I recently watched a webinar that was one hour long, and it held my interest the entire time. Most good TV shows or movies can’t even do that for me. Titled “Tariff Impacts & U.S.-Made Momentum,” the discussion was led by Tim Andrews, President and CEO of ASI (Advertising Specialty Institute). He was joined by a panel of print and promotional products pros, including three suppliers who either completely or predominantly manufacture their items in America, providing a sense of the market and a dose of inspiration.
Domestic service and manufacturing companies are showing greater interest in branded products that are labeled “Made in America”. It may or may not be a sign of patriotism, but it communicates that they are a quality company, and they want items with their brand to communicate that. USA 250 budgeting and production has already started, creating another plus for American manufacturers. Each of the suppliers is seeing a boost in interest with distributors and end-users looking for products that are made in the USA as a means of circumventing the confusing and costly tariffs. With the consumer side of goods, the swing is at a slower pace.
One panelist noted that his supplier, which manufactures cut-and-sew items like tote bags and caps, was seeing difficulties with some of its strongest markets, including government, nonprofits and colleges. And yet, he shared that “We have seen a surge in interest in Made in USA, which is really unlike anything we’ve seen before.” He noted that last year, the Newark, NJ-based supplier received a lot of press for the hats it produced for the Kamala Harris-Tim Walz presidential campaign. “If we were in the New York Times, we might see an extra 600 or 1,000 visitors to our website on that day,” Cahn noted. “We have seen numbers like that three or four days a week for the last three weeks.”
Another panelist, which sells a range of products but is primarily known as a supplier of candy, chocolate and food gifts, is seeing a similar push. “The Made in USA demand is super strong,” he noted. “We’re seeing very strong demand for our products.” A portion of this company’s products are 100% sourced in the USA, but some ingredients and raw materials are imported, such as cocoa beans from places like the Ivory Coast and Ghana that are brought stateside by refiners.
The third panelist, which has no stock items and manufactures 100% of its products in the U.S., had an “unbelievable first quarter.” Still, she added that Q2 has historically been a slower quarter for the Washington, MO-based supplier.
“Quotes are up unbelievably, but whether that has anything to do with American-made, I can’t account for that,” she said, whose company was Counselor’s 2023 Woman of Distinction. “From where we sit today, we are very optimistic.”
The Power of Automation in Promotional Product Manufacturing
All three suppliers stated that automation is essential for Made-in-America manufacturers to be successful and price-competitive. American-made products basically use better materials, allowing for less labor in producing the product. Imported products coming from countries that have plenty of low-cost labor use lower-quality materials, which requires more labor to produce the product.
“During COVID,” one of the panelists recalled, “we were making puzzles 24/7. Automation was imperative for us to take care of customers.”
Another panelist said that Unionwear has invested heavily in automation to make up for labor shortages. One of its machines that manufactures tote bags is completely automated and does the work of “about 44 sewing machine operators”. And as technology continues to evolve, they are bullish on AI-assisted automation as the future for domestic manufacturing, especially for jobs that it might struggle with right now, such as handling lighter-weight fabrics like T-shirts.
“In a couple of years, maybe two or three years, I believe the automation will be there for other products,” he said. “So, I believe in two years, you’ll see a lot more automation domestically. And when that happens, it’s going to make a lot of sense to manufacture domestically. It may even be less expensive than the cheapest country in Asia.”
Advice for Surviving & Thriving as a Promotional Product Supplier
The panelists preached calm, stability, and a mentality of doing what it takes to succeed during tough times.
There were plenty of comparisons to COVID, though panelists noted that this year reminded them of other difficult periods, too, that they persevered through.
“History repeats itself,” one of the panelists shared. “I remember it was 2008 and 2009, and we had to reinvent ourselves. And then COVID, we learned so much from that.”
The reality is that both distributors and suppliers will have to deal with cost pressures. Whether absorbing the cost or increasing prices, communication is a necessary part of the process. The panelists agreed that many customers are understanding of price increases. They read the news like the rest of us. But what they don’t appreciate is inconsistency.
“AI is a great thing, but without the relationships portion of it, I don’t know if we can move forward,” one of the panelists said. “And I think it’s going to become more and more important getting through all of this. Because if we don’t give honesty, saying this is where we’re at, we can’t move together ahead properly.”
At The Homer Group, we have been an ASI distributor for many years. Our ASI portal is updated daily with manufacturers’ updates, as they all pivot to global and domestic challenges, providing us with real-time costs, taxes, tariffs, and shipping costs. Obviously, current economic conditions are very fluid, so once a quote is provided, we recommend acting on it as soon as possible. If there is a delay in placing the order, confirm estimates prior to ordering.