Will Industry Price Hikes Follow Rising Oil Costs?
It looks like the industry is going to see its first significant price increases in at least five years. The attacks on pipelines in the Middle East, the thirst for oil from India and China, and the damage the summer’s hurricanes did to underwater infrastructure of oil rigs have sent oil prices to record per-barrel levels in recent weeks. Oil is a crucial component of plastic and vinyl, so raw material costs are also rising. “An awful lot of the substrates we print on have petroleum-based products on them; our yard signs are poly-coated and, of course, so are vinyls,” says Tom Carrico, executive vice president/treasurer of Counselor Top 40 supplier Gill Studios Inc. (asi/56950). “And steel prices have gone up this year 40%-
50%. We do a lot of wire frames for our yard signs.” Even promotional products that don’t use petroleum as a raw material are often brought to market aboard fueling-guzzling ships or trucks. Suppliers, who are in the process of readying their 2005 catalogs, have told PromoGram that price hikes are on the way. Many are hopeful that the hikes will stay in the single digits. Check the December issue of Counselor for an extensive article on oil and how it’s roiling the industry’s pricing structure.
How ‘Bout Those Margins? $150 Plaques At Government Award Ceremonies It’s the kind of story that makes all promotional products look bad. It seems the Transportation Security Administration (TSA), the federal agency that monitors airport security, recently spent $81,000 for plaques – just part of a total tab of almost half a million dollars for a TSA awards ceremony. The ceremony was excoriated by the Inspector General of the Homeland Security Department in a report that was picked up by newspapers across the country. The press had a field day going over the gory details: $500 for a cheese display; $1,486 for three balloon arches; $1,850 for seven cakes; $5,196 for official photographs. There was even a Lifetime Achievement award handed out – this despite the fact that the TSA is only 2 years old. A wily party planner pocketed $85,552. The Associated Press reports that, in all, 543 people received awards. Do the math, and that puts the per-plaque price at around $149. An ESP search shows (not surprisingly) more than 10,000 plaques under that price.
Industry Firms In The News Bensussen Deutsch & Associates (asi/137616) has established an exclusive relationship with Coopersburg Sports to become the official promotional provider of the Stackable Star Babooshkah, a patented combination of Russian nesting dolls and bobbleheads, for all professional sports leagues, including Major League Baseball.
NorthFulton.com, based n Alpharetta, GA, ran a piece about Bob and Ron Redner, owners of Render Ad Service (asi/307080), discussing the firm’s history and what it does.
Larry Zavadil, president/CEO of American Solutions for Business (asi/120075), and his wife, Diane, were honored as “community leaders and builders” by the University of Minnesota/Morris for their support of UMM’s Rural Student Scholarship Fund.
A recent Pittsburgh Tribune-Review article mentioned Leed’s (asi/66887), specifically the expansion of its plant, as one of the factors contributing to the economic growth of the region.
The Cleveland Indians Web site featured an article on former player Andre “Thunder” Thornton and what he’s doing these days. To that end, a large part of the article focused on Global Promotions & Incentives Inc. LLC (asi/208338), a Cleveland distributorship.
Nevada Firefighters Use Promo Product For A Good Cause The Reno (NV) Gazette-Journal reports that as a way to raise funds for its Community Assistance Program (which helps fire victims to replace clothing and other essentials), the Reno Fire Department put together a 2005 calendar featuring photos of various local firefighters. Some are somewhat provocative, some straightforward. The department ordered 10,000 copies of the Inferno Calendar. It’s offering them for $15 each, with all proceeds going to the program. The calendars were produced by photographer Scott Hurley and Lisa Cook, operations director of Blue Moon Advertising and Promotional Products (asi/141834), both of whom donated their time. All told, an interesting idea and concept. No reason why you can’t suggest the same thing to any public-servant clients of your own.
People On The Move Greta Molder has joined Howard Promotions (asi/228822) as vendor relations manager. She was formerly national accounts manager for Economy Pen & Pencil. Molder will also manage product selection for Howard Promotions’ direct marketing catalog, “LogoBuyer,” which is distributed to 200,000 end-users a month.
Taylor & Grant Specialties Ltd. (asi/90667) has named Dundee Staunton president and Alex Jovetic vice president of sales/marketing.
Leed’s (asi/66887) has named Sharon O’Connell COO and Craig Morantz vice president of sales development.
Pencoa/Supermatic (asi/77040) has named Mike Valentini as its Northeast multi-line rep firm.
Geiger Inc. (asi/202900) recently appointed Jim Habzda, CAS, vice president of sales and marketing.
OF THE WEEK
Fleece Jacket And Pullover From Pacific Fleece (asi/75647) The Quarter Zip Micro Fleece Pullover, style #1, is made from 13-oz., anti-pill polyester. Details include side-entry pockets; gathered elastic cuffs; elastic bottom draw cord with cord locks; and available in elastic wrist, open bottom or elastic draw cord lock. Sizes S-3X in an assortment of colors including black, navy and ash with 72 piece minimum. Made in the USA.
For other new and creative products,
visit the Product Central section on ASICentral.com.
Wool Blend with Grey Undervisor (asi/75350)
For a professional low fitting look, try Otto Cap’s Wool Blend Low Profile Pro Style Cap, style #19-304/19-305. This cap features a velcro closure and grey undervisor. Available in many colors you are sure to find the one that is right for you.
For other new and creative products,
visit the Product Central section on ASICentral.com.
ASI PRODUCT/SERVICE SPOTLIGHT
ASI Orlando On Deck! With less than two months to go until the official start to the 2005 tradeshow year in the advertising specialty/promotional products industry, The ASI Show Orlando is gearing up to provide another beneficial business experience building on the momentum from last year’s extremely successful event.
There are already more than 100 new companies currently reserved that have never exhibited at ASI Orlando before. Two hundred more supplier companies are projected to exhibit at the 2005 show than did last year — with 1,000 exhibitors in total. And due to positive buzz from the 2004 ASI Shows, all of which exceeded attendance projections, many suppliers are doubling and even tripling their booth space in 2005.
ASI distributor members can register free (based on their level of membership), order discount Block Party tickets and save up to $50 on full-day seminars until December 3.
Cirque du Soleil tickets are limited in quantity with only minimal seats available in the VIP section. Side orchestra seats are also selling out rapidly – only 20 tickets remain.
You can register and reserve your hotel room online at www.asishow.com. You can also order special event and education tickets online as well. Call (877)ASI-SHOW with any questions about the industry’s first national show of the year, The ASI Show Orlando, January 3-5, 2005.
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Promotional Products Association Int’l (PPAI)
Info: (972)252-0404; Fax: (972)258-3205 www.ppa.org
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National Specialty Advertising Showcase (NSA)
24/Seattle, WA; 25/Portland, OR; 26/Foster City, CA; 27/Walnut Creek, CA; 28/Sacramento, CA
Info: (361)949-1857; Fax: (361)949-7460 email@example.com www.nsashowcase.com