There’s an interesting dynamic taking place in the South. Already buoyed by being tops in promo sales revenue and growth, the region features multiple states (including Texas, Florida, Georgia and the Carolinas) among the top 10 in numeric population growth last year, and states that are at all-time lows for unemployment. Yet over the past decade (excluding Texas and Florida), the South has seen the country’s slowest growth in output, wages and labor-force participation coupled with the highest unemployment rate. It’s a region with some very clear highs, but also some notable lows.

But you won’t hear many lamentations from promotional product distributors there; they’re bullish on their prospects and the economic activity in their states, citing sectors like construction, education and healthcare as indicators that their prospects are unlimited.

Atlanta will soon be home to Google’s Southeast headquarters. The state is enjoying growth in a number of key industries like construction and healthcare.

Barney Howard, president of Pinnacle Advertising Specialties Inc., an authorized dealer for Kaeser & Blair (asi/238600), says that if you’re not making money in promo right now, you’re not working hard enough. “It’s pedal to the metal” at Pinnacle, says Howard, based in Monroe, GA. “Business has really been good, and the economy is great. You’ve got more jobs than people right now.” At 76, Howard says this is the best economy he’s seen since he entered the workforce at age 20. He points to Georgia’s construction industry – the strongest market in the state with 6% job gains from 2018 to 2019, Kiplinger reports – and healthcare (3% growth) as particularly promising sectors. Though Monroe is small at only 13,000 people, Atlanta (where Google is establishing a new Southeastern headquarters) is just an hour away.

In Little Rock, AR, Lisa Buehler of Allegra Print & Imaging of Arkansas Inc. (asi/372419) says there’s growth due to technology companies and aerospace. “Our volume is going up, and our market area is optimistic” she says. There are about 180 aviation- and aerospace-related companies in Arkansas, comprising about 10,000 jobs; aerospace ranks as one of Arkansas’ top exports. Buehler has also seen an uptick in promo products that focus on privacy, like camera covers, as well as steady demand for USB cables, RFID blockers, power banks and wireless chargers. She also counts on steady business from the healthcare field, where everything from hand sanitizer and lip balms to dry-fit shirts remain in demand.

Teresa Moisant, owner of Moisant Promotional Products (asi/275276) in Oklahoma City, says construction is booming there, thanks to a bond issue “that keeps the city renovated and growing.” While rural areas struggle due to fewer good-paying jobs, Moisant says clients in the denser areas in industries like military, energy, finance and trucking keep her business afloat. “If you target just one new thing, you’ll lose out,” she says. “You have to have your eyes open, and in this region, you take what you can get.”

While the South is frequently cited as reluctant to invest in education, Howard does strong business with elementary schools, the University of Georgia and the Technical College System of Georgia. National accounts like Susan G. Komen and the Young Survivor Coalition also number among its clients. Buehler says Little Rock’s charter schools are growing in popularity, and a new local high school is opening this year. “Schools use a lot of promo items for recruitment or retention,” she says, ticking off items like stainless-steel tumblers, branded pencils and crayons and umbrellas. By way of contrast, Moisant says education isn’t spending money like it used to in her area, but she’s replaced that revenue with orders from banks.

Lisa Smith, owner of Republic Promos (asi/307316) in Austin, TX, is also optimistic. A years-long influx of tech companies to Austin, now home to some 950,000 people, has led to a prolonged citywide boom and tight job market, with economists predicting city GDP will rise by 5% this year. She also does well in housing, where inventory is low and prices are high (the median single-family home price now tops $400,000).

The upcoming election is also top-of-mind for distributors, who say it usually leads to a decrease in spending. Moisant keeps a close eye on politics and says companies tend to hold back in election years, “but I have 30 years in this industry,” she adds, “and I’ve learned that when something’s down, something else is up.”

Sarah Protzman Howlett is a contributing writer for Advantages.