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Volume 20, Issue 4

The Habits of Highly Successful Industry Decorators

Sourcing Direct: The impact of energy costs, freight and logistics

In any business or industry, there is never only "one" right way to be successful. That said however, there are several common traits or habits that are shared among prominent businesses which, in turn, help fuel their success.

We spoke to several successful decorators across Canada to find out what their secrets to success were; the following list are some of the common habits they described as having helped drive the success of their businesses for so many years.

Part four in a six-part series

Attention to detail At the end of any day, a decorator is only as good as the work it produces.

With an ever expanding gamut of textiles, fabrics, apparel styles and product subsets, decorators need to be constantly honing their craft to ensure they stay on top of the proverbial "ball."

Distributors and buyers who truly understand this business don't make it a habit of settling for anything less than what would be considered perfect decoration.

By Adriano Aldini, Imprint Canada

At the beginning of 2013, Imprint Canada kicked-off a six part article series examining the topic of direct overseas sourcing.

To recap briefly, parts one and two of this series looked at the perils for distributors utilizing the direct sourcing model, and the four reasons to consider procuring product from domestically-based suppliers. Part three of the series examined the global reaction to overseas manufacturing on the heels of the tragic Bangladesh apparel factory collapse in Rana Plaza.

In this, the fourth instalment, we highlight the impact of energy costs, freight and logistics when sourcing direct from overseas manufacturers.

FUEL "COSTS" It's no mystery that higher energy costs translate directly into higher transport costs.

Consider that approximately 80 per cent of the global merchandise trade volume is carried by sea; when coupled with maritime transport's overwhelming dependence on diesel as its primary energy source, it's easy see to why oil prices and ocean shipping rates are inexorably linked. <W]ZKQVO -QZMK\ ,WV\QV]ML WV 9IOM

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Imprint Canada's showcases the newest wearable fashions, advertising specialty items, supplies and equipment 18 1H C74 =D<14AB

Imprint Canada examines recent Statistics Canada report on Canadian manfucaturing sales and wholesale merchant sales from the first half of 2013 36

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ashcity.com

Solutions for

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Discover our 2014 line up.

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IMPRINT CANADA July/August 2013 - Volume 20, Number 4

Follow us: twitter.com/imprint_canada

JULY/AUGUST 2013 decline accepting premium cards or to be able to charge a fee to customers who use them.

On July 24, 2013, the tribunal rejected both proposals.

Australians have endured visible surcharges on every purchase made with a credit card for the past 10 years.

It it has been reported that some surcharge fees exceed 17 per cent. Other instances have been reported where Australian consumers have not been explained their payment options at the time of purchase to avoid surcharges.

A Four Letter Word Back in May 2012, Canada’s Commissioner of Competition filed a formal complaint with the federal Competition Tribunal backed by a group of organizations that represent retailers and small businesses — including the Canadian Federation of Independent Business and the Retail Council of Canada — arguing that Visa and MasterCard were engaging in anticompetitive behaviour that was costing consumers $5 billion in hidden fees.

The biggest complaint surrounded the interchange fees (ranging from 1.54 to 2.65 per cent) which businesses must pay to banks and credit card companies every time a purchase is made, particularly with a premium card.

Retailers are arguing they want the right to either

Here in Canada, it seems that - while it still may be years away - there may come a day when credit card surcharge fees could make their way into our economy.

A small contingent of consumers who prefer smaller retail environments - and are aware of the smaller margins these businesses survive on -may be more sympathetic to credit card surcharges. But most will be against spending more at the till.

Credit card companies will not be too happy should such fees come into effect. The last thing they would want is for consumers to consider other payment options, such as the antiquated four letter word: cash.

According to the Canadian Bankers Association, there are more than 73.9 million Visa and MasterCard cards in circulation alone just in Canada. The tribunal's decision to keep the 'status quo' is a victory for all credit card companies who wish to limit the barriers to use on their products.

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As this pressure builds, the call for credit card surcharge fees will only get louder.

My wallet tells me that the tribunal will be addressing this topic sooner than later.

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SOURCING DIRECT: THE IMPACT OF ENERGY COSTS ON FREIGHT & LOGISTICS CONTINUED PG 10 HABITS OF HIGHLY SUCCESSFUL DECORATORS CONTINUED PG 10 INDUSTRY NEWS GLOBAL APPAREL UPDATE WESTERN IMPRINT CANADA SHOW

BY THE NUMBERS

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WEARABLES SHOWCASE

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AD SPECIALTY SHOWCASE

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SUPPLIES & EQUIPMENT SHOWCASE

PUBLISHER Tony Muccilli : tony@imprintcanada.com PRODUCTION MANAGEMENT Adriano Aldini : news@imprintcanada.com

MARKETING COORDINATOR Steve Silva: feedback@imprintcanada.com OFFICE ADMINISTRATOR Maria Natale: shows@imprintcanada.com GENERAL INQUIRIES feedback@imprintcanada.com, (905)856-2600 ADVERTISING SALES

Tony Muccilli (Toronto) Tel: (905) 856-2600 Fax: (905) 856-2667

Imprint Canada is published six times per year by Tristan Communications Ltd. The contents of this publication may not be reproduced either in part or in whole without the consent of the copyright owner. The views expressed in this publication are not necessarily those of the publisher. Request for missing issues are not accepted after three months from the date of publication.

TRISTAN COMMUNICATIONS LTD. Publications mail agreement no. 40025740

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Return undeliverable mail to: 190 Marycroft Avenue, Unit 16, Woodbridge, Ontario, L4L 5Y2 Email: shows@imprintcanada.com ISSN: 1480-1884

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Industry News Ash City launches innovative and free mobile application

Gildan Activewear acquires New Buffalo Shirt Factory Inc.

Welcomes new independent sales representative Ash City Worldwide has released a new mobile application for the iPhone and iPad. The app gives customers the ability to view inventory selection and receive automatic stock updates, browse high-resolution images, submit orders, navigate through user-friendly tabs, mark favourite products for future reference, and more.

Feedback thus far has been nothing but positive. "Our initial response was better than anticipated. We designed the application both for our customers and for our sales team to ensure everyone has access to Ash City product information on the go," explains Laura Turner, Ash City's VP of Marketing. "Everyone who has downloaded the application seems very pleased with it."

The mobile app boasts a sleek and simple interface which is designed for user-friendliness and easy access to information.

"We specifically avoided making the application too busy or placing too much content in their," explains Turner. "We kept it business focused so users can get to the information they need quickly and intuitively."

The application, which took approximately four months to develop, is currently available for iOS operating systems only (iPhones and iPads); this decision was made based on Ash City's research and analysis that highlighted that the overwhelming majority of users visiting AshCity.com from mobile devices were using the iOS platform.

"We recognize the importance of keeping our customers' business moving no matter where they are, and have developed this application to give them access whenever they may need it," says Doug Hayes, president & CEO. "As a leading supplier in the industry, we are always looking at ways to provide exceptional convenience to a distributor's busy lifestyle – and this tool does just that," added Hayes.

To download the free Ash City mobile app, visit the Apple App Store. For more information and a demonstration of the application, go to www.ashcity.com/mobile.

Announces Nick Chipcase as new sales representative

Ash City is pleased to announce the appointment of Nick Chipchase as an Independent Sales Representative for the Maryland, Delaware, DC and North Virginia territory.

Nick's role will be responsible for building solid relationships with distributors, supporting and growing sales, and acting as the point of contact for customers in these areas.

"We are extremely pleased to have Nick join the extended Ash City team," said Chris Clark, VP of Eastern USA Sales, Ash City. "In addition to his enthusiasm, work ethic, and desire to help our distributors learn and grow, Nick has what it takes to be successful in this industry, and these are all noteworthy traits we look for in our field sales representatives."

"I've always admired Ash City's innovative designs and exceptional product lines," said Chipchase. "As being one of the outstanding leaders in the promotional apparel industry, I am thrilled to be on board and look forward to generating further success in my territory."

Kanata Blanket relocates showroom to Promo Expo headquarters Kanata Blanket has moved its showroom to the Promo Expo showroom, located at 422 North Rivermede

Rd., Unit 14, Concord, ON. "Being part of this group provides a number of benefits to both Kanata and, more importantly, to our customers in the GTA," says Sharon Griffith, vice president sales & marketing.

"The large showroom allows for Kanata's key items to be displayed to the distributors that frequently use the showroom. The sample lending library ensures that many of our products are immediately available."

Sharon Griffith can be reached at 604 273 7002 x211, or at Sharon@kanatablanket.com.

Gildan Activewear Inc. (GIL; TSX, NYSE) has announced that it has signed a definitive agreement to acquire all of the assets of New Buffalo Shirt Factory Inc. (New Buffalo) and its operating affiliate in Honduras, for approximately US$7 million.

The rationale for the acquisition of New Buffalo is to complement the further development of Anvil’s business with the major consumer brands which it supplies, and this customer base is expected to fully utilize the capacity of the New Buffalo facilities.

New Buffalo is a leader in screen printing and apparel decoration, which, in conjunction with Anvil and certain other apparel manufacturers, provides high-quality screen printing and decoration of apparel for global lifestyle and athletic brands.

The key management of New Buffalo, including founding entrepreneur Jon Weiss, will continue to operate the business under Gildan ownership.

Magnus BBQ raises almost $3,000 to help children with Cancer Magnus Pen held its second annual Extreme BBQ June 26th, welcoming more than 150 promotional products buyers who attended to visit 28 leading suppliers while raising money and awareness for a tremendous cause.

Nearly $3,000 was raised for Camp Oochigeas, which provides an active, outdoor experience for children with cancer, through their year-round programs for children at their site in Muskoka, at SickKids Hospital, at the Ooch Downtown facility in Toronto, as well as in the local community.

From delicious breakfast and lunch, to an ice cream truck, Cheryl Daurie (pictured, above) and the entire Magnus team put on a great, funfilled day for all.

To learn more about Camp Oochigeas, please visit http://www.ooch.org.

Fashon Biz hosts Open House Fashion Biz held an Open House July 3rd & 4th, welcoming distributors to see their new GTA Showroom and Samples Loaner Library in Richmond Hill, Ontario.

The event also allowed distributors to learn more about the Fashion Biz Unique Partnership Propositions program.

“With our excellent growth within the last year in Ontario, we at Fashion Biz felt the natural next step was to invest in this Biz Collection Samples and Loaner Library for our valued distributors," said George Cooper, national sales manager.

This facility is the eighth of its kind, with other locations in British Columbia, Australia and New Zealand. Fashion Biz welcomes all distributors to visit during their weekday hours.

The Showroom is located at Unit 2 - 15 Sims Crescent, Richmond Hill, Ontario, L4B 1A3. For more information, call: (905) 597-0480.

(Pictured above (from left to right): Chad Maybury, Gabriela Montenegro, George Cooper) Industry News, Continued on Page 6

4

IMPRINT CANADA | July/August 2013

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Industry News American Apparel comparable sales for June 2013 up 7 per cent Wholesale net sales up 16 per cent in first quarter of fiscal 2013 American Apparel, Inc. (NYSE MKT:APP) announced on a preliminary basis, total net sales for June 2013 were $55.9 million, an increase of 7 per cent over June 2012.

Comparable sales for June 2013 increased 7 per cent, including a 5 per cent increase in comparable store sales in the retail store channel and a 22 per cent increase in net sales in the online channel. Wholesale net sales increased 16 per cent for the month.

For the quarter ended June 30, 2013, total net sales increased 9 per cent to $162.2 million, with a 7 per cent increase in comparable sales and a 16 per cent increase in wholesale net sales.

"June represents our 25th consecutive month of positive comparable store sales growth," said Dov Charney, Chairman and Chief Executive of American Apparel, Inc. "I am excited with the increase, particularly since it is on top of the 19 per cent increase achieved in June 2012.

Likewise, the increase in wholesale net sales is on top of a 7 per cent increase achieved for the month ended June 30, 2012. Sales growth was across a broad range of product categories and demonstrates the strength of our summer product offering. Thus far, July sales are solidly positive in our retail and online channels, and we expect a meaningful increase in our wholesale net sales this month when compared to the prior year," added Charney.

SanMar Canada introduces innovative "Find-A-Decorator" resource tool Distributors can now easily connect with a local decorator in their area with SanMar Canada's innovative and useful new Find-A-Decorator (FAD) online tool.

The locator search tool displays a view of registered decorators in full map view pinpointing available businesses across Canada. With Google Maps integrated into the search tool, users will immediately have a visual connection to each service provider.

SanMar Canada is proud to provide this service to help strengthen the industry by connecting decorators with non-decorators. SanMar Canada is confident that this tool will help will grow your business through these valuable partnerships.

To use the Find-A-Decorator locator tool, visit ww.w.sanmarcanada.com/marketing/findadecorator.shtml or contact SanMar Canada for more information.

GLOBAL APPAREL NEWS %HMHEW 'EREHE ERRSYRGIW JSYV ]IEV TEVXRIVWLMT [MXL XLI 'EREHMER 3P]QTMG 8IEQ %HMHEW 'EREHE ERH XLI 'EREHMER 3P]QTMG 8IEQ ERRSYRGIH E JSYV ]IEV TEVXRIVWLMT EKVIIQIRX QEOMRK EHMHEW XLI 3J½ GMEP ,MKL 4IVJSVQERGI %TTEVIP ERH *SSX[IEV 7YTTPMIV JSV XLI 'EREHMER 3P]QTMG 8IEQ -R XLI JEPP SJ EHMHEW [MPP PEYRGL XLI EPP RI[ 'EREHMER 3P]QTMG 8IEQ ,MKL 4IVJSVQERGI 'SPPIGXMSR WTIGM½ GEPP] HIWMKRIH JSV EXLPIXIW ERH 'EREHMERW EX EPP PIZIPW MR 'EREHE XS [IEV HYVMRK XVEMRMRK 8LI GSPPIGXMSR LEW FIIR HIWMKRIH XS IUYMT EXLPIXIW EX EPP PIZ IPW [MXL 3P]QTMG UYEPMX] ETTEVIP ERH JSSX[IEV 8LI JEFVMGEXMSR IRLERGIW QYWGPI IJ½ GMIRG] QEREKIW QSMWXYVI ERH MRWYPEXIW XLI FSH] HYVMRK EPP X]TIW SJ XVEMRMRK WIWWMSRW 8LI GSPPIGXMSR MRGPYHIW GSQTVIWWMSR ERH [SVOSYX KIEV ZEVMSYW SYX[IEV PE]IVW JSV SYXHSSV XVEMRMRK MRGPYHMRK [MRXIV NEGOIXW ZIWXW ^MT YT ERH TYPP SZIV ž IIGIW PSRK ERH WLSVX WPIIZIH TIV JSVQERGI 8 WLMVXW JSSX[IEV ERH EGGIWWSVMIW 8LI ETTEVIP [MPP JIEXYVI FSXL EHMHEW ERH 'EREHMER 3P]QTMG 'SQQMXXII PSKSW 7TSVX 'LIO LEW FIIR REQIH EW XLI PIEH VIXEMP TEVXRIV XLEX [MPP GEVV] XLI IRXMVI PMRI SJ EHMHEW 'EREHMER 3P]QTMG 8IEQ ,MKL 4IVJSVQERGI 'SPPIGXMSR MR EPP 7TSVX 'LIO WXSVIW EGVSWW XLI GSYRXV] PEYRGLMRK SR 2SZIQFIV 7SYVGI *MFVI *EWLMSR

Zorrel International named official lifestyle apparel of Ironman IRONMAN is proud to announce Zorrel International Inc. as the Official Lifestyle Apparel supplier of IRONMANÂŽ in the United States and Canada for the next three years.

Zorrel will be the exclusive provider, both online and at races throughout the United States and at select races in Canada. Products will include event T-Shirts, Poloâ&#x20AC;&#x2122;s, Fleece and Softshell jackets. â&#x20AC;&#x153;We are excited to partner with Zorrel again and look forward to working with them as they create high-quality apparel for our athletes,â&#x20AC;? said Andrew Messick, Chief Executive Officer of IRONMAN. â&#x20AC;&#x153;Zorrel is a respected brand and we are thrilled that the IRONMAN logo will be

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Zorrel will also provide event finisher shirts as well as volunteer shirts for all IRONMAN events in the United States and Subaru IRONMAN Canada in Whistler, BC. â&#x20AC;&#x153;Zorrel is proud to be returning as a partner of IRONMAN,â&#x20AC;? said Sean Mahoney, Vice President of Zorrel. â&#x20AC;&#x153;Nearly 10 years ago, IRONMAN was one of Zorrelâ&#x20AC;&#x2122;s original partners that helped fuel our growth; and we are thrilled to, again, be providing these great athletes apparel for their active lives away from the course.â&#x20AC;?

For more information, please visit www.ironman.com and www.zorrel.com.

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IMPRINT CANADA _ -XO\ $XJXVW

18700

Vintage Style Made Doubly Cool Two is so much better than one. Two colours that is. Like the surprise pop of complementing colour inside our Vintage Classic Full Zip Hooded Sweatshirt. Itâ&#x20AC;&#x2122;s a fresh, unexpected take on your favourite ďŹ&#x201A;eece. The contrast drawcord and zipper, pump up the energy even more, elevating the design from common to seriously cool.

Yet, as hip as it looks, this sweatshirt feels even better. Mix it up with our 1/4 Zip Cadet Collar Sweatshirt.

Because more is always better.

GN 798 18700ImprintCanada July 2.indd 1

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13-06-07 10:42

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Since word of mouth in our industry tends to spread pretty quickly, a decorator who's work is anything but excellent doesn't tend to last very long.

"Our slogan, 'Would you wear it?' basically speaks to our commitment to quality decoration," explains Tim Healy, owner of Edmonton's Nuline Emboss. The company specializes in debossing, embossing, laser etching, and custom heat applied decoration on a myriad of substrates. Healy explains that each job they produce is done so primarily from the perspective of the end user.

In order to ensure each job is perfect, Nuline Emboss stresses preproduction samples for every order to ensure it is produced exactly to each client's required specifications.

The company's work is so unique that its competitors often come through the door asking for their advice. "Our processes border on proprietary because they are so hard to do," explains Healy. "I tell our competitors that we've wrecked product learning how to do it right."

In Vancouver, digital print specialists Oddball Workshop have carved out an impressive niche by taking the time to perfect their craft. What separates Oddball Workshop is their ability to produce stunning garments that their competition (armed with the same equipment) simply can't.

"Digital decorators don't always know what their machines are capable of out of the box," explains cofounder Kai Low. "Vendors will tell you the machines can do one thing, but there is so much more that can be achieved if you are open minded about it."

At Oddball, they believe that all material-based digital printing is possible. The company recently added sublimation to its gamut of decorating services after conducting a feasibility study, and it has quickly become one of its biggest revenue generators.

At Vaughan, Ontario-based FM Embroidery, the main focus of the company since it was founded in 1993 has been firmly placed on the quality of work it produces.

"Maybe 9 out of 10 customers won't notice the slightest imperfection with their decorated logo, but we work to ensure that the 1 out 10 knows that the quality to the

craft is there," says Michael Filice.

He explains that they've become successful largely due to the fact all of the work that leaves its facility is done right. If it isn't perfect, it doesn't leave; it's as simple as that.

"Our reputation is extremely important. I'd rather pay to replace a slightly imperfect order - whether it be a hat, golf shirt, jacket - than to take a chance that a customer is unhappy with the quality of work we produce."

The team at FM Embroidery also approaches every order from the end user's perspective. "I go from the standpoint that our work has to reflect something I would love to wear," adds Filice.

On-Time, Every Time Time is money, and the successful decorators in our industry live by guaranteed turn around times for each and every order. It's an absolute must.

"Our number one focus is on-time completion," says Jas Brar, president of Oakville, Ontario based Entripy Custom Clothing. "Regardless of how good the decoration is, if you can't deliver it on time, then it's pointless to have the perfect decoration."

In order to ensure deadlines are never missed, Brar explains that Entripy takes a relentless approach to process, procedure and accountability in every department - from preproduction through to the art deportment, all the way through to production.

"It's about scheduling, staying organized and working in a clean and clutter-free workspace; all these things tie in together to define our culture," adds Brar.

At The Edge Screen Studio in Toronto, the emphasis is firmly placed on communication in order to successfully manage the high volumes they output on weekly basis.

"We have a very finite system that, from the time our customer service department takes the order (all the way through) to shipping, there is a very established flow that makes up our double-check system where every stage gets signed off on" explains vice president Shirley Goldstein.

Before any ink hits a garment, Goldstein notes that original customer service agent who booked the order

has to physically approve it as they are the ones who are in touch with the customer. "This basically ensures that nothing is lost along the way - and based on the volume we do on a weekly basis - that is very easy to do."

The Edge's double-check system ensures that all orders are processed and produced in effective, timely manner.

At FM Embroidery, Filice explains that the company's dedication to five-day turnaround has been a long-standing factor to its success. "Because we handle all of our decoration in-house, we are able to control our timelines which allows us to guarantee turnaround."

Communication and organization are the catalysts needed to guarantee deadlines. The successful decorators all share the common habit that each department communicates efficiently with one another, and production schedules are structured in a manner which creates the time to produce perfect decoration on deadline, for each and every order.

Accessibility & Customer Service

One of the elements that is fundamental to the success of any decorator is the manner in which they provide service. Whether it be to end users or in the role of contract decorators to distributors, the term "customer service" is often overused.

Customer service can mean a lot of things, and believe it or not, it can still be hard to come by. This is why successful decorators who truly excel at the customer service aspect of their business incorporate an element of accessibility.

"We have a laid back, customer-friendly environment which is not intimidating," says Low. "We try to exceed expectations and we try to make the experience of dealing with us as easy and as pleasant as possible."

Decorating apparel can be an intimidating experience for any customer, regardless of how knowledgeable of decorating processes he or she may be.

Low explains that their company's culture and atmosphere plays a huge role in its success because they take the time to walk customers through the processes and educate them on the various nuances of each technique and what would work best for their respective project.

"What customer service means to us is communication with a very personal touch," explains Goldstein, referring to the one-on-one communication the company prides itself on. "Being completely accessible has been indispensable to our success."

When a client calls The Edge Screen Studio, they deal with same customer agent throughout their order. This helps in several ways: first, it allows The Edge to more acutely understand the intricacies of their customer's order and more effectively communicate any potential suggestions or revisions with respect to production; secondly, it ensures that nothing gets lost in the production process.

Customers at The Edge are also invited to watch 1624w 64â&#x20AC;? the decorating process so as to better understand the concept to completion fundamentals involved.

This open door policy helps better educate clients on )/$7 35(66(6 the details involved in decorating and also facilitates IURP ´[ ´ a faster work flow for future orders.

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Teamwork is First Last, but definitely not least, a similarity that each successful decorator shares is a dedicated team which is comprised of long term staff members who take ownership of every job that comes through the door as if the company were their own.

It takes a certain type of skill set to decorate promotional goods on a daily basis, and for the companies that do it best, they have the benefit of a dedicated team working for them and with them.

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13-06-11 08:48

News J1dbX]Tbb3TeT[^_\T]cL <W]ZKQVO -QZMK\ ,WV\QV]ML /ZWU 9IOM

The impact that oil prices have on freight rates tend to of garment units operate by using electricity produced by be larger in periods of sharply rising and more volatile oil generators that run on diesel. So, with the rise in oil prices, prices, compared to periods of low and stable oil prices. the cost of electricity also increases and production costs Since 2000, the cost of shipping a standard 40-foot con- go up,â&#x20AC;? explains Mr. Ijaz A Khokhar, Chief Coordinator of tainer from East Asia to the US eastern seaboard has more Pakistan Readymade Garments Manufacturers Association than doubled.

(PRGMEA) in an interview with fibre2fashion.

At the turn of the millennium - when oil prices hovered around US$20 per barrel - CIBC World Markets estimated that transport costs amounted to the approximate equivalent Containerized goods are mostly manufactured goods, to a 3 per cent US tariff rate. Eight years later, with crude oil which tend to have higher value per volume ratios than prices nearing record highs of US$150 per barrel, transport bulk cargoes. costs shot up to the equivalent of an average tariff rate of According to a United Nations report on Oil Prices and more than 9 per cent.

Maritime Freight Rates, containDuring this same period, er trade is estimated to account speculation was running ramfor over 70 per cent of total trade pant, as experts projected oil to in terms of value. spike to US$200/barrel. In that Changes in transportascenario, the cost of shipping a tion - most notably the shift 40-foot container from China towards containerization and an to the U.S. eastern seaboard was increased focus on ship speed estimated upwards of $10,000. have led to greater sensitivity to Fortunately, those speculahigher energy prices, so much so tive fears never materialized, that over the last 20 years, fuel and today - with oil hovering consumption per unit of freight around the US$100 per barrel has more than doubled. transport costs haven't dropped *[ N]MT XZQKM[ QVKZMI[M ITUW[\

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ZQ[M QV \ZIV[XWZ\ KW[\[ U.S. Bureau of Commerce, and 2008, despite a relative stabilizaOECD data show that over the tion in oil prices. next two decades, freight volumes could increase by at least From 2001-2011, as fuel prices rose almost 400 per cent, 70 to 100 per cent. transportation costs also rose in kind, and from 2005-2008, With a general rise in fuel costs - coupled with rapidly every one dollar rise in world oil prices translated directly increasing trade volumes - logistics companies are forced into a 1 per cent rise in transport costs. to restructure and strategize their operations to ensure This rise in the cost of fuel, in-turn, impacts the costs of continued profits. manufacturing, especially in export-dependant, developing In general, transportation systems will adjust to fuel countries where volatile energy shortages are more common. price changes by passing through the added costs to their Garment exporters in developing countries like Pakistan customers. say increases in fuel prices have had a negative impact on One of the more common surcharges applied to freight the country's apparel sector. is known as General Rate Increase (GRI's). GRI's are used A major impact that increases in fuel price have, other to describe an across-the-board tariff rate increase implethan on freight, is on production costs in these developing mented to base rates. nations.

Freight forwarders, in order to cover their high capital "Since Pakistan is short of electricity, around 80 percent

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costs, apply GRI's on an ongoing - and often arbitrary - basis to minimize the impact that erratic changes in the demand and frequency of shipments can have on their bottom line.

These lump-sums are tacked on to the rate of container and can often be hard to predict.

How does this impact Logistics?

For distributors seeking direct sourcing channels for client programs, the challenges with respect to importing products directly can be several.

Containers tend to be relatively costly, and imported shipments also need to be insured against damage. While freight charges are not the largest cost component with repspect to orders - and can be passed down through to customers - they still need to be factored into the bottom line.

The demand needed to fill a 40-foot container could very well be more than had been accounted for; if sourcing direct with smaller volumes orders, partial containers are more costly to ship, so freight will impact the cost per unit more greatly.

Furthermore, any unexpected fuel surcharges, GRI's, duties, taxes, tariffs or insurance fees can quickly add up and drive the cost per unit of an imported program more so than anticipated, thereby minimizing the cost savings that were originally projected when compared to sourcing locally.

Another important factor to consider is timing; the adage that time is money applies probably no more so than to the logistics of freight.

5aTXVWc U^afPaSTab X] ^aSTa c^ R^eTa cWTXa WXVW RP_XcP[ R^bcb P__[h 6T]TaP[ APcT 8]RaTPbTb ^] P] ^]V^X]V P]S ^UcT] PaQXcaPah QPbXb c^ \X]X\XiT cWT X\_PRc cWPc TaaPcXR RWP]VTb X] cWT ST\P]S P]S UaT`dT]Rh ^U bWX_\T]cb RP] WPeT ^] cWTXa Q^cc^\ [X]T Longer lead times should be expected when dealing with an offshore manufacturer, especially during the months leading up to the holidays where the costs to bring in overseas freight is noticeably more costly.

With lead times being potentially much longer than those of suppliers' with a domestic base of operations, and who inventory and regularly import product throughout the year, any delays can lead to costly lessons for distributors.

These longer lead times also present another issue. The lack of flexibility in the direct sourcing model exposes distributors more so to the risks of currency fluctuations and unexpected shifts in market demand.

Distributors with shipments en route cannot cancel them due to unforeseen market slowdowns or unexpected program revisions on the part of the end user.

All of these (potentially very costly) issues are virtually non-existent for distributors who opt to source from established and proven local supply channels.

Rather than assuming the burden that wearing an importer's cap can bring - and being exposed to exponential macroeconomic factors that are hard to predict and largely far beyond control - the focus for these companies is strategically placed on maximizing sales and marketing efforts, while minimizing risk.

Sources: Oil Prices and Maritime Freight Rates: An Empirical Investigation; United Nations Conference on Trade and Development (UNCTAD) - Technical report by the UNCTAD secretariat; CIBC World Markets; World Bank; Impact of High Oil Prices on Freight Transportation: Prepared by Transportation Economics & Management Systems, Inc.; fibre2fashion.com IMPRINT CANADA _ -XO\ $XJXVW

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13-06-04 10:48

OCTOBER 18-19, 2013

15

BMO CENTRE - HALL C

annual

Calgary, ALBERTA

(;+,%,725 /,67 DV RI -XO\

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Drive forward to quality digitizing. This session will cover detailed analysis of the design components in order to understand â&#x20AC;&#x153;Design to Fabric.â&#x20AC;? We will look at specific densities, underlay, stitch angles, compensation and stitch length -- key components for quality and production. This session will lead us straight into marrying the design components to fabric and the effective use of embroidery aids.

Beverley Field, Artistic Digitizing

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This session will continue to develop the â&#x20AC;&#x153;Design to Fabricâ&#x20AC;? theme. We will be going over the fabric components we need to understand in order to effectively choose the correct embroidery aids. We will discuss the various threads, needles, backings, toppings, and adhesives along with techniques for proper hooping and fabric preparation. Learn to recognize the digitizing flaws you can correct with your embroidery aids. Discussion and examples of Design to Fabric will help clarify choices as to what aids to use for which fabrics.

Fran McAvity, Gunold Canada

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Define sublimation and its processes in regards to apparel and promotional soft goods. Learn the process for both small and large format sublimation; Who is currently doing sublimation, and the value the sublimation process can bring to both the end-user and the distributor of sublimation. This session will touch upon how to get started in sublimation printing, as well as the benefits and pitfalls of both producing sublimation and selling it as a final product.

Kai Low, Oddball Workshop Digital Printing

"KH=;A9D HJ=K=FL9LAGF" <AK;GN=J @GO NAKAGF$ 9DA?FE=FL$ 9F< =P=;MLAGF OADD ;@9F?= L@= O9Q QGM D=9< 2:30 p.m. - 4:00 p.m.

The Work of Leaders distills leadership best practices into a simple, compelling process that helps leaders at all levels get immediate results. Essentially, leaders have three fundamental responsibilities: 1. Crafting a Vision 2. Building Alignment 3. Championing Execution Using the framework of Vision, Alignment, and Execution, the Everything DiSC Work of Leaders Profile allows leaders to gain insight on their own leadership behaviours and how they impact their effectiveness at each phase of leadership. We can help you understand where your leadership strengths and challenges fall within 18 behavioural continua by providing context-specific feedback, and strategies for improving leadership effectiveness.

N=;LGJ%:9K=< =E:JGA<=JQ GHHGKAL= LJ9<ALAGF9D 8:30 a.m. - 10:00 a.m.

Learn how to create designs with the use of drawing tools included in popular graphic systems like Pen-Slice-CombineBreakup-Offset. See how these tools will help you become faster in the design creation opposite the traditional ways of digitizing. Learn how the use of Vector-based embroidery will help you to improve speed and quality of your designs.

Alexandros Papaioannou,Pulse Microsystems

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See and learn how to combine digitizing techniques inside the most popular graphic systems like Adobe and Corel. Discover how you can now continue to use your graphic system and convert your existing graphic designs to embroidery files without the need to purchase a new digitizing system. See how you can digitize designs by using the tools you already are familiar with.

Alexandros Papaioannou,Pulse Microsystems

15 annual

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Cyndi Goodjohn, DiSC Profile Canada

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RATE: $129.49 (Includes a complimentary hot breakfast) SHOW CODE: Imprint Canada Show/#100902 DEADLINE: September 17, 2013

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119 â&#x20AC;&#x201C; 12th Avenue S.W., Calgary, AB (403) 266-4611 or 1-800-661-9378 www.hotelarts.ca RATE: Starting at $119 / $185 CODE: 1310WESTER 001 DEADLINE: September 16, 2013

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Air Canada is pleased to offer special rates to delegates attending the Western Imprint Canada Show.

WestJet is pleased to offer a 10% discount off our best available fare at the time of the booking (excluding seat sales and web fares) to delegates flying to and from the Western Imprint Canada Show in Calgary.

Please book your Air Canada flight by visiting AirCanada.com and enter Promotion Code 4XAUE7V1 in the search panel. Discounts do not apply to TANGO packages nor Executive Class.

To book your WestJet flight, please contact the WestJet Groups Department at 1-888-493-7853. The convention code CC7800 must be quoted at the time of booking. P lease note that Convention Codes are not available for use on WestJet.com at this time.

Rates are available from October 11-26, 2013.

The discounted rates are available for travel up to three days prior to and three days after the Show. For travel outside of these dates, WestJet will offer the best available fare at the time of booking.

ONLINE REGISTRATION NOW OPEN AT www.IMPRINTCANADA.COM

OCTOBER 18-19, 2013 BMO CENTRE, Hall C Calgary, ALBERTA

The Spirit of Albertans

DESIGN CONTEST! GRAND PRIZE:

The GRAND PRIZE for the winning design is $1,000 plus an award and certificate

THEME:

The Spirit of Albertans in honour of the provinceâ&#x20AC;&#x2122;s efforts following the flood

RULES:

The design MUST incorporate ANY TWO decorating techniques of your choice (i.e. embroidery+ screen printing, digital printing + embossing etc.)

The winning submission will be the one that is judged to best feature the design theme and the fusion of the two embellishing methods.

Full contest rules & regulations will be announced August 12th on ImprintCanada.com.

FOR MORE INFORMATION, CONTACT FEEDBACK@IMPRINTCANADA.COM

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CANADIAN MANUFACTURING & WHOLESALE MERCHANT SALES Statistics Canada recently released its latest manufacturing and wholesale industry merchant sales figures through to May 2013.

Manufacturing sales on the rise

FIGURE 2: Manufacturing Sales - Industry Aggregates 2012 - 2013 (Textile Mills & Clothing Manufacturing ) 200

In its July report, Statistics Canada announced manufacturing sales increases of 0.7 per cent to $48.6 billion in May, the second gain in five months.

60 57 54

TEXTILE PRODUCT MILLS

175 150

Canadian Manufacturing Sales Increases (all sectors)

$ millions of dollars

51

TEXTILE MILLS

125 100

CLOTHING MANUFACTURING

75

$ 48 billions 45 of dollars

50

42 39

May â&#x20AC;&#x2DC;12

Apr May â&#x20AC;&#x2DC;13 â&#x20AC;&#x2DC;13

May â&#x20AC;&#x2DC;12

Apr May â&#x20AC;&#x2DC;13 â&#x20AC;&#x2DC;13

May â&#x20AC;&#x2DC;12

Apr â&#x20AC;&#x2DC;13

May â&#x20AC;&#x2DC;13

Source: Stats Canada

36 33 30

2008

2009

2010

2011

2012

2013

Source: Stats Canada

Sales were up in 11 of 21 industries and in six provinces, led by Ontario, Alberta and Saskatchewan.

In Ontario, sales rose 1.9 per cent to $22.7 billion, reaching their highest level since November 2012. Sales in Alberta advanced 2.1 per cent to $6.2 billion. Saskatchewan manufacturers reported a 5.8 per cent rise in sales.

In Quebec, sales fell 2.8 per cent to $10.7 billion, the 10th decline in 12 months. This decrease stemmed from lower sales in the petroleum and coal product industry. In May, Quebec manufacturing sales were at their lowest level since September 2009.

Wholesale sales increase the most since beginning of 2011 Statistics Canada reported that wholesale sales rose 2.3 per cent to $50.3 billon in May, the largest rate of growth since the beginning of 2011.

Sales increased in most subsectors in May. The miscellaneous subsector and the food, beverage and tobacco subsector accounted for more than 70 per cent of the growth.

Despite gains in almost all sectors, wholesale merchant sales of textiles, clothing and footwear (see Figure 3) was down 2.2 per cent from the same period last year, and down 1.9 per cent from April 2013.

FIGURE 3: Wholesale Merchant Sales 2012 - 2013 (Textile, Clothing & Footwear )

Textile Mill & Clothing Manufacturing sales down from 2012 In the clothing manufacturing and textile mills sector, total industry aggregates sales saw a decrease from the same period last year.

The clothing manufacturing sector totalled $186 million in sales in the May of this year, down from $194 million in April 2013 and $214 million in May of 2012.

This downturn represents a monthly decrease of 8 per cent and a comparable year-over-year 13.1 per cent, respectively.

Sales for textile mills dropped to $115 million in May 2013, down from $118 in April 2013 and $142 million in May 2012, which amounts to a monthly decrease of 2.4 per cent and 18.8 per cent, respectively. See Figure 2.

900 875 $ millions of dollars

850

$898 million

$881 million

May 2012

April 2013

May 2013

825 800 Source: Stats Canada

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