Distributor Sales Rise 8.1% In Second Quarter
Building on a positive start to 2010, distributors posted an 8.1% increase in ad specialty sales in the second quarter, with total revenues up to $4 billion between April and June. The increase in revenues, according to the ASI Quarterly Sales Survey, is the second consecutive quarterly gain, following an 11.1% improvement in sales between January and March. For the first half of 2010, industry sales rose 9.4%, to a total of $7.8 billion. "We are seeing more activity and in talking with other companies, they are seeing the same thing," says Pat Cavanaugh, president of Cavanaugh Marketing Network (asi/159262).

According to ASI survey data, 54% of respondents reported a year-over-year increase in sales during the second quarter, with larger distributors enjoying the greatest success. Distributors that generate more than $1 million annually in revenue reported a 7.4% rise in sales, following a 9.4% jump in the first quarter of 2010. "We were up 14% in the first half of 2010," says Marc Simon, CEO of Counselor Top 40 distributor Halo/Lee Wayne (asi/356000). "July was up over 20%, so I am hopeful we'll have a strong second half."

Ken Laffer, CEO of New York-based Motivators Inc. (asi/277780), also reports significant gains so far in 2010. "We are experiencing a sales increase well above the 9% level," he says. "To be perfectly honest, for us it's up 37% in 2010 versus 2009. I think the economy has bounced back, and we think we will continue to see an increase in sales somewhere in the 30% range."

The majority of distributors share Laffer's optimism. Data shows 56% of distributors expect their 2010 sales will be better than their 2009 sales. "Our clients felt the pain of having cut back on marketing in '09 and because sales remain deflated they have started to open up budgets," says Danny Rosin, president of Brand Fuel (asi/145025). "We believe the second half of 2010 will be better."

While many companies are forecasting growth for the remainder of 2010, some executives believe the increases will eventually level off. "While I think the recovery in spend will gradually improve, I think the year-over-year growth as a percentage will be less than the first half of the year since the second half of last year was so much stronger than the first half of the year," says Rich Witaszak, general manager of Top 40 distributor Staples Promotional Products (asi/120601). Still, the majority of distributors believe the upswing will continue for one simple reason. "Customers are willing to spend again," Laffer says.

New York Bans BPA In Children's Products
New York has become the seventh state to ban the sale of baby bottles and other children's products that contain the chemical bisphenol A, often called BPA. Signed into law on Saturday by Governor David Paterson, the ban is expected to go into effect on December 1st of this year. In June, the bill unanimously passed in New York's Assembly and Senate.

A polycarbonate plastic that's a common substitute for glass, BPA has drawn considerable scrutiny in recent months following a January statement from the U.S. Food and Drug Administration (FDA). Reversing its previous stance that BPA was safe, officials from the FDA said that exposure to the chemical was of "some concern" for infants and toddlers. Although BPA has not been proven to harm children, studies have shown the chemical may hinder brain development and could lead to heart disease and cancer.

While many suppliers and retailers no longer make children's products containing BPA, the chemical is also commonly present in aluminum can linings, eyeglasses, bicycle helmets, cars, DVD cases and even paper receipts. Urine tests have shown that BPA is found in 93% of Americans and in 90% of newborns.  

In addition to New York, Connecticut, Vermont, Maryland, Minnesota, Washington and Wisconsin have all banned BPA in recent months. The chemical has also been banned or limited in Canada, Denmark, France, Australia and New Zealand.

The ASI Show Reveals 2011 Keynote Lineup
Headlined by Laura Bush and Michael J. Fox, The ASI Show has announced its lineup of keynote speakers for the 2011 shows in Orlando, Dallas, New York, San Diego and Chicago. Here are the scheduled speakers and networking events at the five shows next year:

• ASI Orlando: Emmy Award-winning actor and Parkinson's disease activist Michael J. Fox will lead a moving keynote, entitled Always Looking Up: The Adventures of an Incurable Optimist, on Tuesday, January 25.
• ASI Dallas: Former First Lady Laura W. Bush will deliver a rousing program on Friday, February 18, entitled Life in the White House: Reflections from Mrs. Laura W. Bush.
• ASI New York: A private bash at hip hop mogul Jay-Z's 40/40 Club on Wednesday, March 23, followed by The Industry's Biggest Speed Networking Session on the morning of Thursday, March 24.
• ASI San Diego: Emmy Award-winning comedian Wayne Brady will give an exclusive performance at ASI San Diego on Thursday, May 19.
• ASI Chicago: Local celebrity and football coach Mike Ditka will motivate attendees with his keynote, entitled ACE: Attitude, Character and Enthusiasm, on Thursday, July 21.

"We have a star-studded year planned for The ASI Show," said Timothy M. Andrews, president and CEO of ASI and president of The ASI Show. "Each one of our 2011 shows is jam-packed with exciting events. From unlimited product discovery to 24/7 networking and the most comprehensive education program in the industry, distributors will take away valuable insights and real-world practices to apply to their businesses."

Online registration is now open for each of the 2011 shows. Go to www.asishow.com for more information on each of the keynote speakers and to register for these events.

The Joe Show: Mid-Summer Classic
In this mid-summer 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 impress clients with brand-new offerings? Start with these. 

Click here to see this mid-summer edition of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.

Proforma Adds Florida Distributor
Counselor Top 40 distributor Proforma (asi/300094) has added Sanford, FL-based Forms & Supplies Unlimited Inc. (asi/196441) to its network, the companies have announced. Per the agreement, Forms & Supplies Unlimited will now be called Proforma/FSU, with owner Frank Flandreau continuing to run the company he founded 18 years ago. "Our strengths are customer service and developing unique solutions to meet our customers' needs," says Flandreau. "By joining Proforma, I can focus even more attention on my customers. I'm excited about what the future holds."

At its peak several years ago, Flandreau says his company generated $4 million in annual sales. Since then, revenues have slipped, but Flandreau believes his new relationship with Proforma will greatly increase his selling power. "We hope to get to $2 million in our first year with Proforma and then eventually to $5 million or $6 million," he says.

To accomplish his goals, Flandreau plans to offer additional products and services, including eCommerce strategies. "Proforma has almost 40 members of its Multi-Million Dollar Club for me to network with," says Flandreau. "Proforma has the sophisticated technology platform we need to sell big programs to big businesses."

Founded in 1992, Proforma/FSU employs nine people, with salespeople in New York, Massachusetts and Florida.

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 revealed the keynote speakers for next year's ASI Shows, discussed why bags are the top branding products at trade shows and shared strategies for diffusing workplace tension. Plus, the hosts offered advice to callers looking for ways to reach new customers.

    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, August 10. 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.

ASICentral: Counselor State Of The Industry 2010 & Exclusive Webinar
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.

Plus, to go along with the State of the Industry issue, Counselor created an educational webinar to give distributors ideas on ways they can plan their businesses over the next few years. Packed with statistics, trends and tips, this webinar is sure to provide inspiration for business growth. Click here to view the educational session.

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 To Nominate New Members For 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.

In The News
All-In-One (asi/34256) has announced that it is a sponsor of the SAAC Show in Long Beach, CA, this week, August 3-5. Distributors who visit the All-In-One booth (number 636) can get a sneak peek at new products and have the chance to win prizes.

Boxercraft (asi/41325) has donated 3,000 new garments to the six winners of its "Bring Comfort to Your Community" charity contest. The six winners received 500 garments each to donate to their chosen charity.

Bullet (asi/42424) has announced that starting September 1, it will no longer offer embroidery at its Miami facility in order to offer its distributors the most aggressive pricing on its line of hats. Bullet customers will be able to purchase Bullet headwear at significant discounts from published 2010 pricing and have them embroidered by authorized Bullet embroiderers. For more information, go to www.bulletline.com.

Geiger (asi/202900) has announced that it raised $10,000 for City of Hope at its national annual education conference, "Galleria," recently held in Phoenix, AZ. 

R.S. Owens (asi/75530) has announced that the winner of the "Above and Beyond" award for July was Barbara Cassata, a member of the trophy wrapping team and the employee of the quarter is John Colbert from its receiving department.

Somcan Marketing & Sales (asi/88168) has announced its official launch into the United States premium and incentive market. 

Sunscope (asi/90075), with the partnership of Jerry Leigh Apparel, has launched the HoodieBuddie, a collection featuring HB3 Technology that integrates full audio device connectivity into sweatshirts and other apparel through an input jack in the pocket and machine washable drawstring earbuds.

People On The Move
Corvest, parent company of Adva-Lite (asi/32145), Toppers (asi/91530) and It's All Greek To Me (asi/62960), has announced the addition of several new members to its inside sales and customer service teams: Brandon Giles as inside sales representative for the Mid South Region, covering Alabama, Arkansas, Louisiana, Mississippi, Oklahoma and Texas; Walter Smith as inside sales representative for the West Coast Region, covering Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming; and Helen Lindberg as order resolution representative.

Pacific Western Sales (asi/75731) has hired Pat Dore, Greg Jackson, Joe Eberz, and Rod Williamson as the newest members of its nationwide sales force. Dore and Jackson will be covering the northwest states and Eberz and Williamson will cover the Great Lakes and midwest. Michelle Hirn and Ed Manbeck have been named inside sales representatives, while Andrea Pennington has been hired as new customer service manager.

ASI SHOW

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.