The traditional top markets of the promotional products industry are going through major changes, from significant policy shifts emanating from the White House (healthcare and manufacturing) to transformative changes owing to technology (financial). Here are key trends to know for five of the largest markets.

Education

Creativity With Value
Though college enrollment is slated to increase over the next decade, it decreased by 4% from 2010 to 2014, which has made schools increasingly aggressive in their marketing strategies to recruit students. A solution? More creative products that are still cost-effective. Matty Toomb, vice president of sales and marketing at Shumsky (asi/326300), suggested to one university custom woven socks rather than T-shirts. “You don’t know the sizes of everybody walking through the door, so this school spends a lot of money trying to accommodate everyone,” he says. “Since colorful accessories are big right now, the socks would be more popular and less expensive.”

Cost is crucial now, says Chuck Collini, owner of Proforma Printing Advantage (asi/300094). His two main university clients in Michigan have substantially cut their budgets. “It’s challenging,” he says, “to find unique items that will give them bang for their buck. I’ve had to reduce profit margins with the hope that they’ll remember when enrollment goes back up.”

Healthcare

Concierge Medicine
As the Trump administration pushes Congress to repeal and replace the Affordable Care Act, the healthcare market wavers with uncertainty. During this disruption, a relatively new practice has emerged: concierge medicine, in which patients pay a monthly or annual premium ($1,800 or less) directly to their doctor for 24-hour access and extra preventative care. The Physicians Foundation reported that 23% of doctors already offer concierge care or plan to transition to the direct pay model. Gregg Emmer, VP and CMO of Top 40 distributor Kaeser & Blair (asi/238600), says it’s a ripe environment for specialty advertising: “You’re not only trying to sell to these boutique doctors, but also the hospitals they’re leaving,” he says. “Hospitals are doing PR to prevent their staff from following suit. You want to give them anything that can make them feel their employer’s arms around them.”

Manufacturing

Labor Revolution
The robots are here. There are already between 1.5-1.75 million industrial robots in operation, the International Federation of Robotics reported, and that number is expected to more than double by 2025. While automation will promote efficiency, it will also reduce the need for skilled laborers – and potential spending on promotional items. “The robotic revolution is going to reduce the labor force in a big way,” says Heidi Thorne of Thorne Communications LLC.

However, there may be short-term opportunities. If President Trump makes good on his pledge for Made-in-America manufacturing, it could drive a burst of hiring. These manufacturers will also invest in machinery to maintain operational efficiency due to high labor costs and insufficient capacity. “Manufacturers are waiting for regulations,” says DeAnn Wells, co-owner of TX-based Exclusively Yours (asi/522711). “When things get more stable, manufacturers feel more secure doing business. They’re just waiting to see how things shake out right now.”

Hospitality

Sustainable Future
Sustainability has been a growing trend in the hospitality market as hotels try to appeal to the environmentally conscious crowd. That doesn’t include just customers – over 50% of American workers are inclined to work for “green” companies, The FairRidge Group reported. Executive Apparel (asi/53418) has capitalized on the trend by recently launching EcoTex, a recycled polyester collection for uniforms. The supplier has developed eco-friendly suiting and companion garments like vests, skirts, shirts and blouses for front-of-house hotel staff, as well as venue and arena workers. “It seems that the trend toward sustainability had a slow start but recently more buyers are requesting it,” says Lisa Denham, marketing director for Executive Apparel. “EcoTex is a juxtaposition of classic styles with a new fabric so buyers only had to wrap their minds around one new component. Now that it is out there and people like it, we’re optimistic about future development.”

Financial

Mobile Thinking
As mobile and online banking continue to rise in popularity, banks, credit unions and other financial institutions have been forced to change their advertising strategy, targeting web activity instead of foot traffic. Stan Klarenbeek, director of financial solutions at American Solutions for Business (asi/120075), says the solution is digital marketing. “When I pull into an auto dealership, they’ll immediately email my phone with information about auto loans,” Klarenbeek says. “Banks are doing the same thing now with credit cards.”

Klarenbeek says banks are investing in data mining to create consumer profiles of past purchases and preferences. Then they use geomapping to track customers’ locations and provide them with products or services related to their environment. “By the time you’re ready to leave a store, you’ll get an email about some credit card offer,” Klarenbeek says. “It’s all about understanding my customer from a social media standpoint and then determining how can I use technology to better market to my customer.”

John Corrigan is a staff writer for Advantages. Tweet: @NotReady4Radio. Contact: jcorrigan@asicentral.com