The promotional products industry is about to experience yet another supply chain disruption as Canada’s two major freight railroads have halted operations.

Canadian National (CN) and Canadian Pacific Kansas City Southern (CPKC) both locked out their employees on Thursday morning due to a contract dispute with the Teamsters union, The Associated Press reported.

The shutdown, which is impacting more than 9,000 unionized workers, could wreak havoc on both the Canadian and United States economies, as nearly a third of the freight handled by the two railroads crosses the U.S.-Canadian border, CNN reported.  

• For example, a three-day strike would cause $300 million ($407 million CAD) in economic damage, while a seven-day strike would bring losses to more than $1 billion ($1.4 billion CAD), according to the Anderson Economic Group, a research firm that specializes in estimating the economic impact of work stoppages.  

“We fully understand and appreciate what this work stoppage means for Canadians and our economy,” CPKC said in a press release. “CPKC is acting to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period. Delaying resolution to this labour dispute will only make things worse.”

• After Canada introduced new duty and rest period rules in 2023, CN wanted to increase shift durations from up to 10 hours a day to up to 12 hours a day, Reuters reported.

• Not surprisingly, the Teamsters rebuffed.

Without an agreement or binding arbitration, CN says it had no choice but to finalize a safe and orderly shutdown and proceed with a lockout.

• However, Canada doesn’t have the same law as the U.S. does that would allow Trudeau to prevent a lockout or strike while a panel weighs the demands of the union and the companies.

A similar situation occurred in the U.S. in 2022, but President Joe Biden and Congress intervened, forcing unions to accept a deal.

What Led To The Lockout?

All parties involved were aware that a shutdown was likely to happen: CPKC has been negotiating with the Teamsters for nearly a year and CN has been trying to reach an agreement for nine months, The Associated Press reported. 

The labor dispute is largely over wage increases, scheduling and demands for better work-life balance, according to the union and companies.

“Over the last nine months, CN has negotiated in good faith,” CN said in a press release. “The company consistently proposed serious offers, with better pay, improved rest and more predictable schedules. The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy. We urge the Teamsters to engage in these negotiations with the urgency and importance that this situation requires.”

Despite the lockout, the union says it remains at the bargaining table with both companies. 

“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck,” says Paul Boucher, president of the Teamsters Canada Rail Conference. “The railroads don’t care about farmers, small businesses, supply chains or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”

Less than 48 hours before the shutdown, the U.S. Chamber of Commerce and Canadian Chamber of Commerce issued a joint statement calling on Canada’s government to “immediately intervene.”

“A stoppage of rail service will be devastating to Canadian businesses and families and impose significant impacts on the U.S. economy. Significant two-way trade and deeply integrated supply chains between Canada and the United States mean that any significant rail disruption will jeopardize the livelihoods of workers across multiple industries on both sides of the border. The Government of Canada must take action to ensure goods continue to move reliably between our two countries,” the chambers said. 

Both railroad companies have also called on the government to intervene and refer the dispute to binding arbitration, but Prime Minister Justin Trudeau has declined thus far.

Written by: John Corrigan

Published with Permission from PPAI

Vantage Apparel (PPAI 113235, Platinum) – the No. 12 supplier in the PPAI 100 – has announced a strategic partnership with Starline (PPAI 112719, Gold) – the No. 15 supplier in the PPAI 100 – to significantly expand the product offering available through Vantage’s webstores.

• The partnership will provide distributors with access to a diverse range of single-piece, on-demand branded products, such as apparel, bags, coolers, Bluetooth speakers, flashlights and drinkware, including Stanley products.

Rob Watson, CEO of Vantage Apparel, says the collaboration with Starline marks a significant milestone for the New Jersey-based firm.

• Both Vantage Apparel and Starline earned 2024 PPAI 100 High Marks for Innovation.

‘One-Stop Solution’

• The platform boasts a range of features, including pop-up shops, points programs, budget allocations, powerful reporting and order approvals.

“Vantage is known industry wide for its creative and innovative decoration capabilities, combined with first-class apparel,” says Brian Porter, chief revenue officer at Starline. “This works so well with our award-winning digital Tru Color decorating and best-in-class product quality that the synergy was a natural fit. We’re beyond thrilled to expand our ‘On Demand’ capabilities and combine those in a one-stop solution for both apparel and hard goods.”

“By integrating Starline’s high-quality hard goods into our platform, we’re not only broadening our product range, but also enhancing the value we provide to our distributors and their customers,” Watson says. “This partnership exemplifies our commitment to innovation, integration and excellence in the promotional products industry.”

The partnership comes on the heels of Vantage launching its new webstore platform, which includes PCI and SOC2 compliance measures, ensuring the “highest standards” of data protection and privacy for users.

Vantage’s collaboration with Starline allows distributors to incorporate a curated selection of both apparel and hard goods into their webstore, providing real-time inventory and enhanced ordering capabilities for all products.

“Each product in Starline’s on-demand lineup offers the same single-piece, decorated option that our customers have grown to love and expect from Vantage,” says Chris Alfano, chief digital officer at Vantage Apparel.

Written by: John Corrigan

Published with Permission from PPAI

SnugZ USA (PPAI 112982, Platinum) – the No. 7 supplier in the PPAI 100 – has announced the addition of Alex Barberis as its new chief technology officer.

• The West Jordan, Utah-based firm earned 2024 PPAI 100 High Marks in Innovation.

“I’m thrilled to join the incredible team at SnugZ,” Barberis says. “Their talent and dedication are truly inspiring, and I see immense potential to drive the company’s growth through innovative technology solutions. I look forward to collaborating with everyone to take SnugZ to new heights.”

• Previously, he was the CTO at BEL USA, parent company of BEL Promo – the No. 34 supplier in the PPAI 100.  

• After leading the digital transformation of manufacturing processes and e-commerce capabilities at BEL USA, Barberis joined Amazon, where he worked on new and existing products in the music streaming and automotive spaces.

“Alex’s extensive background in technology and management will be instrumental in driving SnugZ USA’s growth and technological advancements and will propel our organization into the future,” says Brandon Mackay, MAS, president and CEO of SnugZ USA.

Barberis’ Background

Barberis is returning to the promotional products industry after two years away.

Written by: John Corrigan

Published with Permission from PPAI

PPAI has announced the slate of candidates for its incoming Board of Directors class, due to serve the promotional products industry’s leading nonprofit trade association from January of 2025 until 2029. 

The two-person slate includes Kate Alavez, president of PromoShop – ranked the No. 29 distributor on the PPAI 100 – and Mark Gammon, CEO of Cap America, which is PPAI 100’s No. 18 supplier.  

The election to approve the slate begins August 26 and closes August 30. Each PPAI member company’s voting contact is eligible to cast a vote for the slate. Voting will be done electronically, and a new 2024 username and password will be emailed to the voting contacts when voting opens. 

A candidate must receive majority approval among votes cast to be named to the board of directors following The PPAI Expo 2025. 

The two board seats represent replacements for the expiring terms of Karie Cowden, MAS, founder and president of Connect the Dots Promotions and Kevin Walsh, CAS, president of Showdown Displays.  

Alavez and Gammon were nominated to the slate following evaluation by the Leadership Advisory Committee, vetting by the Elected Directors Nominating Committee and ultimately, approval by the sitting PPAI Board of Directors. Each group consists of member volunteers. 

About Kate Alavez 

When her employer, Diagnostic Products Corporation, was sold to Siemens in 2006, Alavez took a recommendation from a family friend and applied at PromoShop as a Sales Support Assistant. Eventually spending over a decade in human resources, Alavez was promoted to Chief Operating Officer in 2018 and then President of the Los Angeles-based distributor earlier this year.  

Alavez spoke to PPAI Media about the experiences that have prepared her for a potential seat on the Board.  

About Mark Gammon 

After nearly eight years at distributor The Vernon Company, where Gammon honed his skills in sales management, business development and client relationship-building, the industry veteran joined Cap America in 2018 as Vice President of Sales. He quickly climbed the company ladder, becoming President and COO of the Missouri-based firm less than two years later. 

Gammon spoke with PPAI Media about what he’s hoping to bring to the board. 

Along with those terms set to expire in January, the PPAI Board of Directors currently includes Regional Relations Committee delegate Kara Keister, MAS, of distributor Social Good Promotions, Dan Pantano of supplier alphabroder, Danny Rosin of distributor Brand Fuel, Chris Anderson of supplier HPG, Denise Taschereau of distributor Fairware, Lori Bauer of distributor iPROMOTEu, Erin Reilly of supplier Pop! Promos, Zack Ottenstein of distributor The Image Group and Board Chair Andrew Spellman, CAS, of supplier Therabody. 

Written by: Jonny Auping

Published with Permission from PPAI

We’re one week away from Promotional Products Work Day, an annual event organized by PPAI to raise awareness about the power of promotional products and the impact they can have on brand recognition, customer loyalty and overall business success.

On August 20, the Association – together with its members and other industry professionals – will actively recognize and promote the value and effectiveness of promo products – the most memorable form of advertising.

• Nearly three quarters (73%) of end buyers purchase promo products on either a monthly or quarterly basis, and 83% are satisfied with the quality of the branded merchandise they receive from their primary source, according to PPAI Research’s Understanding End Buyers 2024 study.

Through various activities, events and educational resources, Promotional Products Work Day aims to inspire and inform businesses and consumers why promo products are universally valued and essential to every brand.

• Facebook

• Instagram

• LinkedIn

#SpotThePromo

In honor of Promotional Products Work Day, PPAI is launching #SpotThePromo, a social media campaign designed to showcase the ubiquitousness of promo products.

Industry members are encouraged to post photos of the merch that they encounter throughout the day, along with the hashtags #promotionalproductswork and #SpotThePromo, while tagging PPAI’s social media accounts.

RELATED: The 2024 #Online18 (Part 2): The Best Promo Pros On Social Media

The Association’s leaders will also #SpotThePromo while visiting with members throughout the week. Of course, Promotional Products Work Day is an international holiday, and the Promotional Products Professionals of Canada (PPPC) will also be participating.

“The goal of #SpotThePromo on Promotional Products Work Day is to show off the way promo works its way into our homes, offices, cars, pockets, and more, becoming part of our lives in a way that other advertising simply can’t,” says Lindsey Davis, MAS, director of sales and professional development at PPAI.

Don’t miss anything on Aug. 20 and beyond. Follow PPAI on social media:

Here are nine ways that you can celebrate Promotional Products Work Day.

Written by: John Corrigan

Published with Permission from PPAI

After nearly a century in business, Quick Point (PPAI 114051, Silver) is shutting down.

John Goessling, president of the Missouri-based supplier of drinkware, letter openers and home accessories, has decided to retire from the promotional products industry and he will be closing his company at the end of the month.

“My three successful children have already discovered their talents in other professions and decided the promotional products industry just wasn’t for them,” Goessling tells PPAI Media. “With these things in mind, I decided this was a good time to retire and write my next chapter.”

The firm will still be accepting orders from distributors through the end of August and plans on wrapping up production by the end of September or early October.

Family Business

Goessling’s grandfather founded the company (formerly known as Quick Point Pencil Company) in 1928.

• Goessling’s father, John Sr., took over the firm after serving as an officer in the U.S. Navy.
• Goessling drew his first paycheck from Quick Point in 1969 and has been with the company full-time since 1990.
• The company is most known for their line of Zippy letter openers they introduced in the 1960’s

“It saddens me to say goodbye,” Goessling says. “I want to thank everyone who contributed to keeping Quick Point in business for the last 96 years. The industry has been good to me and my family, but I’m ready to see what’s ahead.”

Written by: John Corrigan

Published with Permission from PPAI

Turmoil in Bangladesh has disrupted the apparel industry.

Protests over a quota system that reserves up to 30% of government jobs for relatives of veterans who fought in Bangladesh’s war of independence against Pakistan in 1971 turned violent in mid-July, and has since resulted in more than 400 deaths, The Independent reported.

• The mass uprising forced Prime Minister Sheikh Hasina to resign and flee the country.

Curfews and an internet blackout have been implemented to quell the unrest, but they’ve also led to many international garment buyers either cancelling their orders or demanding compensation for the hassle, The Bangladesh Business Post reported.

• Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), estimated that orders worth approximately $4 billion were lost to competitors during the internet blackout.

Garment factories, accounting for 90% of Bangladesh’s exports, reopened on Wednesday, Reuters reported.

• Bangladesh was the third-largest exporter of clothing in the world last year, after China and the European Union, according to data from the World Trade Organization.

Impact On Promo

Bangladesh emerged as one of the fastest-growing alternatives to China, especially for apparel, after the tariffs rolled out in 2018, according to Rachel Zoch, public affairs and research editor at PPAI.

• H&M, Levi Strauss, Target and Fruit of the Loom are among major retailers who source garments from Bangladesh factories or have their own operations in the country, Reuters reported.

“Sourcing from Bangladesh hasn’t been without challenges, however, and this latest turmoil comes less than a year after violent protests and a massive weeklong strike by garment workers for higher wages,” Zoch says. “It’s critical that importers look at regional stability, as well as prioritizing safety and ethics, when considering sourcing from emerging markets.”

The unrest may lead to delays in promotional products firms receiving apparel in time for the holiday season, says Larry Whitney, managing partner of Whitney & Whitney Consulting Group and former director of global compliance at PCNA – the No. 3 supplier in the PPAI 100.

• PCNA told PPAI Media last year that it had shifted 90% of its cotton product procurement from China to India and Bangladesh.

“I suspect that the unrest comes at a bad time for those suppliers who are using Bangladeshi factories and have new styles that are supposed to ship to North America in the next few weeks,” Whitney says. “The longer the unrest lasts, the longer it will take factories to manufacture orders. There are often challenges with getting goods on vessels in Bangladesh, too.”

Gildan Activewear – the No. 10 supplier in the PPAI 100 – announced earlier this year that it would shift the manufacturing of its basic apparel pieces from Honduras to Bangladesh. 

Despite the unrest in recent weeks, Gildan’s expansion plans will carry on as scheduled, according to Geneviève Gosselin, director of global communications and corporate marketing at Gildan.

“As the situation unfolds in Bangladesh, our priority is to continue to ensure that our employees are safe,” Gosselin told PPAI Media. “Our operations have been temporarily closed to ensure our employees’ safety and respect the three-day government-imposed curfew and declared general holiday. We expect the situation will stabilize over the upcoming days, which would allow us to resume our operations.”

Gosselin says the expansion involves the development of a large multi-plant manufacturing complex expected to house two large textile facilities and related sewing operations. The construction of the first textile and sewing complex is “substantially completed,” Gosselin says, while a “progressive ramp-up” of operations is underway and will continue through 2024.

Written by: John Corrigan

Published with Permission from PPAI

After more than three decades in the promotional products industry, Jeffrey Nanus has retired.

Nanus was the president of Orangeburg, New York-based supplier AAA Innovations (PPAI 110972, Standard-Plus), which was acquired in April by Sign-Zone, the parent company of Showdown Displays (PPAI 254687, Platinum) – the No. 8 supplier in the PPAI 100.

After spending the Fourth of July weekend with his family, Nanus says he made the decision to step away from promo. “There should be a new voice to lead the company forward,” he told PPAI Media on Thursday after finishing a round of golf. “My family is excited, maybe even more so than I am.”

Nanus purchased AAA Innovations (formerly AAA Umbrella) in 1992, growing the firm from $1 million in revenue to roughly $40 million. “I grew the company the same way that many suppliers and distributors do – by being fortunate enough to hire a bunch of great people to work with,” he says.

Nanus takes great pride in AAA Innovations being ahead of the curve in terms of sustainability.

• He says the company redesigned every one of its products (that it could) to include certified recycled materials without raising prices.

“I learned from clients that everybody loves the idea of doing good for the environment until they hear the cost,” Nanus says. “Well, we sold our eco-friendly products at the same price as non-eco-friendly products. It wasn’t a marketing gimmick for us. It was the legacy that I wanted to leave.”

American Dream

When Sign-Zone acquired AAA Innovations, Nanus was expected to remain with the organization as president. Nonetheless, Sign-Zone CEO John Bruellman supports Nanus’ decision and wishes him all the best.

“I respect the guy like crazy,” Bruellman says. “He’s the classic example of the American dream. He took a company from almost nothing, going through all the typical struggles that an entrepreneur does and grew it into a substantial enterprise. It’s time for him to enjoy the fruits of that.

“Frankly, I’m not sure how well he’ll do in retirement because he’s a very hard worker. We’ll see how well he can relax.”

Bruellman anticipates a seamless transition for customers, as the firms’ factories were integrated following the acquisition. However, AAA Innovations will continue to retain its own brand identity and sales team. Bruellman will oversee Nanus’ direct reports until a successor is named.

“We have some big shoes to fill,” Bruellman says. “I told him, ‘We’ll take care of your baby and hopefully improve upon all the good things you did here’ while continuing to take the business in the right direction.”

Written by: John Corrigan

Published with Permission from PPAI

S&S Activewear (PPAI 256121, Platinum) – the No. 5 supplier in the PPAI 100 – has announced the acquisition of alphabroder (PPAI 156993, Platinum) – the No. 2 supplier in the PPAI 100.

• Based on alphabroder’s 2023 revenue, this acquisition could put S&S Activewear’s revenue this year at more than $4 billion, potentially unseating SanMar as the No. 1 supplier in the promotional products industry.

S&S Activewear and alphabroder have satisfied the regulatory review needed to complete the transaction. Upon completion of the transaction, which is expected to occur later this year, both companies will continue to go to market under their respective brands and existing distribution channels.

S&S Activewear CEO Frank Myers and alphabroder CEO Dan Pantano will lead a disciplined, multi-year integration process designed to maintain the sales momentum for each business and position the combined company for long-term growth.

“We’re pleased to reach an agreement that unites two great companies and positions the S&S Activewear and alphabroder family of employees, customers and vendors for long-term growth,” Myers says.

“With the addition of alphabroder’s dedicated and experienced employee base, strong portfolio of brands and distribution capabilities, we’ll not only expand our product offering, but will also accelerate our investment in the customer experience, including our marketing, technology and supply-chain capabilities. Building on S&S Activewear’s 35-year track record of growth, we look forward to welcoming alphabroder to the organization while continuing to strengthen our win-win relationships with our industry partners.”

Industry Reaction

The merger, which joins two of only three companies in the industry with annual sales in excess of $2 billion, is arguably the most substantial example of the industry’s increasing consolidation.

“Since no single company or group of companies dominates market share, it should come as no surprise that our industry is ripe for continued consolidation,” says Dawn Olds, MAS, Interim CEO and President of PPAI.

RELATED: M&A Best Practices: How To Ensure A Successful Transition

“Having been part of many acquisitions myself, I know that both sides go into a deal expecting to see 1+1 equal more than 2. It will be exciting to see these two great organizations achieve their joint vision and come together to do things they might not have done alone.”

In response to the merger, which puts the combined company on pace to potentially rival SanMar in the apparel market, SanMar CEO Jeremy Lott told PPAI Media: “We have great competitors today as we have had for over 50 years. We will continue to be focused on our customers and how we can best service them. That’s what has made us successful in the past and will continue to be our focus in the future.”

Ultimately, the merger is an exciting development, according to Lori Bauer, CEO of iPROMOTEu – the No. 11 distributor in the PPAI 100 – and a member of the PPAI Board of Directors.

“Both companies are well regarded as iPROMOTEu preferred vendors,” Bauer says, “and this merger promises to enhance the customer experience significantly. With their plans to expand product offerings, invest in technology and upgrade resources and capabilities, we believe this acquisition will drive industry growth and provide enhanced services for promo distributors.”

What To Expect

As part of the transaction, S&S Activewear intends to make significant investments in technology, the integration and expansion of its sales force, its supply chain and distribution capabilities, and the employee experience.

“We’re thrilled to have found a partner in S&S Activewear that shares our customer-centric approach and commitment to investing in the brands, infrastructure and teams needed to build and strengthen successful long-term relationships,” Pantano says. “alphabroder has created one of the industry’s leading brand portfolios, and together with S&S Activewear, will benefit from an even stronger and deeper supply-chain network backed by integrated marketing and order fulfillment capabilities.”

S&S Activewear’s acquisition of alphabroder will build on its significant investments in its North American network and footprint. Since 2015, S&S Activewear has established twelve distribution centers, creating a nationwide coverage network to serve 99% of the United States, Canada and Puerto Rico within two days.

• As a combined business, S&S Activewear will focus on advancing its sustainability efforts, which has included the adoption of solar energy technology, high-efficiency LED lighting, water efficiency, and recycled packaging across the organization.

Written by: John Corrigan

Published with Permission from PPAI

Gemline has announced an expanded partnership with High Sierra, a retail provider of primarily backpacks and duffels that is part of the Samsonite umbrella.

• The collaboration will make PPAI 100’s No. 11 supplier the exclusive provider of High Sierra’s Fall and holiday lineup.
• The announcement builds on a successful partnership that began nearly a decade ago when Samsonite chose Gemline (PPAI 113948 Professional Platinum) to make headway in the branded merchandise marketplace. 
  

“We are steadfast in our commitment to continuously expand our product offering, and this partnership allows us to deliver unprecedented value to our customers,” says Gemline President and CEO Frank Carpenito of the recent collaboration.

The extended partnership between Gemline and Samsonite is an example of promo and retail brands finding success by leveraging known and trusted products and incorporating them into the promo marketplace. High Sierra’s focus on products meant for travel – either business or adventure – creates a promotional opportunity for a brand name to be seen in myriad global settings.

“High Sierra’s retail products offer the perfect canvas for brand visibility, ensuring that businesses stand out in a competitive market, and it’s the first time these retail products have been offered in the promotional channel,” says Carpenito.

• Earlier this year, Gemline reincorporated as a Public Benefit Corporation, meaning the government has recognized the supplier as being in the public interest and requiring Gemline to certain fiduciary responsibilities.
• This was followed up by debuting an extensive carbon footprint data program that provides public information about individual products offered through Gemline.

Written by: Jonny Auping

Published with Permission from PPAI