – which bellwether future housing starts – tallied a seasonally adjusted level of nearly 1.5 million in July. That’s up 18.8% from June – the biggest month-over-month increase since 1990 and better than what economists were forecasting.
“Building starts and permits, especially in the South, point to a strong sector through the rest of the year, meaning not only more homes to buy, but more jobs from trades workers to materials makers,” Robert Frick, corporate economist at the Navy Federal Credit Union, told Business Insider.
This potential sustained boom in new housing is a prime opportunity for promo pros. The construction industry’s work is labor intensive, requiring many hands and support from adjacent businesses, including real estate agents, materials wholesalers and product manufacturers. As Frick’s comments would suggest, all that means a lot of workers to outfit with branded apparel and hard goods, as well as other sales possibilities with logoed gifts and supplies. Here are a few products to consider pitching.
Branded masks and hand sanitizer: Kind of a no-brainer. On-site contractors and their employees, real estate agents showcasing new constructions to potential buyers, and workers laboring at building supply centers/warehouses – all are among those who need masks and sanitizer. Sanitizer can be especially helpful on job sites where workers don’t have quick and easy access to soap and water for hand cleaning.
Meanwhile, branded masks help identify employees and distinguish businesses, while helping to limit the spread of COVID-19 through a workforce. A potential option is the Hanes Pocket Mask from HanesBrands (asi/59528) that’s pictured above. Available in both two-ply cotton and 100% polyester fabrications, the mask has an inner pocket that fits on a sleeve/pocket platen for what Hanes says is easy printing. The product also has adjustable ear loops, color options and Cool Comfort moisture-wicking fabric that workers performing heavy labor could appreciate.
Logoed apparel in safety colors: Bright neon green, yellow and/or orange T-shirts, hooded sweatshirts and hi-visibility safety vests have become the standard on many job sites. General contractors, plumbers, electricians and other tradespeople could all need such wearables. The Cornerstone Workwear Pocket Tee from SanMar (asi/84863) is one option.
Insulated tumblers: Shared water coolers are a thing of the past amid the pandemic. The solution? A personal branded tumbler for each worker. These insulated tumblers will help keep end-users hydrated or caffeinated on, say, a single-family home development project, when going from home showing to home showing, or while motoring around on the forklift at the supply warehouse. The Economy 20 oz. Tumbler from The Magnet Group (asi/68507) is one of many examples to consider. It features a stainless-steel, double wall outer shell with a plastic liner and a non-slip base. The clear, snap-on lid with slide closure sports a rubber seal for a secure fit.
Quality headwear: Logoed caps will help keep the sun off workers’ faces on summertime job sites, while fleece-lined beanies will keep heads warm and comfy as the weather turns chilly in the autumn – all while advertising the company to anyone coming on or passing by a job site. Camo styles and low- to mid-profile curve bill caps are often a surefire bet. Mesh back “trucker” hat looks have also proven popular. The hat shown here from Cap America (asi/43792) embodies all those style elements.
Items for real estate agents, lenders and title companies: Businesses in the mortgage and title fields will be seeing increased activity, thanks to increases in new home construction. Inexpensive disposable pens for signing closing documents, mugs/tumblers to say thanks to title researchers burning the midnight oil, and branded polo shirts for mortgage closers to wear at closings all could figure into the mix. Meanwhile, for real estate agents, items that can be given to clients could include things like food baskets, keychains, grocery totes, can coolers and magnets – like the one above from Hit Promotional Products (asi/61125). Don’t forget that logoed balloons can be hung out to announce open houses and new home listings.
Bottom line: A rise in new housing starts can have a positive ripple effect across a variety of business types, and promo pros should seek to capitalize now.