Finance/Insurance

2020 Change: -42%

Current Status: This top five market for promo sales remains strong. Now that many banks have reopened their lobbies, they need personal protective equipment (PPE) and signage to serve their customers in person. The same goes for insurance agencies. “The banks have been purchasing less, but the financial planners are purchasing more because they have a captive audience at home and people are looking for those types of services,” says Rachel Leone, president of Massachusetts-based Leone Marketing Solutions (asi/251966).

Future Opportunities: Digital banking has accelerated during the pandemic, and that’s sure to continue in 2021. As for the insurance industry, several segments are still on the rebound, such as workers’ compensation and event cancellation. Leone expects more of the same for the foreseeable future – a strong demand for PPE as well as kits full of branded merchandise sent to clients, prospects and employees working from home. Popular items include snacks (chocolate bars and popcorn), tech accessories (chargers and phone wallets) and comfy apparel/home goods (hoodies and blankets). “Brands in a box saved us in 2020,” Leone says. “They’ve been very popular with corporations and for virtual events.”

Nonprofit

2020 Change: -5%

Current Status: Without in-person events and fundraisers, the nonprofit market has been decimated during the pandemic. According to an Independent Sector survey, 83% of nonprofit organizations experienced revenue reduction and 53% experienced a decline in individual giving due to widespread economic hardship. While that’s led to fewer traditional promo orders, clients are still requesting PPE and signage, says Angela Wojcik, owner of Sardinia, NY-based Chaffee Chick Design (asi/160554).

“Custom masks and lanyards that connect to masks have been popular,” Wojcik says. “Churches and local fire departments are having more drive-thru events, so I’ve provided them with directional and informational signage.”

Future Opportunities: Until large, physical gatherings resume throughout the U.S., the nonprofit market will continue to tread water. If clients have taken their events online, remind them there are a host of products, from awards and recognition to T-shirts and pins, you can deliver to their attendees’ doorsteps. “I wish I could have gotten more into kitting for virtual events and fundraisers,” Wojcik says. “I was able to help in terms of printing fliers for their events, but I left a lot of business on the table.”

Real Estate

2020 Change: -31%

Current Status: A total of 5.64 million homes were sold in 2020, up 5.6% from 2019 and the most since before the Great Recession, according to the National Association of Realtors (NAR). The current housing boom is driven by strong demand, intense competition among buyers and mortgage rates hovering near record lows due to the pandemic. Plus, the shift to working from home has prompted many to reevaluate their housing options.

Kelly Moore, owner of St. Petersburg, FL-based Moore Promotions (asi/601617), has been scoring sales with real estate agencies, loan officers and mortgage companies. “It’s always been a good niche, but even more so since the rates dropped,” Moore says. “I’ve noticed a steady increase in new orders and many reorders of various swag, especially embroidered sweatshirts for loan officers.”

Future Opportunities: As the U.S. economy recovers from the pandemic, NAR anticipates low mortgage rates will continue to drive home sales through 2021. If that’s the case, real estate clients will need plenty of highlighters, glossy folders, key fobs, hand sanitizer, mini tape measures and other branded office supplies. And, of course, pens. “I probably sell 50,000 pens a year to real estate clients,” Moore says.

Tech

2020 Change: -15%

Current Status: As millions of Americans remain home and rely on technology to stay connected and entertained during the pandemic, the industry will reach $461 billion in the U.S. in 2021, according to the Consumer Technology Association. That represents a 4.3% increase over 2020, which was already a record year. “My tech clients ordered lots of work-from-home kits, ‘just checking in’ kits and holiday mailers last year,” says Andi Vopalensky Morales, senior account executive at Top 40 distributor Boundless (asi/143717). “Q4 was actually better for me because instead of ordering a small memento for their holiday party, they shifted what they would have spent on catering for promotional products.”

Future Opportunities: The genie is out of the bottle – it’s highly unlikely that offices and classrooms will ever be full again, at least not anytime soon. Even though Morales worries that work-from-home fatigue will set in, she says the pandemic has proven that companies see the value in promo, especially when it comes to bonding. “I’m used to selling a lot of trade show items, but I think I’ll be very home-based again for at least another year,” Morales says. “Cozy, comforting apparel, kitchenware, even custom puzzles for families to keep their kids occupied.”

Construction

2020 Change: -23%

Current Status: It’s a tale of two cities for the construction market. Residential housing is expected to rise 5% in 2021, following only a 2% drop in 2020, according to Dodge Data & Analytics. The demand is being driven by historically low interest rates and the transition to working from home, allowing more flexibility in where people live. Saskatchewan-based Spotlight Sport & Corporate Wear Ltd. (asi/332753), Counselor’s 2019 fastest-growing Canadian company, works with various construction clients, including small home builders. “We did see more small construction companies doing some apparel and headwear orders, indicating a better year for them,” says Mike Yager, president of Spotlight Sport.

On the other hand, the commercial sector has suffered greatly, as overall starts are estimated to have dropped 23% in 2020, Dodge reports. Hotel and retail construction, which were already in decline, were crippled by the pandemic.

Future Opportunities: Safety awards still account for most of Spotlight Sport’s sales, especially as construction sites adapt to new regulations and PPE requirements. “Construction companies like to thank and reward their workers, and they’ll spend as much as $200 per person,” Yager says. Those safety awards can include a variety of products, such as branded jackets and headwear or even coolers and grills.

Sports

2020 Change: -43%

(Estimated global sports industry revenue decline)

Current Status: Sporting events have taken one of the biggest hits during the COVID-19 pandemic. Although some professional and college leagues were able to hold games, merchandise sales plummeted due to attendance restrictions. Many youth and high school leagues had their seasons canceled altogether. Even when seasons start up again, there’s always the fear that they’ll stop because of a rise in coronavirus cases.

Glen Jusczyk, partner at Chapel Hill, NC-based AMGC Inc.(asi/564810), says his sports clients have been non-committal. “They want uniforms and equipment last minute and are looking for ways to cut costs and corners instead of the normal high-end product they usually purchase,” Jusczyk says. “They want the least expensive apparel possible just to give something to the players to avoid cancellations and refunds.”

Future Opportunities: As the vaccine rolls out across the country, there’s hope for full seasons to be played and greater attendance allowed at games. Top 40 supplier SanMar (asi/84863) has planned inventories in anticipation of high school and youth sports coming back in a significant way by the fall. Jusczyk is less optimistic, expecting maybe a 25% increase in business from 2020 after marketing budgets were slashed over the past year.