Former Microsoft tech evangelist and noted blogger Robert Scoble once observed, “Change is inevitable, and the disruption it causes often brings both inconvenience and opportunity.” Change has long divided people into two categories: agents (opportunists) and victims (the inconvenienced). Thus, when change rumbles the earth underneath it—as was the case with the world of office technology in 2024—those who rise are generally proportional to all who fall.
Change touched virtually every significant story in 2024. In a sense, some of the change was inspirational, as it indicated confidence in our little corner of the business world. Several of the actors in these stories promise to disrupt the industry’s status quo moving forward, which will elicit even more change.
This year’s list is tinged with sadness and hope, rationalization and refocus, and good old-fashioned horse swapping. All told, however, change holds in its hands an extremely optimistic future for the industry, a doubling down that promises 2025 and beyond could well be as fascinating and riveting as its predecessor. Presenting our top 10 stories, in no particular order:
ARTIFICIAL SWEETENER. It was almost a year ago that Mike Stramaglio put together an agenda for the annual Executive Connection Summit that some felt was too laden with talk about artificial intelligence (AI). Some thought the subject, while exciting for its endless stream of possibilities, was a little premature for the office dealer community to pay more than a passing glance at what the future might hold. The practical applications, they argued, were too far down the road.
Oops. It seems the subject is as relevant as it is immediate, with various applications already available. What started out as a good tool for fleet management and predictive maintenance morphed into solutions that could truly benefit office dealers. It’s already more sophisticated for human resource departments beyond mere keyword scanning. It’s turned into a boon for sales in not only helping to identify leads, but also scripting effective pitches. Generative AI plays a key role in marketing departments, enabling companies on a shoestring budget to have greater firepower in designing campaigns. Heck, even email tools help team members write more coherent missives. AI also serves a greater role in the various software solutions dealers offer. The exciting part is we’re only scratching the surface of how AI can enable us to accomplish more with less and do it better in the process.
COME TOGETHER. It seems the 2023 joint venture between Toshiba and Ricoh was a harbinger of things to come in terms of industry manufacturers aligning. This year’s dance card features a tango between Konica Minolta and FUJIFILM, a pairing that (so far) only speaks to the procurement of raw materials and parts. We say “only,” yet the travails and angst Konica Minolta experienced during a two-plus year headache due to supply chain shortages tested the OEM’s mettle and their dealer partners’ loyalty. That’s no small consideration.
The obvious difference with the Toshiba-Ricoh deal is there are currently no plans to merge manufacturing operations or co-develop any technologies. That doesn’t mean it won’t happen sometime in the future. As for now, the union is in something of a holding pattern; it was due to launch at the end of September, but because of the approvals and reviews mandated by international laws regarding fair competition, the date is still to be announced. As currently constituted, FUJIFILM holds a 75% stake in the JV.
OEM INVASION: So you think there are already far too many manufacturers offering A3 and A4 machines to the dealer channel? Well, the graphic communication division of FUJIFILM North America would beg to differ.
A pair of announcements in consecutive weeks during September appeared poised to set the dealer world on its ear. Fuji declared its intention to enter the U.S. market for A3 and A4 machines, and its first authorized channel dealer to sell, market and service its full portfolio of APEOS series digital MFPs and solutions is none other than industry heavyweight Marco of St. Cloud, Minnesota. Fuji joins an august group of manufacturers including Konica Minolta and Sharp in the Marco stable. The dealer will also offer Fuji REVORIA series of high-speed digital production units and isn’t ruling out taking on the manufacturer’s line of wide-format output devices.
DISTRIBUTOR REIMAGINED. Ordinarily, when a business undergoes a massive transformation, the marketing rally cry is “forget what you knew about so-and-so.” However, in the case of Katun Corp., the stalwart industry distributor wants you to remember what you knew and loved about partnering with them as they expand into the world of A3 devices. Yes, the company known for its parts and supplies has pivoted and tossed its hat into the A3 ring.
While Katun didn’t officially reveal its manufacturing partner for the new Arivia line of A3 color and monochrome MFPs, it’s widely believed to be FUJIFILM. And as was the case for Fuji, Katun has lined up a heavy hitter of its own, Impact Networking of Lake Forest, Illinois. But what makes this union fascinating is that it was forged through a trade of goods and services. Frank Cucco’s dealership will carry the Arivia line, and in return, Katun will leverage Impact’s managed marketing division for guidance on its U.S. and global websites. Instead of the OEM owning the relationship, Cucco noted, it’s more of a 50/50 proposition.
As for Katun, it will be able to lean on its longtime relationships with parts and supplies customers in convincing them to take on the Arivias. Kay Fernandez, who is quarterbacking Katun’s marketing efforts, believes the constantly changing focus of the incumbent A3 providers will give Katun the ability to compete.
STEPPING UP. Sometimes (and unfortunately) it takes a tragedy the magnitude of Hurricane Helene to demonstrate how close, generous and caring the dealer community can be in coming together to aid one of their own.
When the Sept. 27 storm slammed through North Carolina, as many as 300 people in the state lost their lives. It cut a swath of destruction, leveling homes, uprooting trees, tossing vehicles and washing away roads. Getting by with the bare necessities, including food and water, became priority one for Asheville dealer exec Kevin Jackson and his Advanced Business Equipment (ABE) team. That’s where the industry mobilized.
What started out as an email thread from the Select Dealer Group and another from The Consortium morphed into a combined kitty of nearly $100,000 to help Jackson satisfy his payroll and other expenses. Much of ABE’s customer base was washed away and unable to make payments. Some clients are out of business completely, and hundreds of machines furnished by ABE were destroyed in the storm.
Some industry friends contributed the needed saw blades to help cut up fallen trees. Konica Minolta sent a huge care shipment of goods, which Jackson and team distributed to the people most impacted. Chris and Danielle Wolowitz of Shore Business Solutions loaded a huge truck with necessities for ABE’s family, including solar-powered shower bags, wipes, disinfectants and paper towels, and drove 10 hours from New Jersey to deliver the goods. Danielle and her friends also cooked food, which provided comfort as well as nourishment.
While the overall toll and status of ABE as an ongoing concern is unclear, the level of response from a relatively small industry was nothing short of phenomenal.
MANUFACTURER RATIONALIZATION. While it’s not a topic that’s pleasant to broach, the cost of missing profit targets can spell staff reductions, and companies large and small aren’t immune, such as manufacturing giant Canon U.S.A. The Melville, New York, OEM reduced the headcount at its headquarters by about 10%, which translates into 100–150 positions eliminated. The move was intended to help streamline operations and promote efficiency. Less than a month later, the company merged Canon U.S.A. with its Canon Solutions America operations in order to reduce expenses.
The manufacturer with the second-largest market share, Ricoh, also sought to bring its expenses more in line with profits. The Japanese headquarters announced 2,000 jobs—about 3% of its roughly 79,000 worldwide employees—would be eliminated in an initiative that would carry into the first quarter of calendar 2025. The company offered early retirement to 1,000 team members. While it wasn’t known how many Ricoh jobs would be impacted in the U.S., Etria—the company’s joint venture with Toshiba—won’t see a reduction in its 8,400-employee base.
TRADING PLACES. The industry doesn’t lack for experienced, top-tier OEM executives, and 2024 was further proof that the best and brightest are more likely to change uniforms as opposed to leaving the circuit altogether. The result saw some very familiar faces in new places.
We lead off with Kay Fernandez, whose extensive resume includes 11 years with Toshiba in planning and marketing roles and, most recently, 11 years with Konica Minolta, where she served as global branding and SVP of marketing. She hooked on with Katun Corp. and is trumpeting the distributor’s foray into A3 offerings (see above). Another exec with industry ties is Dino Pagliarello, who joined Sharp this year to guide the company’s production print efforts. He also spent nearly 17 years at Konica Minolta in product management and planning roles.
Don’t cry for Konica; the Ramsey, New Jersey, heavyweight imported some talent as well, adding Frank Mallozzi to its roster as president of its industrial print products division. Mallozzi logged 25 years as a prominent executive for EFI, most recently as CRO to go with a sales and marketing background. He also toiled for Ricoh and Canon earlier in his career, qualifying him as an industry sage.
Lastly, we have Mike Marusic, who signed on as president of Dynabook Americas. Fear not, he didn’t exit as Sharp’s president and CEO in the process—he merely (easy for us to say) added to his oversight.
FATHER & SON. We just couldn’t lump this in with the other acquisitions. Not only did this transaction impact one of the industry’s largest dealerships, it also signaled a return to the basics. Of course, we’re talking about the Dan Doyles—senior and junior—and their decision to partner with Gamut Capital Management to repurchase the full ownership stake from Staples Inc., which had acquired the company in 2019.
Back in May, Doyle Jr. told ENX Magazine that he felt the M&A market was a bit stagnant on the dealer side, and given the jockeying for partnerships taking place at the OEM level, he saw an opportunity for DEX to play the part of disruptor as a true roll-up. Staples didn’t share the Doyles’ vision, but arguably the most famous father/son duo in the industry found in Gamut Capital an entity that favors a more aggressive approach to M&A. And while the transactional landscape of the ’80s and ’90s—the heady DANKA and IKON days of mega roll-ups—is long gone, Doyle Jr. has his sights set on building the industry’s biggest empire.
M&A WATERS RECEDE. Last year, we reported the volume of acquisitions in the dealer community had tailed off significantly, and 2024 represented a continuation of that trend. In a most unscientific measure (but the only one we have), there were approximately 20% fewer reported deals from Nov. 2023 through Oct. 2024 compared to the previous year. Even the big M&A guns were relatively quiet. The guess here is that with more and more dealer execs lacking children interested in taking over the family business (and we’ve spoken to more than a few), the sub-$15 million firms changing hands should remain steady while the midmarket acquisitions—where there’s already been a bit of consolidation—will be fewer in number. Time will tell. Anyway, here’s our annual parade of deals:
Kudos to UBEO Business Services, WiZiX Technology Group and Advanced Business Methods, which acquired two companies each: UBEO landed Bay Copy and Commonwealth Office Solutions, WiZiX added California Business Machines and Carbon Copy, and Advance tallied Central Business Systems and The Office Shop (Minnesota). In other deals, DEX Imaging picked up Valley Office Systems, and EO Johnson Business Technologies obtained Koch Office Group. Doceo landed Document Essentials, and Complete Document Solutions added TCG Document Solutions. Everon obtained Customized Service Concepts LLC, and International Mailing Equipment acquired MMS West.
Pacific Office Automation took over Maunakea Integrated Solutions, and KDI Office Technology notched Kelly + Partners Inc. Applied Innovation swung a deal for MCE Inc., and OptimizedIT (a Modern Office Methods company) obtained Connective Computing. EDGE Business Systems acquired All South Copiers, and AD Solutions purchased Qualpath. Fruth Group obtained Hoppstetter’s Office Products, and Advanced Imaging Solutions-Las Vegas absorbed Anderson Business Technology. Marco added Lang Company, and Metro Sales picked up Wisconsin Document Imaging. Wallboard CMS added Keywest Technologies, and Laser Copy Technologies acquired The Office Shop (Tennessee). IdentiSys, Inc. obtained Capture Technologies, and Perpetual Capital Partners invested in Novatech.
MORE POSITIONING. From the “neither fish nor fowl” division comes a few divestitures, pivots and pickups. Epson plunked down $591 million for digital front-end specialist Fiery. GreatAmerica Financial Services exited managed IT with its sale of Collabrance to The 20s. Xerox added and subtracted: the company sold its direct operations in Argentina and Chile to Grupo Datco but ponied up $400 million to add ITsavvy to its stable of IT services. On the solutions end, ConnectWise pulled off a double scoop with Axcient and SkyKick.
