Survey: Business Hiring Increases
Nearly one-third of U.S. businesses added employees during the second quarter, according to a new survey released by the National Association for Business Economics (NABE). Data also shows that 39% of respondents expect to hire more workers over the next six months, the largest display of optimism since January of 2008. "NABE’s July 2010 survey confirms that the U.S. recovery continued through the second quarter, although at a slower pace than earlier in the year," said William Strauss of the Federal Reserve Bank of Chicago.

According to NABE data, manufacturers reported the strongest increase in demand and profitability between April and June, while the finance, insurance and real estate sectors had the slowest growth. More than half of respondents reported sales increases in the second quarter, with 25% reporting higher profit margins. "Industry demand increased for a fourth consecutive quarter," said Strauss. "Price and cost pressures were contained, allowing profits to edge higher."

Additionally, about 20% of economists surveyed by NABE believe gross domestic product (GDP) will expand by more than 3% this year and 67% believe the economy will expand by at least 2%. During the first quarter, GDP grew at an annual rate of 2.7%, according to government estimates. Following a recent policy meeting, the Federal Reserve now expects GDP to grow between 3% and 3.5% this year, down from its earlier expectation of growth as high as 3.7%.

Distributor Firm Shut Down After FBI Raid
Nashville-based Sommet Group, whose holdings include distributor BrandCentrik (asi/349742), is being investigated for employee benefits fraud by several government agencies, following a tip that led to an FBI raid earlier this month. Although BrandCentrik and its employees are not suspected of criminal activity, the distributor has been effectively closed, with property, servers and data systems all seized. "The raid was quite a shock," says Jeff Sowell, BrandCentrik's chief marketing officer, in an exclusive interview with Counselor. "We had no idea whatsoever this was going to happen. We have salesmen due commissions. I was due a bonus. This was going to be my last stop. It's devastating."  

According to a 17-page affidavit, government agents are alleging Sommet's managing partner, Brian Whitfield, "misdirected and misappropriated" client money, leaving customers responsible for several million dollars in unpaid bills. The investigation appears focused on a separate Sommet division, headed by Whitfield, that managed employee benefit services for more than 100 other firms. An affidavit produced by the Internal Revenue Service alleges Whitfield "routinely engaged in financial transactions with client money, knowing that that money was procured, in part, from his fraudulent misrepresentations." The U.S. Department of Labor, which first began probing Sommet in January, has found that "the amount of Sommet's unpaid medical and pharmacy claims had increased to $2.1 million." Irregularities were also noted in Sommet's handling of clients' taxes, payroll checks and retirement plans.

During a July 6th raid, federal agents seized paper and electronic records from Sommet's Nashville offices, while company employees were sent home. To date, no arrests have been made and no charges have been filed, but court documents show Whitfield and other Sommet employees are suspected of wire fraud, money laundering and embezzlement. Although names and specific details have been redacted from filings, it's believed that at least one former Sommet executive tipped off federal officials about company practices, leading to the probe.

Even prior to the government investigation, Sommet's finances were publicly questioned beginning late last year, particularly by the owners of the National Hockey League's Nashville Predators. The ownership group sued Sommet for non-payment of funds required to maintain a naming rights agreement tied to the club's arena. Until February of this year, the Predators played in the Sommet Center.

BrandCentrik, which according to ASI's CreditConnect program generates $4 million in annual sales, no longer has a working website and calls made to the company's main phone number are answered by a recording. Of the 45 employees that worked at BrandCentrik, some have found other jobs, but many remain unemployed.

Geiger Launches New Division
Counselor Top 40 distributor Geiger (asi/202900) has announced that it will be the exclusive promotional and small retail provider of a new groundbreaking item call Liv. The breast self-exam item, created by Emmy-award-winning singer Olivia Newton-John and Dr. Ernie Bodai, is FDA-approved and is meant to make it easier and more accurate for women to examine themselves for breast irregularities.

Newton-John, a breast-cancer survivor, is the spokesperson for the product, which will be sold by Geiger's new unit, called Livgeiger (www.livgeiger.com). The item has a retail price of $19.95 apiece. Companies and organizations can use it as a promotional product by placing logos or messaging on the device's handle, packaging and carrying case.

ASI Chicago Video Recap
The ASI Show took over the Windy City last week, as thousands of distributors and suppliers attended education sessions, networked with peers, and created a second-half-of-the-year selling surge on the trade show floor. Counselor's cameras were all over the scene to speak with show-goers, exhibitors and VIPs – and to experience the show's nightlife, of course. Check out this video recap from last week's ASI Show Chicago.

Show Update Day One Click Here
Million-Dollar Sales Summit Click Here
Joe Show Day One Click Here
Fashion Finds Day One Click Here
Tim's Take: State Of The Industry Click Here
Show Update Day Two Click Here
Gala: Vote For The Best Dancer Click Here
Joe Show Day Two Click Here
Fashion Finds Day Two Click Here

Tuesday Morning Radio Show Live On The Air
Every Tuesday morning from 10:30 a.m. to 11:00 a.m. ET, 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 discussed the 15 things every business owner needs to know and shared strategies for successful e-mail marketing. Plus, the hosts offered advice to callers looking for help on how they can overcome their clients' price objections.  

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 broadcasts – Tuesday, July 27. Log on to www.asicentral.com/radio at 10:30 a.m. ET to listen to the show – and give us a call at (215) 953-4979 to hear your voice on the air.

Duo Purchase WoodCo Promotional Products
Supplier firm WoodCo Promotional Products (asi/98138) announced that it has been acquired by Darryl Haddox and DeeDee Hassler. The company was purchased from founder Bill Wood, who started the firm in June 2008. Financial terms of the deal were not released.  

Haddox, president and CEO of WoodCo, and Hassler, vice president and chief financial officer of the organization, have both been involved in the company since its inception. The supplier firm began by mainly producing laminated paper business accessories such as memo boards, bookmarks, membership cards and business cards. Since, it has added an extensive line of magnetic promotional products and direct mail products. WoodCo says 100% of its products are manufactured in Washington, MO.

Prior to starting WoodCo, Haddox worked at Magnet LLC (asi/68507) for 19 years in sales management and most recently as president of Benchmark Industries, a division of Magnet LLC. Hassler also worked at Magnet LLC and was involved extensively in customer service holding several managerial positions through the course of her 20 years of employment.

The Joe Show: Mid-Year New Products
In this episode of The Joe Show, Counselor Managing Editor Joe Haley shows off some of the newest items to hit the ad specialty market. Want to boost sales with mid-year new products? Start with these. 

Click here to see this new-products edition of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.

Nominations Open For 2010 Counselor Power 50
Counselor is now compiling its Power 50 list for 2010 – our recognition of the industry's most powerful individuals – and we're looking for feedback from you. Click here to see the list of last year's Power 50 and let us know whether you think the members are more or less influential today than they were a year ago.

Plus, this is also the place to nominate new people who you think should be on the 2010 Power 50 list. Scroll to the bottom of the survey to submit new candidates for the Counselor Power 50 list. Please write their name and company in the space provided.

Click here to take the survey and make new nominations.

ASICentral: Counselor State Of The Industry 2010
Yes, it's that time of year again. Time for a boatload of industry facts, stats, top 40s and how-to manuals. Want to know how to prepare your business for growth today, throughout 2011 and even beyond 2012? Then you don't want to miss this special ASICentral.com feature! Click here to check it out.

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, "Break Into These Five Hot Apparel Markets," we'll unveil five markets that are buying lots of decorated apparel (think: education, high-tech companies, government entities and more), the types of apparel they buy and how to make the pitch and close the sale.

Click here to take the course.

In The News
Beyond Zebra Inc. (asi/138945) provided several eco-friendly items, including baseball caps, fedoras and beverage napkins, for the 2010 ESPY Awards held in Los Angeles last week.

Blue Generation (asi/40653) is introducing a new line of lightweight twill men's and women's jackets as part of its 2011 collection. Treated with a special fabric protector, the jackets are available in 11 colors.

Corvest has expanded its customer service hours, effective immediately. Distributors may now contact customer service representatives from 8:30 a.m. to 8:00 p.m. ET, Monday through Friday.

Match-Up Promotions (asi/264230) was recently mentioned in Time Magazine, with the company's general manager, Adam Thornton, quoted in an article about the influence of the World Cup soccer tournament.

Shumsky Enterprises (asi/326300) has announced that its Brand on Demand proprietary inventory management system has been recognized with an official trademark by the U.S. Patent and Trademark Office.

Sweda Company LLC (asi/90305) has hired Linda Misiorowski & Associates to provide sales representation in IL and WI.

People on the Move
American Solutions for Business (asi/120075) has announced that Rick Ekstrand has been appointed to the company's board of directors.

Jetline (asi/63344) has named Joe Hoffmann as vice president of business development and Dena Rothstein as director of marketing.

Proforma (asi/300094) has added the following new owners to its network: Barbara Butler, Proforma Promotions Remembered, Plano, TX; John Costanzo, Proforma Full Circle, Clinton, NY; Patrick M. Doughty, Proforma Prime Services, Edmond, OK; Mark, Michael and Sheryl Gibson, Proforma The One Source, Bradenton, FL; Steve Sheard, Proforma Solutions-N-Print, Inc., Winter Springs, FL.

WorkflowOne (asi/333647) announced that David Buckley has joined the company as vice president of marketing.

ASI SHOW

LOOKING FOR THE NEWEST AND GREATEST ITEMS FOR THE HOLIDAYS?
Look no further the ASI Holiday Preview, taking place Monday, September 13, and Tuesday, September 14, at the Sands Expo Center in Las Vegas.
This not-to-be-miss industry event opens with the popular "New Distributor Success Track" from 1 p.m. to 5 p.m. on Monday, September 13, followed by "Exhibitor Presents" from 9 a.m. to 10 a.m., tabletop exhibits from 10 a.m. to 4 p.m. and a closing networking reception at 4 p.m. on Tuesday, September 14.
Register now for the ASI Holiday Preview in Las Vegas at www.asishow.com . You'll spend quality time with leading companies, such as Sweda, Hit Promotional Products, American Apparel, Fersten Worldwide, Stouse, Marathon/Prestige and SHEPENCO.
Plus, reserve your hotel room at www.asishow.com. A limited number of hotel rooms have been secured at the Venetian Hotel for only $149 a night (half off the usual rate of $300)! Plus, visit www.southwest.com for cheap airfares.

HAVE LUNCH WITH FORMER FIRST LADY LAURA W. BUSH
Join us at the second annual ASI Women's Summit taking place on February 18, 2011, during ASI Dallas at the Adolphus Hotel's French Room. During the Summit, you'll have the exclusive opportunity to network with other women professionals in the ad specialty industry, as well as hear a motivational Keynote by former First Lady Laura Bush.

The Summit will feature registration and networking from noon until 1:30 p.m., where you'll be able to share stories with colleagues while mingling with Mrs. Bush; a sit-down lunch with Keynote from 1:30 p.m. to 2:30 p.m.; an interactive hot topics discussion from 2:30 p.m. to 3:15 p.m. and an awards presentation highlighting the "Top 10 Women to Watch" from 3:15 p.m. to 3:30 p.m.

Register today at www.asishow.com and pay only $249. After August 31, the registration fee will be $329. All attendees will receive a free autographed copy of Mrs. Bush's new book, "Spoken from the Heart," a New York Times #1 best seller.

THE ADVANTAGES ROADSHOW WILL BE IN THE NORTHEAST
Don't miss the industry's #1 traveling show, the Advantages Roadshow, when it visits the Northeast from August 30-September 2 (Boston, Long Island, Philadelphia and Baltimore).
Delivering a productive, one-on-one atmosphere for distributors to meet with top suppliers, the Advantages Roadshow features free education (sponsored by Fields Mfg., asi/54100) from 7:45 a.m.-9 a.m. and 1 p.m.-2 p.m. and exhibit hours from 9 a.m.-1 p.m.
Visit www.advantagesroadshow.com for complete details. All distributors are invited to attend the Advantages Roadshow for free. No pre-registration is required.

Follow The ASI Show on Twitter and become a fan on Facebook today!

The following are the dates and locations for The ASI Show in 2010 and 2011:
ASI Holiday Preview in Las Vegas, September 13-14, 2010
Orlando, January 23-25, 2011
Dallas, February 16-18, 2011
New York, March 22-24, 2011
San Diego, May 18-20, 2011
Chicago, July 19-21, 2011

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.