Despite a significant upturn in sales for the first half of the year many promotional products suppliers are struggling. Any tip towards another recession would likely be catastrophic with many potential failures on both sides of the business model. There is some encouraging news today with the first hints that banks are easing lending standards.
The ramifications as reported by Reuters are easy to understand. As banks release more money to small businesses they can in turn lend more to other businesses and clients. If I were to take a look at the Click N Sip Stainless Tumbler and consider placing a purchase order for that item I would want to know that the manufacturer is going to support my order through the use of credit. Up until the last few weeks or months ost suppliers were still tightening their belts.
The same goes for other items from similar manufacturers. Polyconcepts is a European based firm. One of their leading promotional tumblers has been the Icon Glacier Tumbler which has been available since Icon was a company based out of Ontario. Because of exchange rate issues and other similar problems the US based supplier has been tight with credit. That has constricted sales and likewise as transportation companies tightened up last year the number of containers available for shipping were decreased on credit concerns. The catch is that as business grew in the first half there were not enough containers to get goods shipped resulting in lost sales and profits only prolonging the problems.
The article in Reteurs website today at least provides some hope going forward. The first step in any recovery is the easing and increase in lending. The major question this time around will be whether or not the lending done can promote an increase in business.
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