By many measures, the national economy is doing splendidly, and that translates into good things for the entrenched economies in the Eastern states. According to 24/7 Wall St., seven of the top 20 states with the best economies in 2018 are located in the Northeast, including Massachusetts and New Hampshire at three and four. Meanwhile, with 5.7% GDP, Delaware boasts the fastest growing economy in the U.S., thanks in large part to its flourishing finance and insurance industry. That market was also a major contributor to New Hampshire’s, New York’s and Connecticut’s growth over the past year, according to data from the Bureau of Economic Analysis (BEA).

Eastern-based distributors are reaping the benefits of these conditions. “Business is the best it’s been in about five years,” says Russ Remaley, founder of A to Z Promotions (asi/101588) in Greensburg, PA. “When the economy is good and gas prices are lower, people are happy. They tend to spend more.”

The job market in Boston has increased by 1.5% over the last year, helping to boost Massachusetts’ growing economy.

Wendy Ferber has also experienced tremendous growth over the past year. Sales were up 20% last year for the co-owner of Pride Products Distributors LLC (asi/299307) in Springfield, NJ. “We’re opening approximately over one account a day,” Ferber says. “We’re big on prospecting, and a good part of our clients come from the Northeast.”

After 32 years in business, Linda Brickel McCreesh says 2018 was her best year, reaching over a million dollars in sales. The president of Absolutely Apropos (asi/102515) in Broomall, PA, credits the hot education market. “The strong stock market also played a part,” McCreesh says. “But we have a lot of loyal clients who stay with us because they know the quality is great. I focus on Top 40 suppliers who give excellent products and service, even if it’s a little expensive. My customers don’t usually complain.”

Clients are seeking top-notch items and are willing to pay for them, these distributors say. And they’re receptive to American-made products; nearly three-quarters (73%) of buyers from Maine, New Hampshire and Vermont have a more favorable opinion of made-in-USA products, the highest in the country.

Click here for a larger image of the map above. 

Rutland, VT-based Green Screen Graphics (asi/213766), which offers signage and print materials, has seen this in action. Nikki Pfeiffer, the office and production manager at Green Screen, says more customers are opting for advanced designs and extra features such as dimensional lettering, committing to higher costing signage that allows the distributor to showcase its design skills. “People either trust us more or want to give themselves an edge over the competition,” Pfeiffer says.

The shrinking available talent pool, owing to low unemployment, has also pushed client spending. New York’s unemployment rate fell to a record low of 3.9%; it’s even lower in Virginia at 2.8%. With fewer people looking for employment, companies are ramping up recruitment efforts, offering more benefits and perks to enhance their own reputations.

Being environmentally conscious is key as well. Shari Verrone, president of Parsippany, NJ-based Stackable Sensations (asi/332999), has seen an increase in companies branding themselves as such. “Being socially responsible is a hot trend even in our industry,” Verrone says. “Hit Promotional Products (asi/61125) has a 5% give-back with their AWS line. Helping Hand Partners (asi/60465) is another supplier with many give-back opportunities with unique items. BCG (asi/37693) plants a tree when you purchase one of its wood items.”

For Larry Alford, long-term success comes from being a solutions-based distributor. “A fidget spinner or YETI tumbler isn’t going to be the right answer to everything,” says the vice president of sales at Top 40 distributor Axis Promotions (asi/128263). “Just because somebody thinks that’s what they want doesn’t necessarily mean it will tell their message properly. If you’re solution-based, you’re only focused on how to tell a brand’s story and message.”

Distributors still do have their concerns. As the trade war between China and the U.S. wages, Pfeiffer is keeping an eye on the potentially rising cost of aluminum. “We’re hoping it doesn’t affect us too badly,” she says. “We try to keep track of our suppliers and they’re transparent about price increases due to tariffs.”

Despite concerns, most distributors remain optimistic. “We’re hearing rumblings of an economic downturn, but we’re forging ahead,” Ferber says, adding that she plans to hire an additional employee. “There’s plenty of business out there and we’ll continue to grow.”

Hot List

Hot Trend: Cause Marketing

More and more companies are launching promotional campaigns that have the dual purpose of increasing profitability while bettering society. “Our political climate right now is definitely encouraging people to want to be in a ‘give back’ type of mode,” says Larry Alford of Top 40 distributor Axis Promotions. “Millennials really gravitate toward experiences. They’re not looking for free things as much as they’re looking for something that gives back to the community.”

Hot Category: Tech Accessories

No matter the market, tech accessories are making big inroads with clients. “I’m always looking for the newest thing in technology,” says Linda Brickel McCreesh of Absolutely Apropos. Her clients often request power banks, texting gloves, webcam covers and mouse pads that also function as monitor wipes.

Hot Product: Reusable Straws

As plastic straw bans spread throughout the U.S., including Starbucks pledging to phase them out by 2020, distributors are capitalizing on the recent trend by offering restaurants and local eateries an eco-friendly replacement. “Reusable straws are huge right now,” says Wendy Ferber of Pride Products Distributors LLC. “Every vendor is carrying them and the sales are only going to grow.”

Hot Idea: Events With Digital Elements

Technological advancements are changing the game when it comes to customer engagement. “We’re seeing more brands bring augmented reality, artificial intelligence or RFID technology into different events that allow you to easily launch video to tell a story or a marketing message,” says Shari Verrone of Stackable Sensations. “It’s just a matter of time before we’re registering people from a T-shirt with RFID technology.”

John Corrigan is a staff writer for Advantages. Tweet: @Notready4Radio. Contact: jcorrigan@asicentral.com