WHERE DO WE GO FROM HERE? Industry SUPPLIERS SHARE their THOUGHTS on how our industry emerges from the pandemic
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travel industry, for example, will be part of the “have not” category in the short term. Many businesses during these months will close forever and some consumers will be stretched to the limit. In the mid and long term that may certainly flip and your company must respond to those changes. The government is playing its part. The market is flush with cash, interest rates are at historic lows so the Liberal Government is showing a willingness to a accommodate robust growth and help as best as they can.
Once the public is confident that the vaccine is effective and the numbers reflect this, pent up demand will be unleashed. In our industry the successful firms will adapt to the new normal. It is important to identify those changes and restructure the business appropriately. Doing the same as before may not work as effectively previously. I think our industry will continue to thrive as the fundamental landscape has remained in tact. Manage your cash flow, adapt, be patient, and we will make it out at the other end of the tunnel. Ralph Goldfinger - Canada Sportswear
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We are seeing light at the end of the tunnel despite still much uncertainty. We know that the savings for individuals and corporations are at a high. The affects of COVID-19 has not been balanced in a financial sense to consumers or businesses. Both consumers and businesses will experience a “K” shaped recovery, which is predicated on the successful launch of the vaccine. The “have” will continue to blossom (upper part of the K) and the “have not” (lower part of the K) will not fair well. Industries such as health care in general will fall into the ‘have’ bucket and the
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We will see an increased e-commerce presence - i.e. the ease of ordering on-line. We’ll also see a shift towards more sustainability in terns of recyclable fabrics & inks, as well as in more technologicallydriven fabrics (antimicrobial, anti-odour, more moisture wicking, ‘smart’ fabrics, et cetra). Kevin Sookram, Fruit of the Loom
As managers, owners and employees we have experienced a year like no other. 2020 started off as many others, occupied by trade shows, meetings, running around, etc. Everything changed on Mar 15. Based on the best information we had at the time, we did what we thought was best for our employees and our customers and closed our offices on March 15 for an unknown amount of time. We started to reopen slowly toward the end of April and into May. It was a slow reopening, just enough to ensure customers could get what they needed to keep their business’s going. It was during this period that I got a call from the Canadian Apparel Association to sit on a committee. The purpose of this committee was to make sure that all the companies who wanted to manufacture masks and gowns for the Federal Government could procure enough industrial sewing machines to make those goods. There was a supply problem since the inventory of these machines was low in North America and there was a sudden surge in demand from the USA for them. As we helped secure and move machines around the country, it became clear that there were a lot of companies that were in the process altering their business strategy to better meet needs of the Covid economy. Probably the best business strategy to stay in business during these trying and unchartered times is called “THE PIVOT”. Many companies from east to west were pivoting their expertise and production into products that were suddenly a necessity. Many of our customers became involved in producing masks, gowns and all forms of PPE. Switching to produce these new products was not simple or easy.
Some companies succeeded very well, while others failed. We tried our best to help wherever we could with both machinery and advice on manufacturing. During this time, some product lines got slower, like embroidery, while others started to boom. With everyone staying home and shopping from home, the amount of online shopping blossomed. Many of our customers who were selling online became very busy. Any products that could be made quickly and efficiently for online sales became instant hits. Our Direct to Garment machines became very popular, much faster than we ever could have ever anticipated. Even our home sewing business, which runs on an Amazon platform grew so quickly our biggest problem was obtaining inventory. It seemed like everyone wanted to start sewing from home. As we got deeper into this pandemic, supply chain problems became much more frequent. They are still a major problem, with the cost of ocean and air freight tripling in some cases. As well as ports being backed up for weeks. As the Fall season rolled around, many of our customers were fully back and busy. The Christmas season saw many seasonal parties cancelled but these companies sent out many promotional items, so the promotional products were busy for the season. Now in January things have softened a little. We see the light at the end of the tunnel with a vaccine slowly being rolled out, but that tunnel looks like it is stretching as the provincial and federal governments talk about potential closures and possibly even provincial travel restrictions.
This will be a tough winter. It will be a winter where it strains both our financial fortitude, as well as our mental capacities to stay on course. Our customer base that has made their living from tourism and hospitality will have to figure out ways to survive. Our customers who are heavily involved in the sporting good industry will also need to hang in there. How long? Well like everyone else, we believe that once we can all get together in restaurants, arenas, and conferences, we will all do so with a fever that we have not done so before. We believe that come July and August the economy will bubble up and consumerism will flourish like we have not seen in years. The economy of Canada and the US will grow at a pace between 4-5.5 per cent. Travel will be hard to book, restaurants will be full, and the public will be ready to get out and enjoy themselves. We all just need to try our best and PIVOT if necessary and do whatever we can to get through the next 6 months. Our industry will be stronger and more innovative than in the past. We will go more to conferences - the 2022 January Imprint Show in Toronto will be the biggest and best attended ever. As a company like ours that is 157 years old that has gone through two world wars, the great depression, many recessions and now 2 great pandemics we will survive by being flexible and working harder and by pivoting when we need to. We hope all our customers, associates and competitors can stay healthy and look forward to what tomorrow will bring us. Kevin Price, RB Digital
The pandemic has forced our industry to work differently and pivot to address new promotional and safety needs; different ways of communication and connection, and additional challenges in developing strong working relationships with one another. In an industry where face-to-face meetings, networking, product knowledge sessions, and the development of professional and lucrative relationships over dinner and social industry events are considered the heart of success, we have certainly had to develop new and innovative ways to maintain these important elements in a virtual world. The professionals in this industry have had to learn and adapt to
the impersonal complexities of a virtual platform. While this has been, and continues to be challenging, what we have learned over time is that we can quickly and effectively communicate with each other, save our valuable time and costs, and reach a significant amount of people in a short time with one click. We have also learned about a completely new marketing need in PPE and safety products and we have developed thousands of products that will continue to be in demand long after COVID-19 is under control. This industry absolutely needs to return to some level of normalcy, and I believe, with time, this can be done safely and effectively. It is undeniable that our new reality will maintain the effective elements of
virtual connections and marketing strategies, which will only contribute to a stronger, more successful and powerful industry as a whole. As a supplier, my first priority is to support distributors in meeting the needs of their consumers. We’ve weathered the storm and adjusted our marketing strategies and approaches. Windmill Canada has positioned itself to offer new innovative products and services to adapt to the ever changing needs of our modern reality. We need to remain focused on the road ahead, and continue to seize opportunity in the face of challenge to meet the existing and ever-changing needs of our promotional products industry. Looking forward to seeing everyone in person in the near future!
I believe you need to sit down and ask yourself where do you want to go into the future. The uncertainty of COVID has made everyone scratch their heads and ponder whether they still want ‘the same old, same old’. It has made people ask: how can I control my own destiny? The short answer that many people are saying is ‘work for yourself.’ Whether that means working in your basement or garage, it depends on how much capital you have to invest. We have seen a massive increase in home entrepreneurs that want to be their own boss with no threat of being furloughed, or worse terminated. They realize that for a small investment of $5,000 they are on their way to having a full fledged business they can control. This allows for no brick and mortar and no overhead staffing until needed.
that can offer a finished good. We saw this shifting before the pandemic and it’s certainly going to apply coming out of the pandemic. Think about events; we know there are going to be events returning we just don’t know when. People are going to clamouring to get outside; golf is going to have another exceptional year. When you think about Golf Tournaments planners, it’s like “okay we’re having a golf tournament is two weeks - what can we do?” The companies that can offer a finished product in 10 days will win; again, it’s going to be all about just-in-time inventory and finished goods. I also feel that our industry will also become more resilient in years to come in working to figure out ways to ensure that external disruption that what we’re currently experiencing is minimized moving forward. Craig Lockheart, AJM International
The largest increase we are seeing are Table Top machines including all machines in the $10,000 price point and also a huge increase in our Heat press sales. Another easy investment that is coming on strong is DTF (Direct to Film). This niche product, like it’s half-sister DTG, is starting to see some great results. The price is low and this will be the one to watch for small runs and custom ordering. For those customers that don’t want to look after their own printing, we will be offering a new full colour value-added decoration technique which will be introduced in the middle of the year, called Ultracolour. This is a service product and therefore will not need a risky large out lay of cash or the need to be your own Machine tech. For the larger companies, they will have to take an inventory
stance on many of their larger selling items as the demand is all about “who has it”. Logistic nightmares and challenging delays in all ports around the world, everyone is experiencing back order situations and the customer won’t wait. They will just keep hunting online until they find what they need. So stock up!!! We experienced first-hand knowledge of this fact as we took an inventory stance on our larger and table top machines at the beginning of the pandemic and it has been paying off since. The government can also be thanked for helping out; these companies took advantage of some of the COVID Relief loans and this gave them the ability to push their business forward. So in short it comes down to Supply and demand: if you have it, you win!! Rob Gardiner, Stahls’ Canada
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for that first in-person trade show. There is going to be a lot of hugging and crying on the show floor! The other thing the pandemic is going to teach us is timing. What I’ve noticed across the board as the technology has developed to decorate product in Canada - whether it be screen printing, appliqué, laser, etc - the domestic embellishment game is front and centre now. The appetite to wait three months for decorated product is not there; it’s going to be about inventory being king and whoever’s got the product and can decorate it within that 20-day window is going to win the business. We now live in a amazon-prime-it’s-here-in-two-days society; the pandemic has only highlighted that. Waiting for off-shore decorated product is going to continue to diminish; it’s going to be about just-in-time inventory, suppliers that have deep inventory and
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Our industry strives on relationships and in-person shows and presentations… No matter how hard we might try, we are touch/feel industry that’s made up of relationships; we’re a tight knit community. I think coming out of the pandemic, we will see a hybrid of in-person and technology based presentations being used.. I think the pandemic has shown people that they can use technology in a way to amplify their presentations by showing videos and reaching out on a teams meeting vs. a phone call. Having the ability to use the tools to discuss a project / new promotions or get a quick approval can be used as an asset. The desire for in-person business interaction was stronger than anyone really gave credence to, and for us this definitely answered some questions that we had going into the pandemic. I just can’t wait
Eric Vachon, Windmill Canada
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