Must Read | The State of Growth 2024 Supplier Benchmarking “In reviewing all the numbers, we see signs of a healthy industry that continues to experience strong growth, even though it’s in the mature quadrant of its life cycle,” says Brad Bartlett, president and owner of Dallas-based supplier Opti Print & Fulfillment. TABLE 3: Active Distributor Company Clients PPAI 100 Suppliers 7,905 Suppliers $100M+ 11,568 Suppliers $50M-$100M 10,330 Suppliers $25M-$50M 7,004 Suppliers $5M-$25M 2,850 Suppliers Under $5M 488 The average number of distributor clients among the industry’s largest suppliers (11,568) shows the breadth of promo’s distributorships and the diversity of possibilities that suppliers have with their potential partnerships. The much smaller number when it comes to the under $5 million segment might be attributed to a ceiling in the number of distributor clients some smaller suppliers may be able to partner with given their available resources, but it also speaks to the value of the relationships those suppliers have with the distributor partners with whom they maintain active business. TABLE 4: Order Count PPAI 100 Suppliers 367,412 Suppliers $100M+ 1,183,781 Suppliers $50M-$100M 151,067 Suppliers $25M-$50M 45,848 Suppliers $5M-$25M 22,648 Suppliers Under $5M 4,905 Order count refers to the number of orders processed by a supplier over the course of 2023. Scott McFadden, CFO at Bag Makers – ranked the No. 29 supplier in the 2024 PPAI 100 – Due to changes in the groupings and adding a sixth band to the report, we’re not easily able to compare this year’s results with last year’s. Regardless, the following survey questions, which were also used to score the 2024 PPAI 100 Growth category, reveal how suppliers compare to one another. TABLE 1: Revenue Change Since 2020 PPAI 100 Suppliers 33% Suppliers $100M+ 46% Suppliers $50M-$100M 54% Suppliers $25M-$50M 50% Suppliers $5M-$25M 53% Suppliers Under $5M 54% It’s no surprise that revenue has increased by a significant amount since 2020 for all supplier respondents, considering that was an outlier year due to the effects of the COVID-19 pandemic on the market. Chris Anderson, CEO of HPG – ranked the No. 6 supplier in the 2024 PPAI 100 – says the report tells the story of the industry, generally, returning to pre-pandemic levels. “However, upon closer examination, it becomes clear that the larger suppliers and those who are investing in technology, in their employees, in meaningful sustainability initiatives and in new product development and capital investments are generally outpacing the market,” Anderson says. “Distributors are voting with their dollars and, increasingly, they’re directing that spend to the suppliers that are investing in the future of the industry.” TABLE 2: Gross Profit Margin PPAI 100 Suppliers 37% Suppliers $100M+ 31% Suppliers $50M-$100M 39% Suppliers $25M-$50M 32% Suppliers $5M-$25M 46% Suppliers Under $5M 33% Chris Anderson Brad Bartlett 44 • JULY 2024 • PPAI
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