Legislation and the Office Technology Dealer: The Issues that Matter

We’ve all heard variations of the admonishment against discussing politics and religion. It’s a pro tip that’s been passed on from generation to generation—parents, grandparents and other figures of authority have warned us that it’s a taboo subject, particularly for polite company (which apparently does not include Facebook or other forms of social media).

It’s certainly an age-old warning. One of the earliest recordings in print appeared in 1840, when author Thomas Chandler Haliburton observed, “Never discuss politics or religion with those who hold opinions opposite to yours; they are subjects that heat in handing, until they burn your fingers…”

Yet, perhaps more so than any other time in recent memory, the activities in Washington are dominating our national conversation. Americans cannot pick up a newspaper, go online or turn on the television without being inundated with news and messaging regarding the race for the White House, Congress and every seat at the national, state and local levels. One candidate went as far as to say the election is a referendum on America’s soul. That may seem a bit extreme to many, but there is one incontrovertible truth to be found as we make our way to the polls on Election Day…

America has issues. Serious issues. But does their resolution depend upon who is elected?

The nation’s discourse is wholly dominated by a trio of talking points, any one of which could serve as a cornerstone topic in a given election cycle: COVID-19, a fragile economy and social unrest. Combined, they have formed a perfect storm, effectively casting a shadow over every other issue. Add to that a penchant for partisan bickering that paints the other party as being wholly unqualified on the basis of character, morals, integrity, etc., to the point where the conversation devolves into meaningless sound bites and characterizations.

Still, other challenges remain, regardless of whether they take center stage. With that in mind, we are forsaking memaw’s advice in canvassing the dealer universe for this month’s State of the Industry report to discover what issues—at all levels—are of importance to them.

Skin Deep

The problem with politics, as Paul Archer sees it, is the penchant for people to “get one inch deep” into the issues, complain about how they impact them, but remain content to be complaining bystanders. After years of doing his own griping, the president of Automated Business Products of Denver decided to keep scratching past the surface and get involved at a more granular level.

A member of the Select Dealer Group, Archer has elevated his participation in the political process, going far beyond cutting a check for Colorado candidates for office. He donates equipment—including service and supplies—to county and state party offices as well as individual candidates. He’s helped author health care policy legislation at the state level. Roughly eight years ago, Archer helped found an organization to address the state’s ineffective sales tax system and has helped push six sponsored bills through the legislature, with support of the governor. He’s now a board executive for that organization, which includes thousands of members.

Singapore proves that having a market-based health care system with accountable consumers and competitive providers result in much higher value for consumers and much lower cost to the system.

– Paul Archer, Automated Business Products

“I’m not just a casual, interested critic,” Archer noted. “I’m involved in the process.”

Beyond the COVID-19 conversation, Archer believes health care is the greatest challenge facing the national economy, as it has a deleterious impact on discretionary spending, stressing individuals, businesses and the government. Individuals see whatever annual increases they realize consumed by increased health care costs, and he notes that 18% of GDP in our economy is spent on health care, 50% higher than the next-closest developed country (Canada). Singapore, for example, sees just 4.5% of GDP earmarked for health care. That many of the other developed countries have some form of socialized medicine and spend significantly less than the United States on a GDP and per-person basis has provided fodder for the Medicare-for-all movement.

Archer feels the answer isn’t so simple. “Most health care innovations come out of this country because we still have an element of market forces at play,” he said. “But we have a completely perverse market in the health care system; it’s not a true market. Markets have transparency and accountable consumers, and we don’t have that because we have separated spending money from making decisions about what to spend money on and how to spend it. Somebody else is always paying for health care costs, such as your employer and your employer-selected insurance company, or it’s the government paying. Singapore proves that having a market-based health care system with accountable consumers and competitive providers result in much higher value for consumers and much lower cost to the system.

“We already know the highest spenders in our health care system are Medicaid and Medicare recipients. If we put the whole country on that kind of system, it will bankrupt it. I favor a market-based system that’s pretty simple. We end the safe harbor for health care companies, subject them to antitrust legislation, bring transparency to pricing, we end the 70-year connection between employment and health insurance, and we get the government out of the insurance business. That will create a nation of consumers and we could have the kind of experience they have in Singapore. It wouldn’t be that hard to do.”

With Medicaid being the single-biggest budget item in any state, it puts the pinch on other budget areas such as transportation and education, Archer noted. In his home state, for example, the University of Colorado gets just 3% of funding from the state, shifting incredible debt loads onto the shoulders of students before they enter the workforce.

In the Trenches

Advocating for candidates is certainly an integral aspect of Archer’s activism. He’s been working with a candidate in his congressional district for the past year, participating in fundraising and discussing health care and messaging. He is also working with a sitting U.S. senator to develop a strong team focused on health care policy. In addition to supporting the president—whose policies Archer feels created a booming economy while keeping the country out of new wars—he has kept tabs on viable candidates from other states and has backed a number of them from a contribution standpoint. He also encourages employees who care about issues to get involved by providing more support beyond their vote.

Term limits is another cause for which Archer is passionate. “I think making politics a lifelong profession is wrong,” he said. “George Washington was a fantastic model—two terms, and he was done. He might have been the greatest man in the world for that choice alone.”

Another dealer seeking resolution to the nation’s health care challenges is Chip Miceli, president and CEO of Pulse Technology, based in Schaumburg, Illinois. Miceli’s overarching goal is to remedy the flaws in the U.S. system in a way that provides needed services to individuals, while also supporting the rights of people who prefer to maintain their private insurance.

“Too often, we hear an either-or choice,” he said. “Our politicians and parties should have a serious discussion and put the needs of the American public first. This should be about policy and not political talking points.”

Tax reform is another agenda item high on Miceli’s priority list. Given the toll the pandemic has visited on businesses in Pulse Technology’s home states of Illinois and Indiana, Miceli would like to see measures that can benefit small businesses.

For many, the last five months have been devastating. This is a good time for Congress to get together and come up with a tax reform plan that will help spur an economic recovery.

– Chip Miceli, Pulse Technology

“The small businesses are the engine that drives our nation’s economy,” he said. “For many, the last five months have been devastating. This is a good time for Congress to get together and come up with a tax reform plan that will help spur an economic recovery.”

On a state level, Illinois remains one of the more COVID-sequestered states from a business standpoint. Miceli isn’t backing any candidates in particular, noting Illinois is a blue state and “there is not really much of a choice between the two parties.” Any effort that entails reaching across the aisles is something he can get behind.

Economic Impact

“I would support a candidate who would work to bring some bipartisanship at the local level and tackle issues that make it easier for our economy to rebound—taxation reform, affordable health care and less regulation,” he said.

Southwest Office Systems of Fort Worth, Texas, is actually pacing ahead of last year’s performance, though it is falling short of projections based on the service component taking a major hit due to COVID-19. Vince Puente, president, sales and marketing, is worried the economy will not be able to bounce back quickly once a majority of businesses return to their offices and children resume in-school learning—economic variables that are critically intertwined.

“Texas is more open than many states, but it’s really limiting as to what we can do,” he noted. “There are hundreds of thousands of jobs that have been lost, which has an incredible impact on the economy and our business. Is the philosophy going to be ‘Let’s shut down the economy, have more restrictions and try to contain the virus, regardless of what it does to our economy?’ Or are we going to open back up and manage the reality of the virus? There are longer-term issues, but this is dominating everything.”

We’ve got to be careful and look at the numbers, but I think we’re being driven by fear in the media. We’re not being driven by common sense, and we have to get back to that.

– Vince Puente, Southwest Office Systems

Unprecedented Challenge

The immediacy of addressing the economy, getting people back to work and children in school will trigger what he anticipates to be a “slow climb.” In fact, he doesn’t see revenues returning to pre-pandemic levels until 2022 at the earliest. The firm’s employee roster has dwindled from 53 to 37 since March. Southwest’s investments were geared toward operating at a specific size, including service level, but Puente anticipates his revenues for 2020 will fall somewhat short of where they stood 10 years ago.

Southwest has witnessed multiple national/regional downturns in its 56-year history, from the savings-and-loan debacle of the late 1980s, to 9/11 and the Great Recession, but they all pale in comparison to COVID-19’s financial impact. The dealer was able to rebound in short order following the previous turmoil, but 2020 has provided a challenge unlike any other. Fortunately for Southwest, the company owns its facility and company vehicles, has no debt and purchases inventory with cash. But that cannot address servicing clients and employees.

It is the optics involved with sending people back to the office and risking them becoming sick that is stagnating the resumption of business, creating a trickle-down effect on service, hospitality and numerous other industries. “We’ve got to be careful and look at the numbers, but I think we’re being driven by fear in the media,” he said. “We’re not being driven by common sense, and we have to get back to that.”

Puente is also no casual observer when it comes to politics. He and his wife are engaged in elections at the state and local level. Puente serves on the Finance Commission of Texas, an appointment by the governor to oversee the state banking commission, savings and mortgage banks, and the office of consumer credit commission.

While the company is fiscally positioned to endure the downturn and remain in business, the road back to prosperity entails keeping his full team employed, increasing their wages and benefits, and expanding. “It’s about advancing the vision my father had when he founded this company, rather than seeing it whittle away to nothing,” Puente added.

Echoing Puente’s sentiment regarding the economy is Mark Petrie, CEO of Copiers Northwest in Seattle, who notes that customers are anxious to become fully operational sooner than later. “We work with schools and universities that want to reopen without having to worry about the virus spreading between students and faculty,” Petrie noted.

Much attention has been garnered by the rash of protests regarding civil rights issues, most notably recent incidents in the northwest. There have been numerous anecdotal examples of businesses that have been burned down, looted or vandalized, or have endured other forms of destructive gestures. Copiers Northwest’s two largest markets, Seattle and Portland, have witnessed their share of negative attention in the media stemming from peaceful protests gone awry.

Anything that drives business away from these dynamic cities negatively impacts the local economy for us and our customers.

– Mark Petrie, Copiers Northwest

“Anything that drives business away from these dynamic cities negatively impacts the local economy for us and our customers,” he noted.

Gary Johnson, president of WiZiX Technology Group in Fresno, California, is feeling the pinch of being a conservative business owner in a blue state. He applauds the business-friendly environment cultivated by the current administration, which he credits for the strong economy and growth prior to the pandemic. A switch at the top position, he fears, could negatively impact the economy and lead to more taxes and excessive regulation.

“In California, I am most concerned about the cash grab being made by our governor and legislature on income, property and wealth taxes being proposed, which will drive many businesses out of our state, thus hurting our economy,” he said.

In California, I am most concerned about the cash grab being made by our governor and legislature on income, property and wealth taxes being proposed, which will drive many businesses out of our state, thus hurting our economy.

– Gary Johnson, WiZiX Technology

While he’s not advocating for any particular candidates, Johnson promises to do his part on Nov. 3. “I’m voting Republican across the board,” he said.