The Conference Board analysis points to a relatively mild and short-lived recession, however. One factor making this recession unique is that it may be “jobs full.” The country’s existing labor shortage should blunt the recession’s impact on employment. Industry and the finance world share a similar view. During a quarterly earnings call in April, Brian Moynihan, CEO of Bank of America, also forecast a mild recession. He cited the country’s essentially full employment levels and easing inflation as moderating its influence. One wild card that could throw all of this out the window is the potential for a debt limit showdown in Congress. As Dr. Lori Esposito Murray, president of the Committee for Economic Development, the public policy center of The Conference Board, noted during the media briefing, “It’s very easy to have the crisis and hit the cliff. It’s harder to recover from it.” Promo And A Downturn However the economy performs, businesses in the promotional products market should continue to find customers for their goods and services. PPAI’s own research shows that even in a down economy, promotional products can be as valuable as ever. In fact, promo’s value to its end users, relative to other forms of advertising, only goes up during a downturn. In February, PPAI conducted a survey of more than 480 consumers asking about their attitudes toward different forms of advertising during periods of economic hardship they’ve experienced. PPAI found that during times of economic hardship, 59% of people would rather receive a useful promotional product than be exposed to ads on television, social media, radio and other forms of advertising. “The results are clear: Promotional products make people feel special, especially when times are tough,” says Robert Fitzpatrick, PPAI research manager. “Whether employers are aiming to boost morale or businesses are trying to reach new customers, promotional products can help. Not only do people want more useful promotional merchandise, but they’re open to it coming from brands they’re familiar with and brands they’re new to. Promotional products strengthen the loyalty of existing customers and employees, while also opening the door for building relationships with new clients.” Managing A Business Downturns can put significant demands on a company and its staff. Affected businesses may struggle with budget cuts, staffing shortages and other pressures. Employees can be under considerable strain as they work to do more with less. For most businesses, the COVID pandemic was the most recent downturn. Promo industry businesses contended with it along with everyone else. “Social Good Promotions was incorporated in January 2019 and really got off the ground April/May of that same year. We were very much still in our infancy when COVID hit and turned our world upside down,” says Kara Keister, MBA, MAS, co-owner of and promise keeper at Carey, Ohio, distributor Social Good Promotions. “Our strategy during that time was to utilize our small size to our advantage and lean into our business model and core values. Our business is fully remote, so we were already set up to work from home successfully. Our team was also very small at a total headcount of two, so we were able to quickly reduce or eliminate salary and overhead costs where many larger distributorships could not.” For larger organizations, the data from PPAI’s study shows that promotional products are valuable tools for building and reinforcing employee loyalty and a collaborative environment. The Association’s survey found that: • 53% of people feel included in their team when they receive promotional products. • 62% feel appreciated by their employer when they receive promotional products. • Employees between the ages of 47 and 74 are the most likely to feel appreciated when receiving promotional products from an employer. Data from the U.S. Census Bureau shows the highest median incomes among Americans between the ages of 45 and 54, so this can explain in part why a gift versus more money may make employees in this age group feel more appreciated. Must Read | Promo In A Down Economy PPAI found that during times of economic hardship, 59% of people would rather receive a useful promotional product than be exposed to ads on television, social media, radio and other forms of advertising. 66 • JUNE 2023 • PPAI
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