Uniform, Promotional Product Mastery
Uniforms unify. They connect people and build pride to an entity, whether that’s a government department, a school, or a corporation. At the same time, while uniting people to a common entity, they can also differentiate hierarchies, advertise the entities, build trust and professionalism. For these reasons, providing uniforms is big business.
Logos communicate. They help customers, prospects and the public recognize brands, services and products. Logos create first impressions and connect people to values. Like uniforms, logos are also big business.
Brands can be so powerful that people tattoo them on their body
To capitalize on both markets, an entire industry dedicated to decorating uniforms and creating promotional products has evolved. Even before Johannes Gutenberg created the printing press in 1439, people have printed on textiles since the 4th century BCE. Promotional products aren’t quite as old, but even America’s President George Washington realized the value in providing promotional buttons to commemorate his inauguration. Now, almost every company, government and individual connect to something through uniforms and promotional products. In fact, company swag commands an impressive 85% brand recall rate, outstripping other promotional strategies and solidifying its place as a force to be reckoned with.
Market Size
- The global school uniform market size was worth around US$15.9 billion in 2022 and is predicted to grow to around US$25.75 billion by 2030, about a 6.25% CAGR between 2023 and 2030.
- The workwear market size is forecasted to grow from US$32.01 billion in 2022 to US$52.45 billion by 2030.
- The global law enforcement and military clothing market size was ~US$1.55 billion in 2022 and could grow at a 9.2% CAGR from 2023 to 2030.
- The 2023 global promotional products industry was estimated to be worth of over $85.5 billion and could grow at a 3.17% CAGR 2020 to 2026.
Intro to ADM Endeavors
Sophic Capital client ADM Endeavors, Inc. [OTCQB:ADMQ] (“ADM” or the “Company”) is a diversified, direct marketing and value-added manufacturing company providing customers with customized promotional products and wearables. Since 2010, the Company has operated a vertically integrated business, consisting of a retail sales division, screen print production, embroidery production, digital services, import wholesale, government procurement and school/work wear uniforms. The Company has done this through its wholly owned subsidiary (Exhibit 1), Just Right Products, Inc., which has maximized its work area by offering on site traditional brick and mortar retail within its manufacturing facility. This allows the most efficient use of labor with all employees cross trained for retail, sales, and production work.
Exhibit 1: ADM Endeavors’ Subsidiaries
Source: Company Investor Presentation
The Retail Sales Division focuses on “Anything With A Logo!” Products range from business cards to coffee cups, apparel-like t-shirts and hoodies, to even more unique products like portable speakers and pillows. Selection of products is key, giving customers access to select from tens of thousands of unique products. Offering a wide variety of promotional products enables customers to diversify their brand presence and boost visibility in a cost-effective manner.
The Import Wholesale Department adds to the “Anything With A Logo” selection by sourcing products overseas for both retail and wholesale customers. In a strategic pivot to source sustainable recurring contracts, the Company created its Government Procurement Department. This Department utilizes the wholesale sourcing combined with in-house manufacturing from the retail division to assist Municipalities, Schools, Law Enforcement, Fire Protection, Parks & Recreation, Public Works, Public Safety, Zoning, and other government entities in securing their apparel and promotional products.
The Uniform Division sells uniforms to businesses and schools. ADM currently has contracts with over 10 local private and charter schools to provide all uniform needs while also working with various businesses for employee uniform apparel. As the Company grows and undergoes regional expansion they will seek to service additional school districts.
To meet its customer needs, Just Right Products has implemented state-of-the-art in-house production that is supplemented with factory direct international sourcing. The onsite Screen-Printing Production utilizes five screen printing machines to print garments, bags, masks, and other products and can produce more than 8,000 units per day. Embroidery Production, which is also onsite, has equipment with over 50 heads of embroidery capacity. The Digital Services Department employs digital artists to create brand new visuals for customers or refine artwork submitted for orders. All departments work in tandem to ensure a high level of customer service and quality products.
Just Right Products has 10 salespeople on staff who serve over 1000 customers per year. The Company has employees that are fluent in Chinese, Spanish, Hindi, and Arabic thereby affording significant opportunities to interact directly with both customers and product sources internationally. In addition, Sage, an online B2B platform, expands the product offering to an additional 45,000 wholesale customers.
Customer Validation
Some of ADM Endeavors recent contracts signed include:
- Dallas County, Texas, to supply employee uniforms and other requested items. This strategic partnership has the potential to significantly impact ADM’s customer base, with the ability to double the current size. The positive exposure gained from serving all cities within Dallas County is expected to contribute to this expansion. ADM has initiated the fulfillment of orders for Dallas County, leading to the realization of revenue exceeding US$65,000. This early revenue generation underscores the effectiveness of the partnership and highlights the immediate impact on the Company’s financials. The addition of Dallas County as a client not only broadens ADM’s reach but also serves as a testament to the Company’s capabilities and appeal within the region. This venture positions ADM for continued growth and success as it leverages its foothold in Dallas County.
Source: www.dallascounty.org
- The contract renewal with Tarrant County comes after the Company consistently met all contract obligations and extensions, solidifying a strong track record of reliability. This renewed contract encompasses additional optional features, potentially elevating the total contract value to US$450,000. The fact that Tarrant County has chosen to extend its partnership with ADM for the past four years underscores the establishment of a trusted and enduring relationship. The renewed contract and the inclusion of additional options not only demonstrate the client’s satisfaction with ADM’s services but also signify the Company’s ability to adapt and meet evolving needs. This sustained partnership with Tarrant County is a testament to ADM’s reputation as a reliable and valued partner, further positioning the Company for continued success in serving its clients.
Source: www.tarrantcountytx.gov
- An annual contract with the Town of Flower Mound, extending its provision of uniform services. Building on a longstanding relationship that dates back to 2021, this contract renewal emphasizes another example of the Company’s ability to maintain strong and enduring partnerships with government entities. The Town of Flower Mound, as a consistent client, not only signifies ADM’s reliability in delivering quality uniform services but also serves as a valuable government partner. Notably, Flower Mound’s ongoing commitment is highlighted by its role as a source of referrals, introducing several new government customers to ADM. This collaborative and mutually beneficial relationship positions ADM as a trusted and preferred provider within the government sector, fostering both continuity and growth in its clientele.
Source: www.flower-mound.com
- Substantial growth in its uniform contract with the City of Allen. In 2023, orders surpassed US$115,000, marking a surge of over 800% compared to the previous year. This increase in contract value underscores the strong and expanding relationship between ADM and the City of Allen. This growth is indicative of ADM’s success in solidifying its position as a preferred and reliable provider for the City of Allen’s uniform requirements, demonstrating the Company’s capacity for scalability and client satisfaction.
Source: www.cityofallen.org
- A uniform contract with the City of Arlington, demonstrating sustained growth and customer engagement. In 2023, there has been a 30% increase in orders compared to the previous year, resulting in revenue exceeding $80,000. The growth in contract value highlights ADM’s ability to adapt to changing requirements and underscores the Company’s commitment to delivering quality solutions. As a result, the City of Arlington’s continued engagement and increased orders showcase ADM’s position as a trusted provider in meeting the uniform requirements of its municipal clients.
Source: www.arlingtontx.gov
- Uniform contract with the North Texas Municipal Water District. In 2023, orders increased more than 60%, resulting in revenue of over US$125,000. The North Texas Municipal Water District plays a pivotal role in serving 13 cities and 10 counties in North Texas, establishing itself as a reliable source of ongoing sales. The District’s influence over a broad geographic area positions ADM for sustained future sales, particularly as the population continues to grow in the North Texas metro. This successful collaboration underscores ADM’s ability to meet the demands of a diverse and expanding clientele, reinforcing the Company’s position as a trusted partner in uniform services.
Source: www.ntmwd.com
Conclusion
The American promotional products and uniform sectors represent substantial, multi-billion-dollar markets. Sophic Capital client ADM Endeavors, Inc. [OTCQB:ADMQ] operates within this sphere as a diversified entity, specializing in direct marketing and value-added manufacturing. Its core offering revolves around tailored promotional products, uniforms, and wearable items. ADM has strategically targeted contracts with governmental bodies and educational institutions for recurring revenue streams.
Coming Up…
In our next report, we’ll highlight ADM’s revenue model and catalysts for growth.
Disclosures
ADM Endeavors Inc. [OTCQB:ADMQ] has contracted Sophic Capital for capital markets advisory and investor relations services.