Yes, we can see the date on the calendar. It’s no longer January and all of the holiday decorations have been put away. But we collected so much input from January’s trends and predictions issue, it would be a waste not to share the unused notes. We’ll say it falls under the category of being environmentally responsible by not adding waste tonnage to an already taxed digital landfill. Empty the notebook and cleanse the soul.
We have plenty of interesting talking points to share with the class, so in this Jan. 35 edition of The Week in Imaging, we offer some final thoughts on business and market aspects that bear watching as 2022 unfolds.
Given the tight labor market and the need for businesses to accomplish more with less personnel, clients will be increasingly seeking managed IT outsourcing partners that enable them to utilize personnel assets geared toward their core operations, notes Chris Falzett, vice president of sales and marketing from TOPP Business Solutions of Scranton, Pennsylvania.
“With the way wages are being increased, it seems like everybody’s jumping ship for a couple more dollars,” Falzett observed. “Managed IT continues to be a growth area as customers want to have the least amount of internal headcount as possible. I don’t think loyalty is ultra-high right now, so the customer finds more continuity in outsourcing it at this point.”
The wide-format business also saw a boost for TOPP during 2021. While Falzett can’t attribute it to any particular reason, he believes it is likely a function of pent-up demand and certain businesses being amendable to capital expenditures. He feels the many different price points available through the comprehensive Canon line has paved the way to increased opportunities.
One unfortunate trend that is likely to fester for at least the first half of 2022 is the supply chain shortage. Mike Marusic, president and CEO of Sharp Imaging and Information Company of America, notes that while his company was able to get in front of the impact and maintain strong communications with dealer partners regarding the fluid status of product availability, it will be incumbent upon OEMs to keep partners posted on inventory positions during the foreseeable future.
Dealers, in turn, will need to keep OEMs abreast of their product needs as well. “Dealers need to communicate their forecast and opportunities with the OEM to help plan future production,” Marusic said. “We need to work together with honest and open discussions as to what the situation really is and how we can work through it.”
Speaking of the supply chain, Ray Belanger—president of Rockland, Massachusetts-based Bay Copy—anticipates that clients will be holding onto their equipment longer. Extensions/lease renewals, rather than new equipment placements, could well be a familiar theme in 2022. This, of course, will drive dealers down various avenues for new/replacement revenue.
“For a dealer that stays largely within the MPS framework, such as ourselves, it will be seeking additional verticals to add to our customer base,” Belanger noted.
AJ Baggott, COO of Nashville, Tennessee-based RJ Young, cautions that as manufacturers continue to struggle with inventory, it could come down to a situation where they will need to ration. That means some dealers could conceivably be left out in the cold.
“(This could put) some smaller dealers in quite a bind, especially if this begins to hit the supplies side harder,” Baggott said. “Larger dealers with the funds to stockpile supplies or companies that own their own leasing portfolios will have an advantage.”
The growing incidence of dealer acquisitions and manufacturer representation in many markets is an ongoing trend with significant consequences, notes Ken Staubitz, vice president of client services and aftermarket support for Modern Office Methods of Cincinnati.
“The focus on a high level of service and response will continue to strengthen the independent dealer while dealing with the ever-changing marketplace,” he said. “This trend will affect some dealers more than others.”
With some observers estimating it will take up to a year for the supply chain to normalize, Jennie Fisher—the senior vice president and general manager, Office Equipment Group, at GreatAmerica Financial Services—notes the channel will feel growing pressure to perform at pre-pandemic levels and make up for lost revenue. As such, she feels technology manufacturers and independent dealers will need to emphasize finding temporary equipment solutions to solve customer needs.
“We will see everyone from the manufacturers and the technology providers to the financing companies take an all-hands-on-deck approach to form solutions to help dealers pull business forward during this window,” Fisher said.
The notorious Great Resignation that has struck all manner of business will cause companies to ratchet up their employee engagement and retention practices, according to Matteo Recanatini, marketing director for Gainesville, Virginia-based Offix. The highest-performing individuals have the benefit of an extreme buyer’s market, and will be less likely to stick around if they don’t feel their passion for success is met by the employer with personalized attention, he notes.
“Most employees will forego free neck massages at their desk, or ‘hug a puppy’ day for meaningful benefits and the right company culture,” Recanatini offered. “Business as usual, when it comes to the employer/employee relationship, is a dead concept.”
On the subject of customer engagement, with the industry now armed with two years of virtual/remote selling under its belt, the trend toward further developing selling processes through nontraditional means will go a long way toward success, notes Jim Coriddi, vice president, dealer division for Ricoh USA.
“Dealers and their individual sales reps are becoming more proficient digital marketers to gain and retain interest, demonstrate expertise, and customize offerings to help customers connect with their buyers in more meaningful ways,” Coriddi said. “Successful dealers are offering a complete end-to-end customer experience, extending support beyond acquisition into the entire digital post-sale experience, and they utilize e-commerce and other digital commerce opportunities to enhance customer satisfaction.
“Dealers are also reconsidering how their customers prefer to utilize their offerings and extending alternative consumption models, such as print-as-a-service or subscription payment models, to offer increased flexibility, build value-added workflow elements into the cost, and reduce risk.”
