TREVOSE, PA — The Advertising Specialty Institute® (ASI) has released its 48th annual Counselor State of the Industry report, offering an in-depth look at how promotional products companies are navigating an increasingly complex business environment.
The 2025 edition reveals an industry adapting to persistent headwinds, including supply chain disruptions, tariff-driven cost increases, and heightened cybersecurity risks. Despite average sales declines of 3.6% in the first quarter and 3.2% in the second, many suppliers and distributors are countering with strategic pricing adjustments, diversified sourcing, and investments in technology.
Among the report’s key findings:
- Tariff Impact: Seventy percent of suppliers raised prices in Q2 to offset import taxes.
- Company Store Growth: Nearly half (46%) of distributors now offer company stores, marking a significant increase from last year.
- Shift to U.S. Sourcing: Demand for American-made promotional products is rising as companies reduce dependence on Chinese imports.
- Cybersecurity Concerns: Forty percent of top promo firms reported cyberattacks, with ransomware flagged as a major risk for 2026.
- AI Integration: Distributors are experimenting with artificial intelligence to streamline operations, though integration challenges remain.
- Industry Consolidation: Private equity activity continues to reshape the market, highlighted by S&S Activewear’s acquisition of alphabroder.
“This year’s data shows an industry moving forward through innovation, resilience and smart strategy,” said Timothy M. Andrews, ASI president and CEO. “Our report delivers the tools and insights that help promo businesses grow stronger, even in uncertain times.”
For the first time, the report also compares the revenue and stock performance of Counselor Top 40 companies by ownership type—public, private equity-backed, and privately held—offering fresh insight into how leadership and structure impact results.
“The 2025 State of the Industry provides the benchmarking data every promo business needs to make smarter decisions in a rapidly evolving market,” said Nate Kucsma, ASI’s senior executive director of research.
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