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Strategy

Promotional Products Sales Report 2020 – West

Population growth and favorable business climates deliver compelling opportunities for distributors.

Go West, young man.” That’s American writer Horace Greeley’s famous direction to the nation’s ambitious settlers, a nod to the encouraging prospects sitting in the United States’ largely unsettled western terrain.

A century and a half later, Greeley’s enterprising advice still resonates. As the West has become synonymous with new prospects and progressive thinking, residents, businesses and entrepreneurial ideas have flooded its landscape and opened a wide door for promo firms.

Red Rocks Amphitheater

Red Rocks Park in Colorado offers entertainment in a beautiful natural setting that this region is known for. Nearby Denver is one of the West’s fastest-growing cities.

“The West is strong and healthy, much of that driven by market growth and healthy economies,” says Kathy Finnerty Thomas, president of Stowebridge (asi/337500) based in Arizona.

While already boasting densely populated markets like Los Angeles, Phoenix and San Francisco, the West claims some of the nation’s fastest-growing metro areas in Denver, Salt Lake City, Seattle and Las Vegas. Millennials and Gen Z are fueling much of the residential surge. In fact, Nevada, Arizona, Oregon and Washington are four of the most popular destinations for young professionals to move, according to a U.S News & World Report analysis.

Interestingly, the influx of young people has sparked a promo opportunity: participation awards. “This is a generation that grew up receiving recognition,” Thomas says, noting a steady uptick in requests for such products.

While weather, recreational options and other quality-of-life factors undoubtedly contribute to the West’s appeal, so too does the region’s general economic health. Measuring states’ economic stability and potential, U.S News & World Report listed Colorado at the top of its Economy Rankings in its annual “Best States” report. The Centennial State, however, wasn’t alone in representing the West, as Utah, Washington, California, Oregon, Idaho, Nevada and Arizona also claimed top 10 spots.

West Sales Graphic

The West’s favorable business climates continue to spur hiring at existing operations and prompt new business ventures. In the Tax Foundation’s 2020 State Business Tax Climate Index, an annual report examining each state’s business-friendly qualities, Western states claimed six of the top 10 slots. Paired with the nation’s stable economic fortunes, these advantageous business climates have Western companies well positioned to create healthy balance sheets.

“When companies have money, they’re more willing to spend,” Thomas says.

And those items must be distinctive, a reminder that many trends originate out west before shifting eastward.

“They don’t want a cookie-cutter tumbler or pen,” says Candece Hadley, sales manager with Interform (asi/231501), in Centerville, UT. “They want something forward-thinking, from the product’s look and features to the packaging.”

Sustainability also looms large, a predictable reality given the natural wonders – national parks, Pacific Ocean and other picturesque spots – that grace the region. Once upon a time, products with a sustainable story were a curiosity. Today, customers are “coming to us with sustainability as a piece of their criteria,” Hadley confirms.

There’s escalating movement toward eco items crafted from bamboo, wood or cork. “Plastics are frowned upon,” says Nancy Gudekunst, president of MARCO Ideas Unlimited, a Portland, OR firm that sells heavily across the region, particularly in manufacturing, construction and government.

Regulations on plastic bags and straws continue to arise, further driving interest in sustainable products. California and Hawaii, for instance, both have statewide bans on plastic bags, while Seattle became the first major city to outlaw plastic straws, a decree some of its West Coast brethren have similarly adopted.

Such mandates paired with swelling interest in sustainability continues to propel a healthy market for eco-friendly offerings. Stowebridge recently completed an order for laser-engraved stainless-steel straws, Thomas says, and another for drinkware laser-engraved with each recipient’s name.

Alongside the growing fervor for sustainability sits a hunger for practicality. Clients favor products that serve a purpose such as cooling towels, insulated shopping bags and cable organizers. Says Hadley: “The interest is toward items that are functional and useful and serve a specific purpose.”

Hot List

Hot Trend: CBD
As many Western states have embraced legalized marijuana – Colorado and Washington being two notable trailblazers – interest in cannabis, hemp and CBD-related products has blossomed, says Nancy Gudekunst of MARCO Ideas Unlimited. “Hemp grows well out west, so there’s also lots of excitement about the new agricultural opportunities for CBD and products made with hemp,” says Gudekunst, whose Higher Promos division specializes in this emerging field.

Hot Event: Recreational Athletics
The West is bolstered by pleasant weather and a healthy ethos, so it’s no surprise that Kathy Finnerty Thomas of Stowebridge has observed significant growth in amateur recreational sports in the region, particularly running and cycling races. As a result, Thomas’ Arizona-based firm has found itself creating T-shirts, flags, course signage, awards and sponsor goodies for many recreational sporting events. “More events mean more need for our services,” she says.

Hot Product: Commemorative Coins
Ken Peterson, president of Redding Printing Company (asi/308544) in Redding, CA, reports heightened interest in commemorative coins, especially those aligned with causes like cancer awareness and preservation, the latter an especially mighty ideal in the Western U.S. Peterson says people tend to hold on to the coins because they’re generally aligned to a cause that’s near and dear to their heart. “Clients are willing to spend a bit more to be remembered,” he says.

Daniel P. Smith is a contributing writer for Advantages.