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FF denotes chief executive responsible for promotional products, if other than chief corporate executive. 1. Halo Branded Solutions (asi/218440)  Niles, IL Promotional Products Sales: $445 million Workforce: 4,900 Years in Industry: 30 Publicly Held F Lou Weisbach, chairman FF Marc Simon, CEO Founded by Weisbach in 1972, HALO is a brand marketing firm through its two business units – HALO Branded Solutions and Upshot Marketing Group. Its client roster includes Abbot Laboratories, Coca-Cola Co., Discover Financial Services, Ford Motor Company, General Electric, Sears, Pfizer, IBM, J.E. Seagram & Sons and SBC Communications. The firm, which acquired 21 companies between 1994 and 1999, went public in 1992, deciding in late 2000 to retain the HALO name following the acquisition of Starbelly, an e-commerce marketer, in March of that year. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? The biggest challenge facing the industry is overcoming the perception that promotional products is a commodity business. Not all companies are equal. Experience shows the true value distributors provide to clients is more service-driven than price-driven. We must continue to stress broad product assortment, creativity, innovation, service and experience in all we do. 2. American Identity (asi/120601)  Kansas City, MO Promotional Products Sales: $247 million Workforce: 2,800 Years in Industry: 32 Privately Held F Roger P. Henry, president/CEO In 1998, distributors Swingster and K-Products merged, bringing together two major companies operating corporate logoed merchandise fulfillment programs. The resulting entity, American Identity, manages over 300 catalog programs. From 53 offices, the sales force covers the promotional merchandise needs of more than 16,000 accounts nationwide. In December 2000, American Identity merged with Boise Marketing Services Inc. It is now the largest privately held promotional products distributor in the country, serving over 350 of the Fortune 1000. American Identity is a vertically integrated marketing services resource, leveraging its position as a major domestic producer of apparel and headgear. In-house facilities include screen-printing, embroidery, photography, offset printing, and Web-site production. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? The growing propensity for corporations to turn to online auctions in securing their promotional products as if they were commodities like maintenance supplies or office products. We need to continue to tell our story of the consultative nature of our business and the creativity inherent in its value-added services. Corporations would never consider on-line auctions to determine their next media campaign. Neither should they consider them when developing brand reinforcing promotional merchandise campaigns. Resist the temptation to join in online bidding only to drive your margins out of existence. 3. Corporate Express Promotional Marketing (asi/168786)  St. Louis, MO Promotional Products Sales: $182.6 million Workforce: 400 Years in Industry: 42 Publicly Held F Dennis Multack, president Corporate Express Promotional Marketing is a marketing-services agency involved in designing and operating corporate-identity merchandise, sales promotion, incentive and service-award programs. Corporate Express acquired Promotif Marketing Australia pty Limited, an Australian distributor, in 2000. The firm has offices in the United States, London, Toronto and Tokyo. Corporate Express is continuing integration with various sales forces of Corporate Express for better global coverage. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? I see no long-term threats to the use of promotional products. There are plenty of challenges during economic downturns. We need to increase visibility of our commodity to procurement and technology changes. 4. 4imprint Inc. (asi/19704)  Oshkosh, WI Promotional Product Sales: $148 million Workforce: 760 Years in Industry: 17 Privately Held F Dick Nelson, president/CEO 4imprint began as Nelson Marketing in Logansport, IN, in 1985. The majority interest was sold to Miles Kimball Co. in 1988. It moved to Oshkosh, WI, in 1989. In 1990, Miles Kimball’s shares were sold to Alberta Kimball and Ted Leyhe. Nelson’s owners sold the company to UK-based Bemrose Corp. plc in 1996. Dick Nelson was named to Bemrose’s main board in 1996. In 1999, Bemrose sold its U.S. suppliers. Bemrose Corp. plc. changed its name to 4imprint Group in 2000. The same year, 4imprint entered into a strategic alliance with Carabunga.com, linking the sites and offering clients of both firms the services of the other. It also began working with Land’s End Corporate Sales division that same year. The company is a full service provider of promotional products and corporate programs, with locations domestically as well as, Canada, the UK, Spain, France, Germany and Hong Kong. It purchased Adventures in Advertising Franchise Inc. in January 2001. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? The biggest threat at the moment is the difficulty some of the largest, very visible distributors are experiencing. Not only does this reflect poorly on the industry as a whole, but it’s also putting a number of small and mid-sized suppliers in harm’s way. Salespeople are the foundation of the industry, but it is seldom the case that the best salespeople make the best managers. Recognizing when to add professional management to a company built by salespeople is a critical and often difficult decision, but one that needs to be made. 5. Cyrk (asi/173519)  Gloucester, MA Promotional Products Sales: $145 million Workforce: 225 Years in Industry: 25 Privately Held F Bob Siemering, CEO Cyrk was founded in 1976 as a manufacturer of screen-printed apparel and accessories. Over its 25-year history, it became the largest diversified marketing services firm in the nation. In early 2001, Cyrk sold its Corporate Promotions Group to a private equity firm that re-launched it under the same name. The remaining business units of the original Cyrk were re-named Simon Worldwide Inc., a separate public entity, focusing on consumer promotion and loyalty programs. The new Cyrk is a private company and leader in corporate merchandise services. Its focus is delivering corporate branded merchandise and services, designed and developed to capture imagination, strengthen loyalty and build long-term value. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? There’s been a continuing trend over the past several years for companies to treat purchases of corporate-branded merchandise as if it were a commodity. While many of us in the industry understand the fallacy of this assumption, some find it difficult to articulate the service elements we provide to the buyer. This is particularly true when the decision maker isn’t in the sales or marketing departments and has never actually purchased branded merchandise for her own use. This drive toward “commoditization” attempts to disregard the service element and cause the distributor to unbundle the product from the services provided. The risk inherent in this process is that the pricing is based on the unbundled product, yet when it comes time to actually do business with the end-user, service becomes the priority; the product is priced without service, yet service is demanded. The greatest threat to our industry is the distributor who does not understand how to respond to this demand for “commoditization.” These distributors will ultimately be unsuccessful, but in the meantime there’s artificial margin pressure for the true providers of corporate merchandise services. 6. Geiger (asi/202900)  Lewiston, ME Promotional Products Sales: $135.9 million Workforce: 610 Years in Industry: 123 Privately Held F Eugene G. Geiger, president Andrew and Jacob Geiger established Geiger Bros., the firm’s original name, in 1878 as a small print shop in Newark, NJ. Through the years, it has remained a family business and is now in its fourth generation. It sells a full range of promotional products. Geiger manufactures an exclusive line of commercial calendars, address books, diaries and time planners and the well-known Farmers’ Almanac. In 2000, Geiger acquired Marketing Professionals Inc. A national firm, Geiger operates under a number of names, including Geiger Bros./West, Geiger International and William A. Lynch Associates. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? We’re very fortunate that our industry is growing and, therefore, isn’t threatened in the same way many others are today. However, we’re facing an enormous challenge in dealing with the skyrocketing costs of technological development and harnessing that development for an appropriate return on investment. Innovative technology cannot replace the personal touch and relationships necessary to maintain and support the creative process whether we are serving our customers as suppliers or distributors. If our solutions are only technological, we will fail. At the same time, we must find ways to operate more efficiently to exchange information from the buyer through the distributor to the supplier and back again. Routine information that’s exchanged multiple times per day must be moved back and forth efficiently, allowing for the face-to-face interaction to focus on developing solutions for our clients. Clients have less and less time, so using technology tools to enhance their productivity will enhance ours as well. 7. Myron Manufacturing Co. (asi/278980)  Maywood, NJ Promotional Products Sales: $134 million (E) Workforce: 800 Years in Industry: 52 Privately Held F Myron Adler, chairman FF Marie Adler, president Established in 1949, Myron is a manufacturer of plastic and vinyl stationery products and metal writing instruments, which it distributes through its mail-order channels in the US and Canada. Its manufacturing operations are based in Maywood, but the firm maintains sales/service branches in Scarborough, Ontario, Canada; Slough, England; Paris; and Munich. In addition to marketing in Europe, Myron has ventured into the Japanese market. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? One threat that’s not immediately obvious is that mail costs continue to rise as the USPS continues to lose business. This is because of more and more people using one or more means of e-communication. I think there’s a concern that there will be too much concentration on these e-channels in all business communications, our industry included. As more firms depend on them, the personal aspect of promotional products as well as the need to see and feel a 3-D product will begin to disappear. I think it’s important for our industry to constantly remind clients of the high impact and lasting impression imprinted products can offer, part of which is including them in direct mailings. 8. Group II Communications Inc. (asi/215310) Hales Corner, WI Promotional Products Sales: $125 million Workforce: 150 Years in industry: 16 Privately held F William McKenna, president/CEO Group II, founded in 1985, provides marketing support services for global corporations with highly visible trademarks and properties. Through facilities in the U.S. and Europe, Group II offers complete turnkey merchandising services, including program conception, execution and fulfillment. It prides itself on the enthusiasm of its associates, whose efforts have made the company, and, much more important its client/partners, so successful. In early 2001, Group II became part of Integrated Merchandising Systems. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? (Declined to respond) 9. Bensussen Deutsch & Associates Inc. (asi/137616) Woodinville, WA Promotional Products Sales: $116 million Workforce: 285 Years in industry: 17 Privately held F Jay Deutsch, president/CEO FF Eric Bensussen, vice president/COO Founded in 1984 by Bensussen and Deutsch, BD&A’s brand-driven approach has helped develop it into a true merchandise agency. Using an agency philosophy, it provides clients with integrated merchandise services, including corporate promotions, sales promotions, retail programs, consumer products and sports marketing. Through these channels, BD&A’s goal is to develop strategies that strengthen and extend clients’ branding efforts, enhance their corporate identity, and ultimately deliver a physical representation of their brand message. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? The question presented offers up the notion that a threat exists that we must be leery of. The past has shown that the industry can continue to grow and expand every year. Showing annual increases of $1 billion is a feat any creative association would be proud to post. The ultimate challenge to any company within our industry is to consistently not only live up to the expectations we set with our clients, but also to consistently exceed them. This has been our focus since our inception. We work to accomplish these goals by continually reinvesting in ourselves to meet the demands of our Fortune 1000 clientele. 10. Proforma Inc. (asi/300094)  Cleveland, OH Promotional Products Sales: $102 million Workforce: 552 Years in Industry: 10 Privately Held F Greg Muzillo, CEO FF Alan Chippendale, president, promotional markets Founded in 1978, Proforma is a full-service solutions provider of promotional products, printing and e-commerce solutions with over 500 independently owned offices in the United States, Canada and Puerto Rico. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? If we don’t continually adapt to provide end-users maximum value and efficiency. Change that results in an increasing value proposition and greater efficiency to end-user customers will strengthen our industry. Each link in our traditional supply chain of distribution (supplier to distributor to end-user) will continue to be positively challenged by many factors to become increasingly more efficient and providing greater value 11. Summit Marketing Group St. Louis, MO Promotional Products Sales: $96.1 million Workforce: 240 Years in Industry: 5 Privately Held F Daniel J. Renz, CEO Summit was founded in 1996. It currently operates six subsidiaries: Summit-Barkley House, Summit-FM, Summit-Nevins, Summit-Gardner & Geldmacher, Summit-Harper and Summit-Phoenix. Summit offers a wide range of services for clients, including corporate identity, catalog fulfillment, sales promotional marketing, licensing agreements, graphic design and sourcing of proprietary promotional products domestically and internationally. Through its direct marketing segment, it offers strategic analysis and creative business-to-consumer and business-to-business direct marketing and database services. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? (Declined to respond) 12. Wood Associates Inc. (asi/363147)  Santa Clara, CA Promotional Products Sales: $86.7 million Workforce: 196 Years in Industry: 16 Privately Held F Monte D. Wood, president Wood is a team organization chartered specifically to sell promotional programs and merchandise. In 2000, it entered into an exclusive alliance with Bravanta.com, which allowed Wood to offer Bravanta’s services to its client base. The company is privately held by its two founders and employees. Growth has been steady and has averaged nearly 15% to 45% per year. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? We see no significant threats to the industry in the next five years. 13. Case-Dunlap Enterprises Inc. (asi/158990) Dallas, TX Promotional Products Sales: $82.4 million Workforce: 145 Years in Industry: 27 Privately Held F Bill Dunlap, CEO F Kevin Lippincott, CEO/Tic Toc Founded in 1974, Case-Dunlap designs, develops, sources and distributes a variety of promotional products, including premiums, advertising specialties, trade show giveaways, imprinted apparel, business gifts, direct-mail premiums, in-packs, on-packs and kids premiums. The company can support these services through its custom products division, corporate catalog division or technology system. Promotional services are another part of its integrated marketing services, which include creative concepts, art direction, design/graphic arts, consumer sweepstakes, games, contests, kids’ marketing, kitting and assembly, promotional fulfillment, warehousing and dropshipment. In early 2001, Case-Dunlap, Promark, Promotional Services Group and several other business entities were rebranded under the name Tic Toc, whose core competencies are in the area of performance marketing, point-of-sale and promotional products and services. Tic Toc creates temporary and permanent point-of-sale structures. Services include merchandising strategy, conceptual development, design, engineering and manufacturing. The performance marketing group designs, develops and administers motivation programs that support staff retention, behavioral change, sales growth, loyalty, continuity and training reinforcement. The company is a subsidiary of Omnicom, a New York-based advertising and marketing services holding company. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Complacency. Industry dynamics are dramatically changing for suppliers, distributors and buyers. The successful organization will recognize the pending changes, embrace new technology and business models and focus its efforts on value added services. 14. Vernon Co. (asi/351700)  Newton, IA Promotional Products Sales: $78.3 million Workforce: 990 Years in Industry: 99 Privately Held F William F. Vernon, chairman/ CEO FF Chris Vernon, president/COO Frederick L. Vernon founded the Economy Record Book Co., the predecessor to Vernon Co., in Newton, IA, in 1902. His first products were imprinted farm-record books and, later, metal advertising specialties such as kitchen match-holders. The company was publicly held from 1958 to 1986, but has always been controlled by the Vernon family. Vernon markets sales-incentive, corporate identity, anniversary and safety programs, and manufactures pressure-sensitive signs, wearables, cutlery, gift merchandise and advertising specialties. The company has two subsidiary companies: Dun-Lap Manufacturing Co., a screen processor specializing in product identification applications, and Vernon/SAL, a NJ-based screen processor, specializing in point-of-sale programs. It is now under the management of the third and fourth generations of the Vernon family. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? We believe it’s the continued disintermediation of the traditional supply chain relationships, which have served the industry well over 100 years. We feel advances in technology and trends toward corporate consolidation will accelerate competitive pressures both in terms of pricing and product/service differentiation and will contribute to further erosion of the historical supplier-distributor distribution model. In order to deal with these pressures, successful companies in the future must be very focused in terms of meeting their client needs and adopt emerging technologies to become more agile and responsive . 15. Jostens Inc. (asi/237590)  Minneapolis, MN Promotional Products Sales: $76 million (E) Workforce: Unknown Years in Industry: 104 Privately Held F Robert R. Buhrmaster, president/CEO Jostens is a leading provider of products, programs and services that help people celebrate important moments, recognize achievements and build affiliation. Its products include yearbooks, class rings, graduation products, school photography, employee and achievement awards, and products for athletic departments and fans. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? (Declined to respond) 16. Brown & Bigelow Inc. (asi/148500) St. Paul, MN Promotional Products Sales: $75.4 million (E) Workforce: 900 Years in Industry: 105 Privately Held F William D. Smith, president/CEO Founded in 1896, Brown & Bigelow operates two distinct divisions under one corporate entity. The company’s supplier division, Hotline Products, manufactures the Hotline and Classicline calendars and sells through distributors. The company’s distributor division and company namesake supports 350 career promotional product sales professionals in their local markets through a network of full service regional support centers. In early 2001, the company sold its retail division, Hoyle Products, and reinvested the proceeds in the company’s calendar manufacturing and promotional products division. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Efforts to minimize or eliminate the role of creative people by the dot.coms, large supplier groups, national distributors through online sales, direct selling and hiring inexperienced salaried representatives to service national accounts. The solution is for reps to associate with only those firms who respect the value added principles of creative salespeople. 17. National Pen Corp. (asi/281040)  San Diego, CA Promotional Products Sales: $65.6 million Workforce: 1,100 Years in Industry: 32 Privately held F Thomas L. Liquori, president FF Mike Delaney, vice president, marketing National Pen was established in 1966 by Alfred Liguori and Paul Stabile as a subsidiary of Modern Mold and Tool International Inc. MMTI changed its name to Internet Design Technology Inc. in 2000. The company was one of the first manufacturers of ballpoint pens. National has, over the years, built its business on personalization and decoration, and considers itself the premiere printer of four-color graphics in the world. The company markets its products in 14 countries with production facilities in the U.S., Ireland and Mexico. Today, the company is run by Tom Liguori, son of the founder. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? People forgetting what our business is all about. Too many think they sell promotional products. Our industry is all about helping other people to effectively and efficiently use promotional products to increase their sales, retain existing customers, improve the impact of their safety program, encourage team building, etc. To effectively deal with this issue, we all need to keep focused on what we do that adds value to our customer. When we get a call from a purchasing agent we never met trying to negotiate price on an ad specialty product for a promotion we never heard of, we are already behind. Stealing a deal based on price might get revenue, but it doesn’t really add value to our customer. It certainly doesn’t create profitable repeat business for us. Working very closely with the marketing team to drive up promotional effectiveness is how we add value and capture repeat business. 18. Jack Nadel Inc. (asi/279600)  Culver City, CA Promotional Products Sales: $65.5 million (E) Workforce: 170 Years in Industry: 48 Privately Held F Marty Nadel, president JNI was founded in 1953 by Jack Nadel. It continues to be a company merchandising promotional products and developing full-scale promotional campaigns for the areas of distribution channels, trade shows, sales incentives, company store programs, and more. Graphic art personnel and studios are maintained in many offices. Additionally, each JNI office also includes account coordinators to maintain communication with vendors and clients and to assist the account executives in all areas of program development, product research and lead development. In 1994 JNI introduced an employee stock-ownership program, allowing the employees to own 33% of the company’s stock. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Most of us are old enough to remember the famous Pogo quote, “We have met the enemy, and it is us.” Perhaps the greatest threat to our industry is ourselves. Several years ago, when ad specialties evolved to promotional products, our industry reached a new height in marketplace recognition and validity as a brand-identity medium. Our industry’s enhanced professional stature benefited all of us, as not only did overall ad spending increase, but promotional products grew as a percentage of all advertising. The failure of the dot.coms to deliver a new level of appreciation of us within the advertising community, and the struggles of some of the most well-known companies within the industry have reversed this trend. Suddenly, many good companies find themselves unnecessarily labeled with the stigma of failure. Clearly, it will take some time for the dust to settle and for some continuing hard work by promotional product companies to regain our lost ground. 19. JII Promotions Inc. (asi/232427)  Columbus, OH; Coshocton, OH; Red Oak, IA Promotional Product Sales: $62 million Workforce: 710 Years in Industry: 112 Privately Held F Rick Prather, president/CEO FF Dan Harms, vice- President/COO JII Promotions, Inc. (formerly JII Sales Promotion Associates, Inc.) is a distributor of promotional products, including proprietary calendars evolved from lines produced from its historic past by Thos. D. Murphy Co., Shaw-Barton and Shedd-Brown. JII approaches the market with a multi-tiered sales organization working with clients with product-driven dropship needs; full service programs requiring cataloging and fulfillment services including company store, corporate identity, safety, and recognition programs; and custom calendar programs. JII’s offerings are supported by client Web sites it develops and hosts on behalf of the client. JII’s Columbus facility is focused on sales, marketing, customer service for corporate program accounts, and the site of its showroom. The Coshocton facility is the primary manufacturing plant for calendars and houses corporate administrative functions. The Red Oak facility focuses on customer service and administration for promotional products and program fulfillment services. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? JII continues to view the industry as strong and vibrant, with products and related services that are mainstays in corporate America’s culture. We don’t foresee the industry perishing or downsizing considerably. Nonetheless, we can foresee the reputation of the industry being sullied and the demise of many industry players as a byproduct of questionable business logic. Prospective clients are noting that they are being over-promised and under-served. This is an apparent result of industry players, seeking market share at all costs, not being able to deliver contracted products and services at the contracted price. Dissatisfied, the client moves its business elsewhere. The burden falls on the next guy to meet the client’s newly formed, albeit ill-advised expectation for product, service, and price, and the unrealistic pursuit of market share continues. This view of market share vs. reasonable profit isn’t a prediction of the future but a reflection on the industry’s recent past. Pursuit of market share appears to result in temporary spikes in a company’s value resulting in a paradigm followed by others in the industry. The absence of reasonable profits will be playing out over the next few months, doubtfully in a positive manner. Pursuit of reasonable profits is a long-term paradigm that can forestall damage to our industry’s reputation, ensure the viability of its players, and provide the proper service to its clientele. 20. Newton Manufacturing Co. (asi/283300)  Newton, IA Promotional Products Sales: $60 million Workforce: 170 Years in Industry: 92 Privately Held FClayton C. Case, president FF Jerome Hoxton, vice president, marketing Newton was established in 1909 by George Newton as a promotional products manufacturer before becoming an exclusive industry distributor in the early 1940s. The company currently supports an independent sales force of approximately 800 representatives selling throughout the continental United States, Alaska, Hawaii, Puerto Rico and the Virgin Islands. Newton handles all types of promotional advertising orders, including co-op and corporate fulfillment programs. It also owns a subsidiary company in Pella, IA. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? What most threatens our industry is not being able to meet the needs of our good customers with the best levels of professionalism and service. All of us need to re-dedicate ourselves to the formula that has built this business – distributors and their representatives are responsible for selling to customers, and manufacturers/decorators are responsible for filling orders right and on time. Too often, the biggest challenges come after an end-user places an order. The sellers must be loyal to the manufacturers/decorators that supply goods accurately and care about customer satisfaction. Suppliers must keep proper levels of inventory, invest in their production capacities and have knowledgeable sales and service staffs that can make decisions that satisfy customer needs. When we keep the “success formula” intact, we all sell more and profit more. 21. Kaeser & Blair Inc. (asi/238600)  Batavia, OH Promotional Products Sales: $57 million Workforce: 128 Years in Industry: 107 Privately Held F Dick Kaeser, chairman FF Kurt R. Kaeser, president/CEO Kaeser & Blair originally opened its doors as the Cincinnati Printing and Paper Products Co. in 1894. Dutch Kaeser and Bill Blair purchased the company in 1923 and expanded sales by launching a revolution marketing concept of selling its products through a national network of independent sales people. More and more promotional products have been added over the years. Blair retired and sold his interests to Kaeser, who instilled, through his 47 years of service, a sense of responsibility, reliability, integrity, and dedication that are still the cornerstones of the company today. Kaeser & Blair prides itself on providing its dealers with exceptional programs and outstanding service. Today the company is led by second-generation Chairman Dick Kaeser, third generation President /CEO Kurt Kaeser, and Bob Lewellen, executive vice president. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Failing to meet end-user expectations. End-users become frustrated with our industry when they receive poor service, lack of professionalism, missed event dates and apathy. Our industry grows and prospers when we take a genuine interest in the expectations and needs of end-users and build upon authentic relationships with a constant dedication and devotion to those we serve. 22. Taylor Corp. (parent firm)  North Mankato, MN Promotional Products Sales: $52.4 million (E) Workforce: Unknown Years in Industry: 26 Privately Held F Glen Taylor, chairman/CEO F Paul Schleich, president, direct-mail group A management group of approximately 70 independently operated divisions, Taylor was founded in 1948 by William Carlson. In addition to its supplier divisions, Taylor has two distributor divisions within the industry: Amsterdam Printing & Litho (Amsterdam, NY) and Taymark (White Bear Lake, MN). The bulk of the other divisions and related firms are composed of, for the most part, social and business-to-business commercial printing (thermography, engraving, and prom/banquet/party supplies sold on a wholesale basis.) What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Perhaps the single biggest threat is the increased “commoditization” of the industry. This tends to drive down the prices that are charged and the perceived value of promotional products to the end consumer. The result is more and more suppliers and distributors working on dangerously thin margins, eroding the long-term health of our industry. Creatively packing products and services into a “value proposition” for the end-user is maybe the best approach to solving the problem. This value-added mindset is the responsibility of both suppliers and distributors. 23. American Business Forms Inc. (asi/120075)  Glenwood, MN Promotional Product Sales: $39.3 million Workforce: 350 Years in Industry: 20 Privately Held F Larry Zavadil, president American Business Forms began operation in 1981, operating from its current headquarters. Since its inception, it has focused on several key market segments including medical services, financial services, insurance, government/education, retail/wholesale distributors, and commercial/industrial. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Erosion of margin. As the number of people selling promotional products increases, there will be continued pressure on margins. In addition, Internet bidding companies will continue to provide alternative channels for customers who are looking for low cost ways to buy product. The answer? Sell solutions, not products. To protect margins and continue to be a successful distributor in the future, we must be able to provide an ever-increasing array of products and services. Companies that will continue to succeed in this industry will need to focus on training and education with an emphasis on sales strategy. By knowing your vendors and their products, distributors can be more effective at offering their customers solutions that meet their needs and maximize profits. Vendors can be a great source for this type of training and insight. Technology will also continue to play an increasing role in the industry’s future. Those who have it will prosper and those who don’t will perish. 24. Artcraft & Foremost Inc. (asi/125050)  Moorestown, NJ Promotional Products Sales: $36.5 million Workforce: 43 Years in Industry: 54 Privately Held F Judith E. Zimmerman, president Founded in 1947 as Artcraft calendar Co., Artcraft & Foremost specializes in the pharmaceutical and health care industry. The company develops medically relevant products and provides value-based buying systems for the medical industry. Its direct-mail division, Health Promotions Now, serves the healthcare market and several other communities with a variety of stock and proprietary products. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Many involved in the industry assume that, regardless of the changes occurring in all types of business, our “little” industry is different and will not be affected. Complacency has its roots in “It can’t happen to me,” and “We’ll just keep doing business the way we have.” Well, it can happen to you and it can happen to our industry. Any threat is a challenge, and some will react by continuing their current path. Others will capitalize on the threat by analyzing their current model and reengineering to capture new opportunities. The biggest threat is not dot.coms or direct buying. It is the mindset that we are “just” middlemen and as such, can’t offer increasing value to the supply chain. 25. Renaissance Promotions (asi/307074)  Delran, NJ Promotional Products Sales: $34.8 million Workforce: 25 Years in Industry: 26 Privately Held F Lora Dunnigan, president Renaissance, originally Action Calendars, began in 1997. The company is a full- service distributor providing graphic arts, Web development, warehousing and fulfillment programs. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? The perception that the Internet is changing the industry. We can effectively deal with it by maintaining the personal relationships with clients and suppliers that have built our businesses. 26. Gary Mandel Promotional Concepts (asi/260340) Santa Monica, CA Promotional Products Sales: $34.7 million Workforce: 42 Years in Industry: 25 Privately Held F Gary Mandel, president Founded in 1976 by Mandel, GMPC has grown into a full-service product design, global sourcing company that develops and creates products to achieve promotional marketing solutions for its clients. GMPC believes in honesty, integrity, and fair treatment of our customers, suppliers and manufacturers. These have been the basic principles of the business ever since its inception in 1976. GMPC has always insisted that we conduct business according to ethical standards. In a very real sense, GMPC has been an extension of our long-standing commitment to the idea that success requires every person associated with us to be treated fairly and that every product we offer our customers is of the highest quality. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? The ease of entry into the industry by foreign trading companies and factories who don’t have sufficient knowledge of how to use promotional products as a part of the marketing mix that clients require. The demands of clients for diverse and affordable quality merchandise can only be met by the continuous development of a sourcing base that is increasingly flexible, diverse, and global in scope. 27. Goldman Promotions (asi/209700) St. Louis, MO Promotional Products Sales: $32.5 million Workforce: 145 Years in Industry: 41 Privately Held F Kenneth Goldman, chairman Goldman is a full-service merchandising and marketing services company. It was founded in 1960 by Sam Goldman and is still run by the Goldman family. Today Goldman has regional offices in MD, NJ, NC, MN, TN, TX, CO and CA. It has developed a reputation for innovation and creativity. In addition to traditional promotional products, Goldman offers graphic design services, CD-Rom products, Web site design and complete fulfillment services. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? From an external standpoint, the prospects for our industry are better then they have ever been. Promotional products are a cost-effective way for our customers to convey their message and will continue to be so into the foreseeable future. The biggest threat is internal – cooperation between suppliers and distributors. There is an inherent partnership required between suppliers and distributors due to the nature of our products. The buyer-seller relationship requires a highly coordinated effort to ensure that quality products are delivered on a timely basis. Suppliers need to honor their commitment to work through distributors. Resources need to be dedicated to deliver these products and provide quality customer service. Distributors need to respect the efforts by suppliers to support the distributor network. It’s always been an industry based on relationships, we need to preserve that personal touch to prosper. 28. Caliendo-Savio Enterprises Inc. (asi/155807) New Berlin, WI Promotional Products Sales: $31.9 million Workforce: 120 Years in Industry: 20 F Tom Savio, CEO FF Mark Ziskind, general manager CSE is a totally integrated promotional merchandising company specializing in catalog programs, customized wearables, ad specialties, embroidery, screen printing, and off-shore production. Its in-house production facilities feature digitizing, embroidery, and silk screening. Its integrated structure allows it to control the entire process, ensuring superior quality and service. Its production capabilities, combined with an in-house creative department and database management center, allow it to be a full-service resource for clients. CSE has been recognized for outstanding service and has received the Miller Brewing Co’s “Partners in Excellence” and Matco Tools’ “Achievement” Awards. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Companies who diminish the value of what we bring to the table by selling or buying on price alone. The over-reliance on price to secure promotional partnerships sends the message that the lower price represents the true value of the service and product. This reliance also has far-reaching implications for the integrity of our industry. Unprofitable companies who low-ball to generate volume, companies who low-ball on Internet auction sites hoping to change the specs, and those planning to offer cost-plus on phony invoices do a huge disservice to our industry. First, they position promotional products as a commodity vs. an integral part of the marketing mix. Second, they diminish the importance service and quality play in the total customer service equation. Finally, their deceptions impact the credibility of an industry that employs thousands of people. If more companies focused on value instead of price, the industry would be financially healthier in both the short and long term. 29. Baldwin-Cooke Co. (asi/130930) New Hartford, CT Promotional Products Sales: $30.1 million Workforce: 95 Years in industry: 44 Privately Held F Rich Willis, vice president, marketing A division of Executive Greetings Inc., Baldwin Cooke was founded in 1956 by Tom Nickel, who began by selling Rand McNally products, later turning to appointment books and executive gifts. The firm is a distributor of desk diaries and pocket planners and also markets a line of business greeting cards and personalized executive gifts and promotional products. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? (Declined to respond) 30. Atlas Pen & Pencil Corp. (asi/127000)  Hollywood, FL Promotional Products Sales: $30 million Workforce: 250 Years in industry: 61 Privately held F Robert Schneider, CEO FF Eric Schneider, president Started in 1940, Atlas sells a full line of advertising specialty products via mail order to a wide variety of businesses nationwide. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Every industry always has a shifting competitive landscape. We don’t believe there’s any single threat to the industry today. For those companies who meet their customers’ needs, and add value there are always plentiful opportunities for success. Promotional products can be a very valuable added solution for many of our customers. Those in the industry who perform well in providing innovative solutions will always do well regardless of what competitive threats may from time to time appear on the horizon . 31. Helm Promotions Inc. (asi/223630)  Highland Park, MI Promotional Product Sales: $29.4 million Workforce: 273 Years in Industry: 31 Privately Held F Dennis Gusick, president/CEO FF Bob Malkiewicz, vice president, sales/marketing Helm was established in 1943 and entered the promotional merchandising business in 1970. In addition to its office and warehouse in the Detroit area, it has a sales office in Orange County, CA. Helm is a full-service organization offering sourcing, creative design, e-commerce, warehousing and fulfillment. Its specialization is company store programs for Fortune 1000 companies. Helm won Ford Motor Co.’s 2000 Marketing Excellence award. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? The direct sourcing and direct selling of promotional products is today’s largest threat. Too many large and small suppliers are selling direct to the end-user. On the other hand, too many distributors are sourcing products directly overseas, cutting out the North American supplier chain. Both distributors and suppliers realize we need each other, but it seems that given the opportunity we’ll cut each other out to make a dollar. We seem to only utilize the services of each other when it’s most beneficial to us. As far as dealing with the issue, the solution is unclear and may never be resolved. More than likely it will get worse before it gets better. 32. MadeToOrder.com (asi/259537)  Redwood City, CA Promotional Products Sales: $28 million Workforce: 170 Years in Industry: 2 Privately Held F Rod Brown, president MadeToOrder.com handles business-to-business e-procurement for the Fortune 500 companies’ logo merchandise needs. It offers customers an end-to-end Web-based solution for all logo branded products. The company has a diverse list of clients, including corporations such as Cisco, Clorox, Corio, IBM, Intuit, Palm and Symantec, and national not-for-profit organizations such as the YMCA. MadeToOrder.com is headquartered in Redwood City, CA with offices across the U.S. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? In this current business climate, Wall Street does not see our industry as one to invest in. And our industry, to continue its rapid growth in spite of the economy, must have capital so we can invest in technology. Through technology, we bring down expenses, give our clients a faster, more convenient experience, and continue to grow. By improving our business plans to include technology and demonstrating our commitment to continual improvement, we can attract and garner the dollars we need. This is what our clients are demanding, and this is what Wall Street needs to see. 33. Merit Industries Inc. (asi/268100)  Austin, TX Promotional Products Sales: $25.9 million Workforce: 37 Years in Industry: 45 Privately Held F Herb Piller, president Started by Piller in 1956, Merit has worked with Mobil, Shell, Texaco, McDonald’s, Coca-Cola and M&M. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Both the mail-order catalogs and cut-rate Internet catalogs are reducing the specialty industries to a commodity business; who has the cheapest prices on mugs or whatever. All the assets walk out the door every evening and there is no real value. 34. Shumsky Enterprises (asi/326300)  Dayton, OH Promotional Products Sales: $25.8 million Workforce: 105 Years in Industry: 48 Privately Held F Mike Emoff, president Hy Shumsky founded Shumsky in 1953. It remains a family-owned, registered WBE (Women’s Business Enterprise) business. Shumsky creates unique and proprietary product lines such as Outta The Box Point of Sale Dispensers, Therapeutic Pillows and Shumsky Humidor cigar-related products. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? Declining margins industrywide pose a challenge to the growth and stability of medium to large distributors. Established distributors must contend with the increasingly common procedure of suppliers granting distributor access with non industry business interests. The result is the tearing down of the professional image that our industry leaders have worked so hard to create and which has become the backdrop of demonstrating our enhanced value to the customer. This is an internal industry concern that should be addressed via heightened industry education, along with distributor and supplier focus on value added strategies to market their products and services. 35. Adgap Group (asi/105002)  San Diego, CA Promotional Products Sales: $25.5 million Workforce: 120 Years in industry: 12 Privately Held F Macyl A. Burke, president/CEO AdGap was purchased by Burke & Carder Associates Inc. in 1990. It soon formed an employee stock-ownership plan, which currently owns 49% of the company, with 51% ownership planned within the next few years. Adgap has evolved into an integrated marketing solutions provider. Its core capabilities include e-commerce, world market, sourcing, custom apparel, graphic design, direct marketing, actionable research, branded merchandise management, custom audio, incentives and promotional products. What do you consider the single biggest threat to the industry, and how can we effectively deal with it? The threat to the industry, in my mind, is that the old economic model is shifting to a new one, which is not clear. This results in a chaotic market that is difficult to navigate. 36. Nationwide Advertising Specialty Co. (asi/281700)
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