TABLE 4: Order Count Suppliers $100M+ 9,761 Suppliers $25M-$100M 7,594 Suppliers $10M-$25M 2,759 Suppliers $3M-$10M 1,854 Suppliers Under $3M 333 Order count refers to the number of orders processed by a supplier over the course of 2024. “This table aligns very closely with our reality,” Kanak says. “While revenue has held steady, our order volume has declined. This divergence suggests a shift toward larger average order values or fewer, higher-value transactions. It’s a symptom of a more cautious, value-conscious buyer in today’s uncertain climate – what economists might refer to as a ‘flight to quality’ amidst tighter budgets and elevated interest rates.” TABLE 5: Sample Costs Suppliers $100M+ 1% Suppliers $25M-$100M 1% Suppliers $10M-$25M 3% Suppliers $3M-$10M 3% Suppliers Under $3M 3% The average percentage spent on samples has remained consistent since last year, suggesting that suppliers have maintained efficient systems for helping clients and distributors preview products. While producing and shipping samples is an essential aspect of the business, it’s reassuring that these expenses remain relatively minor overall. TABLE 6: Integrated Order Percentage Suppliers $100M+ 39% Suppliers $25M-$100M 41% Suppliers $10M-$25M 20% Suppliers $3M-$10M 29% Suppliers Under $3M 15% “This is an area of opportunity – and admittedly, a challenge – for suppliers like us,” Kanak says. “At just 20% integration, the mid-tier still lags behind larger suppliers. Investments in API integration and automation can be significant up front, and ROI isn’t always immediate. But with growing expectations for speed and transparency, it’s clearly a space we’ll need to continue investing in – and we want to do so. TABLE 7: Factory Employee Turnover Rate Suppliers $100M+ 15% Suppliers $25M-$100M 18% Suppliers $10M-$25M 16% Suppliers $3M-$10M 7% Suppliers Under $3M 14% As in previous reports, turnover in factory positions tends to be higher than for office employees. Many employees are willing to look for opportunities that offer better pay or more favorable conditions than their current place of employment. Bhavnani predicts that factory turnover will only increase as firms cut back on expenses to mitigate the strains of the economy. The State of Growth 2025 | Must Read “We’ve leaned into product differentiation and country of origin to preserve margin integrity, even as material and labor costs continue to challenge the bottom line.” – SHAWN KANAK, PRESIDENT OF TOWEL SPECIALTIES PPAI • JULY 2025 • 35
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