Rockland Embroidery: Marching in the Right Direction

Andy Shuman, general manager

March has been a pretty typical month for Rockland Embroidery (asi/83089), the Topton, PA-based contract decorator. “We see things opening up a little bit, and we see that reflected in business,” says general manager Andy Shuman. “I don’t know that normal is the right word, but there were no giant surprises in either direction. I’m very optimistic about the rest of the year.”

For the most part, the types of items Rockland Embroidery is decorating have returned to normal as well. PPE and masks have mostly dried up in favor of the T-shirts and sweatshirts the shop is used to working with. However, the lion’s share of the items that pass through Rockland’s production floor are part of drop-shipped appreciation gifts, rather than the in-person events of the past. “The most notable part within that is the product value,” Shuman says. “The items being ordered are, by average dollar amount per item, just amazing. To us, it doesn’t matter because we’re just putting logos on, but what the distributor is selling to the end-user is nice stuff. Brand names are through the roof.”

As far as staffing goes, Shuman says his company is in a good spot, though Rockland still has to deal with the challenges of employees being exposed to COVID outside of the workplace. “We’re very fortunate that it hasn’t been a huge occurrence,” he adds. “We’re starting to slowly see groups of our employee base getting vaccinated.”

In the last month, Shuman says he continues to see signs of recovery and believes the promo industry will be in good shape by the end of the year if that positive trajectory continues. “I’m optimistic that in the second half of 2021 we’ll move toward what the new normal looks like in 2022,” he says. “It never ceases to amaze me how resilient and pliable this industry is.” – Theresa Hegel

Rowboat Creative: Ramping Up Sales

Lucas Guariglia, owner

Sales have been up this month at Chicago-based apparel decorating firm Rowboat Creative (asi/313715). A particular bright spot continues to be the shop’s work with large cannabis firms, and Rowboat owner Lucas Guariglia says his firm has some exciting kitting and program incentives planned for April 20 – the unofficial pot holiday.

“The cannabis programs are always interesting as we can really be creative with items, vibe and approach,” he notes. “We’ve done some amazing work to bring tens of thousands of custom wall-hangs to life, as well as things like custom smoking pipes and fully custom packaging.” Apparel for that market also tends to be more like a lifestyle brand, as opposed to traditional company logo wear, he adds.

Rowboat has also been working with sports teams, though some of that is dependent on how well the teams do. “We had some great things in the works with one of our amazing partners for March Madness and University of Illinois licensing,” Guariglia says. “However, Illinois got bumped out in the second round, so now it’s a bit of a holding pattern to see how we’ll attack hot market orders.” The shop is also in talks for some NHL and NBA large-volume printing orders.

Though the shop’s experiential marketing division took a nosedive over the last year due to COVID-related cancellations, Rowboat has been working with clients to plan for future events, whether they’re firmed up on the schedule or not. “We can’t just sit on our hands and then be behind the eight ball when the world feels comfortable with having events again,” Guariglia says. “It’s a very delicate balancing act, as we want to act intelligently and responsibly for our sake and our clients’ as well.”

Rowboat’s staff continues to work on a hybrid basis, and Guariglia feels like the new makeup will become a staple of company culture going forward. “There are obvious positions for the production team that are necessary to be on-site daily, but we’re hyper-focused on still empowering everyone to be able to create a solid work-life balance and yet fire on all cylinders when we need to.” – TH

Full Line Specialties: Optimistic in the Great White North

Sam Singh, president and CEO

A year after shutdowns, business is gaining momentum at Full Line Specialties (asi/199688) in Surrey, BC. When comparing the first two weeks of March 2020 with the first two weeks of this month, president and CEO Sam Singh says sales are up 246%, with a 62% increase in work-in-progress orders. Meanwhile, average order value has increased by 63%.

Thanks to PPE sales early in the pandemic, Full Line made inroads with new clients who’ve continued to do non-PPE business with the distributor, for which Singh credits the impressive sales increase. “PPE sales helped us obtain client spend,” he says. “Now, as restrictions are being slowly eased, we’re top of mind with existing and new clientele.”

While demand for fulfillment, warehousing, kitting and drop-shipping remains as pandemic fears persist, Singh says it’s shifted.

“We’ve seen a decline in residential drop-shipping, and we’re not sad about that,” says Singh. “There’s been more drop-shipping to clients’ branch locations, which is easier to manage. Fortunately, most businesses didn’t totally shut down here in Western Canada, unlike Ontario and Quebec.”

For now, upcoming events over the next month are still virtual. Full Line recently put together a custom convocation box for a nearby college, kitting the entire box in house and drop-shipping them to each individual student. Normally, the college would’ve done its own kitting and distribution, but with many staff members still working remotely, it relied on the distributor’s capabilities to make it happen.

Meanwhile, gradual easing of COVID restrictions in Canada has been promising. Singh says customers are starting to plan hybrid and small in-person events, though it’s all still dependent on government decisions.

More than ever this year, it’s been important to adapt to new realities or risk falling by the wayside. “Being open-minded and adaptable to change is the foundation of survival,” says Singh. “Just ask COVID and its variants.” – Sara Lavenduski

Whitestone Branding: The Future Looks Bright

Joseph Sommer, owner

Joseph Sommer is feeling bullish.

It’s not blind optimism that has the owner of Whitestone Branding (asi/359741), a New York City-based promo distributor with a remote workforce in key locales around the country, feeling good about his business’ prospects.

His upbeat outlook is rooted in recent positive developments during the first quarter of 2021 and signs that sales will accelerate further in the second and third quarters.

“There have been a lot of exciting new prospects and opportunities this year,” Sommer says. “We’ve launched a few new company stores with household-name brands, all new to us. We’re getting opportunities with several sports teams and our experiential marketing agencies are starting to revitalize and send us new business.”

Sales have been especially strong with companies in the fintech, healthcare and beauty markets. “We’re seeing a lot of activity from old clients and sizable bids from customers in a variety of industries,” Sommer adds. “We’re also really having things pick up with live events in the South. I believe in-person events are going to start coming back across the country in the spring and, especially, summer.”

Whitestone’s Q1 sales will match or slightly exceed 2020’s first quarter – not a small accomplishment given that roughly the first 10 weeks of last year’s Q1 were going gangbusters before COVID-19 wiped out business during the final few weeks.

The second quarter is usually Whitestone’s strongest. It was a black hole for business last year amid COVID-driven societal shutdowns. Barring an unforeseen variable that causes society to close shop, Sommer believes 2021’s Q2 – and potentially Q3 too –will well outpace 2020’s counterparts in terms of revenue generated.

“I’m confident that the numbers will be more than last year,” he says. “I’ll also be keeping a close eye on the kinds of projects we fulfill. Drop-shipping kits and products is still the theme, but we’re starting to see live events come back and I imagine that there are a lot of brands who are pent up and ready to market out and about in the world again. We can definitely help them.”

Like many businesses, Whitestone has had a significant culture shift, going from being an in-office group to fully remote. Sommer says it’s panning out well so far through the early months of 2021. “Personally, I’d prefer if we were all in an office, but with the team spread out across the country, we had to adapt and embrace the change,” he says. “We’ve always had strong internal communication via Slack and a good meeting cadence for huddles. Those are now virtual and we’re thriving.” – Christopher Ruvo

Jack Nadel International: It’s Getting Better All the Time

Craig Nadel, president

When asked if the tide is starting to reverse on the year-long business downturn, Craig Nadel sees positive developments. “February was weak, but things are picking up, and you can sense a new feeling of optimism – March is better, and I really think this is about the end of this terrible pandemic,” says the president of Counselor Top 40 distributor Jack Nadel Int’l (JNI; asi/279600). “We’ve also seen a real increase in RFPs and companies looking at the big buying relationships which had been put on pause during COVID.”

Another positive sign that things are changing for the better, Nadel notes that he and his team are scheduling a JNI event in the fall and are having a difficult time finding an available venue, indicating that those planning meetings and events are looking to restart their businesses. That said, not everything is on the upswing, as supplier inventory and logistical challenges are still a problem. “We’re still seeing a lot of supply chain issues for sure.”

And regarding the situation with vaccination progress in California, where JNI is based, Nadel admits it’s not moving as fast as people would have hoped, as the return of a robust economy in the Golden State depends on businesses reopening en masse and with consistency. “In truth I don’t think California has done a good job with handling the vaccine rollout,” Nadel says. “My household is a perfect example: My wife and son both have received their first shot even though they work from home and have no health issues; however, I can’t get one even though I’m a little older than my wife and a lot older than my son and I go into the office. The supply does seem to be increasing quickly, however, and I think it won’t be too long before everyone gets a vaccine.”

Nadel and his executive team aren’t sure yet how they’re going to handle a return-to-office plan, but “it won’t be an overnight thing and will be more gradual … it’s started already,” he says. “I’m in my office now, and there are more people here than there were a month ago, but it’s not full yet. My guess is when people get vaccinated they’ll come back.”

Perhaps most telling is that when he looks back at the slow months of January and February of this year, Nadel is starting to see a marked difference in that he believes things are ticking up faster and sooner than he thought they would two months ago. “Very much so,” he maintains. “In fact, I think it’s starting to happen now.” – Michele Bell

Moore Promotions: Things Are Looking Up

Kelly Moore, owner

Kelly Moore admits she was starting to feel a bit deflated.

The solo-operating owner of St. Petersburg, FL-based distributor Moore Promotions (asi/601617) says the first two weeks of this month were the slowest for sales of any March she can remember. It was part of a quarter that was trending toward being down about 30% year-over-year from Q1 2020.

But come the third week of March, business activity started to accelerate, lifting Moore’s spirits and her sales. “Many leads have come in, and clients seem to be wanting to spend again and revisit various events that were canceled last year,” she says, adding that she’s collaborating with a client who wants 5,000 employee gifts at a budget of $30 to $40 per gift. “It’s definitely my focus right now.”

The hard-hustling promo pro notes that the first quarter is usually very lucrative. To be down, then, isn’t entirely unexpected given that COVID-19 continues to throw up roadblocks to full economic recovery, she says.

Plus, as her gift order shows, it’s not as if the lights have gone out on Moore’s sales. She’s been creating business throughout the first quarter, just not at prior-year levels. She’s worked with cities/governments, schools planning for graduations, dentists, and added two winery clients that purchase higher-end gifts for drop-shipping initiatives.

With the help of a referral, she landed a small local order with T-Mobile, which could lead to much larger opportunities. She’s also scored a sizable sale for 10,000 face masks for a healthcare system’s hospitals. Meanwhile, Moore is lining up a deal that would see her provide three items, at quantities of 25,000 each, for United Way in Puerto Rico.

“Some trends I’ve noticed are that 3-D embroidery is on the rise for decoration,” Moore says. “I also have been doing quite a lot of totally custom-product jobs – umbrellas with the underside being printed and imprints crossing seams, for example. We have to go overseas for those.”

Moore applied for a Paycheck Protection Program loan this year and is awaiting its arrival, which she says will help close some of the gap with what her earnings would be in a normal year. That gap would be even narrower if inventory issues within promo weren’t such a consistent problem, she says. “Low stock has been the biggest challenge I’ve faced,” she says. “Clients are upset and canceling orders. It’s mainly pertained to nonwoven bags.”

Still, challenges aside, Moore is optimistic about the months ahead. “I think the second and third quarters are going to be better,” she says. “With [President Joe Biden] and all the economists saying a boom is coming, everybody is getting excited to spend again.” – CR

Custom Logos: Poised for Growth

Jeff Golumbuk, co-founder and owner

Irish eyes are smiling on San Diego-based Custom Logos (asi/173183).

After a rough couple of months, the supplier has finally received some good fortune. For the first two weeks of March, orders have been coming in at a pre-pandemic pace, says co-founder and owner Jeff Golumbuk. “We’re promoting and doing a lot of packaged SwagKits, which we assemble in house and fulfill shipping directly to staff and customers of our clients,” Golumbuk notes.

Custom Logos is also poised to resume its aggressive growth strategy. Golumbuk says it’s in the process of making two acquisitions, expecting to onboard at least one by June 1.

And on March 1, the company brought its administrative staff, designers and customer service representatives back to the office with plenty of festivities. “Morale is good, and we’re all happy to be back,” Golumbuk says. – John Corrigan

Fairytale Brownies: A Sweet Spot for Sales

Eileen Joy Spitalny, co-founder

Phoenix-based Fairytale Brownies (asi/53518) continues to taste sweet success, as business remained steady in March.

The supplier’s new “Thank You Healthcare” product line was popular ahead of National Doctors Day on March 30. “Some of our clients’ monthly programs have resumed,” says Eileen Joy Spitalny, co-founder of Fairytale Brownies. “We’ve also been getting orders tied to birthdays, appreciation and apologies.”

Fairytale Brownies is also entering the incentive market for the first time with a “Healthcare Hero” giveaway. The company will recognize National Nurses Week and National Hospital Week in May by asking distributors to submit their favorite healthcare stories and photos for a chance to win a brownie gift for both the distributor and healthcare worker. Stories (under 300 words) and photos should be sent to contest@brownies.com by noon ET on April 30. Fairytale Brownies will choose three winners. – JC

Starline USA: Gearing up for Reopening

Brian Porter, senior vice president of sales and marketing

Sales continue to increase at Starline USA (asi/89320; Canada 89213), with locations in Grand Island, NY, and Concord, ON. Brian Porter, senior vice president of sales and marketing, says sales are up 20% when comparing the first 10 days of March 2020 with the same days of this month, and he expects they’ll be up “substantially” by the end of the month.

Demand is still consistent for core products, including home goods, drinkware and coolers, and the company’s uni-ball writing instrument line has outperformed expectations. But it’s still contending with an uneven pandemic recovery.

“We’re seeing wide fluctuations in plans for in-person events,” Porter says. “In the Southeast and Southwest regions, business is trending up, while other areas are still locked down. The majority of people are ready to get back some kind of in-person events, however that might look.”

Demand from Canadian clients is also building, both in weekly order volume and count.

Fortunately, Starline only has a small percentage of event-based business, so Porter is optimistic about continued demand for items shipped to homes and offices.

“We’re expecting graduations to be distanced this year, but demand is growing for kits to be shipped to students’ homes,” says Porter. “We’re adapting a wait-and-see mentality across many markets as we continue to wait for regions to truly open up.”

While COVID certainly threw the industry for a loop, the team at Starline took advantage of the slower time to analyze the entire business. “That’s a luxury you don’t normally have in busy times,” says Porter. “Now, we’re more efficient and more consumer-friendly, our technology has continued to grow exponentially, and ultimately, we grew as an organization. We looked at things as though we were a startup, and everyone adapted that mentality which we continue with to this day. It’s amazing what you can achieve with that kind of synergy.” – SL

Compass: Embracing a Hybrid Workforce

Josh Levy, CEO

It was a good first quarter for Compass (asi/46170). The supplier of brand-name tools and outdoor items is slated to finish Q1 2021 up over the same quarter in 2020. In particular, sales of the company’s Zippo lighters have been very strong. “Zippo lighters used to have the link to cigarette smoking, but I don’t believe they do anymore,” says CEO Josh Levy. “Whether it be the cannabis market, or people just realizing they need a good lighter at home to light candles, we’ve seen a nice surge in sales and general interest.”

In a year since the pandemic shutdowns, the supplier has become comfortable with a hybrid approach that sees a quarter of its personnel – order entry, billing, accounting and the company’s sample clerk – come in every day while the rest of the staff works from home. “We realized that most of our team can work remotely, but not all,” Levy says. The company had a mini breakout in February where two employees had COVID, but the incident passed without issue. Thanks to masks in common areas and plenty of space with on-site staff having their own offices, Levy says employees feel safe about the setup.

As a manager and company leader, embracing a hybrid workforce has required a mental shift for Levy. “I think the biggest shift is realizing how much people can get done outside the normal 9-5 workday,” he says. “As long as our employees can do their job and responsibilities, then we want to be as flexible as possible.” He cites the company’s art director, who previously commuted two-and-a-half hours each day from New Jersey to Compass’ Manhattan offices. Now, Levy says, she can pick her kids up from school and still do her job, even if it’s at 9 p.m. “I think employees love that flexibility,” he says, “and happier employees is always our goal and that certainly leads to more productivity and a better culture.” – C.J. Mittica