The initial shock has worn off. Now it’s about where we go from here.

That theme carried through the latest ASI webinar to give both distributors and suppliers actionable strategies, a sense of the market and perhaps a dose of inspiration.

Titled “Tariff Impacts & U.S.-Made Momentum,” the discussion was led by Tim Andrews, president and CEO of ASI. He was joined by a panel of print and promotional products pros, including three suppliers who either completely or predominantly manufacture their items in America. The panel participants included: Mary Dobsch, president of supplier The Chest (asi/44830); Lance Stier, CEO of Counselor Top 40 Supplier NC Custom (asi/44900); Ann Vidro, co-owner and CFO of Creative Studio Promotions (asi/170976); and Mitch Cahn, founder and president of Unionwear (asi/73775).

Unsurprisingly, each of the suppliers are seeing a boost in interest with distributors and end-users looking for products that are made in the USA as a means of circumventing the confusing and costly tariffs.

Cahn noted that his supplier, which manufactures cut-and-sew items like tote bags and caps, was seeing difficulties with some of its strongest markets, including government, nonprofits and colleges. And yet, “We have seen a surge in interest in Made in USA, which is really unlike anything we’ve seen before,” he said. He noted that last year, the Newark, NJ-based supplier received a lot of press for the hats it produced for the Kamala Harris-Tim Walz presidential campaign. “If we were in the New York Times, we might see an extra 600 or 1,000 visitors to our website on that day,” Cahn noted. “We have seen numbers like that three or four days a week for the last three weeks.”

NC Custom, which sells a range of products but is primarily known as a supplier of candy, chocolate and food gifts, is seeing a similar push. “The Made in USA demand is super strong,” noted Stier, a member of Counselor’s Power 50 list. “We’re seeing, similar to these folks, very strong demand for our products.” Stier said a portion of his company’s products are 100% sourced in the USA, but some ingredients and raw materials are imported, such as cocoa beans from places like the Ivory Coast and Ghana that are brought stateside by refiners.

The Chest, which has no stock items and manufactures 100% of its products in the U.S., had an “unbelievable” first quarter said Dobsch. Still, she added that Q2 has historically been a slower quarter for the Washington, MO-based supplier.

“Quotes are up unbelievably, but whether that has anything to do with American-made, I can’t account for that,” said Dobsch, who was Counselor’s 2023 Woman of Distinction. “But in reality, people are very insistent that their clients are buying, but some of them are indicating they might want to wait until the third quarter. Whether that’s cautious, again, or is that their normal buying habits, I can’t say, but where we sit today, we are very optimistic.”

Watch the full webinar, hosted by ASI President and CEO Tim Andrews, on Made-in-USA promotional products manufacturing and strategies to keep your company stable and successful.

The Power of Automation

All three suppliers stated that automation is essential for Made-in-America manufacturers to be successful and price competitive.

“During COVID,” Dobsch recalled, “we were making puzzles 24/7,” Dobsch said. “Automation was imperative for us to take care of customers.”

Cahn said that Unionwear has invested heavily in automation as a way to make up for labor shortages. One of its machines that manufactures tote bags is completely automated and does the work, according to Cahn, of about 44 sewing machine operators. And as technology continues to evolve, Cahn is bullish on AI-assisted automation as the future for domestic manufacturing, especially for jobs that it might struggle with right now, such as handling lighter-weight fabrics like T-shirts.

“I believe in two years, you’ll see a lot more automation. And when that happens, it’s going to make a lot of sense to manufacture domestically. It may even be less expensive than the cheapest country in Asia.”Mitch Cahn, Unionwear (asi/73775)

“In a couple of years, maybe two or three years, I believe the automation will be there for other products,” he said. “So, I believe in two years, you’ll see a lot more automation domestically. And when that happens, it’s going to make a lot of sense to manufacture domestically. It may even be less expensive than the cheapest country in Asia.”

Advice for Surviving & Thriving

The panelists preached calm, stability and a mentality of doing what it takes to succeed during tough times.

Creative Studio Promotions had a tremendous first quarter, said Vidro, but expected things to flatten out in the second quarter. “I would sum it up to say we are cautiously optimistic,” said Vidro, who along with Co-owner Menda Wright was named Counselor’s 2021 Distributor Entrepreneurs of the Year. “And we know that we’ve been through worse. We’ve grown during other economic turmoil, I would say. And we’re still here.”

There were plenty of comparisons to COVID, though panelists noted that this year reminded them of other difficult periods too that they persevered through.

“History repeats itself,” Dobsch said. “I remember it was 2008 and 2009, and we had to reinvent ourselves. And then COVID, we learned so much from that.”

“There are good seasons, high seasons and low seasons,” said Vidro. “Only the naïve believe that it will always be on the upswing.”

Stier noted that in these difficult and uncertain times, any semblance of stability is key, and that companies must “keep their house in order.”

“On the supplier side, the nature of your business can be such that your liquidity picture will change because maybe you’re importing certain items and you have to prepay deposits, etc.,” he said. “So thinking broadly, liquidity is king in a situation like that.”

The reality is that both distributors and suppliers will have to deal with cost pressures. Whether absorbing the cost or increasing prices, communication is a necessary part of the process. Vidro said that many customers are understanding of price increases. They read the news like the rest of us. But what they don’t appreciate is inconsistency.

“There are high seasons and low seasons. Only the naïve believe that it will always be on the upswing.”Ann Vidro, Creative Studio Promotions (asi/170976)

“What they don’t like is when we quote you, the order is rolling, and all of a sudden a manufacturer comes back and says, ‘Oops, your price just went up X amount,’” Vidro said.

She advises promo pros to make sure their quote includes all tariffs, all surcharges and any increased shipping so that the quote is the final quote without any additional hidden fees.

Dobsch said that aside from the ability to pivot, she learned that suppliers and distributors need to rely on their relationships, even with their competitors, and communicate with them as clearly as they should with their customers.

“AI is a great thing, but without the relationships portion of it, I don’t know if we can move forward,” Dobsch said. “And I think it’s going to become more and more important getting through all of this. Because if we don’t give honesty – saying this is where we’re at – we can’t move together ahead properly.”

Stier added that you get to know your supplier and distributor partners and their businesses, and they get to know yours.

“In challenging times,” he said, “people come together as groups and they figure stuff out.”

Vidro imparted one final piece of advice: This too shall pass.

“It’s just a season,” she said. “If you can’t stay calm, phone a friend and talk to a supplier or a fellow distributor, and get the support around you that you need to help you stay calm, because today’s a new day. I mean, you’ve got to keep moving forward. What choice do you have? So make the best of it.”