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PPB
• JULY 2016
GROW
ALTHOUGH MANY DISTRIBUTORS ARE OPTI-
MISTIC
about their company’s growth in 2016,
there are fewer who expect increased profit
margins (62 percent) in 2016 compared to
the expectations for 2015 (66 percent), espe-
cially among small distributors. Fewer in this
group have a positive outlook regarding sales
(65 percent) or profit (60 percent) for 2016 in
comparison to 2015 (68 percent and 65 per-
cent, respectively). The downturn in the oil
and gas industry is expected to continue hav-
ing a negative impact on many distributors,
particularly in Texas.
However, companies that participated in
the 2015 survey remain optimistic both
about sales and profits for 2016, especially
large distributors. More than
three-quarters of large distribu-
tors feel confident about their
sales (85 percent) and profit (76
percent) forecast for 2016.
Although, historically, large
distributors are more likely to pre-
dict higher sales and profits for the
upcoming year than smaller com-
panies, there are significantly more
large distributors who predict
higher sales and profit margins for
2016 compared to their predictions
for 2015, while smaller firms’ pre-
dictions remain relatively
unchanged.
PPB
spoke with the principals
at eight small, mid-sized and large
distributor companies to see what
they are expecting economically
for 2016 and to ask about the
challenges and concerns that are
keeping them up at night.
Anita Emoff
CEO and Majority Owner
Shumsky/Boost Rewards
(UPIC: SHUMSKY)
Dayton, Ohio
Company:
Shumsky was founded in 1953
by Hy and Elsie Shumsky, grandparents of
owner Michael Emoff. In 1984, Michael and
his mother, Jayne Miller, took over the com-
pany. Since then Shumsky has expanded into
brand verticals including recognition (Boost
Rewards) and medical recovery pillows
(Shumsky Therapeutic Pillows). Anita joined
the company in 2006 and in 2009 became
president of Boost Rewards. In 2013, Boost
and Shumsky were merged into one entity
with Anita named CEO and majority owner
of the Shumsky and Boost brands. The com-
bined companies continue to grow with a
focus on differentiation (including traditional
and custom promotional products, promo-
tional e-commerce, fulfillment and point-of-
sale) to define their space in the market verti-
cals they serve, which includes technology,
healthcare, automotive/transportation and
retail/consumer packaged goods.
Economic Outlook:
“Our bookings are
up 16 percent YTD and our billings are up
seven percent,” says Emoff. “We expect to
end the year up around 10 percent. Our
How’s Business In 2016?
Most Distributors
Anticipate Finishing Strong
65%
27%
8%
82%
13%
5%
67%
25%
8%
Greater
Than
2015
Same
As
2015
Less
Than
2015
Under $2.5
Million
Over $2.5
Million
All
Distributors
FIG. 10
//
Distributors’ 2016
Sales Predictions
2015 PPAI
DISTRIBUTOR SALES VOLUME REPORT