The promotional products industry has enjoyed strong growth over the last several years.   Historically speaking the growth  rate has averaged 4-5% with spikes higher or lower during that time period.  Preliminary reports from suppliers show a marked downturn in the months leading up to the new year which could portend a slump in 2008.

 

Our take on the state of the industry is that sales will level out in 2008 while margins shrink.  Customers are actively seeking bargains and as more and more business is conducted online customers have instant price checking capability.  We are finding on our promotional items store that price is important but more important is a strong customer service presence.  

 

As we move later into the winter we expect to see sales begin to rebound as the overall economy settles into a recession.