Promo Products Named In Potential Government Cuts
November 10, 2011
Saying his goal is to eliminate government "waste,
large and small, in a systematic way," President Barack
Obama has signed an executive order instructing
federal agencies to reduce spending in specific areas by a total of 20%. The
decision, announced yesterday, directs federal offices to make combined 20%
cuts to the following areas: travel, employee technology devices, printing,
executive fleets, and "extraneous promotional items." Regarding the
use of promotional products, the executive order states the following:
"Agencies should limit the purchase of promotional items (e.g., plaques,
clothing, and commemorative items), in particular where they are not
Agencies have until mid-December to find ways to cut
expenses in these areas and must apply the reductions to their budgets by 2013.
According to the U.S. Office of Management and Budget, Obama's
executive order will save $4 billion annually – money that the president
believes is better used to fund job programs and other initiatives aimed at
improving the economy. However, many ad specialty industry executives argue Obama's stance is anti-business and his views on economic
recovery are misguided.
"For the president to say that buying promotional
products is a waste is extremely troubling and shows how little he knows about
the industry," says Matt Bertram, president of Fields Manufacturing
(asi/54100). "This is again another example of our administration making
quick decisions that will hurt small business."
Other executives, like Fred Albrecht, owner of Proforma Albrecht & Co. (asi/116308), feel the cuts may
provide an opportunity for industry members to better educate government
leaders. "I believe we need to continue to promote the cost effectiveness
of our products as the absolute best media available to create brand
awareness," Albrecht told Counselor. "Rather than attack the
president for his spending cuts, I would like to see more time spent promoting
the value our industry brings to the world of advertising."
Click here to read the executive order that President Obama issued.