Last year, promotional products distributors collectively saw a 19.8% drop in sales, according to ASI research. But the smallest firms (those with less than $250,000 in revenue) were hit hardest – down 33% in 2020. For the last 13 months, many promo companies have been in survival mode, doing whatever they can to keep their doors open, whether that means laying off workers, cutting hours, dipping into dwindling savings or applying for government assistance when available.

Antoinette Schoar, a finance professor at MIT, co-authored a recent study on how small businesses dealt with the first weeks of the pandemic. In the report accompanying the data, she said that “small businesses are very fragile,” and that “they have very little slack cash.” So, every month of slowdown that passes makes it more of a challenge to bounce back. Still, many small distributors are hanging on, despite the challenges, and some have been expressing optimism for the second half of 2021, especially as the coronavirus vaccine continues to roll out.

In this podcast, ASI Editors Theresa Hegel and Sara Lavenduski discuss in depth the reasons smaller firms are struggling, what they’re saying about the future and what advice business experts have for recovering from the pandemic.

Podcast Chapters (only available on desktop)
1:01: How smaller distributors are faring
4:28: When will the recovery happen?
10:05: Why are smaller businesses more vulnerable than larger ones?
13:38: Expert advice on business recovery
19:30: Supply chain issues likely won’t be going away anytime soon
25:48: Be honest and authentic with your clientele

Watch on YouTube