As Prices Rise Cotton A Logical Choice

Here we go again, Memorial Day is approaching and as it does gas and oil prices are going up.  In many parts of the United States gas prices have risen 30 percent since New Years Day.  So what does cotton have to do with oil prices?  Plenty when it comes to buying your convention or show items this summer.

A majority of the items you would normally buy for your next project are made from plastics of one type or another.  All of those plastics require the use of petroleum products in the actual construction process.  Cotton items typically do not, take for instance the Classic Cotton 6 Oz. Convention Tote which is made from all natural cotton.  Sure there are costs associated with operating the farm, manufacturing and transportation but oil based products themselves are not consumed in the product materials.  Taking this a step further the Classic Cotton 6 oz. Foldable Tote folds into a tiny footprint which will make the ultimate end user destination a little less expensive to reach.  Lighter versions such as the Leeds Cotton Convention Tote offer wide color choices and again offer some unique touches such as the mock rivets at the top of the bag. 

Although none of these items are purely organic they are a bit more earth friendly and oil friendly than pure plastic products.  The next logical step for domestic manufacturers would be to source non-organic cotton in the United States creating a Made in USA line of bags.  Whether this is the time to do that given the economy is debatable but with product planning taking years it would be nice to see some consideration being given to the idea.  As of right now little or not tote type products are sourced in the United States for this industry.  Slowly some of the lower end items are being brought back to the States but what may have been a more rapid transition is being delayed by the sales downturn.

Several industry suppliers have failed in one form or another in the past few weeks.  Most sources pin supplier sales at down 20-40% and as history has shown that is probably not the most accurate representation.  One of the industries largest suppliers appears to have avoided Chapter 11 last week but that has not yet been made official.  Another Top 5 supplier already filed earlier in the month although all signs point to their continued operation as they emerge from a Chrysler type arrangement.  Distributors are also vanishing at an alarming rate as with sales plummeting like they have there is only so much room in the marketplace.  Traditional web based business continues to flounder but traditional offline sales are amazingly strong as representatives that had previously called on clients have left their old employers.  Much like brokers in the financial industry this leaves the doors wide open for new distributors to get a leg up on business.  Despite what many people would think it is actually a fantastic time to make a concerted effort in traditional offline sales tactics.

As we discussed in keeping your coolers safe this summer and A Real or Fools Rebound the economy is making little headway.  Despite the more optimistic appearance to the unemployment numbers truth be told many have just given up.  Worse the numbers continue to be revised downward from previous months.  The recovery will be long and difficult.