Almost 600,000 Americans moved from the Midwest and Northeast to Sun Belt states in 2016, the most in over a decade, according to the Brookings Institution. Migration is boosting both population and economic growth, as the low costs of hiring and living have fueled an industrial expansion, in addition to increases in manufacturing employment and activity. The region’s promotional products growth actually decreased to 3.72% (primarily due to natural disasters), but distributors still harbor optimistic aspirations for the future.

>>Back To Main Page

Click here for a larger image of the above map.

“President Trump’s push for made-in-USA has gotten people excited and investing in manufacturing again,” says Mike Beckman, president of Big Picture Marketing in Atlanta. His two biggest manufacturing clients increased their spending by about 18% in 2017, he says. “Manufacturing is going to jump some more, so I’ve been giving them ideas as much as possible because that money will be there.”

>>South Case Study: Promo Items Integral Part Of Circle K Grand Opening

Even disrupted industries – such as healthcare, thanks to ongoing legislative battles – are ripe for the picking. In Alabama, there’s been a growing shift of patients skipping the traditional doctor’s visit in favor of urgent care, says Nadav Raviv, account executive at City Paper Company (asi/162267) in Birmingham, AL. “One of my clients went from having 160 urgent care locations in August/September to now having 210 locations,” Raviv says. “You never know from one day to the next what your insurance covers, so a doc in the box isn’t as stressful on the wallet as going to the hospital.”

Meanwhile, retirement centers like Myrtle Beach, SC, and The Villages near Orlando were the fastest growing metro areas in the U.S. in 2016, Bloomberg reported. On the other side of the age spectrum, an influx of younger workers has led to employment booms in Florida and Georgia, both growing at almost twice the rate of the nation.

The financial market has also seen a surge thanks to reduced regulations freeing up budget space for banks. “They’re seeing more access to capital, driving research and development and ultimately, more marketing opportunities,” says Danny Rosin, president and co-owner of Brand Fuel (asi/145025), which has offices in Morrisville, NC, and Norfolk, VA. Charlotte remains a magnet for financial institutions, joining six other southern cities as part of Forbes’ list of the fastest growing economies in the U.S. “We’re increasingly on the map for those big business opportunities, where a decade ago we weren’t,” Rosin says.

Travel and tourism has been on the rise, says Danette Gossett, owner of Miami-based Gossett Marketing (asi/212200), as more people are planning vacations due to a healthier economy. Miami, Atlanta and Orlando are poised for the most hotel development in the Southeast, according to National Regional Estate Investor. The dramatic increase in hotel construction stems from a revitalization of leisure travel in Florida and along the coastal markets, as well as business travel in places like Charlotte and Nashville.

And speaking of opportunities, there’s perhaps none bigger than hosting Amazon’s second headquarters, as cities from all over North America have made bids on the surefire economic boon. Amazon has announced 20 candidates for the destination, including southern cities such as Dallas, Austin, Raleigh, Nashville, Atlanta and Miami; both Austin and Atlanta have been forecasted as favorites.

Overall, Gossett is seeing positive things in the market. “Clients are being cautiously optimistic with their spending increases and they’re being more open to new strategies,” she says. “Whenever I would mention online stores before, they’d be like, what is that? Now they’re being more proactive and looking to find some digital solutions.”

Not everything was so rosy in 2017. Industry companies from both Florida and Texas faced incredible adversity from Hurricanes Harvey and Irma. Holly Spillers, co-owner of MVP Marketing in Katy, TX, had to shut down for a few weeks, but luckily, emerged relatively unscathed. “It was nerve-wracking in the beginning because companies aren’t thinking about buying as employees are just trying to get back into their homes,” Spillers says. In an effort to make some kind of difference in her ailing community, she partnered with Hit Promotional Products (asi/61125) to donate backpacks full of battery chargers, hand sanitizers and blankets to a local elementary school that still hasn’t reopened. “It was kind of like survivor’s guilt,” Spillers says. “There’s nothing you can do about the weather, but you still try to help in whatever little way you can.”

Hot List

Hot Product: Trendy Tumblers
Stainless-steel tumblers are overwhelmingly popular in the South, according to several distributors. “Even when clients find out a tumbler isn’t the YETI brand, they still want it,” says Mike Beckman of Big Picture Marketing in Atlanta. Brands big and small are getting in on the action. Fast food chain Whataburger, a staple of the South, announced last year that it would be rolling out branded YETI tumblers as part of its merchandise.

Hot Trend: Quality Over Cost
“As the economy has bounced back, businesses are dealing with more competition than ever,” says Justin MacDonald, general manager of TJM Promos Inc. (asi/342485) in Ocala, FL. “To set themselves apart from their competition, business owners and managers have increasingly bought higher quality, higher perceived value items, often with a retail name or feel.” MacDonald cites a number of benefits, from creating a strong company culture to promoting high-quality goods or services. “That doesn’t mean buyers aren’t cost conscious – they certainly are,” MacDonald adds, “but there’s been a shift from spending more on quantity to spending more on quality.”

Hot Market: Healthcare
With new legislation on the horizon, the healthcare market is ripe for targeting. From an influx of urgent care practices to a surge in retirement and lifestyle communities, there are endless opportunities for distributors to hit. Plus, companies are investing more heavily in incentive programs to maintain a healthy workforce. “My healthcare clients have increased their spending by about 40% this year,” says Andrew Lell, national marketing executive at Goldner Associates (asi/209800) in Nashville, TN.

Hot Trend: Cause Marketing
According to Twitter co-founder Biz Stone, “philanthropy is the future of marketing.” More and more companies are getting involved in charitable efforts, ordering branded T-shirts, baseball caps, drawstring bags and other promo products for fundraising events. “We’re doing a lot of merchandise for companies expanding their social outreach,” says Elizabeth Tate, chairwoman and CEO of Signet Inc. (asi/326636) in Memphis, TN. ​

Hot Market: Higher Education
Because the economy has been relatively healthy for the past couple years, schools have stepped up their efforts to recruit students who may be compelled to go to the working world or delay pursuing graduate degrees. That’s a great opportunity for distributors. “Technology is still big in the college and university space,” says Gossett Marketing’s Danette Gossett. “We’ve also been doing a lot of branded gifts for college speakers and visitors.” 

Community Connector

Jay Lewis of ASB (center) was honored with a Bold Award from Turn It Gold for furthering the nonprofit’s mission to fight childhood cancer.

Jay Lewis: The Gold Standard

Jay Lewis’ official title is business solutions consultant at American Solutions for Business (asi/120075, ASB). But he also qualifies for a noble designation: pillar of the Houston community. Lewis has served on the Covenant Christian School board three times, and has twice been elected president of the school board. He leads the worship music on an interim basis at a local church and has taught Sunday school for many age groups. Additionally, he has coached soccer and basketball teams his children have been a part of.

In January, Lewis was honored with a Bold Award from Turn It Gold, a nonprofit that raises funds for research for childhood cancer. Mike and Angela Dina launched the organization after their son Charlie was diagnosed with stage-4 neuroblastoma. Given a 50% chance of survival, Charlie is still alive nearly six years later and fighting to be cancer free. Lewis began working with the organization in 2015 and teamed with Michelle Payne, the organization’s director of marketing, to design three different awards. Bravery Medals, shaped like Olympic gold medals, are awarded to children who have fought cancer. Crystal Life Honors are given to families who have a lost a child to cancer; the Bold Awards are given to individuals or organizations that have been bold in their dedication in the fight against childhood cancer.

In addition, Lewis has also provided T-shirts, flags, patches and wristbands to help publicize the organization’s message across the nation to fund research. “I’ve been inspired by the passion and love that Mike, Angela and Michelle have for the children and families battling cancer,” Lewis said. “We live in a world today where a lot of people are focused on themselves. We find true joy and purpose for our lives when we’re willing to help others. Turn It Gold represents how each and every one of us can make a difference if we’re willing to sacrifice our time.”

For the last three years, The Scripps College of Communication at Ohio University Storytelling Institute has been filming a documentary on Turn It Gold. At the Houston premiere, Payne surprised Lewis with a Bold Award of his own.

“You have to be involved in your community if you really want to make a difference,” Lewis said. “You have to bring passion, drive and enthusiasm to each opportunity. If I can be the conduit to inspire someone to get involved as well, then it’s been a great day.”

John Corrigan is a staff writer for Advantages. Tweet: @Notready4Radio. Contact: jcorrigan@asicentral.com