EU – GXN (Global Executive Network), an international alliance between executives from the promotional products industry that is headed by the ex-PSI Director, Michael Freter, has published a survey that records the business climate of the industry. The Munich-based consulting firm, invidis consulting, compiled the “Promotional Industry Business Climate Index” (PBCI), on behalf of the GXN.
The report is based on the responses of 306 companies, mainly from the D-A-CH region, the Benelux countries, Great Britain and Ireland, but also from Spain and Scandinavia.
Together the companies interviewed achieved an annual turnover of 2.99 billion Euros in 2022 and an average growth rate of 20.8 % compared to 2021. The survey is due to be carried out every quarter. The figures for the first quarter of 2023 are now available.
Thanks to the good growth achieved last year, the promotional products market has reached the pre-pandemic level again. According to the report, with an index of 37.2 points the mood on the market is positive, whereby the current situation is assessed to be very good (41.8), albeit with a gloomy outlook for the rest of the first half of the year (32.4).
The current mood among the distributors is presently much better than among the suppliers (47.4 compared to 32.7). The exact opposite is true regarding their predictions for the future. Here, the suppliers’ expectations are more positive than those of the distributors (43.6 compared to 17.9).
Generally speaking, one can say the larger the company is the more positively the business climate is rated. The survey also indicates a market consolidation among the promotional products distributors, which is related to the flow of private equity capital within the industry, which is contributing towards the formation of several dominating market participants.
The complete survey can be downloaded from the website of the GXN network.
