Counselor® PromoGram®
Volume 687 / February 16, 2010
Click here to read this and past issues online.

Fourth Quarter Sales Down 9.7%
According to ASI's latest quarterly industry sales report, which was released this morning, the industry suffered a year-over-year decline of 9.7% in the fourth quarter, with total revenues falling by roughly $900 million. The decline follows an 11% drop in industry sales in the third quarter, a 14% drop in the second quarter and an 18% drop in the first quarter of 2009. According to data, 34% of survey respondents reported a year-over-year increase in sales during the fourth quarter, the largest percentage increase since the third quarter of 2008.

The latest quarterly report takes into account several pieces of newly-considered information, including distributors that exited the industry during 2009 and distributors that have not been part of ASI for the last 12 months. After these adjustments, for full-year 2009, ASI is estimating industry revenues of $15.9 billion, a decline of 19.5%. "These numbers are in line with what I've been hearing," says David Woods, president of Counselor Top 40 distributor Adventures in Advertising (asi/109480). "The reality is sales were down last year in many industries. This business, like the economy, is cyclical. I think many companies are optimistic about 2010."

While the economy was mired in arguably the worst recession in 80 years in 2009, there is evidence that the toughest selling conditions have passed. The ASI report shows sales declined at a much slower rate at larger distributor firms during the fourth quarter than during earlier periods in the year. For example, at companies that annually generate more than $1 million in revenue, sales declined 7% in the fourth quarter of 2009, compared to a 12.8% drop off in the second quarter. "We were fortunate to have a modest increase in sales in the fourth quarter and we plan on carrying that into this year," says Lee Cochran, president of Counselor Top 40 distributor Newton Manufacturing (asi/283300). "I do think the industry will come back. I'm not looking for big increases this year. It will take a few years to get the numbers all the way back up."

Additional survey data shows great optimism among distributors for 2010. A full 71% of survey respondents believe sales will increase this year. "I think people are saying enough is enough, and they're willing to do something to change things," says Marc Belanski, CEO of Counselor Top 40 distributor Evigna (asi/155460). "In our case, we're increasing our marketing, both our broad marketing and direct-marketing activities. This is a time to grab market share. We'll also be making a big push at ASI San Diego. We're sending 25 sales folks out there to attend ASI Education training."

ASI NEWS


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Snowy Winter Impacts Businesses
A record-breaking winter of snow and ice continues to sporadically disrupt industry companies across the country, creating a range of hassles for businesses as far south as the Florida Panhandle. "We already broke the seasonal record with 55 inches of snow here," says Leah Cochran, project manager at Red Star Merchandise (asi/305668) in Charlottesville, VA. Cochran's company works closely with the Dave Matthews Band and provides merchandise for musictoday.com, a Web store. "It's been a little rough with shipping and getting stuff delivered from carriers," Cochran says. "And now we're getting ready for more snow."

According to the National Weather Service, almost 70% of the nation was snow-covered as of Friday, with 49 states blanketed with at least a coating of flakes. Several Mid-Atlantic cities have already endured three major snowstorms this winter. "We've really been hammered and we're just not used to this much snow," says Brenda Crowley, owner of You Name It (asi/365120) in Middletown, DE. "We had a great January for sales, but February has been different. And it's harder to network because so many events have been postponed. So I'm going to ASI San Diego."

While the East Coast has been frequently targeted by crippling storms this winter, nearly unprecedented snowfall has also walloped parts of the Bible Belt. In Dallas last week, 12.5 inches of snow fell, breaking a one-day record that was set in 1962. The average yearly snowfall in Dallas is two inches. "We had warning so we were able to move forward on production and gear up," says Carol Gauger, vice president of sales and marketing at Senator USA (asi/86390). "In Dallas, there are no plows and no salt. They just spread sand. But I didn't hear of any mishaps and all our people were safe."

While the weather is improving this week in the South, forecasters are predicting a foot of snow for areas of New England today and tomorrow. The same storm just dumped up to 10 inches of snow in parts of the Ohio Valley.



Tuesday Morning Radio Show Live On The Air
Every Tuesday morning from 10:30 a.m. eastern time to 11:00 a.m., a team of ASI editors debate the most important topics facing the industry. We also, of course, offer our own off-beat look at the market. This morning, we spoke to two industry experts about market trends for 2010, previewed the education sessions and special events that will be held at ASI San Diego, and discussed some of the most brilliant marketing ideas in history. Plus, we even took calls from audience members looking for ways to ramp up their creativity.

If you missed the show, don't worry. A recording is now available at www.asicentral.com/radio. And, don't forget to join us Tuesday, February 23, for our next broadcast. Log on to www.asicentral.com/radio at 10:30 a.m. eastern time and give us a call at 215-953-4979. We want to hear from you!


TSC Apparel Opens Facility; Norwood Expands
Ohio-based TSC Apparel (asi/90518) has opened a new distribution center in Houston, allowing the supplier to provide next-day ground shipping across much of Texas, Louisiana and Oklahoma. "When we decided to increase our distribution network, Texas seemed the perfect fit," said TSC President Bob Winget.

As with its other distribution centers, TSC Apparel is offering same-day shipping if orders are placed by 5:30 p.m. local time. The company is hosting an open house at the new facility on March 26th. "We're excited to come to the Houston market, where a great base of industry leaders in ad specialty, screen printing and embroidery and have been demanding a more reliable source who is there for them everyday," says Winget.

While TSC has expanded its presence in the Southwest, Counselor Top 40 supplier Norwood Promotional Products is adding space to one of its largest facilities in the Midwest. Norwood is building an additional 45,000 sq. ft. onto its Red Wing, MN, plant. The company has not said if the addition will create new jobs.



Retail Sales Up In January
A new report released by the U.S. Commerce Department shows retail sales rose 0.5% in January, a moderate jump resulting from increasing demand for luxury goods, like electronics. Excluding purchases of cars, gas and building materials, the increases were significantly greater, with sales at general merchandise stores up 1.5%, the biggest gain since February of 2009. Economists believe the improvement was strengthened considerably by positive job trends, most notably a drop in the U.S. unemployment rate to 9.7%. The average workweek and weekly earnings of Americans also rose, according to government data.

Meanwhile, a separate survey of small-business owners showed a mix of hope and hesitation in January. An optimism index calculated by the National Federation of Independent Businesses rose 1.3 points last month to 89.3, a decided improvement compared to a year ago. However, survey respondents also admitted they are still having trouble securing credit and are hiring at a much slower pace then larger companies. While data shows 9% of small business owners increased staff in January, nearly 20% cut employees.

Adding to the complicated economic climate, the latest consumer-confidence numbers fell dramatically short of expectations, dipping unexpectedly. The initial February reporting of the Reuters/University of Michigan consumer sentiment index dropped to 73.7, slipping from a previous two-year high. An index of around 90 usually signals consistent economic growth.


The Joe Show: 2010 New Products
In this episode of The Joe Show, Counselor Managing Editor Joe Haley shows off some of the hottest products around, including an attention-grabbing T-shirt, some game-changing eye black and a common, yet unconventional, computer item. Want to impress your clients with novel, standout products? Don't miss this episode of The Joe Show.

Click here to see another brand-new edition of The Joe Show.



Take The State Of The Industry Survey
Counselor is currently polling professionals in the industry – both distributors and suppliers – to see how the market did in 2009 and to get impressions on where the industry is headed in 2010. We need your input. Please take some time to click the appropriate link below and complete the annual State of the Industry survey. Your responses will remain anonymous and you'll be helping to create Counselor's annual State of the Industry report.

Distributors click here to take the distributor State of the Industry survey.

Suppliers click here to take the supplier State of the Industry survey.


New Course Available on ASI Education's OnlineLearning Center 
Be sure to register at http://www.asicentral.com/asionlinelearning for some exciting new courses available exclusively to ASI members. Brought to you by ASI Education, Online Learning is the newest and most convenient way for distributors to get educated. Here are some of the courses from our New Distributor Success Track available now:

NEW: Green Apparel From A-Z: Grow Your Eco-Wear Business. Wearables makes up 30% of the nearly $20 billion ad specialty industry annual sales -- and that includes its growing eco-wear subset. In this course, we'll teach you about the most fundamental eco-friendly fabrics, the important global standards and practices, and the tips to help sell eco-wear and improve your business. 
Course Track: New Distributor Success
* Nailing Down the Basics
* Write Your Business Plan
* Marketing Your New Business
* Steps to Selling Success
* Creative Case Studies
* Avoid These First-Year Pitfalls
* Managing Your Business
* Wearables Crash Course

* Building Profitable Client Relationships.
Coming Next Month:
* Social Networking Tactics That Deliver Results


ASICentral: Poll Results: Tiger Woods' Woes
Fore! Look out, Tiger Woods - according to our latest poll results, your brand is in trouble. Last month, we posed the following question on ASICentral: Are you less likely to sell Tiger Woods branded products to your clients in light of recent news? 

Check out the results in our blog here, and feel free to post comments too!

Got questions, comments or any type of feedback regarding anything ASICentral, don't hesitate to contact us at feedback@asicentral.com.

Also, follow ASICentral at:Twitter Facebook YouTube.


In The News
Amcraft (asi/35210) has announced that its 2010 catalog has been delayed because of printing issues. For the company's latest product offerings, go to: www.amcraft-asi.com.

Artmetal Promotional Products (asi/36980) has announced that its president, Evan Krofchick, was honored at the Promotional Product Professionals of Canada 2010 National Convention for outstanding achievement as the youngest MAS in his country.

Image Source (asi/230121) and Branded Solutions by Edgar Martinez (asi/145076) have selected Cutter & Buck (asi/47965) as their Supplier of the Year for 2009.

JournalBooks (asi/91340) was presented with the 2010 Supplier Star Award ($15 million-$20 million) at the PPAI Expo in Las Vegas, NV.

KTP Design Company (asi/63773) was honored with a Suppliers Achievement Award in the category of "Screen Printing on Textiles" at the PPAI Expo.

Leed's (asi/66887) was named the winner of the 2010 Supplier Star Award ($50 million or greater) at the PPAI Expo. In addition, the Georgia Association of Promotional Products Professionals, the Chesapeake Promotional Products Association and the Upper Midwest Association of Promotional Products each recognized Leed's with their respective Supplier of the Year awards.

Proinnovative Inc. (asi/79840) has relocated to: 4405 East Baseline Road, Phoenix, AZ 85042. The company's contact information remains unchanged.

R.S. Owens & Co. (asi/75530) has introduced the new Phil Simms All-Star Iron Team Award. The award is more than 10 inches tall, weighs 10 lbs. and was presented this year to 19 different NFL players and coaches.

SanMar (asi/84863) will soon debut its 2010 Spring/Summer Arrivals and 2010/2011 School & Team catalogs, featuring dozens of news styles and products.

Spector & Co. (asi/88660) is holding a "Where's our Catalog" photo contest and is awarding a grand prize of a trip for two to Montreal. For more information, go to: www.spectorandco.com.

The Promotional Products Educational Foundation will award $100,000 in 68 scholarships this year ranging from $1,000 to $5,000. The scholarships are open to promotional products professionals and their children. To apply, go to www.ppef.us and click the scholarship tab.



People On The Move
Animal Fair (asi/36235) has hired Sandy Nichols as director of sales and marketing. 

Bags by Troy (asi/92252) has announced that Brian Ketterlin (Bridge Marketing) will provide sales representation in TX, OK, CO and NV. In addition, the company had hired Dianne Watson, Bo Turner and Tina Jameson (Brad Watson & Associates) to service dealers in FL, GA, AL, NC and SC. Jason Thor will provide representation in PA, NJ, NY, MD, Washington D.C. and New England.

Proforma (asi/300094) has announced that Stanley Fine and Michel Egnal have joined the company's network as co-owners of Proforma Fine Incentives.


ASI SHOW

ASI SAN DIEGO IS JUST ONE WEEK AWAY (FEB. 24-26)
Both distributors and suppliers are excited about The ASI Show San Diego! Taking place February 24-26, ASI San Diego will feature hundreds of leading suppliers (most of the Top 40), cutting-edge education and non-stop networking ― making it a sales-building event like no other. Register today at www.asishow.com.

The three-day, action-packed schedule includes a Gala Celebration at Stingaree Nightclub and a free Keynote by motivational guru Tony Robbins. Plus, ASI distributor and decorator members can receive up to $100 toward a hotel room.

A BRAND-NEW EVENT FOR WOMEN IN THE AD SPECIALTY BUSINESS

Don't miss the ASI Women's Summit taking place May 4, 2010 at the Millennium Broadway Hotel in New York City from noon-3:30 p.m. Designed for women in the advertising specialty industry, the ASI Women's Summit will provide a lively environment to develop new relationships while discussing new business approaches with colleagues. The action-packed afternoon schedule will include a networking reception, luncheon and two Keynotes by real estate mogul Barbara Corcoran and Rosalie Marcus, The Promo Biz Coach™.

Register at www.asishow.com by March 31 and pay only $149. (A $100 savings!)

HOUSING IS OPEN FOR ASINEW YORK (MAY 4-6)
Taking place May 4-6 at the Javits Center in New York City, ASI New York is the perfect place to kick off the second half of the year. Don't miss discovering all that is new at the industry's first and only major event in New York.

Register today and reserve your hotel room for this exciting business-building event. You'll enjoy valuable time with hundreds of top suppliers, free education and non-stop networking. Plus, participate in an interactive Keynote on how to Build Your Brand & Your Business with Social Networking.

ASI distributor and decorator members can attend ASI New York for free and receive up to $100 toward a hotel room. Register at www.asishow.com.

The following are the dates and locations for The ASI Show in 2010:
San Diego: February 24-26
New York: May 4-6
Chicago: July 13-15

Plus, don't miss the ASI Advantages Roadshow, the industry's #1 traveling show.
Visit www.advantagesroadshow.com for the complete schedule and go to
www.asishow.com for information on all ASI Shows.


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