Promo Marketing's Top 50 
Distributors 2011

The best part about writing the introduction to our annual top list this year? Not having to expend any more ink writing about the recession. After dominating the business press for what seems like forever, it seems like that story has finally reached its close, at least for our industry. 76 percent of companies reported major profit gains this year, often at the scale of tens of millions. This is wonderful news for all of us, mostly because it means no more hand-wringing introductions about it being "darkest before dawn" or perseverance being critical to survive this "tough economic climate." It's done. Over. The problems have been persevered though, the dawn has de-darked everything. Either the global recession is wrapping up or our industry has adapted to the world's financial challenge and found ways to not only survive, but find far more profit.

Of course, with one overwritten topic fading out, there are always plenty more new and exciting problems popping up to take its place. From global issues like cotton prices and Chinese manufacturing to challenges from within our own country and the industry itself, there is certainly no shortage of upcoming problems to write about. If it's one thing the industry has proved however, either in surviving the great recession or the countless problems that came before it, it's that no challenge is insurmountable. Cotton prices will settle, the risk with overseas manufacturing will eventually be controlled, and government restrictions will be worked around one way or the other.

Easier said than done? Maybe. But the promotional products industry is nothing if not a collection of deeply creative people, men and women constantly thinking six steps ahead on the best ways to adapt and thrive in the constantly changing global business climate. If you're curious about what's on the minds of our industry's best and brightest, read on to see interview excerpts to from the top-5 and top 50 highest-earning companies, or click here to see the entire top 50 list.

1. Proforma
Cleveland, Ohio
www.proforma.com
Principals: Greg Muzzillo, Founder, and Vera Muzzillo, CEO

Promo Marketing: How do you expect the growing global economy to affect your business in the future?

Greg Muzzillo: I don't know, and I don't care. To be honest with you, so many people worry about all these things they read in The Wall Street Journal, and I have a more simplistic view. Businesses spend about 18 billion dollars plus or minus on promotional products, and about 150 or 170 billion on printing. Right now Proforma does about 400 million dollars a year, so we don't have a very meaningful share of any of those markets, so I just say let's go grow marketshare. We're not large enough where any of those things will impact us significantly. The things that could impact are just going out and getting marketshare because no matter what people are still buying printing, people are still buying promotional products, and many of them are looking for people to add value to those products, not just sell on the cheapest price.

PM: What's an ethical issue facing the industry, and what could be done to address it?

GM: An ethical issue? I don't know, I can't think of anything too significantly ethical. I'm not so worried about ethics as I am the impact of regulation and intervention in our industry from outside sources. Some people might answer that question with either manufacturers or suppliers selling direct, but you know quite candidly, that's pretty easy to sniff out and I think if somebody wants to play ball that way, eventually they'll be discovered, so I'm not really to worried about that. At Proforma we have agreements with our preferred suppliers that they won't do that, at least with our customers, so I'm more concerned about government regulation.

PM: Would you like to elaborate on your regulation concerns?

GM: Why sure! I think it's pretty sad and sick that we live during a time where state and government agencies are talking about legalizing marijuana and maybe some other drugs and at the same time they're talking about making promotional products illegal. It's crazy to me. I think we've done a bad job as promotional professionals gathering together ourselves and our ability to promote ourselves and have our industry understood. I quite candidly blame it on the trade association [in] our industry whose job it is to promote, protect and defend our industry, and I think they've done a bad job, and I'm glad to see that we're in for some new leadership there because it's time to have an association in our industry that understands its job is not to compete with ASI and make them the bad guy. All this fighting that's going on, I'm not saying who's to blame, I'm saying it's stupid, and I'm saying it's time to have an association in our industry that gets promoting, protecting and enhancing our industry, because that's a trade association's job.

PM: Who's a hero or role model of yours?

GM: My wife. My wife Vera is a genius, and I am lucky that I am married to her. I'm sales and marketing at Proforma, but she's all about financial operations and technology. Together we really are a perfect partnership and are having a blast and a great time growing the Proforma family and the Proforma organization.

2. BDA
Woodinville, Washington
www.bdainc.com
Principal: Jay Deutsch, CEO/Co-founder

Check back Wednesday for a full audio recording of our conversation with Jay.

3. Integrated Merchandising Systems LLC (IMS)
Morton Grove, Illinois
www.imsfastpak.com
Principal: Rick Remick, CEO

PM: What's an ethical issue facing the industry, and what could be done to address it?

Rick Remick: We address ethical issues through accountability, at both the individual and organizational levels. IMS prides itself on being a company of high standards and integrity in our supplier and client relationships. Every organization in the industry has the responsibility to know the labor and sustainability practices of the suppliers from whom they buy, as well as an obligation to maintain objective, professional business relationships based on high service levels, innovation and competitive pricing.

PM: What's the best decision you ever made to advance your company?

RR: Our objective of hiring and retaining the best possible people in the industry provides great benefits for IMS, our clients and our associates. This approach leads to deep client knowledge, industry expertise and best-practice sharing across accounts. Great people will continue to push our company forward.

4. 4imprint Inc.
Oshkosh, Wisconsin
www.4imprint.com
Principal: Kevin Lyons-Tarr, President

PM: How do you expect the growing global economy to affect your company in the future?

Kevin Lyons-Tarr: I'm an optimist, so growing economies present opportunities and we're working hard to be sure we're well positioned to take advantage of these opportunities as they arise.

PM: What's the best decision you ever made to advance your company?

KLT: I really don't think in terms of "best decision." Some decisions have certainly been larger than others and of more or less importance, but for us we've been more successful by being clear about where we're going and why, and then making as many "good" decisions as we can to take us further along that path.

PM: What keeps you up at night?

KLT: From a business point of view it's a nightly assessment of whether I've done all I can to put our folks in the best position to succeed and deliver for our customers. Because I know if I can get that right each day they'll do just that.

PM: Who is a hero or role model of yours, and why?

KLT: Really too many people to list. If you're looking, you meet people every day who are heroes, or give you something to aspire to, so I do my best to make sure I'm always looking!

5. HALO Branded Solutions
Sterling, Illinois
www.halo.com
Principal: Marc Simon, CEO

PM: How do you expect the growing global economy to affect your company?

Marc Simon: Well first, assumed within your question is that this will be a growing global economy, and I sure hope you're right. If it is correct, that if it's a growing global economy, we aught to see employment pick up as well. I view improvement in employment as very closely correlated with the growth in our industry. So assuming we have a growing economy and growing employment, we ought to see our industry continue to grow as well.

PM: What's an ethical issue facing the industry, and what could be done to address it?

MS: I suppose the one feature of our industry that is so unique and so wonderful is that there is a clear division between who are suppliers and who are distributors. We have seen that improved technology, improved communication, the flattening of the world, how small the world has become, the advent of the internet, through all this, we've seen the lines between supplier and distributor get somewhat blurred. I think we're going to continue to see that. In my view, the solution is merely just a question of transparency. Say what you are and don't say you're something that you're not. If you're a distributor, don't present yourself as a manufacturer. If you're a supplier, make it clear to the industry distributors that you sell direct, so there won't be any surprises and you won't have the world turn upside down."

PM: What keeps you up at night, and why?

MS: Other than advancing age, I would say the next thing that keeps me up at night would be everything related to China. 80 percent of our industry's products are produced in China. The volatility of the supply chain makes our entire industry vulnerable. You run into situations where the customer wants the least-expensive product, period, and you're looking at how do you both get the least expensive product and a product that complies with all of the product safety requirements that we are both legally and ethically obligated to observe. If you're dealing with a highly reputable U.S. supplier and they're importing from China, they have to know who [the manufacturer] is.

So we've got issues regarding the manufacture of the product, compliance with the product with all of the requirements. We also have issues with inflation with China, with people leaving factories when the Chinese New Year comes and great difficulty getting them back. You run into raw material shortages, we've seen it in cotton, we've seen it in other areas as well, and now we're going to see an appreciation in the Chinese currency. As the yuan appreciates, it will make products coming from China that much more expensive. So whether it's the economy, the currency, the inflation, the attention to detail in manufacturing product, everything about our dealings with China give me reason to be up at night, or least when I do wake up at night, it gives me something to think about.

Click here for the full Top 50 Distributor's list.