It’s been a busy one.

Promotional products sales roared back to life in 2022, with big year-over-year gains reported particularly in the second and third quarters. As the industry cranked, promo news came thick and fast – and ASI Media was there to cover it. The stories that generated the most pageviews touched on everything from major acquisitions and threats to the supply chain, to cybersecurity, industry sales, future predictions for the industry, the war in Ukraine and more.

While what lies ahead can never truly be known, the past is here to read. (Stay tuned for a list of ASI Media’s top features stories next week.)

1

Free Access to Pantone Color Libraries in Adobe Creative Cloud Is Ending

Boy, did this article strike a chord. We can see why: Many designers, decorators/printers and others in the promo products space rely on Adobe Creative Cloud, which is the dominant software of its type in the print and design worlds. Pantone is the leading color-matching service. So, when Adobe announced it would start charging for access to Pantone Color Libraries in Creative Cloud, more than a few industry pros were disappointed and aggravated.

2

HanesBrands Suffers Ransomware Attack

When a big-name company like HanesBrands (asi/59528) sustains a cyberattack, people clearly take notice. The Winston-Salem, NC-headquartered global apparel maker, whose products sell extensively in promo, revealed that it had suffered a ransomware strike on May 24. HanesBrands hired a third-party forensic cybersecurity firm to help investigate the breach. While Hanes recovered, the attack reportedly cost the company $100 million in sales. Cyberattacks aimed at businesses in promo and beyond are proliferating. Industry firms should take steps to protect themselves, and consider buying cybersecurity insurance, though the cost for it is rising sharply.

3

Could UPS Drivers and Warehouse Workers Strike?

In August, when a Teamsters leader threatened that delivery giant UPS’ 360,000 unionized drivers and warehouse workers could strike, promo collectively gasped.

You could argue the industry’s reaction was justified.

A UPS strike could hamstring the branded merch market  – and other industries, too, of course. Consider: Prices for delivery services by UPS competitors, such as FedEx, could skyrocket as transport capacity nationally becomes reduced. Delays in pickup and drop-off by overstretched delivery providers, as well as the related likelihood of not being able to get branded products delivered by an end-client’s in-hands date, would all be problems.

The bright side? A strike wasn’t – and still doesn’t appear to be – imminent. The Teamster leaders said the strike would occur if the union workers don’t have a new contract by the time the current one expires, which is at the end of July 2023. Let’s hope they sort things out.

4

West Coast Port Worker Contract Talks Reportedly Hit a Roadblock

This article detailed how in-fighting between unions stalled pivotal negotiations on a new contract for port workers on the Pacific Coast. While much improved, significant supply chain disruption for the promo products market was a constant problem in 2021 and part of 2022, leading to ills for the industry like inventory shortages. Anything that could exacerbate those challenges – like a port worker strike or work slowdown amid cantankerous contract talks – was bound to get attention. Fortunately, work has proceeded at the ports and, while there’s not yet a contract, the negotiations are reportedly continuing. Gene Seroka, executive director of the Port of Los Angeles, said recently that he’s “optimistic” a deal will be reached without severe disruption.

5

Tri-Mountain, a Former Top 40 Promo Products Supplier, Is Closing

This was one of the industry’s saddest stories of the year. The California-based apparel supplier, which was a Top 40 firm as recently as 2021, announced that it was shutting up shop for good in August. Several years of fast-declining sales, caused in part by increased competition and pandemic-era business challenges, were too much to overcome for the company that was founded in 1993. By the end of August, Tri-Mountain was offloading inventory to Hilco Wholesale Solutions, which assists retailers, manufacturers and trademark holders in re-marketing unproductive, aged and out-of-season inventory.

6

SnugZ USA Acquires Sweda Company

Talk about starting the year with a bang. Just after New Year’s 2022, Top 40 supplier SnugZ USA (asi/88060) announced that it had acquired then fellow Top 40 supplier Sweda. This was, without exaggeration, one of the biggest acquisitions ever in the promo industry given the size and stature of the companies involved. “We believe this acquisition of Sweda will further strengthen our ability to innovate new products, expand into additional product segments, and most importantly, take advantage of the similarities between both companies to better serve our loyal customers,” said SnugZ USA CEO/President Brandon Mackay, a member of Counselor’s Power 50 list of promo’s most influential people.

7

Fire Rips Through Augusta Sportswear Factory in Mexico

A large fire tore through Augusta Sportwear’s (asi/37461) factory in Champotón, Mexico the night of April 18, affecting the Georgia-headquartered supplier’s production of sublimation products and wool jackets. Thankfully, no injuries or deaths occurred, and all employees were accounted for, the firm said. Media reports indicated the fire raged for hours.

8

Promo Firms Create Merch, Fundraisers for Ukraine

After Russia invaded Ukraine in late February, apparel decorators and promotional products companies in the U.S. and Canada were immediately moved to help support the Ukrainian people, whether through direct donations of goods or by creating merch to raise funds. This article documented some of those efforts, including a T-shirt referencing a heroic act of defiance by a Ukrainian border guard at the outset of the war. That shirt raised money for Vostok SOS, a Ukrainian relief charity.

9

Polyconcept Acquires Spoke Custom Products

Back in February, Polyconcept, parent firm of Top 40 promotional products supplier Polyconcept North America (PCNA, asi/78897), acquired Spoke Custom Products, a Norcross, GA-headquartered company that specializes in print-on-demand services. The move marked another investment in the print-on-demand industry for Polyconcept, which has been keen on the segment after having acquired, in March 2021, U.K-based T Shirt & Sons Ltd., a leader in Europe’s print-on-demand market. “With the acquisition of Spoke, we have a great opportunity to leverage our core strengths in product development, sourcing, supply chain and decoration across the fast-growing print-on-demand market,” said Polyconcept CEO Neil Ringel, a Power 50 Member.

10

Distributor Sales Soar 12% in 2021

This good news grabbed everyone’s attention in February. After promo distributors’ collective annual sales plummeted nearly 20% in 2020 due to COVID and its fallout, the industry roared back to year-over-year growth in 2021. This article, fueled by data from the Distributor Quarterly Sales Survey by ASI Research, documented the phenomenon. As encouraging? The momentum continued in 2022, with distributors increasing sales in each of the first three quarters of the year.