Minnesota News Report Attacks Promotional Products Industry

A report aired Sunday night on 5 Eyewitness News in Minnesota concerning the state's budget for promotional products. Click here to watch the video.

The report seems to criticize several state departments, including the Minnesota Department of Natural Resources and Department of Transportation, which collectively spent more than $153,000,000 of tax dollars on promotional items. At one point, reporter Nick Winkler leads an interviewee to say, "It's not a good use of tax dollars."

Responding to the report, the Upper Midwest Association of Promotional Products (UMAPP) issued a statement addressing claims in the news segment, explaining how the promotional products industry helps the state economy as well as helps to promote its services. "[The] repeat use makes our items one of the most cost effective forms of advertising when calculated per exposure," the statement said. "In other words, the state seems to be spending quite wisely by utilizing promotional products as part of their marketing/awareness campaigns."

The promotional products industry is a $17 billion business, and nearly $1 billion of that involves companies in Minnesota. 3M, ADG Promotional Products, Carlson Craft, Molenaar LLC and River's End Trading Company are just a few of the close to 200 supplier companies operating in Minnesota. Combined with distributors, the industry is responsible for $900 million in business in the state, according to the report.

"Most importantly, however, our industry employs nearly 20,000 Minnesotans who are proud to live in Minnesota," the UMAPP statement noted. "Their jobs in this industry pay their mortgages, put their children through college and help owners of other businesses in this state to do the same."

The promotional products industry has been under attack in a number of states this year. In February, governor Jerry Brown banned official state promotional products in California, and in March New Jersey governor Chris Christie vetoed $45,700 from the budget that was set aside for state promotional products.

What do you think about the 5 Eyewitness News report? Have you lost business as the result of state cutbacks? Let us know in the comments below.