IN THIS ISSUE Industry Advocacy p. 36 PPAI Hall of Fame p. 40 Regional Association Benchmarking p. 62 MEDIA.PPAI.ORG 01.25 pg. 28 Promo leaders approach regulatory shifts with caution. PPAI research shows it’s time for the industry to become more informed.
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4 From PPAI Merch Is Having A Moment 7 Creative Calendar Essentials 10 Use Case Small Spend, Big Impact 14 In Style Mocha Mousse Voices 20 Your Business Set Your Year Up For Success 22 Responsibility The Environmental Trade-offs Of AI Must Read 56 Promotional Products Work Bridging the gap between digital and physical engagement. 62 Feature Regional Associations Grow In 2024 Community 70 Buzzworthy 74 Book Club 76 PPPC Communiqué 80 Inside PPAI 85 New Members 89 Datebook 94 Perfect Promo CONTENTS 01.25 VOLUME 49, ISSUE 01 36 28 40 Ultimate Honors Jonathan Isaacson and Mark Jenkins, MAS+, join the illustrious PPAI Hall of Fame. 40 Out In The Open A reorganization of PPAI’s public affairs efforts empowers the Association to prioritize timely communication on key issues and serve members more directly. 36 What’s Next? Industry leaders approach regulatory shifts with caution. PPAI research shows it’s time for the industry to become more informed. 28 PPAI • JANUARY 2025 • 3
From PPAI Denise Taschereau Chair-elect of the Board 01.25 PPAI’s vision that promotional products be universally valued and essential to every brand is not so far away. Merch Is Having A Moment WHEN THE CALENDAR FLIPS to a new year, most businesses accelerate their activities to start making progress toward annual goals. We’re all rested and ready, and with The PPAI Expo 2025 on the near horizon, there is again the promise of a new beginning. Yet for so many of our colleagues, the mood is a bit more guarded than usual. The economy is strong, but a lot of us are waiting to see how a new administration in the White House will approach tariffs, which would undoubtedly have an effect on how our industry approaches the market. This issue of PPAI Magazine is loaded with research on how legislation impacts industry companies and an update on how the Association is addressing it all. But rather than wait and watch for what will happen weeks or months from now, I think this is a good time to take a wider view of the recent past, the present and the foreseeable future. The evidence is all around us now: Merch is having a moment. We aren’t talking about logos on promotional products anymore. End buyers and consumers are recognizing that their merch is capable of telling stories, embodying values and creating memorable experiences. Brands everywhere are turning to merch to amplify their presence and purpose. From high-quality, sustainable items that align with ecoconscious missions to limited-edition drops that create exclusivity and buzz, merch is driving conversations and engagement like never before. We also see organizations leveraging merch to bring their hybrid workforces closer together. Whether it’s onboarding kits, recognition gifts or virtual event swag, these tangible touchpoints remind employees of their connection to the brand, regardless of where they work. The promo industry has dealt with legislative and economic challenges before. More than ever, it’s our job to stay ahead of the curve, innovating in ways that keep our offerings fresh, relevant and impactful. With this surge in demand comes growing competition. Ad agencies, print shops, makers and even end buyers themselves are recognizing the power of merch and entering the space. While this influx challenges traditional boundaries, it also underscores the value of what we do and grows the marketplace. The good news is we’re not playing catch-up. We’re leading the way. The promotional products industry has an unparalleled depth of expertise, an understanding of branding and access to an ecosystem of suppliers that’s unmatched. To maintain this leadership, we must double down on professionalism, creativity and service. To help our members do just that, PPAI is in the midst of rolling out a new online learning system for professional development. This tool is designed to help you and your teams sharpen skills, stay informed about trends and deliver the kind of strategic, high-value solutions that clients expect. At the same time, we must embrace collaboration. Collectively, we can expand the entire market. When we come together in Las Vegas and at events throughout the year, let’s share best practices, rally around responsibility guidelines and advocate for the industry as a whole. We can do this. PPAI’s vision that promotional products be universally valued and essential to every brand is not so far away. In 2025, let’s all commit to making merch’s moment permanent. 4 • JANUARY 2025 • PPAI
PPAI® PUBLISHER & EDITOR-IN-CHIEF Josh Ellis JoshE@ppai.org MANAGER, CONTENT & SPECIAL MEDIA PROJECTS James Khattak JamesK@ppai.org DEPUTY EDITOR John Corrigan JohnC@ppai.org NEWS EDITORS Jonny Auping JonnyA@ppai.org Arianna Johnson AriannaJ@ppai.org MARKET ECONOMIST & SENIOR MANAGER, RESEARCH Alok Bhat AlokB@ppai.org PUBLIC AFFAIRS & RESEARCH EDITOR Rachel Zoch RachelZ@ppai.org RESEARCH COORDINATOR Shiella Aparis ShiellaA@ppai.org GRAPHIC DESIGNER Rowel Cristobal RowelC@ppai.org ART DIRECTION SPARK Publications SPARKpublications.com 704-844-6080 ADVERTISING MANAGEMENT ACCOUNT MANAGERS Connie Brazil Taylor Coward Heather Mangold Sandy Mendoza Mark Rykojc PPAI.org/account-managers ADVERTISING CONTACT Amy Weisman 972-258-3080 AmyW@ppai.org INTERIM PRESIDENT & CEO Dawn Olds, MAS 888-I-AM-PPAI DIRECTOR OF SALES & PROFESSIONAL DEVELOPMENT Lindsey Davis, MAS VICE PRESIDENT, REVENUE AND EXPOSITIONS Ellen Tucker, MAS, CAE DIRECTOR OF FINANCE Renae Ward CHIEF FINANCIAL OFFICER Troy Naef HUMAN RESOURCES Nicole Rhooms DIRECTOR OF CORPORATE RESPONSIBILITY & SUSTAINABILITY Elizabeth Wimbush BOARD OFFICERS CHAIR OF THE BOARD Andrew Spellman, CAS Therabody IMMEDIATE PAST CHAIR Kevin Walsh, CAS Showdown Displays CHAIR-ELECT OF THE BOARD Denise Taschereau Fairware VICE CHAIR, FINANCE SERVICES Chris Anderson HPG BOARD MEMBERS TERMS EXPIRING 2025 Karie Cowden, MAS Connect the Dots Promotions REGIONAL RELATIONS COMMITTEE DELEGATE TERM EXPIRING 2026 Kara Keister, MAS Social Good Promotions TERMS EXPIRING 2026 Chris Anderson HPG AT LARGE DIRECTOR Lori Bauer iPROMOTEu TERMS EXPIRING 2027 Dan Pantano alphabroder TERMS EXPIRING 2028 Zack Ottenstein The Image Group Erin Reilly Pop! Promos Danny Rosin, CAS Brand Fuel PPAI HEADQUARTERS 3125 Skyway Circle North, Irving, Texas 75038-3526 Phone: 888-IAM-PPAI (426-7724) www.ppai.org, pubs.ppai.org READER RESOURCES SUBSCRIBE TO PPAI MAGAZINE: Subscribe online at pubs.ppai.org or send your name, title, company name and mailing address, along with phone and fax, to PPB Subscriptions, 3125 Skyway Circle North, Irving, Texas 75038. Or phone in your subscription to 972-258-3019. Include payment with your order. Visa, MasterCard and American Express are accepted, along with checks. Additional member subscriptions are $58 for PPAI member companies (U.S.), $70 (Canada and Mexico) and $75 (international). Nonmember subscriptions are $72 (U.S.), $82 (Canada and Mexico) and $92 (international). Please allow four to six weeks for start of subscription. ADVERTISE IN PPAI MAGAZINE: Download a media kit with rates and specs for all PPAI print and digital publications at media.ppai.org, or call 972-258-3019 or email mediasales@ppai.org. WRITE FOR PPAI MAGAZINE: The magazine regularly accepts articles from both professional writers and industry experts – like yourself. Find out everything you need to know about submitting an article or an idea by reading PPAI’s Writer’s Guidelines available at media.ppai.org/submit-content. Promotional Products Association International 6 • JANUARY 2025 • PPAI
If this calendar is helpful or if you have ideas for ways that we can better provide this information, email the editors at magazine@ppai.org FEBRUARY 7 NATIONAL GIRLS AND WOMEN IN SPORTS DAY 11 NATIONAL WHITE T-SHIRT DAY 26 NATIONAL SET A GOOD EXAMPLE DAY MARCH 10 NATIONAL PACK YOUR LUNCH DAY 19 NATIONAL CERTIFIED NURSES DAY 30 NATIONAL TAKE A WALK IN THE PARK DAY APRIL 5 NATIONAL FLASH DRIVE DAY 14 NATIONAL GARDENING DAY 18 NATIONAL EXERCISE DAY Exceptional Promotions SPECIAL OBSERVANCES CALL FOR NATIONAL VOLUNTEER MONTH Product idea: Pump up your client’s brand visibility with the Strength Resistance Band Set. This portable pouch clips easily to any bag and contains three colorful exercise bands, providing resistance levels from 2 to 12 pounds. Take this kit anywhere for a workout at the office, in the park or on the go. Hit Promotional Products / PPAI 113910, Platinum hitpromo.com Use these special occasions to ignite your imagination for relevant – and distinct – client promotions. Compiled by Nicole Rollender NATIONAL SNACK FOOD MONTH Product idea: Why settle for ordinary snacks when you can have s’more fun with every bite? The S’Mores Kit Favor Box is a tasty meeting or event favor packaged in a full-color, custom box ready for your client’s branding. Each single-serve kit makes one s’more sandwich and includes two graham cracker squares (which you can also brand!), a Hershey’s chocolate bar and a marshmallow. Midnite Snax / PPAI 113793, Standard Plus midnitesnax.com NATIONAL NUTRITION MONTH Product idea: Welcome a new employee, member or student with a handy Moss 3 Piece Lunch Cooler Set, perfect for mixing and matching brand colors. This set includes a 12-can cooler, featuring a zippered main compartment, mesh and side pockets, and an adjustable strap for easy carrying. The 24-oz. microwavable lunch cup comes with a snap-on lid, ventilation hole and ergonomic handle. The reusable utensil set, complete with a knife, fork and spoon, fits neatly in a protective cover. Best of all, your client’s logo can be showcased on the cooler, cup and utensils. Logomark / PPAI 110898, Platinum / logomark.com PPAI • JANUARY 2025 • 7
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PROMOTIONAL PRODUCTS TO BE UNIVERSALLY VALUED Essentials 01.25 USE CASE p. 10 MOCHA MOUSSE: A RICH, EARTHY HUE Pantone’s Color of the Year for 2025 blends comfort with luxe. page 16 IN STYLE NatalyFox / Shutterstock.com PPAI • JANUARY 2025 • 9
Small Spend, Big Impact Want promotional products that pack a punch without breaking the budget? From custom air fresheners to trendy shoe charms, small investments can create memorable brand experiences. By Nicole Rollender RENEE HOLMES Sales Coordinator Brand Fuel PPAI 277900, Gold Raleigh, North Carolina A small budget can be a hurdle when selecting the perfect promo product for a client’s giveaway, gift or campaign, but low cost doesn’t need to equal cheap or low impact. “The best way to make every dollar count is to find products that hit at least one of the following criteria: a trendy or retail-inspired product, a cool gadget, a convenience item or a full custom product,” Holmes says. “Choosing products that meet these criteria elevates a brand by showing they’re tuned into current trends and genuinely invested in bringing value to their audience’s everyday lives.” One of the best budget-friendly gifts Holmes worked on was for a client in fresh chicken manufacturing. The client’s human resources department regularly attends job fairs to recruit new employees and wanted a giveaway under $2 that would stand out from the crowd. “They also wanted this product to lead applicants to their careers site to apply for open positions after the event,” Holmes says. “Bypassing the obvious choices like notepads, pens and candy sure to be at everyone’s table and quickly forgotten afterward, we thought outside the box and chose an air freshener in the shape of a chicken drumstick.” A Custom Paper Air Freshener is a highly visible, inexpensive giveaway. With over 50 scents to convey a unique marketing message, this custom freshener has a full-color imprint on both sides of high-quality, scented card stock packaged in clear cellophane bag packaging. Holmes chose a stylized drumstick design scented with clary sage with the hiring website address on it. “We delivered exactly what our client wanted – inexpensive, memorable, fun and functional,” Holmes says. “Now, this promo product is a staple in their swag closet, guaranteeing reorders for us. Air fresheners are one of my favorite products to add to presentations as a stand-alone, low-cost promo item or a fun add-on when there is some leftover budget to spare without feeling like an afterthought.” EMT / PPAI 110810, Standard Plus / emteasy.com 10 • JANUARY 2025 • PPAI Essentials | Use Case
Holmes has a few other go-to budget-friendly promo gifts that are custom accessories to products most people already own. “Tumblers and Crocs are super popular with almost all demographics, so I love showing clients that they can hitch a ride on them with custom straw toppers and shoe charms,” she says. Holmes likes attaching Straw Toppers, which come in any custom shape and are made of nontoxic PVC, to biodegradable flexible or straight Custom Straws, also compatible with Stanley drinkware, for an impressive visual display. Even on a budget, you can create fully custom 1-inch to 2-inch Shoe Charms for healthcare professionals and others who wear Crocs in the workplace. “I like to add full-color backer cards and polybags to the shoe charms for a more retail experience,” Holmes says. BibBoards / PPAI 732422, Standard Base bibboards.com A budget-friendly gift Holmes has been eyeing is the Aqua Pearls Spa Mask Hot/Cold Pack. Less than $2 each, these self-care masks are available in various colors. “They deliver stress relief in this crazy world, which I consider the most important feature of all,” she says. “An eye mask is a luxury product most people don’t think to buy for themselves but will wonder what they ever did without it – and they’ll thank your client’s brand for it.” Ariel Premium Supply PPAI 161650, Platinum arielpremium.com PPAI • JANUARY 2025 • 11 Use Case | Essentials
DAVID GROSSMAN Co-president Grossman Marketing Group PPAI 277900, Standard Base Woburn, Massachusetts Budget-friendly promotional items can be among the most impactful gifts you can give, says Grossman, pointing out that cost per impression is as low as one-tenth of a cent. “As a short-term marketing strategy, a low-cost item can raise brand awareness and keep that message at the top of clients’ minds,” he says. “Being budget-friendly doesn’t need to mean being cheap regarding brand perception. Budget-friendly items like seed paper bookmarks or bamboo key chains carry the message of sustainability paired with usefulness and lasting impressions.” KinderCare’s North Star Summit in Orlando was an extravaganza to unite and motivate all company executives, district leaders and center directors. Looking to harness the unprecedented enthusiasm around the Taylor Swift Eras Tour, especially among KinderCare’s key employee demographic of women aged 25 to 45, Grossman’s team created 22 versions of friendship bracelets in a style popular around the tour. “The excitement among the attendees was amazing, as they tried to collect as many versions as possible,” he says. “This was such a success that we produced 45,000 pieces of another version later in the year, distributed to all KinderCare teachers for Teacher Appreciation Week.” Custom Letter-Beaded Soft Clay Bracelets are a budget-friendly option for all types of occasions and can be customized with your client’s message. The bracelets are made from soft polymer beads in a vibrant bohemian style strung on a flexible elastic band for comfortable wear. Embroidered patches are a go-to promo product for Grossman. “A quality adhesive patch delivers high perceived value while the branding travels with the client,” he says. “Patches are popular on tech items, water bottles, backpacks and jackets, keeping your brand on the move and capturing impressions. We’ve used them in employee welcome kits, resulting in additional orders for new product launches.” Souvenir Matters / PPAI 769755, Standard Base / souvenirmatters.com Small Embroidered Hand-Cut Emblems offer a blend of affordability and craftsmanship for budget-conscious promotional campaigns. These emblems add a distinctive, custom look to items without the high costs typically associated with premium decorations. Hit Promotional Products / PPAI 266346, Platinum / hitpromo.net Like Holmes, Grossman wants to use Shoe Charms for upcoming promos. “They come in different sizes, making it easy to capture a client’s branding on a trendy, fashionforward look,” he says. “The impressive capabilities include the option to create a full-color header card that holds up to four charms, resulting in a true retail-inspired, low-cost, eyecatching promo piece.” These decorative, full-color PVC accessories snap into the holes of molded foam clogs. You can create a custom design that adds flair and personality for adults and children. Tekweld / PPAI 266346, Standard Plus / tekweld.com Rollender heads up New Jersey-based STRANDWritingServices.com. 12 • JANUARY 2025 • PPAI Essentials | Use Case
Coming January 2025 Introducing 2 New Beautiful Caps from Infinity Her ™ Black/Black Leopard/ Black Chocolate/Fawn/Chocolate Pink Sorbet/ Floral/Pink Sorbet Vanilla/ Longhorn/ Vanilla Black/Black Leopard Chocolate/ Fawn Vanilla/ Longhorn Pink/ Floral Violet/Snow Leopard Five Panel with Rope Corduroy Mesh Back
NatalyFox / Shutterstock.com Mocha Mousse: A Rich, Earthy Hue Pantone’s Color of the Year for 2025 blends comfort with luxe. By Nicole Rollender MOCHA MOUSSE is more than a color – it’s a rich, warm, indulgent mood that’s on trend and sure to make our wardrobes (and our world) a little more delicious. “Warm brown shades, ranging from rich chocolates to soft mochas, have been trending in apparel, particularly within the athleisure, loungewear and accessories categories,” says Liz Tracy, senior product designer at PCNA, the No. 3 supplier in the PPAI 100. “This shift aligns with the enduring ‘quiet luxury’ trend that emerged in 2023.” Consumers are moving away from cooler, sterile color palettes toward warmer, more nurturing hues that evoke a sense of comfort and familiarity, she adds. “Mocha Mousse embodies this desire for a sense of calm and a deeper connection to nature, a concept linked to stress reduction and relaxation.” Pantone’s Color of the Year for 2025 captures the cultural zeitgeist with its comforting, nostalgic and luxurious qualities, blending simplicity with richness. The Pantone Color Institute describes Mocha Mousse as “a mellow brown infused with a sensorial and comforting warmth. A warming, rich brown hue, PANTONE 17-1230 nurtures with its suggestion of the delectable quality of chocolate MOCHA MOUSSE Color of the Year 2025 17-1230 14 • JANUARY 2025 • PPAI Essentials | In Style
and coffee, appealing to our desire for comfort.” Mocha Mousse is already making positive waves in the promo industry. “This hue instantly sparks a desire to cozy up in comfort,” says Tara Dwyer, project director at ETS Express, a California-based supplier, “bringing you to a comfortable and calming place and even takes us back to fond memories in the kitchen with our loved ones.” Soft browns like Mocha Mousse offer versatility. “These shades serve as a sophisticated canvas that allows brand logos to stand out with sharp clarity and refined contrast, elevating the look and value of promo products,” Tracy says. This new hue aligns with current and emerging trends in fashion and consumer products, showing a shift toward quiet luxury and earthy palettes. “Brown is an incredibly identifiable color with an immense multicultural range,” says Fernanda Larriva, marketing director at ETS Express. “Mocha Mousse is easy to incorporate into wardrobes, home goods and designs, so it’ll hit the mark for people who like those earthy, natural palettes.” The new Pantone Color of the Year is versatile across many product categories, from fashion and outerwear to hard goods and popular promo items. “Rich yet muted earthy shades – each one varies in names from vendor to vendor, but rooted in tan, bone and off-white, and stone blue – entered the space in fleece and outerwear, such as overcoats and matching fleece sets and continue to layer in, especially within the heavyweight tee category for 2025,” says Christina Marcantelli, sales enablement manager at S&S Activewear, PPAI 100's No. 5 supplier. Following the rise of muted earthy tones in fleece and outerwear, Mocha Mousse’s versatile richness fits seamlessly into these color stories. “Mocha Mousse’s decadent richness, yet agreeable tone, not only complements earthy grounding color stories but can be added to just about anyone’s wardrobe if not already,” Marcantelli says. Larriva predicts Mocha Mousse will thrive in outerwear and accessories, including jackets, scarves and bags. She notes that sneakers from brands like Puma and Adidas, like the Speedcat and Samba, already feature similar shades. “Mocha Mousse isn’t limited to soft goods,” Tracy says. “It offers a distinctive, elevated aesthetic in hard goods as well. From notebook covers to pen finishes and drinkware accents, Mocha Mousse lends a rich, natural elegance that enhances a variety of materials.” The hue appeals to consumers across industries due to its luxurious, grounding qualities and ability to evoke comfort and stability. “For distributors, a great way to pitch this color is by showing how versatile and organic it is,” Dwyer says. “Including lifestyle photos or mood boards in decks and pairing them with textures or complementary colors will be key for clients to see how well they work in different contexts.” Marcantelli predicts that the universal use of Mocha Mousse will make this the most popular Pantone pick of the last several years. “This hue evokes a richness of luxury and comfort and transcends all markets and industries.” Now that you know why Mocha Mousse will be huge in 2025, check out apparel, accessories and other products in the earthy hue. PPAI • JANUARY 2025 • 15 In Style | Essentials
The Boxercraft Women’s Cuddle Cardigan (shown in Espresso Heather) is the perfect lightweight layering piece with a stylish oversized fit. This longer-length cardigan is crafted from a soft viscose/polyester/ spandex blend and features an open front, front pockets and a rounded hem. S&S Activewear PPAI 256121, Platinum ssactivewear.com The Gildan Softstyle Midweight Hooded Sweatshirt and Midweight Pocket Sweatpants (shown in Savana Brown) are made from ring-spun cotton/polyester and feature a cozy, brushed interior with a 100% cotton face. The hoodie includes a color-matched hood, dropped shoulder, pouch pocket and ribbed cuffs, while the sweatpants offer a tapered fit with slanted pockets and an elastic waistband and cuffs. S&S Activewear / PPAI 256121, Platinum ssactivewear.com Crafted from a sublimated print fabric made of 100% recycled polyester, the Imperial Outtasite Cap (shown in Frog Skin Camo/brown) offers moisture management and antimicrobial properties. Featuring a sporty structured six-panel design, mid-profile fit and woven rope detail, it also includes a pre-curved visor with a Frost Grey undervisor and snapback closure. S&S Activewear / PPAI 256121, Platinum ssactivewear.com The Women’s Hardy Eco Jacket (shown in Bark) combines recycled materials, a flattering fit and lightweight weather protection for yearround style and comfort. PCNA / PPAI 113079, Platinum pcna.com 16 • JANUARY 2025 • PPAI Essentials | In Style
The Men’s Hardy Eco Vest (shown in Bark) combines sustainable style with functionality, featuring recycled polyester, a PFC-free water-resistant coating, cozy sherpa lining and secure storage pockets. Lightweight and versatile, it’s perfect for chilly or rainy days. PCNA / PPAI 113079, Platinum / pcna.com The Wave Recycled Insulated Outdoor Blanket (shown in brown) is lightweight, waterresistant and insulated for warmth, unfolding to a spacious 50” x 60”. The blanket includes a pouch for essentials carried with a front pocket. PCNA / PPAI 113079, Platinum pcna.com People can coordinate their Mocha Mousse ensemble with the 14-oz. stainless steel Ember Mug (shown in Sandstone). This mug, with a reinforced matte coating, has added features like temperature control, a built-in battery and a smart LED light. ETS Express / PPAI 135148, Platinum etsexpress.com The HydroJug Traveler Sport (shown in Autumn Oak) is a stainless steel thermal tumbler with copper vacuum insulation, a threaded lid, a matching flip-up spout, a soft straw, a carrying handle and a powder-coated finish. ETS Express / PPAI 135148, Platinum / etsexpress.com Rollender heads up New Jersey-based STRANDWriting Services.com. PPAI • JANUARY 2025 • 17 In Style | Essentials
IDEAS TO ADVANCE THE MARKETPLACE Voices 01.25 YOUR BUSINESS p. 20 BALANCING INNOVATION AND IMPACT: As more firms embrace AI and other high-efficiency tools, keep in mind both the exciting possibilities they offer and the unseen impacts they may carry. page 22 RESPONSIBILITY ioat / Shutterstock.com PPAI • JANUARY 2025 • 19
SafaArt 1998 / Shutterstock.com Set Your Year Up For Success As we kick off the new year, promo firms should be looking toward the future and finding ways to have a successful 2025. One great strategy is setting up planning meetings with clients and potential clients, but preparing for these meetings can be challenging. While each type of client brings different needs to the table, there are several things you should bring to each meeting: • Predicted trends for the coming year. • The previous year’s results. • A calendar of relevant events and opportunities that you all can use to your advantage, such as Breast Cancer Awareness Month in October, Hispanic Heritage Month in September, etc. Of course, you’ll want to set aside an adequate amount of time for the meeting. It’s Here are some tips for scheduling the perfect planning meeting with clients. By Lindsey Davis, MAS 20 • JANUARY 2025 • PPAI Voices | Your Business
Your Business | Voices a full year, so don’t rush. Leave plenty of time for brainstorming and feedback. Here’s how to plan for a productive planning meeting with clients in each stage of the business relationship. Prospective Clients If you’re looking to secure potential clients, you must first become an expert on their business and what drives their market. What are their strengths? What are their challenges? What opportunities could help them grow? If you’re not able to offer solutions to their problems, you haven’t done enough research. Another way to secure prospects is by making sure the right people from their firm are in the room. This means not only having the decision-makers (although they do matter) present, but also creatives, merchandisers and people who will be using the product. Getting full buy-in will drive success so that they become a long-term customer. If you really want to impress future clients, make sure to ask great questions that show you not only did your research on the company but also that you were attentive during your meeting. These questions should demonstrate that you have a good grasp on their brand by including examples of their business practices. Clients You’re The ‘X Guy’ For These are clients who may think of you as the “pen guy”– meaning that even though you already create or sell a specific type of product, you want more business from them. For these clients, ensure that you bring results that show how you helped them achieve their goals. Detail the ways you assisted them and home in on the fact that you can continue giving them the results they need. Also, bring suggestions and trends that will continue to elevate their company. Come with clear goals and metrics that indicate how exactly you’ll help them. Bring Promotional Products Work! stats to help them understand why they should choose promo instead of otheradvertisers. Your Big Customers Keeping a strong bond with big customers that you’ve either had a longterm relationship with or who make up a big chunk of your business is essential to ensuring your success. Show them they matter to you by saying thank you. Bring personalized spec samples of products instead of generic versions to illustrate that you go above and beyond. Something else that helps you grow with your clients is asking for an internal referral – possibly over lunch – to get your foot in the door with other departments. This can help them understand why leveraging your relationship brings continuity and (frankly) better pricing. Finally, present them with a recommended plan based on their budget. You know – or at least you should know – their spend goals, branding and ways to make a strong recommendation for a promo plan that will drive success. These strategies should help to diversify your revenue and grow your business over the coming year while simultaneously focusing on retention. Watch out for March’s column about diversifying your revenue! Davis is PPAI’s director of sales and professional development. If you really want to impress future clients, make sure to ask great questions that show you not only did your research on the company but also that you were attentive during your meeting. PPAI • JANUARY 2025 • 21
Voices | Responsibility ioat / Shutterstock.com Balancing Innovation And Impact: The Environmental Trade-offs Of AI As more firms embrace AI and other high-efficiency tools, keep in mind both the exciting possibilities they offer and the unseen impacts they may carry. By Elizabeth Wimbush ARTIFICIAL INTELLIGENCE is reshaping industries around the world, and the promotional products industry is no exception. AI has become an invaluable tool, offering ways to work smarter, faster and with more precision. From predicting trends to streamlining operations, AI can help us reach new levels of efficiency. But as with any tool, it’s worth pausing to reflect on both the benefits and the trade-offs. As we adopt more high-efficiency tools, including AI, we might also unknowingly increase our environmental footprint. As the director of sustainability and responsibility at PPAI, I’d like to share a balanced view on AI’s environmental impact, considering both its benefits and its lesser-known costs. Together, we can embrace AI thoughtfully, ensuring it aligns with our sustainability goals and values. A Look At AI’s Energy Use One of AI’s most attractive qualities is its efficiency. AI can process data at speeds and volumes that humans can only dream of, helping us make better, faster decisions. But behind this seemingly effortless power is an often-overlooked cost: energy. Every time we train, update or even just use AI systems, we ask large data centers to run complex computations. These processes require a lot of energy, and, unfortunately, this energy doesn’t come without a footprint. McKinsey recently highlighted that data centers in the United States alone are expected to As we adopt more high-efficiency tools, including AI, we might also unknowingly increase our environmental footprint. 22 • JANUARY 2025 • PPAI
Responsibility | Voices consume 606 terawatt-hours of electricity by 2030 – an increase from 147 TWh in 2023. That’s over 11% of the country’s total power demand, largely driven by the rise of AI and other data-heavy technologies. In simple terms, training a single large AI model can emit as much carbon as five cars over their lifetime. These figures give us a sense of the environmental cost that goes largely unseen, and knowing can help us make more informed decisions. AI And Scope 3 Emissions: An Unexpected Contributor For companies tracking sustainability goals, it’s important to remember that the energy used by AI doesn’t just affect the company running the data center. When we use AI tools hosted on third-party servers, their emissions become part of our Scope 3 emissions, which include indirect emissions produced by others within our value chain. For companies increasingly using cloudbased AI solutions, these emissions add up, contributing to the overall environmental impact associated with our operations. Promotional products companies are beginning to widen the scope of their sustainability metrics, looking beyond physical products to digital tools and technologies. As we set sustainability goals, it’s worth considering that even the invisible forces powering our AI can have realworld environmental impacts. How To Make Informed Choices About AI Being aware of the trade-offs allows us to make more intentional choices about how and when to use AI. Adopting AI thoughtfully doesn’t mean avoiding it altogether – it’s about deciding where AI will have the most meaningful impact and where other, less energy-intensive options might serve us just as well. For instance, in design and trend prediction, AI can be a gamechanger, helping us understand customer preferences and reduce waste by forecasting more accurately. But when it comes to routine tasks, like analyzing basic data or creating social media content, traditional tools might accomplish the job without incurring the same environmental cost. By viewing each decision with an environmental lens, we can use AI where it brings significant value and explore alternatives where it doesn’t. Developing A Responsible AI Policy One approach to managing AI thoughtfully is to set an internal policy that guides how and when it’s used. Consider exploring ways to integrate sustainability into your AI strategy, creating guidelines that make environmental impact a factor in the decision-making process. For example, you might choose to limit the frequency of energy-intensive processes or prioritize AI providers who power their data centers with renewable energy. Simple adjustments, like moving from daily to quarterly reports, can make a meaningful difference in energy consumption. In short, an internal AI policy can help us keep sight of our sustainability goals, providing a framework to use AI efficiently and responsibly. Moving Forward Thoughtfully The promise of AI is tremendous, and its potential for enhancing our work is undeniable. Yet, as we step into a future filled with advanced technology, let’s remember that every decision we make has an impact both on our businesses and the planet. For the promotional products industry, our commitment to sustainability extends beyond the products we create. It’s about embracing the mindset that every part of our operations, from physical goods to digital tools, contributes to our overall environmental footprint. By considering the trade-offs and making thoughtful choices, we can set a standard of responsible innovation that not only drives us forward but does so with respect for the planet. As we adopt AI and other high-efficiency tools, let’s do so thoughtfully, keeping in mind both the exciting possibilities they offer and the unseen impacts they may carry. In this way, we can continue leading the way in sustainable innovation, showing that we value both progress and the planet we all share. Wimbush is PPAI’s director of sustainability and responsibility. PPAI • JANUARY 2025 • 23
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STORIES TO KEEP AND USE Must Read 01.25 page 40 ULTIMATE HONORS Jonathan Isaacson and Mark Jenkins, MAS+, join the illustrious PPAI Hall of Fame. FEATURE WHAT'S NEXT p. 28 OUT IN THE OPEN p. 36 PROMOTIONAL PRODUCTS WORK p. 56 PPAI RESEARCH p. 62 PPAI • JANUARY 2025 • 27
Must Read | Decoration Legislation and Compliance Promo leaders approach regulatory shifts with caution. PPAI research shows it’s time for the industry to become more informed. By Rachel Zoch 28 • JANUARY 2025 • PPAI
Ongoing regulatory updates continue to present operational challenges for the promotional products industry, particularly when it comes to complying with environmental standards, product safety regulations and rules for packaging and labeling. A fall 2024 survey of PPAI member firms highlights the realities of this regulatory landscape, revealing not only the kinds of challenges faced but also the critical need across the board for information and support from PPAI. Here, we take a look at the issues cited as most pressing by PPAI members in two recent surveys, as well as how some of them are preparing for future shifts. Legislation and Compliance | Must Read “You adapt, evolve, compete or die.” – Paul Tudor Jones PPAI • JANUARY 2025 • 29
Regulatory Impacts An August 2024 survey of PPAI 100 firms revealed that 34.8% of suppliers and 31.3% of distributors say they are “significantly impacted” by recent compliance regulations. Rising costs were perhaps the most substantial burden cited by those respondents, highlighting the growing financial impact of meeting regulatory standards. The majority of PPAI 100 companies reported grappling with rising compliance costs over the past year, with 56.3% of distributors and a whopping 86.9% of suppliers experiencing an increase in expenses for certifications, audits, sustainability measures, legal fees and other compliance activities. Compliance Challenges Navigating costs, complexity and change pose significant challenges for PPAI 100 suppliers and distributors alike. Frequent regulatory updates, increasing costs and complex regulations were the main challenges noted by this group, with resource and skills gaps further complicating compliance efforts. • Regulatory changes: 95.7% of suppliers and 64.3% of distributors said they struggle with keeping up with changing regulations. • Costly compliance: 60.9% of suppliers and 64.3% of distributors said they face high compliance costs. • Unclear rules: 73.9% of suppliers and 50% of distributors said they find regulations complex and unclear. Distributors in particular said they struggle with access to compliance resources and personnel. More than a third (35.7%) of distributors in the PPAI 100 survey reported limited access to compliance resources and said they lack skilled compliance personnel. Knowing Is Half The Battle For distributors and suppliers alike, regulatory awareness is an essential first step toward compliance, but the pace of change can make it difficult to stay on top of current requirements. Results of the broader member survey in the fall reveal a knowledge gap across the industry (see Figure 1): • Fewer than 1 in 5 (19.6% of distributors and 13.3% of suppliers) reported feeling “very familiar” with current or upcoming regulatory changes, leaving a significant portion of the industry vulnerable to compliance risks. • While a larger segment (42.3% of distributors and 40% of suppliers) reports feeling “somewhat familiar,” 30.9% of distributors and 36.7% of suppliers describe themselves as “not very familiar” or even “not familiar at all.” These numbers underscore a critical need for accessible, up-to-date information to help promo firms stay compliant. PPAI has expanded its commitment to providing timely, accessible information to all members through its research and media team to help members bridge this gap and empower them to make informed decisions and maintain operational compliance. “As regulatory demands grow more complex, proactive compliance isn’t just about following rules – it’s about ensuring long-term resilience and competitiveness for our members,” says Alok Bhat, market economist, research and public affairs lead. “By providing timely insights and strategic resources, we’re helping firms navigate these shifts with confidence.” FIGURE 1: How familiar are you with currently proposed or soon-to-be-effective regulatory or legislative changes (e.g., environmental, trade, data privacy, labor, etc.) that impact the promotional products industry? Distributors Suppliers Very familiar 19.6% 13.3% Somewhat familiar 42.3% 40% Not very familiar 31.2% 36.7% Not familiar at all 6.9% 10% “The increased cost, supply chain delays and budget adjustments due to future trade tariffs and import restrictions will be the key adverse impacts on our business in general for the next four years,” Sanjay Kotia, MAS, manager of product compliance and quality assurance for SnugZ USA Listen Up Must Read | Legislation and Compliance 30 • JANUARY 2025 • PPAI
Top Regulatory Concerns Members indicated a wide range of concerns when asked which regulatory areas they anticipate will have the most impact on their businesses in the next four years. Although product safety regulations were a focus in the earlier PPAI 100 survey results, they took a backseat to tariffs, environmental standards and data privacy in the broader member survey conducted later in the year (see Figure 2): • Tariffs and trade restrictions emerged as a top priority. Presidentelect Donald Trump has pledged to make significant tariffs – particularly on goods imported from China – a cornerstone of his economic agenda, and 38.3% of distributors and a significant 80% of suppliers view these as a potential disruption to their business models. “The increased cost, supply chain delays and budget adjustments due to future trade tariffs and import restrictions will be the key adverse impacts on our business in general for the next four years,” says Sanjay Kotia, MAS, manager of product compliance and quality assurance for SnugZ USA, the No. 7 supplier in the PPAI 100. “We will also be mindful about strategic adaptations for reshoring or nearshoring if tariffs will be imposed on China to mitigate broader import risks.” • Environmental regulations were also high on the list, with 24.5% of distributors and 53.3% of suppliers anticipating challenges tied to sustainability requirements, bans on specific chemicals (like PFAS) and extended producer responsibility for packaging. “Environmental regulations often require businesses to adapt their production processes, source sustainable materials or eliminate singleuse plastics, which may lead to increased costs and operational changes,” says Heidi Koch, senior product manager for Cap America, the No. 18 supplier in the PPAI 100. “However, these measures can also present opportunities to align with consumer demand for eco-friendly products and achieve long-term benefits.” • Data Privacy Regulations such as the California Consumer Privacy Act and Europe’s General Data Protection Regulation concern 28.7% of distributors and 10% of suppliers – a clear indication of the growing “Environmental regulations often require businesses to adapt their production processes, source sustainable materials or eliminate single-use plastics, which may lead to increased costs and operational changes,” Heidi Koch, Senior product manager for Cap America FIGURE 2: Which of the following regulatory changes or legislative actions do you anticipate having the most significant impacts on your business in the next four years? Distributors Suppliers Environmental regulations 24.5% 53.3% Trade tariffs and restrictions 38.3% 80.0% Data privacy regulations 28.7% 10.0% Labor and ethical sourcing regulations 36.2% 26.7% Product safety and compliance standards 25.5% 43.3% Packaging and labeling requirements 22.9% 33.3% Intellectual property and trademark regulations 19.1% 3.3% Anti-counterfeiting and brand protection measures 20.7% 6.7% Health and safety regulations 17.0% 3.3% Import/export compliance 17.0% 43.3% Consumer protection and product recall regulations 18.6% 6.7% Advertising and marketing compliance 10.1% 13.3% Other 0.5% 13.3% Watch Out Legislation and Compliance | Must Read PPAI • JANUARY 2025 • 31
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importance of secure data handling practices in the industry. • One distributor respondent said: “One of the most pressing concerns for our business is the evolving landscape of cybersecurity regulations. With the increasing number of data breaches and cyber threats, we are closely monitoring new laws that may require us to implement additional security measures to protect our customers’ data.” Operational Impact The impact of these regulations goes beyond theoretical concerns. Many of these laws have already begun to reshape business operations in meaningful ways (see Figure 3): • 13.3% of distributors and 23.3% of suppliers report that regulatory updates “significantly affect” their operations, while 42.6% of distributors and 43.3% of suppliers say they are “moderately affected.” For some, these impacts translate to increased compliance costs, operational inefficiencies or even shifts in business strategy and hiring to meet new standards. “We have taken and continue to take steps to monitor industry trends, building a regulatory compliance team, collaborating cross-functionally, leveraging expert networks provided by PPAI and investing in sustainable products and ethical practices,” says Kotia. At the product level, some suppliers have had to adjust their product formulations due to state-level bans on “forever chemicals” like PFAS, while companies reliant on imports from China expect tariffs that will directly affect their bottom lines. • One distributor respondent said: “International trade policies, including tariffs and trade agreements, are critical for our business, especially since we rely on a global supply chain. Any disruptions in trade could lead to increased costs or limited access to certain markets.” Ryan Paules, chief swag officer of Los Angeles-based Radar Promotions, says he understands the goal behind any administration’s use of tariffs, but history has shown that this always results in higher costs and prices. “As a distributor, we rely on our supplier partners to keep up on the tariffs, as they are almost always the importer of record on the raw/blank products they are sourcing. This largely insulates us from the administrative burden of this issue,” he says, “but make no mistake, tariffs are passed onto the price of the product just like any other variable cost of doing business, whether it’s raw materials, labor costs or governmental fees.” Industry Readiness The industry’s preparedness to meet these challenges is mixed: FIGURE 4: How prepared is your company to adapt to future regulatory changes in the promotional products industry by tracking and anticipating updates? Distributors Suppliers Very prepared 22.3% 43.3% Somewhat prepared 43.1% 36.7% Not very prepared 30.9% 20.0% Not prepared at all 3.7% 0% FIGURE 3: To what extent do regulatory updates affect your business operations in the average year? Distributors Suppliers Do not affect operations 2.7% 6.7% Slightly affect operations 41.5% 26.7% Moderately affect operations 42.6% 43.3% Significantly affect operations 13.3% 23.3% “We have taken and continue to take steps to monitor industry trends, building a regulatory compliance team, collaborating crossfunctionally, leveraging expert networks provided by PPAI and investing in sustainable products and ethical practices,” Heidi Koch, Senior product manager for Cap America Take Action Legislation and Compliance | Must Read PPAI • JANUARY 2025 • 33
• While 43% of suppliers feel “very prepared” to adapt, only 22% of distributors share that sentiment (see Figure 4). This disparity underscores a need for enhanced resources, especially for smaller firms that may lack dedicated compliance teams. • More than half (56%) of suppliers and onethird (33%) of distributors face resource and time constraints, and 40% across the board say they struggle to understand complex regulations (see Figure 5). • 89% of suppliers and 41% of distributors want more regular updates on regulatory changes (see Figure 6). • 65% of suppliers and 56% of distributors call for additional educational resources to stay informed about the regulatory landscape. It’s clear that both distributors and suppliers need support in navigating regulatory changes, and PPAI is dedicated to addressing these through enhanced reporting and advocacy efforts. The Association engaged Thorn Run Partners, a top Washington lobbying firm, to amplify the industry’s voice in the halls of Congress. (See page 36 for more.) And PPAI Media published more than 100 articles covering regulatory and governance issues in 2024, covering a range of topics from PFAS regulations and extended producer responsibility laws to product sfety updates, recalls and much more. These were shared through PPAI’s Newslink e-newsletter, as well as via social media. PPAI is committed to supporting a resilient industry as regulatory Must Read | Legislation and Compliance FIGURE 6: What actions would you like to see PPAI take to help members better navigate regulatory and public affairs challenges? Distributors Suppliers More regularly update members on key regulatory changes and their impacts 41% 90% Increase investment in lobbying and advocacy 41% 28% Provide further educational resources on political and regulatory impacts 56.4% 65.5% Further facilitate connections between members and policymakers 26.6% 27.6% Other 2.1% 3.4% FIGURE 5: What challenges does your company face in keeping up with public affairs and regulatory changes? Distributors Suppliers Lack of resources or time to monitor changes 33.3% 56.7% Difficulty understanding complex regulations 38.6% 40.0% Costs associated with compliance 42.9% 63.3% Lack of access to reliable information 28.6% 16.7% Limited internal expertise 27.5% 30.0% Other 3.2% 3.3% Compliance may be challenging, but with PPAI’s proactive support, promotional products firms can navigate this complex landscape with confidence. Together, we can adapt to new regulatory realities, turning challenges into opportunities for growth, innovation and sustainable success. Adapt & Grow 34 • JANUARY 2025 • PPAI
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