Outlook 2024 | Must Read with the International Brotherhood of Teamsters over the summer. • West Coast ports are receiving uninterrupted U.S. imports from Asia again after the International Longshore and Warehouse Union reached an agreement with the Pacific Maritime Association, which represents port operators. Plus, the Panama Canal continues to face restrictions as an ongoing drought has reduced the waterway’s utility and threatens to cause greater problems if weather conditions don’t change. As a result, vessel capacity on all-water shipments from Asia to the East Coast has been reduced – some as much as 40% – in order to avoid hitting the bottom with water levels so low. 15% | Perception Of Poor Quality Tying into price competition is “the negative perception that promotional products are unnecessary, brandfill and a waste of money,” according to one distributor. The only way to combat that perception, another distributor argues, is to “get rid of ‘cheap’ promo,” such as items with a short shelf life and no real purpose. The industry must rally together to educate the public on what exactly promo firms provide: creative branding solutions, not low-quality giveaways, trinkets and tchotchkes. “As a younger consumer, I appreciate items from companies that have meaning and are useful for the long term,” a responding supplier says. “Otherwise, it’s going to stay in a drawer for a few months until I do my next seasonal cleaning. The $1 item is no longer appreciated. Everyone can get one of those in whatever print they want online, so why would they want it with your company’s logo?” The same supplier adds, “I appreciate the need for companies to market their brand, but the cheap items turn me off to a brand. I’d rather see them do a digital marketing push and skip the ‘junk’ promo just to get their name out there.” 11% | Sustainability Concerns If the promo industry wants to erase its “brandfill” reputation, more suppliers and distributors must prioritize sustainability. After all, consumers are increasingly demanding eco-friendly products to lessen their environmental impact. Plus, weaknesses in areas like sustainability could intensify threats from increased regulation and changing consumer preferences. “It would be great if suppliers would highlight their sustainability efforts on the homepage of their website,” a responding distributor says. Roughly 31% of the products suppliers sold in 2022 and nearly a quarter (24%) of the products that distributors sold in 2022 were marketed as sustainable, according to The State of Responsibility 2023. PPAI is taking sustainability seriously. This year, the Association hired industry veteran Elizabeth Wimbush as its first-ever director of sustainability and responsibility. “An educated distributor sales force that pushes suppliers for what their end users increasingly ask for – sustainable options for product and a more transparent journey for those products into their hands – will be part of the push forward for our industry,” Wimbush says. Elizabeth Wimbush Consumers are increasingly demanding eco-friendly products to lessen their environmental impact. Plus, weaknesses in areas like sustainability could intensify threats from increased regulation and changing consumer preferences. PPAI • JANUARY 2024 • 69
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