After many months of virus lockdowns and restrictions, Canada looks to finally be opening up for business. With vaccine passports in place across the country, restaurants, gyms and stores are welcoming more customers, kids are back in the classroom and the promo industry is eager for an increase in business. But there are still challenges to contend with.

In this pre-recorded discussion on Twitter Spaces, Digital Content Director Vin Driscoll hosted Sara Lavenduski, executive editor of digital content and editor of PromoGram Canada for ASI Media, and Canadians Kathy Cheng, founder and president of Redwood Classics Apparel (asi/81627) in Toronto; Danny Braunstein, the Winnipeg-based director of client success for BAMKO (asi/131431) in Canada; and Russell Bird, owner of The Promo Addict (asi/302225) in Sherwood Park, AB. The panelists shared their insights on Canada’s reopening, the state of the economy there and their predictions for the fourth quarter.

Podcast Chapters (Available Only on Desktop)
2:55 Reopening statuses in panelists’ home provinces
8:10 Is business recovering at each company?
13:15 Current opportunities during ongoing caution
23:20 The Canadian economic situation
26:50 Hiring/staffing shortages
34:00 Predictions for Q4
39:00 Open discussion

“At this point, we’re doing decent,” said Cheng. “We’ve been steady and we’ve been busy the entire time. …Everything is made in Canada, so relative to some of the other suppliers in our channel, our delivery and turnaround has been much quicker.”

“We really stormed back at the end [of 2020]. I’m predicting much of the same for this year. We’ve seen bright spots through August and September. I think that trend will continue." – Russell Bird, The Promo Addict

Although the panelists are seeing opportunity, challenges such as supply chain delays, staff shortages and inflation stand in the way of a full industry and economic recovery. It’s creating a perfect storm of concerns that’s leading to promo customers continuing to play it safe.

“The supply chain issue is the worst I’ve ever seen,” said Braunstein. “I expect it will get worse before it improves. The uncertainty around the delta variant is definitely creating planning headaches. Ultimately, it’s leading to hesitation in event planning and return to work plans. So, we’re certainly seeing some headwinds at the moment.”

Moving forward, promo companies will have to remain agile as the situation on the ground continues to play out. “It’s a fluid situation,” said Cheng. “Between vaccination efficacy and health and safety mandates, it really varies by localized economies. In terms of opportunities, buying and supporting local is still strong. We’ve realized we need to support each other.”

With the challenges in mind, the panelists still expressed cautious optimism for the fourth quarter and early 2022. “Last year, we had the best Q4 in company history,” said Bird. “We really stormed back at the end. I’m predicting much of the same for this year. We’ve seen bright spots through August and September. I think that trend will continue. People will retry [for a return to the office] in the new year, and they’re going to plan bigger.”