Coming off Unpredictable Year, Industry Notables Offer Fearless Forecasts

At the onset of any given year, businesses in general can make projections based upon the trends of the previous year or years. Some developments are faster moving than others, yet as customers in the B2B space seek out ways to conduct business smarter, faster, more efficiently and more economically, the tools and services that address those needs gain more focus.

This is what sets 2020 apart from its predecessors, and ideally, all of its successors. The pandemic called upon the office technology industry to provide solutions for an altered business reality, some of which offered little in recurring revenue opportunities. That’s not to say there were no managed services tied to the offerings, but reconciling the loss of A3-related revenue was a tough pill for many dealers to swallow.

Yes, 2020 was impossible to predict, and projecting what 2021 will offer as an encore comes with a boldface preface. How soon will vaccines become available? Many observers are projecting mid-year as the point when most Americans will have access to the vaccine. Assuming for a moment that this is an indisputable fact—a huge leap of faith, all things considered—at what point will:

• The business community resume normal business activity across the board?
• Employers and their charges feel comfortable returning to the office?
• Pent-up demand trigger an onslaught of activity, or will businesses continue to lick their wounds and make a slower march back to pre-pandemic levels?
• Congress deliver a much-awaited second wave of economic stimulus?

Despite these and so many other unanswered questions, we’ve queried our panel of office technology experts as part of our State of the Industry report on trends and predictions to provide their forecasts of what 2021 holds in store.

New Normal

As employees return to the office in 2021, they will notice some marked differences stemming from the pandemic, notes Dan Waldinger, senior director, B2B marketing for Brother International. As maintaining social distancing will be top of mind for many end-users, how devices are utilized around the office will be a primary determinant.

“Employers must adopt balanced deployment configurations that appropriately disperse devices in a decentralized manner across the office, lowering the employee-to-device ratio, and allowing employees to feel confident in their safety,” Waldinger said. “I also expect significant demand for low-contact solutions, such as mobile printing and scanning apps that reduce the need to physically interact with the device itself.”

Employers must adopt balanced deployment configurations that appropriately disperse devices in a decentralized manner across the office, lowering the employee-to-device ratio, and allowing employees to feel confident in their safety.

Dan Waldinger, Brother

Gradual Process

Brad Cates put it succinctly when he observed “Nothing auto-corrects.” The president and CEO of Prosource believes business will inch its way back to some level of normalcy, but the process will not be expedited. For 2021, Cates expects to see aggressive growth in managed IT and managed cybersecurity, along with opportunities centered on moving information differently, specifically as it relates to A4 and managed print.

“We’ll also see market leaders continue to grow market share by leveraging their strengths and aggressively approaching net-new sales and local market growth,” Cates said. “Difficult times often provide opportunities, and the best companies will find ways to strengthen themselves, serve their customers, and grow their businesses in new and innovative ways.”

Anneliese Olson, general manager and global head, printing category for HP, believes pandemic-induced stopgaps in strategies will give way to full-fledged, digitally native approaches in 2021. Executing an agile, go-to-market strategy to meet customer demands for when and how they want to engage, purchase and get support for the products and solutions they purchase will be vital, according to Olson.

“We are also going to see a necessary increase in interconnectivity between remote work and office spaces,” she noted. “While some companies might start to bring employees back as it is safe to do so, we will also see many employees choose to work remotely long term. Again, many companies have to start the planning process now for hybrid workplaces long into the future.”

We are also going to see a necessary increase in interconnectivity between remote work and office spaces.

– Anneliese Olson, HP

Laying Foundation

While projecting how the year will pan out with any certainty is next to impossible, Jim Coriddi, vice president, dealer division for Ricoh Americas, believes organizations will need to provide an agile work experience. Dealers that can deliver improved workflows and process automation will not only meet a spike in demand, but will be laying the groundwork for stronger, enduring client partnerships based on collaboration.

“Subscription pricing models will continue to give organizations more financial flexibility, while also creating a clear roadmap for continued collaboration between dealers and customers,” Coriddi said. “Dealers can help their customers more successfully manage information, uncovering hidden problems and removing obstacles to seamless productivity.”

David Concors, senior vice president of sales for Supplies Network, fully expects trends from the fourth quarter of 2020 to continue through the first half of this year. The company monitors transactional versus contractual or managed engagements, with current conditions leaning toward higher transactional order volume and somewhat decreased managed volume—driven by the work-from-home trend. Concors notes managed print still drives most pending large-scale opportunities within their funnel.

“Further, we are seeing a lot of interest in our remote and virtual support solutions for phone triage, remote configuration, etc., as these services are quite compelling, given the current landscape with access restrictions into offices,” he said. “We expect that area of our business will continue to grow.”

We are seeing a lot of interest in our remote and virtual support solutions for phone triage, remote configuration, etc., as these services are quite compelling, given the current landscape with access restrictions into offices.

– David Concors, Supplies Network

Pricing Battle

Like many observers, Gordon Flesch Company COO Mark Flesch believes the industry could be facing challenges similar to 2020 until vaccinations are widely distributed. Absent vaccines, he feels aftermarket volumes and sales activity will not fully recover until people return to work and students resume on-site learning.

Flesch fears a pricing game could ultimately ensue. “As a result, you might see some desperation in the marketplace, with dealers and manufacturers quoting historically low prices in order to win every opportunity they can come across,” he added.

Even once the pandemic is deemed under control, Pulse Technology President and CEO Chip Miceli believes it is important for lawmakers in Washington to be sensitive of any legislation that can further place downward pressure on business. “Certainly, after everything this country has been through over the last eight months, we do not need to see businesses further stressed with higher taxes,” he noted. “We hope that reason will prevail.”

Certainly, after everything this country has been through over the last eight months, we do not need to see businesses further stressed with higher taxes.

– Chip Miceli, Pulse

Lead Generation

Demand and lead generation will assume an even greater role in 2021, notes Joe Contreras, commercial marketing executive, office solutions for Epson America. He feels the practice of generating leads through traditional in-person events (trade shows, customer visits) must shift to investments in digital platforms, such as virtual shows, remote demonstrations and social media as primary avenues to engagement.

“Optimizing profitability as well as adapting to the new digital-centric environment will be a tall initiative to conquer, but there will be great opportunity for essential businesses to grow into new markets,” Contreras added.

The ability to think outside the box will be critical for businesses to endure the continuing circumstances, notes Brent Martin, director of marketing for ARLINGTON. He cautions that in geographies where business resumption ensues, purchasing habits will unlikely match pre-pandemic levels.

“Evolving business models will be the most successful moving forward while, unfortunately, those who fail to adapt their way of doing business will continue to see challenges in the future,” he maintained.

Katsuhiro “Jerry” Matsufuji, vice president and general manager of Canon U.S.A., believes a number of obstacles dealers faced in 2020 will spill into the new year. Among the biggest challenges is leveraging virtual communications and remote service tools while supporting clients as they navigate hybrid working environments.

Evolving business models will be the most successful moving forward while, unfortunately, those who fail to adapt their way of doing business will continue to see challenges in the future.

Brent Martin, ARLINGTON

“What will continue to be important is how businesses can be nimble and shift priorities to meet changing needs of customers and the industry,” Matsufuji said. “With this in mind, creativity and adaptability will continue to be increasingly important in 2021 as dealers look to explore opportunities and areas of solutions and services that align with new working environments.”

Pent-up Demand

Given that many businesses delayed important purchasing decisions in 2020 out of an abundance of caution, Larry White—COO for Toshiba America Business Solutions—projects 2021 will be marked by an uptick in product shipments, particularly with replacement products. White also predicts a greater emphasis on environmental topics, with customers demanding more sustainability competencies from their vendors.

The paperless office will also see renewed interest, according to White. “The buzzword from the 1980s and 1990s will once again enter the business vernacular,” he added. “Though the paperless office remains a future concept, you will see more movement from IT departments to eventually get there. Lastly, the online retail boom the pandemic created will continue to grow through 2021 and beyond. This will provide diversified revenue opportunities for those in the thermal printing space.”

The online retail boom the pandemic created will continue to grow through 2021 and beyond.

– Larry White, Toshiba

Ray Belanger, president of Bay Copy, expects that many of his fellow dealers will embark on targeting new business verticals in 2021, mindful of the spaces that continue to perform well and those that have struggled. “This new reality will require a pivot toward the businesses that need our services, while supporting those customers who depend on us and are struggling,” he said.

The unprecedented nature of 2020 makes it difficult to forecast budgets and trends moving forward, notes Eric Martin, president of Clover Imaging Group. “Most certainly the work environment, including where people print from and what device they print from, has changed dramatically. We think these changes will have a transformative impact on the industry,” he said.

Most certainly the work environment, including where people print from and what device they print from, has changed dramatically.

– Eric Martin, Clover Imaging Group

Window Opener

While COVID-19 may have left a permanent imprint on business moving forward, Marco President Doug Albregts doesn’t necessarily see this as a negative. With most end-users likely to employ dual offices, it paves the way to capitalize on opportunities.

“I am most excited about the rollout of more robust smart office applications in 2021 and how that will also begin to change how we all use technology to be more efficient and collaborate,” Albregts said.

Regardless of what the new year has to offer, Laryssa Alexander, president of ECI Software Solutions’ field service division, is bullish on the resilience of dealer customers. “Whether they pivot to adapt to the current office climate or scale operations up or down, office technology providers have been around for a long time and have been through their fair share of tribulations,” she said. “No matter what 2021 ultimately looks like, I predict that resilience among dealers will continue to be a factor in the coming year.”

Stephanie Kennard, executive vice president of sales in North and Latin America for Y Soft, believes the industry should brace for a new status quo. “With companies shedding office space and supporting more employees working from home, I predict that companies will evolve their hardware allocation policies to include more than just a mobile phone and laptop,” she said. “I expect them to offer printers, modems, keyboards and hardware that will make their home office just as streamlined as the real office.”

No matter what 2021 ultimately looks like, I predict that resilience among dealers will continue to be a factor in the coming year.

– Laryssa Alexander, ECI

Greater Margins

In speaking to the needs of a flexible work environment, Michael Pietrunti, senior vice president, U.S. multi-brand dealer channel for Xerox, notes the focus is on providing a secure work environment with tools that can enable collaboration and sustain shifting company cultures.

“Dealers should also invest and expand their efforts in developing net-new revenue streams,” Pietrunti said. “This includes leveraging higher-margin print opportunities using embellishments like metallics, fluorescents and white/clear. There is also an opportunity to expand into the light-production market, in which they can begin to capture significantly higher page volumes and margins through specialized media applications.”

There is also an opportunity to expand into the light-production market, in which they can begin to capture significantly higher page volumes and margins through specialized media applications.

– Mike Pietrunti, Xerox

A strong recovery is in the cards for the office technology space, and José Estébanez—vice president of corporate marketing for Kyocera Document Solutions America—believes there is precedent behind this notion. He says businesses are investing in technology for the “new normal,” which will make the second half of 2021 look quite different in comparison to today’s environment.

“We can look to the economic crisis of 2008 for some similarities, when we saw an initial loss in print volumes, around 5% to 10%, followed by a gradual recovery,” he said. “It will take some time to come close to the levels of early 2020, if we ever get there at all. This, combined with a possible vaccine, will stimulate the market and help to speed up the recovery process.”

Trusted Adviser

This will be a critical year for dealers to emphasize their role as a trusted technology adviser rather than reps leading with copier sales, notes Clark Bugg, director, North America channel sales for Lexmark. Bugg believes it is vital for sales reps to be trained in technologies such as cloud offerings and remote services to address the remote end-user workforce.

“Sales reps also need to be comfortable changing from the traditional on-site sales and service calls to more remote interactions,” he added. “Dealers should be leveraging social media and other connectivity tools such as Microsoft Teams or Zoom for more frequent interaction with their customers.”

Dealers should be leveraging social media and other connectivity tools such as Microsoft Teams or Zoom for more frequent interaction with their customers.

– Clark Bugg, Lexmark

Verticals that have been heavily impacted, especially education and health care, will continue to demonstrate fast-paced growth and represent exceptional opportunities for dealers, notes Laura Blackmer, senior vice president, dealer sales for Konica Minolta. Education continues to be tasked as districts and states alternate between remote and in-person learning, while health care facilities are faced with managing multiple shifts, an often-daunting process.

“These present big opportunities for dealers that can come up with solutions for hybrid work, advising and suggesting solutions to monitor and manage people working in different locations or multiple people doing the same job,” she said. “Additionally, with the growth of telehealth and data breaches in the health care industry on the rise, there will continue to be an increased need to manage documents securely to protect the privacy of patient data and comply with HIPAA regulations. Now more than ever, health care organizations are seeking solutions to help manage the delivery, documentation and secure exchange of clinical data.”

Marketing Spend

A renewed sense of optimism, confidence and enthusiasm will envelop the industry once the vaccines have been widely distributed, notes Dan Meyer, president of Impact Networking. He is quite confident that marketing spend will increase even before the pandemic’s conclusion.

“Companies are aware from experience in past downturns that you should not decrease marketing spend, but increase it during these times,” Meyer said. “Companies who increase their spending will be poised for success once things return to normal.”

With the pandemic pushing offices into homes, Mike Marusic—president and CEO of Sharp Imaging and Information Company of America—believes dealers can leverage displays, laptops and IT services, among other areas, to go deeper with end-users. “This may seem like a challenge to adapt to in the document systems space, but it actually provides great opportunities for dealers to think outside the box about what other solutions they can bring to the table for end-users. Look out for more of these types of solutions in 2021,” he added.