The current pace of technological change, characterized by constant evolution and transformation, presents unique opportunities for those of us in the office equipment channel to expand our offerings far beyond just printers and copiers. Pages aren’t going up, and in our continuous quest for diversification and growth, we may have an adjacent diversification avenue that presents immense potential: the integration of electric vehicle (EV) charging stations into our service offerings. This prospect was the focus of a recent deep-dive interview I had with Mark Hart, director of business development at ACDI and Jim George, president at Donnellon McCarthy. But is this potential right for your dealership?
The Diversification Potential
For veterans of the office equipment channel, diversification is the lifeblood of sustained success. This becomes more pronounced in an industry such as ours, in which technology-driven change isn’t just the norm, but an existential necessity. Diversifying into EV charging infrastructure allows us to build upon existing strengths, such as our strong customer base and our network of highly skilled technicians, while seizing opportunities in a rapidly expanding market. It’s not often we get something we can sell to our existing customers for more wallet share, and this could be it.
The Opportunity of EV Charging Stations
According to EVAdoption’s analysis, the demand for EV charging stations is experiencing explosive growth, driven by the global trend towards electric vehicles. This presents an opportunity to set up new charging stations and, more crucially, provide servicing and support for the ever-expanding EV charging infrastructure. And that’s where office equipment dealers come in. The service opportunity for EV chargers has been completely ignored, and if there’s one thing our companies are good at, it’s servicing and getting paid to do so.
The Market Landscape
By year-end 2021, there was a significant 24% increase in DC fast chargers in the U.S. compared to year-end 2020. In Europe, there was approximately a 55% increase in the stock of fast chargers—reaching over 70,000 units—as stated in the Global EV Outlook 2023. As the number of electric vehicles increases, the demand for charging infrastructure grows correspondingly, creating a lucrative market ripe for expansion. And those numbers are only going to explode; according to an article by InsideEVs, the number of public electric charging stations in America must quadruple by 2025 simply to meet the needs of the new EVs hitting the roads every day. In the same article, it says that S&P Global Mobility figures the EV market share will rise to 40% of all new vehicle sales in the U.S. by 2030. EVs only make up 1% of the estimated 281 million cars today, so work out the math—it’s an awesome opportunity for those who want to provide them with accessible power.
Addressing Service Gaps
Interestingly, servicing hasn’t been a priority for those currently selling EV charging stations. If you own an EV, you’ll know that many charging stations simply don’t work, and there seems to be a lack of urgency to fix them. However, our existing service technicians, with their ingrained problem-solving skills, are ideally suited to address these gaps, turning the challenge into an opportunity.
Technicians as Key Assets
One compelling aspect of this opportunity is the simplicity of maintaining an EV charger. As Mark and Jim highlighted in our interview together, there are primarily only two things that can go wrong with a charging station (check out the video listed below to learn more). Training our existing technicians to address these issues is a matter of hours, not weeks, thus minimizing downtime, maximizing utility and unleashing a potential goldmine of untapped service opportunities.
Recurring Revenue Model
The beauty of the EV charging station enterprise is its potential for generating recurring revenue. By establishing service contracts and offering software management solutions, dealers can ensure a steady income stream, providing a stability that’s often elusive in our fast-paced industry. Imagine billing for a new consumable such as electricity, applying the proven MPS models to EV chargers.
Government Initiatives
Government support, in the form of policy decisions and financial incentives, is a key driver for the growth of the EV charging infrastructure. The National Electric Vehicle Infrastructure Formula Program (NEVI) and other initiatives are providing substantial funding mechanisms to stimulate the expansion of this essential infrastructure. The dollars are out there and ripe for the taking. Question is, who will be taking them?
Market Expansion
The growth trajectory of the EV charging station market points to a prosperous future. The demand for charging stations in commercial and residential areas continues to rise. As office equipment dealers, we should be integrating EV charging stations into our offerings to augment growth.
The integration of EV charging stations into the office equipment channel is more than just a trend; it’s a transformative opportunity that could redefine the future of our industry. By leveraging our existing resources and know-how, we’re perfectly positioned to carve a new niche in a rapidly evolving market. Plus, the opportunity to offer this new service to our existing customer base, who already trust us, adds to the allure of this venture.
For a deeper understanding of the discussion I had with Mark and Jim about the EV charging opportunity, check out the complete video interview on YouTube (search “The EV Opportunity for Technology Solutions Providers”).
The future is electrifying, and it’s time we plug in and power up. With the demand for electric vehicles on an upward trajectory, integrating EV charging stations into our service offerings presents a lucrative opportunity to broaden our horizons and increase our service offerings. Will you stay ahead of the curve, embrace the future of transportation and energy, and venture into the world of EV charging stations?
And until next time, keep learning!
