No one likes to talk about the terrible “T word” (tariffs). We’d heard about the possibility of it becoming a reality during the 2024 campaign trail, should Donald Trump reclaim the presidency. But not until the president rolled out his bold plan in early 2025 to apply tariffs to goods emanating from our foreign trade partners across the globe did the full impact hit home for businesses, including those in the office technology space. Some of the numbers were quite staggering and painful—made even more frustrating when the rates were lowered, then raised and repeated.
It was a shock to the global supply chain, an aspect of business that was in no mood for a jolt, having licked its pandemic-induced wounds only a few short years earlier. Imagine the pinch felt at the distributor level, those businesses wedged between manufacturers and resellers. The middle ground isn’t for the faint of heart. In the case of Charlotte, North Carolina-based Arlington, it certainly helped to have 50-plus years of experience in supporting the reseller community.
There likely isn’t a business plan that addresses wildly vacillating tariffs. So Arlington, the venerable distributor, relied on time-tested relationship fundamentals that can apply to most cases (and causes) of adversity. We sat down with Brent Martin, director of marketing operations, and Scott Lewis, vice president of sales, for insight into how the company dealt with pricing pressures, market trends and the qualities that will continue to carry the company through its next 50 years of operation.
How did Arlington perform in the most recent fiscal year, and how did that performance measure up to your expectations?
LEWIS: Honestly, we weren’t sure what to think heading into 2025. With the new administration coming in and tariffs being a big part of President Trump’s campaign, we felt certain it was going to have an impact. The year actually started out fairly well. The first couple months looked really promising, but then over the next four months things tailed off. I’m not entirely sure why, but we did see a fairly significant decline. Perhaps it was the uneasiness around tariffs. Thankfully, since July, business has improved drastically. In fact, it was probably the best July we’ve had in years and years—even before COVID. So, if you look at the year as a whole, revenue ended up pretty flat.
MARTIN: Expectations at the beginning of the year are pretty much where we ended up. If you had told me in July that we’d be where we are now, I’d have been thrilled. The second half of the year really brought things back to normal. We saw increased sales, and some areas of business that slowed in the middle of the year picked back up again.
Was part of it due to customers stockpiling in advance of the tariffs?
LEWIS: It’s quite probable. I don’t want to be overdramatic and say we were on the rocks—it wasn’t like that. But after the first few months, we thought it was going to be a better year than expected, and then it went the other way. It’s been a roller coaster. Since July, though, it’s been steady, good and very positive.
Talk a little bit about some of the positives you saw in the past 12 months. Anything in particular stick out as a watershed moment or period?
MARTIN: Internally, we merged a couple different brands. We had the Supplies Wholesalers distribution brand, and we brought them into Arlington in April. That really helped us unify branding, messaging and operations across sales, staff and warehouses. That acquisition happened a few years ago, but we were still managing two different brands and identities. Bringing them together was huge for us. The continued consolidation in the industry has made a huge impact. The Xerox acquisition of Lexmark was quite significant. Xerox is a big brand for us, and navigating that change has been interesting. We see some hope and promise as we head into 2026.
LEWIS: Another big moment was Rob Collins, our COO and CFO for 12 years, announcing his retirement in mid-2024. We brought in Brad Cansler from outside the industry. After so many years under Rob’s guidance, the thought of making a switch is the kind of thing that makes you nervous. You wonder how the new guy will work out. Fortunately, we didn’t have anything to worry about. Brad has done a great job, much like Rob did, and we’re thrilled with how he’s guiding us.
What kind of guidance did you provide clients at the onset of tariff hikes, and were the segments you serve impacted differently?
MARTIN: Open communication, particularly with our resellers, was key. Our account executives are tied directly to reseller accounts, and they did a great job with sharing information regarding potential changes as we got it from manufacturers. OEM partners kept us in the loop months in advance, which allowed us to caution resellers and help them protect themselves when it came to pricing and quoting in the coming months.
LEWIS: We wanted to avoid knee-jerk reactions. Tariffs created volatility, but we limited price increases to one major adjustment across our main product lines. It turned out to be a great approach. Unfortunately, with some of the other manufacturers, it was a little more herky-jerky and required additional increases, but not too many. We didn’t want to use tariffs as an excuse to make some extra margin. Looking back, I think we handled it pretty well.
Were there any other changes in buying habits or trends you saw in 2025?
MARTIN: Everyone seemed to take a wait-and-see approach. There were a lot of ebbs and flows throughout the year. Security solutions gained traction, driven by rising fraud and counterfeit concerns, as the post-2020 trend continued. Partners such as Source Technologies and Troy Group have become key in that space. We’ve also seen renewed interest in data storage, with HPE’s tape backups playing a role. On the office product side, security-related offerings—scanners, shredders and the full print-to-destruction cycle—have grown. We’ve built awareness around these solutions, and opportunities remain strong heading into 2026.
LEWIS: Tariffs sparked more direct conversations with customers, probably more than we ordinarily would have held. It was such a hot topic, and we noticed that more and more people were answering their phones. They were eager to talk, share feedback and hear how Arlington could support them. It opened the door to deeper business discussions.
Do you anticipate prices stabilizing in 2026? What’s your expectation there?
LEWIS: The current administration can be unpredictable, so we’re not certain. The president is very aggressive in the way he approaches things, and he can be a wild card at times. Still, we’re hopeful for more stability in 2026. Constant price fluctuations aren’t good for dealers, distributors or manufacturers.
You hit the 50th anniversary mark in 2022. How is the distribution game changing, and how do you continue to build upon your foundation?
MARTIN: Distribution has changed drastically over the past 25 years. It used to be about securing big OEM deals and moving product from our warehouses to theirs. Today, it’s more on-demand at the point of sale or fulfillment. In many ways, distributors now absorb the impact that online resellers did decades ago. The lifeblood of our business remains our customers. Offering the products, pricing and services they need to be competitive is essential. OEMs value our breadth of products and loyal customer base. While warehousing is still important, access to our customers has become equally valuable. Many OEMs are now more willing to drop-ship orders, something we wouldn’t have expected 15 years ago.
Are you using AI in any form to enhance distribution or other aspects of the business?
LEWIS: You do realize that we’re the company that continues to sell typewriters, right? (chuckles) Believe it or not, containers of Nakajima units move out the door regularly. To marry that with the idea of AI feels daunting. But we do use AI for business intelligence and marketing. There’s more ahead, although I joke about my daughters asking AI for advice, which is just ludicrous and insane to me. Who knows what the world will look like in a few years? Hopefully, my grandson can still buy a typewriter decades from now.
MARTIN: We’ve all been using tools such as Google searches for the last 20 years, and I think what AI has allowed us to do is just make it much more useful to gather information and business intelligence. In marketing, it helps overcome writer’s block and spark ideas. But it can’t be completely trusted—it requires vetting and expertise. For sharp messaging, personal expertise is still critical. We haven’t integrated AI into ERP platforms or other systems yet, but it’s a helpful tool.
What will be the keys to garnering greater market share moving forward?
LEWIS: Growth opportunities exist in office products. Arlington has always positioned itself as a one-box solution, offering supplies and office products together. I think that resonates with dealers even now. Relationships remain central—we work hard to stay in front of dealers through emails, calls and conversations. Obviously, we love the verbal interactions; unfortunately, those are harder to get these days. We want them to know we’re here, we care and we’re not going anywhere.
MARTIN: Some distributors are pulling back, creating opportunities for us. OEMs we’ve worked with, and some new ones, have approached us. Expanding our office product offerings will be a key marketing focus in 2026.
Is there anything on the horizon from a program or partnership standpoint?
MARTIN: Nothing specific to share yet. We adapt to OEM partner programs as they evolve. Canon and Epson made shifts in their partner programs over the past year. We’ll adjust as needed. Internally, we’re focused on expanding office product offerings and supporting resellers, especially those seeking new distribution partners.
What will a successful 2026 look like in your estimation? What are some of your goals?
LEWIS: Continued growth across all areas of business. Office products will be a focus, but we don’t want to grow stagnant. We see potential in acquisitions as the industry consolidates; Mr. [CEO Larry] Huneycutt has always been one to make deals. While nothing is imminent, opportunities may arise. Ultimately, success means supporting our dealers and growing alongside them.
MARTIN: We’re always looking for ways to support the resale community in our channel, and we’re always looking for new opportunities to partner. As we move into the new year, one of the keys to our success is being equipped to handle the business of our resellers, not just for 2026 but beyond. So, whatever that entails—whether it’s programs, services, solutions or products—we certainly want it to be our focus.
