PPB July 2020

nomatter our size. We have to evaluate our relationships and create fair partnerships going forward, too. This future is not about who can supply the lowest price, as somany suppliers have been ‘flying too close to the sun’ when it comes tomargins and being prepared for crises like this. If you think about the tariffs, COVID and the social unrest we are living through, it should be a reminder that we all need to work together to create a positive future for all.” For BrandonMackay, MAS, president of SnugZ USA inWest Jordan, Utah, the pandemic and lockdown “caused havoc on our business fromA to Z. Every day is a Monday here and we just try to solve one problem, concern or crisis at a time,” he says. In April, the company was among many that stepped up to provide PPE. For SnugZ, it was die-cutting and kitting five millionmedical-grade face masks for local health-care workers. The massive job required precise teamwork, and the pandemic uncovered a number of opportunities for the team to learn what it was capable of. “First, it has put an emphasis on family-first,” says Mackay. “If that is not a cornerstone of your business, then it’s all for naught. The SnugZ USA teamhas rallied to help out all areas of the business not just to provide an A-plus job for our customer while dealing withmind-bending adversity, but we’ve also tried to help out with an all-hands-on- deck mentality to get people out of here to spend time with their families.” During the height of the pandemic, SnugZ was able to transitionmore than 75 positions to work at home to protect their safety and allow employees to care for their children who were without daycare, schools and activities. “I think this has again emphasized our SnugZ values of ‘think big, work like crazy, care passionately and do what is right,’” he says. Now that the country is opening back up, he’s thinking about industries that are not doing so yet. “Like many promotional products suppliers and distributors, we have a weighted portion of our businesses in travel, events, conventions andmeeting planning. These segments being shut off like a valve has been an extreme challenge, andmany of these looking like they won’t return until 2021 has left a huge void in our business,” Mackay says. His best guess on when sales might return is fourth quarter of 2021. “Let’s be honest, this is a guess since so much is dictated by fear and testing.” This year was a double negative one for many suppliers, Mackay says. “We had Chinese New Year followed by COVID. On top of that, when product did show up it was the wrong merchandise. We became heavily weighted in inventory that was unsellable in the short time frame due to the shift to PPE. The immediate shift to PPE left us with little to no inventory for 90 days as the supply chain caught up the best it could. Now everyone is trying to sell PPE regardless of quality and vetting of vendors. It’s unfortunate that quality and safety have taken a back seat to just shipping product.” Despite the events of the past few months, Mackay has faith in the power of promotional products. “I’m very bullish on promo and always will be,” he says. “There is not a means of advertising and corporate branding that is equal to this industry. If we, as Americans, always believe in the American Dreamof an idea leading to success and a better life, then we’ll always have an industry, and SnugZ will always have a customer to sell branded merchandise to. As I reflect over the past 90 days, I have faith in our distributor partners tomake a comeback for all of us." Rich Carollo, president of Chicago- based Lion Circle Corporation, says his company was deemed an essential business and remained open but sales during the first few months were down significantly. Most of the company’s products, such as hand fans, are festival- and event-driven and that segment of industry has taken a huge hit. But the nice thing, he says, is that some of his lower-profile products, such as coloring books and food packaging, have become more popular for companies sending gift Brandon Mackay, MAS President, SnugZ USA Rich Carollo President, Lion Circle Corporation I’m very bullish on promo and always will be. There is not a means of advertising and corporate branding that is equal to this industry. Brandon Mackay, MAS, president of SnugZ USA Supplier Insights | FEATURE | JULY 2020 | 45