Congress To Investigate Cadmium
In the wake of McDonald's recent recall of 12 million "Shrek" promotional glasses, Congressional leaders have announced they will be launching an investigation into the effects of cadmium. The heavy metal, a known carcinogen if absorbed in high doses, was found in the enamel on the outside of the glasses, which were sold in McDonald's stores beginning on May 21, prompting a federal review of cadmium guidelines. "In the last 60 days both Minnesota and Connecticut have regulated cadmium," said D. E. Fenton, executive director of the Quality Certification Alliance, an industry safety accrediting organization. "That's a clear indication of where this is going."

In a letter sent to executives at McDonald's, ranking members of Congressional oversight committees have requested the company provide documentation related to testing, lists of manufacturing and distribution companies and steps it plans to take to ensure supply chain safety. The manufacturer of the promotional glasses, a non-ASI-listed French company called Arc International, has been supplying products to McDonald's for the last 15 years. The company has maintained that the glasses, which were produced at Arc's Millville, NJ, facility, are safe and were properly tested. In a statement defending its procedures, Arc executives wrote: "McDonald's has confirmed that these products had been evaluated by an independent third-party laboratory, accredited by the CPSC and determined to be in compliance with all applicable federal and state requirements."  

The Consumer Product Safety Commission (CPSC), which has repeatedly warned manufacturers about the use of heavy metals, has not released the specific results of testing that led to the recall of the glasses. Currently, CPSC limits cadmium in children's products to 75 parts per million, but the regulating agency has strongly hinted that stricter and more encompassing guidelines are likely to come in the near future.

Cadmium, which is primarily used in leather tanning and pigment dyes, has clear health risks if exposure lingers over a long period of time. The Centers for Disease Control already lists cadmium as one of the 275 most hazardous substances in the environment. According to the Occupational Safety and Health Administration, cadmium can be very toxic because it has a low permissible exposure limit, creating health dangers even when only trace quantities are found.

Consumer Confidence On The Rise
For the third consecutive month, consumer confidence improved in May, according to two widely recognized indices. The Conference Board Consumer Confidence Index increased nearly six points last month to 63.3, while the University of Michigan Index jumped to 73.6 in May, easily beating projections. "Consumers' apprehension about current business conditions and the job market continues to slowly dissipate," said Lynn Franco, research director for The Conference Board. "The improvement has been fueled primarily by growing optimism about business and labor market conditions."

Analysts say the rise in consumer confidence is due to several factors, including lower gas prices, declining mortgage rates and a slightly improving job market. The latest U.S. Labor Department report shows employers added 431,000 jobs in May, reducing the unemployment rate to 9.7%. However, economists caution that the private sector only created 41,000 of those jobs, with the majority of hiring based on Census and other government work. "These numbers do mean that we are moving in the right direction," said President Barack Obama. "There are going to be ups and downs."

While consumer confidence and consumer expectations improved in May, U.S. retail sales suddenly slipped last month, marking the largest decline in eight months. Total retail sales dropped 1.2% to $362.5 billion in May, compared with April's 0.6% increase, according to the U.S. Commerce Department. The report shows sales at car dealers dropped 1.7%, while sales at department stories fell 1.8%. However, sales at non-store retailers, including online offerings and catalogs, increased 2%.

The Joe Show: Cell Phone Accessories
In conjunction with the Hot Issue of Counselor this August, Managing Editor Joe Haley is dedicating The Joe Show over the next few weeks to showing off the hottest products in the ad specialty market. Broken into fun categories, each week he'll focus on a different theme – and then each of the items will be shown in the August Hot Issue.

In this episode, he displays the latest in cell phone accessories. Can you hear Joe now? Joe and friends are calling attention to the newest promotional items that fit with mobile devices. Have clients looking to target the Millennial Generation? Check out this episode. 

Click here to see this Hot Products edition of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.

Survey: Businesses Overlook Risk Management
Small business owners place a higher priority on sales, cash flow and financing than they do on risk management and federal compliance regulation, according to a new survey. The survey, which was conducted at the 2010 America's Small Business Summit in Washington, D.C., also found that nearly half of all smaller-sized U.S. companies are operating without a business continuity plan. "Small business ownership, while potentially very rewarding, also carries with it great risks," said Marc Schmittlein, an executive at Travelers Insurance, which released the survey results. "The most successful owners are those that balance their pursuit of growth with a prudent approach to risk management."

According to the survey, only 36% of small business owners have ever spoken to an insurance agent about developing a business continuity plan. Yet, 41% of respondents say they are "extremely confident" that their business would be protected against risks that could cause significant financial losses, like an earthquake or tornado. An analysis that accompanies the survey notes that a full 40% of small businesses don't reopen after a disaster, citing data from the American Red Cross. "While confidence is key to a small business owner's success, so much of what can derail a business is outside of the business owner's control," Schmittlein said. "There is no reason for a business owner to bear risks that can be avoided. Developing a business continuity plan is a critical success factor for business owners with a long-term view."

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 gave a sneak preview into the Counselor State of the Industry report, discussed how to ask for a raise, and shared information on the best industries for starting a business. Plus, listeners called into the show to find out the best tactics for opening client and prospect doors. 

If you missed the show, a recording is now available at www.asicentral.com/radio. And, don't forget to join us for our next broadcast on Tuesday, June 22. Log on to www.asicentral.com/radio at 10:30 a.m. ET to listen to the radio show, and give us a call at 215-953-4979 to hear your voice on the air.

ASICentral: Top 100 Markets For Ad Specialty Sales
A recent exclusive Counselor study unveiled the best cities for ad specialty distributors to do business in right now. For the interactive online version, we decided to extend the list to the largest 100 markets and give them not only a rank, but a grade too.

Want to know where the best – and worst – cities are for ad specialty sales? Click here.

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: .

Last Chance: Nominate Your Company For The Best Places To Work Contest
For the third year in a row, Counselor is setting out to identify the industry companies that employees simply love to work for. These are the distributors and suppliers that have a loyal work force and that provide a work environment which employees want to go to every morning.

Counselor will be unveiling its second-annual Best Places To Work issue in September, and it will undoubtedly include an elite list of industry companies. Do you want your company to be considered? Getting involved is easy – and it's completely free to participate. The only necessary qualification is that a company has at least 10 employees. To nominate your company, or any others in the market that you think deserve to be recognized, simply click here. Also, there's no risk to participating. Only the honorees – those companies with the best scores from the survey – will be published in Counselor.

So, don't delay. Click here to register your company to be considered for one of the most exclusive lists in the ad specialty market: Counselor's Best Places To Work.

ASI Online Learning Center  
Did you know you can take self-paced, on-demand courses at ASI Education's Online Learning Center? This is the newest and most convenient way for distributors, decorators and suppliers to get educated. In our newest course for distributors, "Cold-Calling Clinic: Get More Appointments Now," we'll teach you how to use cold calling as an important tool that can take your selling skills to the next level, including five ways to reduce rejection and key tips for connecting with your prospect. Click here to take the course. Click here to get a sneak peek of just one sales strategy you'll learn in this course. 

Coming next month: Break Into Five Hot Apparel Markets

In the News
Bag Makers (asi/37940) announced that it has begun constructing a 75,000-square-foot warehouse extension at its headquarters in Union, IL.

Bruce Fox Inc. (asi/42330) announced that it hosted Congressman Baron Hill of the 9th District of Indiana on June 3rd in New Albany.

Pro Specialties Group Inc. (asi/299725) announced that Marvin Mittleman, director of corporate sales for San Diego, CA, was honored as one of Junior Achievement's 60 Distinguished Alumni at the 60th anniversary of the organization in June.

Stitch Designers (asi/741145) announced that 2010 marks the company's 25th year in business.

People on the Move
Imprints Wholesale (asi/62486) has extended Phil Beukema's sales territory to include Minnesota, North Dakota and South Dakota along with Wisconsin, Iowa and Northern Illinois.

Prime Line (asi/79530) announced that it has promoted Renee Head to marketing director, after she has been with the company for 10 years.