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2004 Sales in the Promotional Products Industry Hit a Record $16.9 Billion

Advertising Specialty Institute®, the largest organization in the promotional products sector, made a statement in Trevose, PA on March 23, 2005.

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Industry Sales of Promotional Products Hit an All-Time High of $16.9 Billion in 2004
Industry Sales of Promotional Products Hit an All-Time High of $16.9 Billion in 2004

2004 Sales in the Promotional Products Industry Hit a Record $16.9 Billion

The promotional products industry in North America experienced a significant boost in 2004, contributing to a strengthening overall economy. According to the latest reports, the industry reached a record $16.9 billion in sales, marking a 4.7% increase from the previous year.

David Woods, CEO of AIA (asi/109480), a third-ranked company on the Counselor® magazine Top 40 DistributorsTM list, reported a record yearly sales of $118 million in 2004. Kevin Lyons-Tarr, president of 4imprint, Inc. (asi/197045), a wholly-owned subsidiary of 4imprint Group PLC of the UK, also saw a 17% increase in sales, reaching $73.1 million.

The growth in the industry is not limited to these companies. Greg Muzzillo, founder and Co-CEO of Proforma (asi/300094), a seventh-ranked company on the same list, experienced almost a 20% growth in sales in 2004. Sandra Rodriguez of Graphic Impressions, dba D and S Designs (asi/212952), also reported growth in sales of promotional products, as both new and existing customers find out they can meet their needs.

The increased sales are not just coming from existing customers, but also from winning business away from other distributors. Some industry-related shops, such as printing and graphic design, may be expanding into promotional products as well.

The use of promotional products is becoming more widely accepted and integrated into an organization's marketing mix. This shift is reflected in the forecasts for 2005, where nearly three-quarters of distributor firms are forecasting that business will increase at least 5%.

However, the industry is not without its challenges. Distributor firms for 2005 are citing increased pricing competition as a concern. They are also concerned about stiffer competition from overseas firms.

Timothy M. Andrews, ASI's president, stated that the industry is healthy and sales are continuing on an upward swing for 2005. ASI's fourth quarter Industry Sales Survey supports this, showing that 61% of ASI distributor member firms had higher revenues in Q4 2004 compared to Q4 2003.

Despite the lack of a specific company name for the top position on the list of the Top 40 distributors in 2004, the industry's growth and the positive forecasts for 2005 paint a promising picture for the promotional products industry.

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