PPAI Magazine July 2026

IN THIS ISSUE P PA I . ORG/ MED I A 07.26 p. 30 From GDP to job creation, an upcoming report will reveal the industry’s true global economic value. Polos, Permanently p. 16 The State of Growth p. 22 Woman of Achievement p. 36 PPAI Magazine's NEW LOOK Coming Next Issue!

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4 From PPAI AI Can’t Replace This 7 Creative Calendar Essentials 10 Use Case Products That Solve Problems For Older Adults 15 Solutions Spotlight Human Resources 16 In Style The Polo Must Read 40 PPAI Pyramid Awards Supplier Decorating 2026 Winners 54 Bots And Brands Branded Merch Ready For The Booming Robotics Market Community 60 PPPC Communiqué PPPC Catalyst 2026 Shapes The Future Of Branded Merchandise 63 New Members 67 Datebook 72 Perfect Promo CONTENTS 07.26 VOLUME 50, ISSUE 06 The State Of Growth 2026 PPAI Research has examined benchmarking data on revenue growth and other business fundamentals from distributors and suppliers of all sizes. 22 Heart Of A Leader Woman of Achievement Winner Renée Jones, MAS+, uses her positive energy to better the world around her, even in small ways. 36 Something BIG Is Coming A forthcoming study commissioned by PPAI measures branded merch through more than just traditional distributor sales. From GDP to job creation, the report will reveal the industry’s true global economic value. 30 22 36 PPAI® 30 PPAI • JULY 2026 • 3

From PPAI Danny Rosin, CAS Board Chair 07.26 AI Can’t Replace This BY NOW, WE ARE ALL drinking the flavored Liquid Death around artificial intelligence. AI is changing the branded merch industry. We are experiencing faster search, smarter automation, better forecasting, instant artwork generation and streamlined operations. Yet, while AI can analyze customer behavior, it cannot explain why stress balls refuse to die. AI might be able to generate 400 product ideas in 12 seconds, but somehow a client still picks the cheapest pen. So, there’s good news: The most valuable resource of our industry is still deeply human. AI cannot replace trust. To borrow a phrase from MC Hammer, AI can’t touch this. (You’re welcome for the earworm.) It cannot replace the feeling a client gets when you solve a problem before they ask. It cannot replace creativity rooted in empathy. It cannot replace relationships built over years of showing up, solving crises, calming nerves before events, finding impossible inventory, navigating tariffs or delivering ideas that make people feel something. Technology may level the playing field operationally, but it will widen the gap relationally. That is why trust is quickly becoming our industry’s greatest advantage. The distributors and suppliers who thrive will be the ones customers trust to guide them through uncertainty, complexity and change. The ones who combine innovation with humanity, speed with wisdom and automation with originality. This moment should not scare our industry. It should wake us up. Don’t sit idle in this moment to see what happens next. We need to get in the driver’s seat of change. Experimentation, learning, rethinking, investing, building stronger cultures, becoming more strategic, creative and consultative is our collective call to action. The future belongs to those who embrace technology and understand that people matter. Our industry has always been grounded in connection and relationships. We help organizations create belonging, recognition, emotion, loyalty, memory and experience through physical merch. We are uniquely positioned for our medium to become even more valuable during this AI era – because the more digital the world becomes, the more humans crave what feels real. The best businesses will still feel human at their core. And trust? It’s still earned face-to-face, call-by-call, problem-by-problem. H2H (humanto-human) is what AI can’t replicate. Yuriy2012 / Shutterstock.com The most valuable resource of our industry is still deeply human. AI cannot replace trust. To borrow a phrase from MC Hammer, AI can’t touch this. 4 • JULY 2026 • PPAI

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PPAI® SENIOR DIRECTOR, MEDIA, RESEARCH & PUBLIC AFFAIRS Josh Ellis JoshE@ppai.org DEPUTY EDITOR John Corrigan JohnC@ppai.org SENIOR NEWS EDITOR Jonny Auping JonnyA@ppai.org MARKET ECONOMIST & SENIOR MANAGER, RESEARCH Alok Bhat AlokB@ppai.org PUBLIC AFFAIRS MANAGER Rachel Zoch, CAS RachelZ@ppai.org RESEARCH COORDINATOR Shiella Aparis ShiellaA@ppai.org ART DIRECTION SPARK Publications SPARKpublications.com 704-844-6080 ADVERTISING MANAGEMENT ACCOUNT MANAGERS Connie Brazil Nick DiNicola Luke Huebsch Heather Mangold Mark Rykojc PPAI.org/account-managers ADVERTISING CONTACT Danah Dean 972-258-3031 DanahD@ppai.org PRESIDENT & CEO Drew Holmgreen, CAS 888-I-AM-PPAI CHIEF REVENUE & EXPERIENCE OFFICER Ellen Tucker, MAS, CAE DIRECTOR OF FINANCE Renae Ward CHIEF MARKETING OFFICER Melissa Ralston, CAS CHIEF OPERATING OFFICER Christopher Cheney DIRECTOR OF SALES Michele Schwartz, CAS DIRECTOR OF TECHNOLOGY John Twist DIRECTOR OF CORPORATE RESPONSIBILITY & SUSTAINABILITY Elizabeth Wimbush, CAS DIRECTOR OF PROFESSIONAL DEVELOPMENT Jessica GibbonsRauch, MAS SENIOR DIRECTOR, HUMAN RESOURCES Eliana White BOARD OFFICERS CHAIR OF THE BOARD Danny Rosin, CAS Brand Fuel IMMEDIATE PAST CHAIR Denise Taschereau, CAS Fairware CHAIR-ELECT OF THE BOARD Zack Ottenstein The Image Group VICE CHAIR, FINANCE SERVICES Mark Gammon PCNA BOARD MEMBERS REGIONAL RELATIONS COMMITTEE DELEGATE TERM EXPIRING 2027 Kara Keister, MAS Social Good Promotions AT LARGE DIRECTOR Samantha Kates Spector TERMS EXPIRING 2027 Frank Myers S&S Activewear TERMS EXPIRING 2028 Erin Reilly Pop! Promos TERMS EXPIRING 2029 Mark Gammon PCNA Kate Alavez PromoShop TERMS EXPIRING 2030 Joseph Sommer Whitestone Bruce Barnet Charles River Apparel PPAI HEADQUARTERS 3125 Skyway Circle North, Irving, Texas 75038-3526 Phone: 888-IAM-PPAI (426-7724) www.ppai.org, pubs.ppai.org READER RESOURCES SUBSCRIBE TO PPAI MAGAZINE: Subscribe online at pubs.ppai.org or send your name, title, company name and mailing address, along with phone and fax, to PPB Subscriptions, 3125 Skyway Circle North, Irving, Texas 75038. Or phone in your subscription to 972-258-3019. Include payment with your order. Visa, MasterCard and American Express are accepted, along with checks. Additional member subscriptions are $58 for PPAI member companies (U.S.), $70 (Canada and Mexico) and $75 (international). Nonmember subscriptions are $72 (U.S.), $82 (Canada and Mexico) and $92 (international). Please allow four to six weeks for start of subscription. ADVERTISE IN PPAI MAGAZINE: Download a media kit with rates and specs for all PPAI print and digital publications at media.ppai.org, or call 972-258-3019 or email mediasales@ppai.org. Promotional Products Association International 6 • JULY 2026 • PPAI

If this calendar is helpful or if you have ideas for ways that we can better provide this information, email the editors at magazine@ppai.org. Exceptional Promotions SPECIAL OBSERVANCES CALL FOR Use these key dates and seasonal celebrations to spark creative campaigns your clients will love. Compiled by Nicole Rollender August NATIONAL WELLNESS MONTH Product Idea: Make it an evening to remember with the S’mores Night Pack. This yummy kit comes with everything you need to serve four, including all the fixings for s’mores like chocolate bars and marshmallow roasting sticks. The portable kit also comes with a smokeless tabletop fire pit that burns for up to five hours. A full-color logo or message goes right on the gift box lid. City Bonfires / PPAI 814515, Standard-Base citybonfires.com 10 NATIONAL S’MORES DAY 20 NATIONAL BACON LOVERS DAY 31 NATIONAL EAT OUTSIDE DAY September NATIONAL HISPANIC HERITAGE MONTH Product Idea: This Wheat Straw Bento Lunch Box With Tableware Set is crafted from high-quality natural wheat straw and polypropylene, making it a food-friendly, nontoxic set. The functional lid, made of 100% natural bamboo, doubles as a chopping board, plate or tray. The handy kit includes a fork, spoon, knife and bento box. A logo or message is tastefully laser-etched on the lid. FNC International Limited / PPAI 671683, Standard-Base / fncintl.ca 6 NATIONAL READ A BOOK DAY 19 NATIONAL LOVE YOUR LUNCH DAY 29 NATIONAL COFFEE DAY NATIONAL PIZZA MONTH Product Idea: Send recipient to the green with a box of branded Titleist Pro V1 Golf Balls. The speed-amplifying, high-flex casing layer produces more speed and low long game spin. Pro V1 is recommended to players who are looking for mid-trajectory flight, very low long game spin and maximum short game spin, with softer feel. Hirsch / PPAI 221823, Platinum / hirschpromo.com 4 NATIONAL GOLF LOVER’S DAY 16 NATIONAL SPORTS DAY 28 NATIONAL CHOCOLATE DAY October PPAI • JULY 2026 • 7

PROMOTIONAL PRODUCTS TO BE UNIVERSALLY VALUED Essentials 07.26 USE CASE p. 10 SOLUTIONS SPOTLIGHT p. 15 THE MOST WEARABLE UPGRADE IN CORPORATE APPAREL Today’s polos marry performance, upleveled design details and retail-inspired styling that works everywhere from corporate gifting programs to uniforms. page 16 IN STYLE weARproduction / Shutterstock.com PPAI • JULY 2026 • 9

TOM BROOKES Logo Commissioner Classic Incentives PPAI 278712, Standard-Base Fleming Island, Florida DISTRIBUTORS AND BRANDS have historically discounted older audiences because of the idea that they become “disconnected” and more “out-of-touch” as they age, according to Brookes. But technology, social media and healthcare advances have helped fuel the opposite, he says. “Seniors are living longer, more active retirements and often have more disposable income, savings and time,” adds Brookes. Many retirees get involved with organizations like their homeowners association, YMCA, recreational sports programs, civic groups and schools, as well as volunteering. “Marketing products to seniors as they serve in these roles builds brand loyalty while helping them feel valued and relevant in society,” Brookes says. “Distributors and brands should also note how much value seniors place on their independence and comfort as they age in place.” Brookes advocates tactfully recommending products for use in frequented places like the car, refrigerator or restroom, while keeping recipients organized with pill holders, hot/cold packs Products That Solve Problems For Older Adults Tom Brookes of Florida-based distributor Classic Incentives shares ideas for practical branded merch, including hot/cold packs, cozy blankets and weekly calendars. By Nicole Rollender Image Point Fr / Shutterstock.com 10 • JULY 2026 • PPAI Essentials | Use Case

and other useful items. “The goal is always to meet them halfway and help facilitate their routines,” he says. In a recent multipart promotional campaign, a clinical laboratory wanted to retain and increase its assisted living and hospice partner contracts. After only sending an occasional mailer and holiday food gifts, Brookes suggested a flurry of activities, including attending an annual healthcare association conference with lab reps at the booth. Before the conference, he created a mailer to 500 key targets inviting them to meet with a rep at the conference. The mailer included a House-Shaped Gel Bead Hot/Cold Pack printed with the company name and a QR code linking to information, statistics, reviews and an invitation to a free consultation at the booth. This handy pack, filled with vibrantly colored, nontoxic, pliable beads, works as a hot and cold compress. Tekweld / PPAI 266346, Silver / tekweld.com Each mailer recipient who confirmed a meeting slot via the QR code was entered to win 50 custom-branded Mink Sherpa Blankets to use as raffle prizes at their respective facilities. These luxurious 50x60-inch blankets feature one side in soft faux micro mink and the other in soft lambswool and are suitable for indoor and outdoor use. Tekweld / PPAI 266346, Silver / tekweld.com The third and final step was to send a thank-you gift to each person who came to a meeting at the conference. Brookes chose these Drinkware Gift Box Sets with a 20-oz. stainless steel tumbler for hot and cold drinks packaged in a custom printed gift box, and added a $25 coffee gift card. Tekweld / PPAI 266346, Silver / tekweld.com “The lab has seen an almost 30% ROI on their investments and new business revenue, and now its contracted facilities order these items separately,” Brookes says. “The driver of responses that continue to proliferate is how well actual patients and caregivers are receiving the products at the local facilities, as hot/cold packs and blankets are always in demand and in short supply.” PPAI • JULY 2026 • 11 Use Case | Essentials

The best promos touch the five basic human senses, and Brookes believes sight and touch win out among older adults. “Many mobile devices now offer apps and features that cater to these senses and are slowly retiring many of the tried-and-true, actual products from yesteryear like light-up creditcard-sized magnifiers, emergency flashlights and pocket mirrors,” he says. However, one product Brookes finds has staying power is the Mystic Two-Tone Soft Cover Planner, a weekly planner that features a weekat-a-glance format and includes an eight-page, full-color U.S. atlas with city maps in the back, as well as pages for important phone numbers and dates, and an expense record. Royal Industries / PPAI 113838, StandardBase / royalindustries.com “When you’re on the phone, it’s not always easy to record information into a device. This item appeals to seniors who grew up in a pre-device world.” –Tom Brookes *According to Neilsburg Research Available at and more. & ENGINEERED FOR HER The ROSIE White/Red/Stripes The HATTIE Red w/ White Stars The HATTIE Navy w/ White Stars The ROSIE White/Dark Navy/Waves The KATE White 12 • JULY 2026 • PPAI Essentials | Use Case

“How many times do we jot down a phone number, take down an appointment date or return confirmation number? When you’re on the phone, it’s not always easy to record information into a device. This item appeals to seniors who grew up in a pre-device world,” Brookes says. “Thumbing through a calendar and seeing where you wrote down a loved one’s birthday can bring warmth and comfort you wouldn’t get from scrolling past the birthdays of 20 mild acquaintances on social media,” he adds. “A calendar feels personal – a nondescript diary of sorts – where you control the content.” AirTag Cases are one item Brookes would like to incorporate into promos for older adults. “As technology becomes more embedded in our lives, simple forgetfulness, such as losing your phone, wallet or keys, is something we’ve all dealt with,” he says. “While there’s plenty of focus on AirTags themselves, what houses them matters, too, because a quality case protects the device and adds a personalization element.” Distributors should pay attention to suppliers offering strong AirTag cases, he adds, because tracking personal items is relevant for just about everyone, especially older adults dealing with memory or cognitive challenges. “As we juggle more devices, people may need multiple tags, and cases can help keep them organized through color coding or branding.” This USA-made AirTag Case is crafted from fullgrain leather and features a durable swivel clip and a secure button stud, allowing users to track gear while the case develops a unique patina. Corium / PPAI 751910, Standard-Base / coriumusa.com Rollender heads up New Jersey-based STRANDWritingServices.com. PPAI • JULY 2026 • 13 Use Case | Essentials

SPONSORED CONTENT Why Being the Hero Is Holding Your Promo Business Back A business built to run without you stands as the most valuable asset you can create. Here’s how top distributors build the backend infrastructure required to confidently delegate and step back. “I WORK 80 HOURS a week in my $3 million distributorship, clearing approvals late at night after everyone leaves. I haven’t taken vacations in years because I’m putting out fires.” If that sounds like you, it’s time to acknowledge that being irreplaceable is a liability, not a badge of honor. Many distributor owners become the hub for their company’s relationships, knowledge and revenue-generating activities—a “hero mentality” that caps growth if you want to scale to $10 or $20 million. According to David Rehg, COO of Facilisgroup, this isn’t a personality flaw, but an infrastructure problem. “Your systems, workflow and data live in your head,” he says. “Delegation isn’t safe because everybody waits for you to make decisions. If your business can’t function without you, it’s a lonely, self-fulfilling prophecy.” Breaking out of that loop requires an operational framework that relieves pressure on your personal capacity. Then you can focus on high-value growth activities and build a distributorship you can scale, step back from or sell. “That’s when businesses go boom pretty quickly,” Rehg says. “And they feel it’s easier to scale.” Tech underpins your business The right technology sets distributors up for growth. Facilisgroup’s Syncore software platform, built for high-volume distributors, connects every part of the business from first pitch to invoice paid. Because teams share ownership of customer relationships, owners can delegate with confidence. “Syncore ties every client interaction and order into one system,” Rehg says. “Everyone, including sales, customer service and finance, works off the same real-time data.” Facilisgroup’s system also provides complete insight into costs, charges, profit and team pipelines. This makes it low-risk for an owner to hand off tasks, hold their team accountable and manage by metrics rather than micromanaging. “You can identify challenges by reviewing your reporting dashboard,” Rehg says. “That’s where results ramp up significantly.” Benefit from a 360° partnership To ease the software migration, Facilisgroup combines expert implementation, structured onboarding, Core 360 operational playbooks and professional development programs that help distributors adopt best practices. “Things fail when it’s just about installing software,” Rehg says. “It’s about changing how you operate.” Because technology alone can’t fix a shaky business model, the ecosystem includes a community of owners who’ve successfully made the operational transition. “Having peers who offer no-judgment support is worth gold,” Rehg says. The partnership also offers collective buying power with a supplier network. One partner says, “Facilisgroup’s supplier relationships and preferred pricing have elevated our ability to service our customers while maintaining higher margins.” Scaling smoothly and profitably Distributors who join the Facilisgroup community experience a 2-3% margin increase. “Our sales have increased, our margins have stayed healthy, and we have a clear picture of who to connect with, when and why,” another partner says. The framework has helped partners reduce order processing time by up to 66% and achieve an average of 14% growth by their second year. “Eliminating bottlenecks results in faster turnaround for clients, less internal firefighting and fewer issues escalated to you,” Rehg says. “That’s where your time capture comes back and lets you pivot to a high-value growth strategy to become a $20 million and beyond company.” Take control of your future Ready to escape the founder trap and scale to new heights? Discover promo’s only 360° platform and partnership for high-volume distributors at Facilisgroup.com. David Rehg 14 • JULY 2026 • PPAI

HUMAN RESOURCES AND PROFESSIONAL development providers give branded merchandise companies better ways to support and grow their teams. Whether that means employee recognition platforms, service award programs, safety incentives or wellness initiatives, these solutions help companies create workplaces where people actually want to stay. In an industry that runs on relationships, how a company treats its own people matters. Providers in this space understand that recognition isn’t just an annual review or a gift card in December. They offer platforms and programs that let companies mark milestones, reward contributions and show employees their work is noticed – in ways that fit the company’s culture, not some one-size-fits-all template. For companies dealing with turnover, low morale or inconsistent engagement, HR and development solutions can help shift the approach from putting out fires to building something more sustainable. The right program gives leadership real tools to act on – not just survey data and good intentions. PPAI-validated HR and development providers bring the expertise to help branded merchandise companies take better care of their teams and see the results that follow. See more on these business services providers and many more. Visit PPAI.org/solutions. HR & Development Human resources and professional development solutions help branded merchandise companies build stronger teams. These PPAIvalidated providers offer programs that keep employees engaged, recognized and growing. The Provider The Solution C A Short Company PPAI 185023, Standard-Base C A Short Company provides employee engagement and recognition solutions, including service award programs, safety incentives, wellness initiatives and an easy-to-use recognition platform. tomertu / Shutterstock.com PPAI • JULY 2026 • 15 Solutions Spotlight | Essentials

The Most Wearable Upgrade In Corporate Apparel THE EVOLUTION OF THE golf and lifestyle market is a huge driver behind polo trends. “Golf has expanded beyond a traditional sport into a broader cultural space, and that shift is redefining how polos are designed, styled and worn,” says Siva Kandaswamy, founder and CEO of Sparkpolo. The polo has become a true crossover garment, especially for younger wearers, as it’s worn on and off the course, at work and in social settings. “That versatility drives demand for apparel that blends lifestyle, athleisure and high-performance features, while aligning with a more modern aesthetic and refined decorating techniques,” Kandaswamy says. Corporate buyers and business owners expect the same level of design, fit and quality in branded polos that they see at retail. “That’s why styles with refined fits, lightweight fabrication and a premium hand feel are resonating strongly right now,” says AJ Dickson, senior category director at PCNA, PPAI 100’s No. 6 supplier. Polos are showing up across a wider range of apparel programs, including trade shows and client-facing events, year-end corporate gifting, client appreciation initiatives and key companywide moments, such as annual conferences, summits, milestone celebrations and rebranding efforts. Breanna WoicekowskiWiener, senior merchandiser at Vantage Apparel, PPAI 100’s No. 14 supplier, sees a high demand for polos as part of uniform programs. “Our customers want retail-inspired looks that still maintain team spirit,” she says. Another opportunity within fall programs is positioning the polo as part of a complete look. “We often think about polos as the foundation of a collection, styled with layering pieces like quarterzips or lightweight outerwear,” Dickson says. “That gives distributors a way to build more versatile, coordinated programs while giving end users options that feel practical and elevated.” Today’s polos marry performance, upleveled design details and retailinspired styling that works everywhere from corporate gifting programs to uniforms. By Nicole Rollender weARproduction / Shutterstock.com 16 • JULY 2026 • PPAI Essentials | In Style

Fit is one of the most noticeable shifts for polos. “A tailored fit has become the standard for a more modern, refined look, while classic fits still serve audiences looking for a more relaxed feel,” Kandaswamy says. “Clean, shape-retaining collars, henley styles and well-constructed plackets are critical. Three-button plackets and self-fabric, semi-spread collars remain preferred for their balance of structure and versatility.” Fabrication is another big driver of a polo’s appeal right now. “Performance blends that support movement, breathability and all-day comfort are especially important, but buyers also want those functional benefits delivered through a more refined lens,” Dickson says. “Stretch, lightweight texture, moisture management and a soft, elevated hand feel all help a polo feel more premium.” Decoration is shifting from logo placement to design integration. “We’re seeing increased use of tonal applications, smaller logo sizes and softer executions that feel closer to retail apparel,” Kandaswamy says. “Techniques such as woven labels and soft silicone heat transfers create a more refined, modern look. At the same time, crisp, high-density embroidery remains a preferred choice for many buyers, maintaining a classic finish.” Woicekowski-Wiener recommends asking buyers to reconsider traditional leftchest placement and to explore embroidery alternatives to achieve different looks. “Polos can stand out by adding decoration that marries back to an element on the garment, like embroidery thread matching a contrast button,” she says. “Laser etching is perfect for tonal looks, and die-mold transfers create a 3D pop. This can help shift polos out of ‘basic’ and into a higher perceived value.” When distributors focus on styling, fabric fit and decoration together, the polo becomes much more than a basic branded piece. “It becomes a high-value item that feels current, wearable and more aligned with what people already want in their everyday wardrobe,” Dickson says. PPAI • JULY 2026 • 17 In Style | Essentials

The IZU Everything Performance Eco Short Sleeve Polo is crafted from a performance blend of 85% certified recycled polyester plus 10% lyocell and 5% elastane. This polo offers stretch, moisturewicking, UV protection, antimicrobial properties and snag resistance. PCNA / PPAI 113079, Platinum / pcna.com Crafted from 100% Better Cotton Initiative cotton pique knit, the durable, easy-care PALO Long Sleeve 100% Cotton Pique Polo has a UV protection rating of 50+, making it ideal for extended outdoor wear. PCNA / PPAI 113079, Platinum / pcna.com The 88% polyester/12% spandex FootJoy Men’s Tonal Dot Performance Golf Polo blends moisture management, an antimicrobial finish and four-way stretch with understated visual texture for a polished look. PCNA / PPAI 113079, Platinum pcna.com The Vansport Pro Eagle Polo, made of 92% polyester/8% spandex jersey, has moisturewicking, UV-protective and antimicrobial properties, plus an all-over sublimated diamond print. Vantage Apparel PPAI 113235, Platinum vantageapparel.com 18 • JULY 2026 • PPAI Essentials | In Style

The Vansport Victory Polo, made of 65% recycled polyester/35% cotton, offers moisturewicking, UV-protective and anti-static properties and features an all-over tonal stripe pattern. Vantage Apparel PPAI 113235, Platinum vantageapparel.com This custom polo features an aviation design motif that identifies the brand and industry in an on-trend, all-over pattern. Sparkpolo / PPAI 827845, Standard-Base sparkpolo.com Since layering is in demand, pair a custom polo with a solid-color hoodie featuring subtle interior detailing to create a cohesive, retail-inspired set. Sparkpolo / PPAI 827845, Standard-Base sparkpolo.com Rollender heads up New Jersey-based STRANDWritingServices.com. The 100% polyester pique Vansport Omega Tipped Polo is moisture-wicking and snag-resistant and features classic USA-inspired colors, UV protection and a rib-knit collar with contrast tipping. Vantage Apparel / PPAI 113235, Platinum vantageapparel.com This custom polo’s pattern is derived from flooring and wall tile elements, translating material textures into a refined, retail-inspired design. Sparkpolo / PPAI 827845, Standard-Base sparkpolo.com PPAI • JULY 2026 • 19 In Style | Essentials

THE STATE OF GROWTH 2026 p. 22 SOMETHING BIG IS COMING p. 30 HEART OF A LEADER p. 36 WHEN UNLEASHED IMAGINATION MEETS EXPERT ARTISTRY p. 40 STORIES TO KEEP AND USE 07.26 Wirestock Creators / Shutterstock.com BOTS AND BRANDS The robotics sector is booming, and branded merch is ready for the moment. page 54 Must Read PPAI • JULY 2026 • 21

22 • JULY 2026 • PPAI Must Read | The State of Growth 2026

PPAI • JULY 2026 • 23 The State of Growth 2026 | Must Read The State Of Growth 2026 PPAI Research has examined benchmarking data on revenue growth and other business fundamentals from distributors and suppliers of all sizes. By John Corrigan In May, the Association announced the 100 suppliers and 100 distributors that made the cut for the 2026 PPAI 100. Of course, the PPAI 100 is more than an annual ranking. It’s a practical benchmark that helps branded merchandise companies track progress and learn from the industry’s top performers. In this issue, PPAI Magazine is benchmarking growth within the industry. The following sections break down performance by branded merch companies and include the insights and perspectives of business leaders and decision-makers at firms that have participated in the survey.

Supplier Benchmarking TABLE 1: Revenue Change Since 2022 Suppliers $100M+ 33% Suppliers $25M-$100M 12% Suppliers $10M-$25M 29% Suppliers $3M-$10M 16% Suppliers Under $3M 28% Considering that the branded merchandise industry was still recovering from the impact of the COVID-19 pandemic in 2022, it’s not surprising that revenue has increased by a significant amount for all supplier respondents since then. “Tomax has been experiencing rapid growth,” says Joshua Jen, COO of Tomax USA, PPAI 100’s No. 37 supplier. “We’re on track in 2026 to do more than triple what we did back in 2022.” TABLE 2: Gross Profit Margin Suppliers $25M+ 38% Suppliers $10M-$25M 40% Suppliers $3M-$10M 44% Suppliers Under $3M 30% Ben Zhang, founder and CEO of Greater Pacific, PPAI 100’s No. 47 supplier, says his company’s gross profit margin is much lower than the industry norm. “Maybe that’s because we don’t carry inventory like a typical supplier,” Zhang says. “For suppliers with inventory, I agree that they have to make more than 30% margin considering the warehouse cost, labor cost, etc. “But for Greater Pacific, we adapt just in time with zero inventory in the U.S. Our average size of order is about $30,000-$50,000 in volume. Therefore, we offer lower gross margin to help our distributors to advance their projects. Some of the large projects we only mark up single digits to improve our competitiveness.” TABLE 3: Active Distributor Company Clients Suppliers $100M+ 11,268 Suppliers $25M-$100M 8,127 Suppliers $10M-$25M 3,384 Suppliers $3M-$10M 1,672 Suppliers Under $3M 197 The average of 11,268 distributor clients among the industry’s largest suppliers highlights both the extensive network of distributors and the wide range of partnership opportunities available to suppliers. In contrast, the significantly lower average for suppliers in the under $3 million segment may reflect limitations in resources that cap the number of distributor relationships they can sustain. However, it also underscores the strength and importance of the relationships these smaller suppliers maintain with their active distributor partners. TABLE 4: Order Count Suppliers $100M+ 407,543 Suppliers $25M-$100M 92,192 Suppliers $10M-$25M 50,038 Suppliers $3M-$10M 25,526 Suppliers Under $3M 698 Across the board, suppliers processed a lot more orders in 2025 than in 2024. For example, suppliers under $3M doubled the amount last year. Must Read | The State of Growth 2026 Across all supplier sizes, I’m impressed by on-time shipping performance. —JIM DUSBIBER, INTERIM VICE PRESIDENT OF SALES AT CHAMPRO 24 • JULY 2026 • PPAI

TABLE 5: Sample Costs Suppliers $100M+ 3% Suppliers $25M-$100M 2% Suppliers $10M-$25M 2% Suppliers $3M-$10M 2% Suppliers Under $3M 4% 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+ 35% Suppliers $25M-$100M 35% Suppliers $10M-$25M 19% Suppliers $3M-$10M 38% Suppliers Under $3M 11% “The number of suppliers who are receiving orders digitally through integration is impressive, especially among the smallest firms who may have fewer resources to commit to those projects,” says Jim Dusbiber, interim vice president of sales at Champro, PPAI 100’s No. 58 supplier. Conversely, Asif Bandeali, co-CEO of FIEL, PPAI 100’s No. 53 supplier, considers the integration percentages relatively low. “This creates a clear opportunity for suppliers who invest in automation and operational efficiency to gain an edge,” Bandeali says. “At the same time, growth trends suggest that agile, midsized suppliers are currently best positioned to outperform. We feel well-positioned here, as we’re actively investing in automation, speed and scalable systems to better support our distributor partners.” TABLE 7: Factory Employee Turnover Rate Suppliers $100M+ 10% Suppliers $25M-$100M 16% Suppliers $10M-$25M 9% Suppliers $3M-$10M 11% Suppliers Under $3M 15% 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. TABLE 8: Office Employee Turnover Rate Suppliers $100M+ 6% Suppliers $25M-$100M 11% Suppliers $10M-$25M 12% Suppliers $3M-$10M 7% Suppliers Under $3M 0% TABLE 9: On-time Shipping Percentage Suppliers $100M+ 98% Suppliers $25M-$100M 97% Suppliers $10M-$25M 95% Suppliers $3M-$10M 97% Suppliers Under $3M 96% “Across all supplier sizes, I’m impressed by on-time shipping performance,” Dusbiber says. “Many distributors discuss poor performance of suppliers, but the reality doesn’t match their perception.” The State of Growth 2026 | Must Read Across the board, suppliers processed a lot more orders in 2025 than in 2024. For example, suppliers under $3M doubled the amount last year. Growth trends suggest that agile, midsized suppliers are currently best positioned to outperform. —ASIF BANDEALI, CO-CEO OF FIEL PPAI • JULY 2026 • 25

Must Read | The State of Growth 2026 Distributor Benchmarking TABLE 1: Revenue Change Since 2022 Distributors $100M+ 18% Distributors $25M-$100M 29% Distributors $10M-$25M 16% Distributors $3M-$10M 21% Distributors Under $3M 8% The most striking aspect of the data, according to Brittany Frase, chief revenue officer at MadeToOrder, PPAI 100’s No. 55 distributor, is growth being strongest in the midsized company range. “Those distributors (like MadeToOrder) tend to be the most flexible, while larger distributors are scaling more through systems and existing accounts,” Frase says. It comes as no surprise that the lowest growth came from the smallest firms, according to Michael Wolaver, founder of Magellan Promotions, PPAI 100’s No. 96 distributor. “As this industry continues to evolve at a rapid pace, smaller organizations face an increasingly difficult challenge competing against larger, better-resourced distributors,” Wolaver says. “Those with the bandwidth to integrate and implement technology solutions will hold a distinct advantage. I predict that gap will only widen for smaller organizations over time.” TABLE 2: Revenue From New Clients Distributors $100M+ 8% Distributors $25M-$100M 11% Distributors $10M-$25M 16% Distributors $3M-$10M 16% Distributors Under $3M 20% Chelsea Williams, owner and CEO of Spark Branded Solutions, PPAI 100’s No. 76 distributor, says her nearly four-yearold company is seeing a significant influx of opportunities across both existing clients and new business, signaling that brands are continuing to invest in merchandise as a strategic marketing tool. “What’s most telling isn’t just past performance, but what’s ahead,” Williams says. “Based on what’s in front of us, I fully expect us to outpace the industry by the end of the year, which just reinforces that this isn’t a short-term spike. It feels like a bigger shift in how companies are approaching branded merchandise altogether.” TABLE 3: Gross Profit Margin Distributors $100M+ 34% Distributors $25M-$100M 35% Distributors $10M-$25M 36% Distributors $3M-$10M 36% Distributors Under $3M 36% Stewart Switzer, president of Executive Advertising, PPAI 100’s No. 69 distributor, says his company experienced 79% growth from 2022 to 2025, nearly doubling sales to $12.5 million last year. “Our gross profit before expenses (just after product expenses and shipping) used to be 36.2%,” Switzer says. “One of my goals in 2024 was to be more profitable, so we made some program changes, and in 2025 we ended at 40.1% gross profit margins.” TABLE 4: Average Order Size Distributors $100M+ 2,861 Distributors $25M-$100M 3,476 Distributors $10M-$25M 1,820 Distributors $3M-$10M 2,541 Distributors Under $3M 2,438 26 • JULY 2026 • PPAI

These figures have changed drastically since last year. For example, distributors in the $10M-$25M range last year reported an average order size of 3,653, indicating a decrease of almost 2,000 one year later. Meanwhile, $100M+ distributors saw an increase of 800 in 2025. TABLE 5: Revenue From Top 3 Clients Distributors $100M+ 23% Distributors $25M-$100M 28% Distributors $10M-$25M 25% Distributors $3M-$10M 33% Distributors Under $3M 55% Williams says that about 25% of Spark Branded Solutions’ revenue comes from its top three clients, which is just under the industry average for distributors in the $3M-$10M range. “For a company at our stage, that balance feels intentional,” Williams says. “It reflects strong, trusted partnerships without being completely dependent on any one account, which is important. We also have a ton of opportunity in the pipeline with existing clients while continuing to bring on new, high-potential accounts. Not all our eggs in one basket, and not even in one industry, which just makes the business feel more stable and scalable as we grow.” TABLE 6: Revenue From Top 10% Of Sales Reps Distributors $100M+ 17% Distributors $25M-$100M 30% Distributors $10M-$25M 27% Distributors $3M-$10M 34% Distributors Under $3M 73% “The data highlights how smaller firms still rely heavily on a few clients and top reps, showing the industry’s gradual shift toward more operational consistency as companies grow,” Frase says. TABLE 7: Average Full-time Sales Rep Distributors $25M-$100M 23 Distributors $10M-$25M 14 Distributors $3M-$10M 8 Distributors Under $3M 3 This is the first example of a large contrast between staff size in segments that repeats in the next two categories. Predictably, the largest distributors have a much greater pool of sales reps working for them. However, this doesn’t necessarily guarantee an obvious ceiling for companies with fewer sales reps. Savvy investments in technology and online orders can eliminate friction in the order process, which could give some companies the ability to operate at a high level with fewer customer service personnel. TABLE 8: Average Full-time Customer Service Reps Distributors $25M-$100M 17 Distributors $10M-$25M 10 Distributors $3M-$10M 4 Distributors Under $3M 2 “If you had asked before COVID, we would’ve had six,” Switzer says, “but in 2023 and after many technology improvements, we went down to four and remain there today. Automation is everything.” The State of Growth 2026 | Must Read As this industry continues to evolve at a rapid pace, smaller organizations face an increasingly difficult challenge competing against larger, better-resourced distributors. —MICHAEL WOLAVER, FOUNDER OF MAGELLAN PROMOTIONS Savvy investments in technology and online orders can eliminate friction in the order process, which could give some companies the ability to operate at a high level with fewer customer service personnel. PPAI • JULY 2026 • 27

TABLE 9: Average Full-time Finance Staff Distributors $100M+ 25 Distributors $25M-$100M 7 Distributors $10M-$25M 6 Distributors $3M-$10M 3 Distributors Under $3M 1 The staffing trend continues with the industry’s smallest distributors, whose employees are forced to wear multiple hats. “If it wasn’t for pumping in supplier invoices and other automation methods, we would have a ton of support staff,” Switzer says. TABLE 10: Average Days To Payment Distributors $100M+ 44 Distributors $25M-$100M 43 Distributors $10M-$25M 39 Distributors $3M-$10M 31 Distributors Under $3M 31 This category could be a strong point for smaller distributors, as many larger firms would welcome the faster payment turnaround that those in the under $10M segment are achieving. TABLE 11: Average Total Order Count Distributors $100M+ 436,362 Distributors $25M-$100M 41,635 Distributors $10M-$25M 26,774 Distributors $3M-$10M 6,206 Distributors Under $3M 938 Williams says the industry’s average order count highlights an interesting contrast to Spark’s model. “Our order volume is significantly lower relative to our revenue, which we see as a strength,” Williams says. “It reflects a focus on larger, more strategic programs rather than high-frequency, transactional orders. “I’m proud that we’re able to keep things lean and efficient without sacrificing growth. We’re not chasing more orders – we’re building bigger, more meaningful programs with our clients. It’s just a different way to scale, and honestly one that feels a lot more sustainable as we continue to grow.” TABLE 12: Average Net Freight Profit/Loss Distributors $100M+ $1,900,000 Distributors $25M-$100M $539,700 Distributors $10M-$25M $285,766 Distributors $3M-$10M $64,357 Distributors Under $3M $24,279 Executive Advertising reported $37,971 in 2025 compared to $52,509 in 2022. “This was expected, as we gave a lot more shipping discounts in our special programs,” Switzer says. “This number dropped, but at the same time, our business massively grew. Regardless, we fit within the industry standard here.” Corrigan is deputy editor at PPAI. Our order volume is significantly lower relative to our revenue, which we see as a strength. It reflects a focus on larger, more strategic programs rather than high-frequency, transactional orders. —CHELSEA WILLIAMS, OWNER AND CEO OF SPARK BRANDED SOLUTIONS Must Read | The State of Growth 2026 The staffing trend continues with the industry’s smallest distributors, whose employees are forced to wear multiple hats. 28 • JULY 2026 • PPAI

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30 • JULY 2026 • PPAI Must Read | Something BIG Is Coming

PPAI • JULY 2026 • 31 A forthcoming study commissioned by PPAI measures branded merch through more than just traditional distributor sales. From GDP to job creation, the report will reveal the industry’s true global economic value. By Jonny Auping Branded merchandise powers lasting connections, often experienced most deeply as the gifting of a product from a brand to a recipient. But many more people touched that T-shirt, tumbler or charging device on its journey to the end recipient. Keep that in mind when considering PPAI’s forthcoming global economic impact study, produced by highly regarded independent third-party firm Oxford Economics and slated to release in the third quarter of 2026. The study is intricate in both process and results, but it was commissioned and carried out from a simple notion: The numbers you have been seeing attributed to the branded merch industry’s annual economy do not tell the whole story. Around the world, the true impact is far greater than the $27.1 billion attributed to U.S. distributor sales last year. “The branded merch industry has always punched above its weight, but we haven’t always had the data to prove it,” says Danny Rosin, CAS, co-president of Brand Fuel, PPAI 100’s No. 42 distributor. “Previous figures provided valuable benchmarks, but they didn’t fully capture the scale, complexity and global reach of today’s branded merchandise ecosystem. “This study gives us a clearer picture of who we are, the value we create and why our industry deserves a larger voice in conversations about business, trade, workforce development and economic growth.” Something BIG Is Coming | Must Read

32 • JULY 2026 • PPAI It’s not about just producing a bigger number. It’s about creating tangible metrics that policymakers will understand by going well beyond traditional signposts such as distributor sales. This study doesn’t stop at “traditional” promotional products (more later on what that means). So, yes, you’ll see a bigger number when the final version of the study is released later this year – think in the hundreds of billions. But what PPAI is also equipping its members and the industry community with is a stronger foundation for advocacy. Whether you’re a small business making a case in your local economy or massive job creator contending with tariffs and supply chain challenges, you’re part of a global community that has a significant impact on the GDP of more than 200 countries. This study not only proves that, but it’s a resource to make that case to the policymakers who can effect change. “This is really the first study of its kind,” says Alice Gambarin, associate director at Oxford Economics. “It aims to look at the industry from end to end.” What exactly does that entail? As you can probably imagine, that’s not a short answer. We can start by pointing out four core objectives of the study: 1. Go Beyond Traditional Sales Data – This means extending the analysis an extra step into metrics such as GDP, taxes, job creation and supply chain impact. 2. Map The Industry’s Global Linkage – Measuring branded merchandise activity across the world. 3. Capture The Entirety Of The Supply Chain – “Supplier, distributor and client” doesn’t Must Read | Something BIG Is Coming “This work will help show the scale, credibility and future growth potential of an industry that has often been underestimated.” –Alok Bhat, market economist and PPAI’s research and public affairs lead The Numbers That Matter By creating a larger and more accurate economic value chain from which to draw insights, the global economic impact study can accomplish the initial objective of moving beyond sales data to metrics that policymakers are more comfortable with. Below are a few of those metrics: -Gross Domestic Product: Measures the value of all final goods and services produced in an economy in one year. GDP is the main indicator of a country’s economic activity and is used to measure growth or contraction. -Employment: The number of people employed, including partially, in the industry effort. -Tax Receipts: Total taxes supported by the industry’s economic activity for governments across the globe. tell the entire economic story when it comes to branded merch. 4.Understand The Scope Of Industry Sales – Go beyond what people consider “traditional promotional products.” “Branded merchandise reaches across the entire world, connecting marketing, licensing, e-commerce, retail, manufacturing, trade and end-buyer demand,” says Alok Bhat, market economist and PPAI’s research and public affairs lead. “This work will help show the scale, credibility and future growth potential of an industry that has often been underestimated.” ‘The Branded Merch Ecosystem’ Attendees of this year’s PPAI North American Leadership Conference were given a glimpse of preliminary results of the study. But soon, the final version of those numbers will be a resource to the entire branded merch community. To actually understand the scope of industry sales is to admit that prior sales numbers have been doing something of a disservice to what this industry encompasses. Anyone who has walked the aisles at The PPAI Expo can tell you that this is an industry too diverse in its offerings to be saddled with the notion of what many people consider “promotional products.” That’s why you’ve seen a shift in language coming from PPAI to the term branded merchandise. What’s being referred to with branded merchandise – the range of possibilities that you see at The PPAI Expo, from food to apparel to pens to experiential activations and beyond, whether gifted or sold to consumers – is more economically meaningful than traditional promotional products sales suggest. “Moving from promotional products to branded merchandise isn’t just semantics,” says Drew Holmgreen, CAS,

PPAI • JULY 2026 • 33 PPAI’s president and CEO. “It’s a signal that what we do is bigger than product. We are part of how brands connect, engage and build lasting relationships.” What makes up the branded merchandise ecosystem? Included in the study are: • Traditional promotional products • Decorated hard goods and soft goods • Apparel, workwear and related products • Licensed merchandise • Retail branded merchandise • Creator and customized merchandise • Print-on-demand and e-commerce channels • White-label and private-label branded goods • Event, campaign, gifting, recognition and activation-related merchandise “This is really the first study of its kind.” –Alice Gambarin, associate director at Oxford Economics Something BIG Is Coming | Must Read Defining ‘Branded Merchandise’ To establish boundaries for the study, PPAI and Oxford Economics worked with the following scope: Branded merchandise is defined as any physical item created, customized, sourced or distributed by a third party on behalf of a first-party brand (including organizations or individuals) to promote, represent or monetize the first party. In all cases, these products function as tangible expressions of a brand. This includes traditionally decorated promotional products (hard goods and soft goods, such as apparel, including workwear and non-licensed team/sports uniforms), as well as licensed goods both hard and soft, white-labeled items, creator-customized merchandise (such as through Etsy shops) and retail products bearing the selling brand’s name, logo or message (such as souvenir shops, college bookstores, golf pro shops, etc.). Items may be gifted or sold to a final user and may serve marketing, cultural or commercial objectives. • Products used by companies, organizations, schools, teams, creators, events and other brand owners to promote, represent or monetize a brand “What really unifies all of these different items is not how it is sold, but what its purpose is,” says Gambarin. A Value Chain Has More Points Than You Think There’s a key word that can’t be skipped over when considering the effort. It’s a global economic impact study. The supply chain that most PPAI members will recognize for the sake of business comes down to suppliers, distributors and clients. But the economic impact of the branded

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