Last month, Print+Promo checked in with industry suppliers as they struggled to find their sweet spot in the tepid economy. Their performance hinted at trouble with sales falling short compared to previous years. Would the distributors share the same fate? Not if 2014 numbers are any indication.
Distributors continued to move onward and upward with final sales from participants totaling $2.80 billion, a boost from last year's $2.76 billion. This figure does not include Standard Register Company sales (*Standard Register acquired WorkflowOne in August 2013 in a transaction valued at $218.0 million). The company recorded $719.8 million in revenue for the last fiscal year completed-an impressive number no doubt. However, because of Standard Register's unique position in the market, and its inability to break down how much of those sales fell under the distributor side versus manufacturing, Print+Promo was unable to accept its submission. Still, it is important to note that our top three generators enjoyed monetary increases of their own. InnerWorkings Inc. produced $891.0 million in sales compared to $798.0 million in 2013. Meanwhile, Proforma's numbers advanced to $464.8 million, leaving 2013's $430.3 million in the dust. American Solutions for Business jumped from $190.3 million to $195.5 million.
With the exception of one category, individual product sectors followed suit. The unlucky outcome belonged to plastic products/cards, which came in at $15.9 million, a departure from previous reports of $22.9 million.
Promotional products received top billing with $388.3 million (2013: $317.9 million). The printed forms category put forth its highest showing in two years reaching $183.5 million as opposed to $159.8 million in 2013 and $165.2 in 2012. Labels & tags consisted of $91.6 million (2013: $78.9 million); direct mail accounted for $92.4 million (2013: $86.4 million); and envelopes/folders/stationery hit $78.3 million (2013: $67.0 million).
The "other" category supported the notion of using ancillary products and services as a complement to core items. Sales were $89.5 million (2013: $61.7 million). Common responses for this sector included:
- Digital
- Apparel
- Packaging
- Jumbo rolls
- Wide format
- Office supplies
- Specialty papers
- On-demand print
- Fulfillment services
- Warehouse/distribution
- Bar code scanning and label printers
Some of these entries may skew the "other" category; the decision to consider apparel, for example, as miscellaneous instead of promotional products is left to the distributor's discretion.
The most dramatic spike this year belonged to commercial print. Sales climbed to $301.4 million (2013: $220.5 million), enough to secure second place. Another group, Web solutions, also experienced a significant bump. Sales shot up to $94.7 million (2013: $24.8 million).
Promotional products continue to gain rapid ground as shown in the numbers on the print side. Therefore, it was a no-brainer to bring back the Top 50 Promotional Products Distributors chart (see page 32). Published in May 2014 in our sister publication Promo Marketing (PM), the list is based on 2013 revenue. According to PM interviews, technology is on everyone's mind. Insiders believe technology is going to drive most changes, so companies need to get on board fast. Those that made the big list are already creating new ways to increase functionality for clients or gain better access to overseas manufacturers.
That'll do it for 2014. We congratulate each and every company that made the big lists, and toast to great things in the coming year. Drink up those profits (responsibly, of course).
(Editor's note: Factors to consider when interpreting sales figures are ongoing industry consolidations and responses reporting idiosyncrasies.)
Related story: Top 50 Distributors Chart 2014