While the novel coronavirus has been in the public mind for months, with the first U.S. case reported in late January, the past four weeks have witnessed a marked increase in awareness. But this week has been unlike any other in the lives of Americans.
The topic is front of mind for the entire nation as the pandemic’s growth threat has caused a major shutdown in many industries, closing schools and even invoking curfews or shelter-in-place edicts. Social distancing has entered the mainstream vocabulary, as the Centers for Disease Control and Prevention have issued guidance discouraging gatherings of more than 10 people.
Our lives, in short, have been turned upside down. And for the office technology dealership space, the impact is only beginning to be felt. This week, we will offer a snippet of the reactions from a few dealers.
This week’s disruptions to daily business differ from state to state as governors have provided varying levels of containment guidance, a situation that seems to evolve on a daily, if not hourly, basis. Several states in the northeast have enacted full school closures, and in California, Gov. Gavin Newsom told parents that students would not likely to return to classes before the summer break.
In addition to the educational space, government, restaurants and hospitality are being severely impacted by the closure guidance as the U.S. death toll reached 115 by Wednesday.
“As you can imagine, the uncertainty surrounding the spread of COVID-19 is causing more than a slowdown,” noted Brian Gertler, senior vice president of LDI Color ToolBox in Jericho, New York. “If they haven’t already, many businesses and organizations are preparing to close as a pre-emptive measure to halt the spread and flatten the curve.”
LDI has afforded many employees the opportunity to work from home. Business travel has been eliminated, and the dealer has taken great efforts to sanitize its offices. And being a technology company, LDI benefits from robust communication capabilities, remote meeting strategies and advanced infrastructure.
Gertler is confident his company is taking every step necessary to mitigate the growing concerns. “Management is meeting regularly so that we can plan for the difficult stretch ahead, optimistic that we will come out on the other side, ready to do battle and be the industry leader that has been a hallmark of our 20-year history,” he added.
Smaller dealers lacking the financial wherewithal to absorb a sustained economic impact are not as fortunate. A $5 million dealer in the northeast counts one-third of its MIFs in schools and expects the crises will “hit home” very quickly, and layoffs could soon be a reality for the 25-employee operation. A manager for the company, speaking on the condition that he not be identified, said the company’s revenue stream in education will be reduced to “a trickle at best.”
Some employees have been dismissive about the gravity of the situation, but the reality is quickly changing many attitudes. The mitigation measures being enacted in his state have caused this dealer, like many others, to take a hard look at headcounts.
“Employees do not know what is being considered,” he said. “Those of us in the know are obviously very concerned about the next steps. “Our owner has never seen anything like this, not even after 9/11.” Another dealer who did not want to go on the record pointed out the stress it is putting on the imaging side of the business. “As you can imagine, these are unprecedented times and drastically different for our imaging business versus our IT business.”
Another dealer who did not want to go on the record pointed out the stress it is putting on the imaging side of the business. “As you can imagine, these are unprecedented times and drastically different for our imaging business versus our IT business.”
This is obviously a brief snapshot that only scratches at the surface of the impact the virus has visited on our business lives and is only intended to provide perspective. We hope to share more stories and insight into the office technology business climate, so please email me if you would like to share what you are seeing in the market. Our aim is to keep readers as informed as possible concerning the intended and unintended consequences of the mass shutdowns. Anonymity will be provided upon request. We wish all of our readers the best of luck in their business endeavors, and above all, stay healthy and safe.
