{"id":48122,"date":"2021-12-27T06:35:26","date_gmt":"2021-12-27T14:35:26","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=48122"},"modified":"2022-01-04T08:53:52","modified_gmt":"2022-01-04T16:53:52","slug":"hardware-takes-a-holiday-supply-chain-speeds-up-trend-toward-diversification-2","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/state-of-the-industry-2022-trends\/2021\/12\/hardware-takes-a-holiday-supply-chain-speeds-up-trend-toward-diversification-2\/","title":{"rendered":"Hardware Takes a Holiday: Supply Chain Speeds Up Trend Toward Diversification"},"content":{"rendered":"\n<p>As the sands continue to slip through the hourglass, we\u2019re often reminded that the things we could once count on as givens have become fewer and less reliable\u2014a not-so-gentle reminder that change, no matter how welcome (or even frightening) it may be, is perhaps the lone assurance.<\/p>\n\n\n\n<p>In our little world of office technology, that point was driven home repeatedly in 2021. For many dealers, hardware sales are stuck in dry dock. Millions of dollars in written (but unfulfilled) orders hang in limbo, impacting dealer profitability, sales commissions, end-user capital expenditure plans and untold other victims of the supply chain headaches wracking the industry\u2019s many servants. And with so many variables impacting the chain, it\u2019s fruitless to point fingers and attach blame to any one entity\u2014it\u2019s a hassle for all to reconcile.<\/p>\n\n\n\n<p>Yes, the pandemic continues to fester in numerous, indirect fashions, dragging on incessantly like a Little Feat musical jam. The multitude of ships waiting offshore for the opportunity to offload cargo adds a fitting visual to the frustrations hammering away at commerce. There\u2019s little solace in the knowledge that this is a shared phenomenon, but history may see 2021 as the year of transition. Whether it\u2019s the Great Resignation and the mass exodus of employees in search of a better work life, or companies recognizing a bona fide turning point in the need to readdress how they approach the market, the American business landscape spent many hours in deep contemplation, reaching the same conclusion: it\u2019s time for change.<\/p>\n\n\n\n<p>It\u2019s time for diversification.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Some of the adverse effects might be offset by increased margins for the equipment sold\u2014if the dealer is savvy\u2014since the new costs to the business will be compared to the prior costs for more equipment.<\/p><cite>\u2013 Mark DeNicola, Centriworks<\/cite><\/blockquote>\n\n\n\n<p>Our annual State of the Industry report on trends and predictions aggregates more than 20 viewpoints from across the industry spectrum. We begin on the trends side, with an equally compelling look at what our colleagues are forecasting, which can be found on page 20. We have no doubt that you\u2019ve entertained many of these considerations during long periods of reflection and are preparing (if not already implemented) many significant changes in your 2022 business plans. If nothing else, these insights will provide motivation, or at least reinforcement, to the belief that regardless of whether the changes brought about by the pandemic are temporary or permanent in nature, they stand to be with us throughout the foreseeable future and thus can\u2019t be ignored.<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Addressing Print Volumes<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Mark-DeNicola-Centric.jpg\" alt=\"\" class=\"wp-image-48104\"\/><figcaption>Mark DeNicola,<br>Centriworks<\/figcaption><\/figure><\/div>\n\n\n\n<p>There\u2019s little doubt that the trend toward declining print volumes will continue, notes Mark DeNicola, CFO\/CSO for Centriworks of Knoxville, Tennessee. The tumble will see aftermarket revenue decrease and have a downward impact on the bottom line for dealers, manufacturers and suppliers. MFP box sales will decrease as businesses consolidate printing to centralized devices, affecting top-line revenue and bottom-line profit.<\/p>\n\n\n\n<p>\u201cSome of the adverse effects might be offset by increased margins for the equipment sold\u2014if the dealer is savvy\u2014since the new costs to the business will be compared to the prior costs for more equipment,\u201d DeNicola pointed out. \u201cThe statistics for the calendar year may look good if they don\u2019t adjust the volume for the equipment sold in the last six months of 2021, but delivered and billed in 2022.\u201d<br><\/p>\n\n\n\n<p>The industry will continue to be confronted with aftermarket challenges associated with the decline in clicks and printing. Given the evolution of the hybrid office and the changing nature of how business is conducted, that impact will continue to be felt among dealers, notes Brad Cates, president and CEO of Cincinnati-based Prosource.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Hopefully, the supply issue will improve, so that by Q2, we can get back to some normalcy.<\/p><cite>\u2013 Van Seretis, Premium Digital Office Solutions<\/cite><\/blockquote>\n\n\n\n<p>\u201cThe companies best positioned to absorb that impact are those that are finding new ways to grow by adding new customers, capturing clicks and growing market share, but also by adding new, problem-solving solutions\u2014whether that\u2019s managed IT, managed cybersecurity, telephony, cloud-based solutions, and so on,\u201d Cates related. \u201cThe best-positioned companies are those that are strategic and aggressive about delivering services and solutions focused on solving the problems their customers are facing both now and in the future.\u201d<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Van-Seretis-Premium-Digital.jpg\" alt=\"\" class=\"wp-image-48105\"\/><figcaption>Van Seretis,<br>Premium Digital <br>Office Solutions<\/figcaption><\/figure><\/div>\n\n\n\n<p>When a manufacturer can\u2019t supply toner to support the client needs of larger segment copiers, that leaves it upon the dealer to furnish end-users with a different copier until the supplies become available. That\u2019s the tight spot Premium Digital Office Solutions of Parsippany, New Jersey, currently finds itself in, according to Van Seretis, a partner in the firm.<\/p>\n\n\n\n<p>\u201cWe can\u2019t have the client down with no supplies,\u201d Seretis said. \u201cIt\u2019s the equivalent of having a car with no gas. (The manufacturer) has dropped the ball on many of us here. The question is, do we support our clients with (the OEM\u2019s) units in the field if they don\u2019t support us with supplies? Hopefully, the supply issue will improve, so that by Q2, we can get back to some normalcy.\u201d<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Product Diversification<\/strong><\/p>\n\n\n\n<p>Mike Marusic, president and CEO of Sharp Imaging and Information Company of America, notes a strong movement toward dealers diversifying their product and service portfolios. Many of the OEM\u2019s resellers expanded their offerings in areas such as displays and Dynabook laptops, which helped offset lower print volume by adding millions of dollars in revenue.<\/p>\n\n\n\n<p>\u201cBy offering a broad lineup of complementary products, Sharp dealers were able to gain entry into new accounts that they can later leverage to obtain print business,\u201d Marusic said. \u201cWe\u2019ve seen many dealers become exceptionally successful with that strategy and anticipate that this will continue into 2022.\u201d<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Frank-Cucco-Impact-Networking.jpg\" alt=\"\" class=\"wp-image-48107\"\/><figcaption>Frank Cucco,<br>Impact Networking<\/figcaption><\/figure><\/div>\n\n\n\n<p>As Impact Networking of Lake Forest, Illinois, continues to solidify its standing as an IT thought leader, the organization is adding emphasis to tools centered on cybersecurity. The influence of artificial intelligence (AI) as a key component in product and service offerings also can\u2019t be ignored, according to Frank Cucco, Impact\u2019s CEO. He believes the time is now for dealers to gravitate toward AI.<\/p>\n\n\n\n<p>\u201cMost dealers are working in the SMB market, and this is the front end of that wave,\u201d he said. \u201cLearning more about AI will pay huge dividends down the road. We use a managed recurring revenue model, which has been a highly successful strategy in the IT world. This is an expansion of that, a diversification to get in on the ground floor of the SMB market.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Learning more about AI will pay huge dividends down the road.<\/p><cite>\u2013 Frank Cucco, Impact Networking<\/cite><\/blockquote>\n\n\n\n<p>As dealers seek out other avenues for growth, Larry White\u2014president and CEO of Toshiba America Business Solutions\u2014believes the hunt will extend beyond managed network services or solutions. This entails leveraging a multitude of resources at the dealer\u2019s disposal to identify product and service offerings that dovetail with client needs.<\/p>\n\n\n\n<p>\u201cI think there will be more investigation into what\u2019s out there and we\u2019ll see groups in the industry, such as BTA and The Consortium group, taking a greater role in that,\u201d he said. \u201cThere are plenty of opportunities out there and technology is changing quickly, so I think we\u2019ll see a lot of emphasis on that during the next 12 months.\u201d<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Supply Chain Dysfunction<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Joseph-Contreras-Epson.jpg\" alt=\"\" class=\"wp-image-48258\"\/><figcaption>Joseph Contreras,<br>Epson<\/figcaption><\/figure><\/div>\n\n\n\n<p>Supply chain issues have played havoc with many industries, and it\u2019s a development that Joe Contreras, commercial marketing executive, Office Solutions for Epson America, expects will continue to produce delays, shortages and price uncertainties throughout 2022. Epson, however, seems to have a pretty good handle on its own situation.<\/p>\n\n\n\n<p>\u201cIn the U.S., Epson has been fortunate in that our A3 business inkjet has been relatively unaffected compared to other printer\/MFP vendors,\u201d Contreras remarked. \u201cThrough careful planning and continued communication, Epson has been able to support dealers\u2019 demands for help with avoiding missed A3 sales opportunities.\u201d<\/p>\n\n\n\n<p>However, that isn\u2019t the case across all manufacturer lines, and Roland Tolan\u2014the COO\/partner of United Office Technologies Group in Irvine, California\u2014believes the dysfunction supply chain snafus caused throughout the channel is reminiscent of the headaches caused by the Great Recession of 2007-2009. But he believes the financial turmoil it caused pales in comparison to the pandemic.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Through careful planning and continued communication, Epson has been able to support dealers\u2019 demands for help with avoiding missed A3 sales opportunities.<\/p><cite>\u2013 Joseph Contreras, Epson<\/cite><\/blockquote>\n\n\n\n<p>\u201cThe impact will be drastic in terms of revenues and profitability for all channels,\u201d he said. \u201cThe costs are going to increase due to the offset of the extra logistics to get product to the dealers and direct branches. Inflation is a major factor as well. Despite the continued performance of the stock market, I truly believe (the economy) is ready to turn into a recession by the&nbsp;end of 2022 and into fiscal 2023.\u201d<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Chip-Miceli-Pulse-Technology.jpg\" alt=\"\" class=\"wp-image-48114\"\/><figcaption>Chip Miceli,<br>Pulse Technology<\/figcaption><\/figure><\/div>\n\n\n\n<p>Issues stemming from supply chain backups will prompt dealers to closely monitor their vendors\u2019 levels throughout the year, according to Chip Miceli, president and CEO for Pulse Technology of Schaumburg, Illinois. That makes it incumbent upon both parties to maintain consistent and thorough contact to assess the evolving situation.<\/p>\n\n\n\n<p>\u201cThe supply chain issues will continue, and forward-thinking dealers will be making arrangements to build up their inventory so this issue doesn\u2019t negatively impact their customers,\u201d he added.<\/p>\n\n\n\n<p>Deb Dellaposta, president and CEO of Doing Better Business in Altoona, Pennsylvania, worries that the continuation of several negative trends could have a deleterious impact moving forward. The sooner the pandemic skips town, the quicker business can settle into a rhythm.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>The supply chain issues will continue, and forward-thinking dealers will be making arrangements to build up their inventory so this issue doesn\u2019t negatively impact their customers.<\/p><cite>\u2013 Chip Miceli, Pulse Technology<\/cite><\/blockquote>\n\n\n\n<p>\u201cUnfortunately the biggest trend for 2022 is lack of product due to the shipping crisis,\u201d she said. \u201cWe also have to continue to watch COVID, as our economy can\u2019t withstand another shutdown.\u201d<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Erik-Crane-CPI.jpg\" alt=\"\" class=\"wp-image-48115\"\/><figcaption>Erik Crane,<br>CPI Technologies<\/figcaption><\/figure><\/div>\n\n\n\n<p>While acknowledging that supply chain woes could be confronting dealers into 2023, Erik Crane, president and CEO of Springfield, Missouri-based CPI Technologies, believes employee retention and IT proliferation are major talking points for the dealer community.<\/p>\n\n\n\n<p>\u201cFinding, hiring and retaining talent will continue to be a frustrating&nbsp;endeavor for the foreseeable future, and the continued expansion into the IT space by&nbsp;legacy MFP dealers will continue and perhaps even&nbsp;quicken,\u201d he said.<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Document Management<\/strong><\/p>\n\n\n\n<p>The pandemic continues to wield influence over many universal buying trends within the industry the past two years, and perhaps one of the clearest examples is the need for document management tools. With end-users needing to accomplish more with fewer employees (decentralized workers, at that), document management took center stage for remote workers to have the ability to access files from home, notes Chris Falzett, vice president of sales and marketing for TOPP Business Solutions of Scranton, Pennsylvania.<\/p>\n\n\n\n<p>\u201cWe\u2019ve definitely seen an uptick in working with our clients to digitize their documents for easy storage and retrieval,\u201d Falzett said. \u201cMost of these engagements seem to be cloud-based due to the need for flexibility in accessing them without needing to be in the office and on the server. This has been particularly true for school district engagements, made possible by some of the COVID funding they\u2019ve been able to access.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Finding, hiring and retaining talent will continue to be a frustrating endeavor for the foreseeable future, and the continued expansion into the IT space by legacy MFP dealers will continue and perhaps even quicken.<\/p><cite>\u2013 Erik Crane, CPI Technologies<\/cite><\/blockquote>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Remote Possibilities<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Ken-Staubitz-Modern-Office-Methods.jpg\" alt=\"\" class=\"wp-image-48116\"\/><figcaption>Ken Staubitz,<br>Modern Office Methods<\/figcaption><\/figure><\/div>\n\n\n\n<p>With the work from home needs of clients an ongoing consideration, organizations such as Cincinnati-based Modern Office Methods must balance serving the technology needs of a home office while maintaining optimal device security levels, notes Ken Staubitz, COO.<\/p>\n\n\n\n<p>\u201cThis trend is a potential opportunity and a threat as companies try to navigate the hybrid work environment and determine the changes required in order to operate efficiently with their printing needs,\u201d Staubitz said.<\/p>\n\n\n\n<p>The decentralized workforce will certainly provide ample opportunities for service providers to help stamp out fraud, according to Adam Field, senior vice president of technology strategy and experience for Kofax. Investments in document fraud detection will continue to rise in tandem with the growth in remotely automated processes, which opens the door for bad actors to take advantage.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>(Work from home) is a potential opportunity and a threat as companies try to navigate the hybrid work environment and determine the changes required in order to operate efficiently with their printing needs.<\/p><cite>\u2013 Ken Staubitz, Modern Office Methods<\/cite><\/blockquote>\n\n\n\n<p>\u201cWith a hot housing market, an automobile industry seeing unprecedented supply chain shortages resulting in higher prices, and telehealth expanding, some will seek an opportunity to defraud lenders and payers,\u201d Field said. \u201cBut with technological advancements, these ne\u2019er-do-wells can be sniffed out.\u201d<\/p>\n\n\n\n<p>Given the hybrid office has settled in as a likely permanent fixture, the home office requires the same level of security, workflow and processes as the traditional on premise office, notes Bob Burnett, director of B2B solutions deployment and planning for Brother International. To that end, he believes its incumbent upon dealers to adopt A4 letter lineups to replace the traditional A3 ledger devices in channels dominated by copier-based systems.<\/p>\n\n\n\n<p>\u201cWe will continue to see businesses extend their corporate managed print services to accommodate workforce decentralization and address new security and service requirements to meet the new mobile world\u2019s demands,\u201d Burnett offered. \u201c(Dealers) should be offering solutions that reduce contact, enhance efficiency, and strengthen their distributed document workflow. Such solutions to help organizations thrive in a post-pandemic world include, but are not limited to, secure document management solutions and A4 lineups.\u201d<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/AJ-Baggott-RJ-Young.jpg\" alt=\"\" class=\"wp-image-48117\"\/><figcaption>AJ Baggott, RJ Young<\/figcaption><\/figure><\/div>\n\n\n\n<p>The growing hybrid\/remote work trend continues to proliferate across the business landscape. As such, ponders AJ Baggott, COO for RJ Young of Nashville, Tennessee, how does the industry adapt to less populated workplaces producing less print volume?<\/p>\n\n\n\n<p>\u201cI think the innovative dealers and manufacturers that can diversify in a way that takes advantage of this trend will end up stronger in the long run,\u201d Baggott noted.<\/p>\n\n\n\n<p>The growth in A4 product demand is the most pronounced example of serving the needs of a distributed workforce. Jose Estebanez, vice president, corporate marketing group for Kyocera Document Solutions America, believes the A4 proliferation will continue to build off its 2021 momentum.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>I think the innovative dealers and manufacturers that can diversify in a way that takes advantage of this trend will end up stronger in the long run.<\/p><cite>\u2013 AJ Baggott, RJ Young<\/cite><\/blockquote>\n\n\n\n<p>\u201cMany people are still working from home, while others continue to work between the office and remote locations. Many businesses are opting to equip smaller workgroups with more personal devices as opposed to one or two centralized floor printers,\u201d he said. \u201cIn 2020 and 2021, we saw companies adopting remote or hybrid working as a short-term fix, but in 2022 that will see further investment as it becomes a long-term strategy. Moreover, digital transformation continues to accelerate at a breathtaking speed, and this will see a surge in demand for software solutions that give organizations greater flexibility, mobility and security.\u201d<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Felipe-Godoy-NEW.jpg\" alt=\"\" class=\"wp-image-48118\"\/><figcaption>Felipe Godoy,<br>RingByName<\/figcaption><\/figure><\/div>\n\n\n\n<p>Many trends are closely tied to the \u201cwork culture\u201d changes imposed by the pandemic, notes Felipe Godoy, vice president, business development and sales engineering for RingByName. But there are a wealth of solutions beyond the A4 device, including remote desktop and collaboration tools such as video conferencing.<\/p>\n\n\n\n<p>\u201cThey will also expand to allow for access to company resources such as telephones, software and remote file storage for personnel who no longer come into the office full time,\u201d he said. \u201cDevice-as-a-service will take a foothold in SMBs. Access to hardware such as telephones, desktop printers and scanners\u2014particularly in the SMB space and WFH enterprises\u2014will grow as customers look to access resources without long-term commitments and leases.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Access to hardware such as telephones, desktop printers and scanners\u2014particularly in the SMB space and WFH enterprises\u2014will grow as customers look to access resources without long-term commitments and leases.<\/p><cite>\u2013 Felipe Godoy, RingByName<\/cite><\/blockquote>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Digital Transformation<\/strong><\/p>\n\n\n\n<p>The rapid acceleration of digital transformation also brings into focus the need to address the hybrid work model and supporting a dynamic, safe workplace, contends Todd Croteau, president of All Covered, the IT services division of Konica Minolta. As such, he believes dealers and manufacturers need to redefine work and the role of technology to enable their workforces.<\/p>\n\n\n\n<p>\u201cUser experience needs to be seamless and consistent from one work environment to another,\u201d Croteau noted. \u201cSecondly, as the workplace evolves, a workforce augmented by software, robots, crowds and artificial intelligence offers more flexibility and efficiency. Data-led decision-making and automation is becoming commonplace. Robotic process automation will continue to grow in demand, and task-based automation will increasingly be replaced with process-based automation, both of which will have a major impact on the industry. Businesses need to augment the knowledge worker so they can focus on being more creative and innovative.\u201d<\/p>\n\n\n\n<p>Additionally, as more companies support a hybrid work model and utilize data across the entire business, the demand for security will continue to grow. \u201cAs data points are more interconnected and systems start talking to each other, security attacks will naturally increase. Businesses must respond to this to ensure business continuity and avoid data breaches,\u201d Croteau added.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Clark-Bugg-Lexmark.jpg\" alt=\"\" class=\"wp-image-48119\"\/><figcaption>Clark Bugg, Lexmark<\/figcaption><\/figure><\/div>\n\n\n\n<p>With work environments becoming increasingly distributed, the emphasis on cloud, remote print management solutions and security should be prioritized by businesses and channel partners, as they represent key growth areas in 2022, notes Clark Bugg, director of North America channel sales for Lexmark International. He feels security-by-default is becoming a must-have for businesses.<\/p>\n\n\n\n<p>\u201cAs organizations increasingly realize that their applications and automation are only as secure as the foundational blocks on which they\u2019re built, they\u2019ll continue to demand built-in security options without paying an additional fee to acquire them,\u201d Bugg said.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>As organizations increasingly realize that their applications and automation are only as secure as the foundational blocks on which they\u2019re built, they\u2019ll continue to demand built-in security options without paying an additional fee to acquire them.<\/p><cite>\u2013 Clark Bugg, Lexmark<\/cite><\/blockquote>\n\n\n\n<p>Jim Coriddi, vice president, dealer division for Ricoh USA, echoes the growing influence of digital transformation. As dealers expanded their role with clients to become a source for overall information management, business discussions evolved to focus on providing workflow solutions and addressing the pain points of the customer\u2019s clients.<\/p>\n\n\n\n<p>\u201cAs dealers consider how the business environment is changing and how to help customers embrace digitization to lay the groundwork for success, what we\u2019re going to see is a shift in approach,\u201d Coriddi said. \u201cAlongside our dealers, we\u2019re moving into an investment mindset in the customer experience that goes well beyond the sale to foster long-term alliances that evolve alongside business needs.\u201d<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>E-commerce Movement<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Matteo-Recanatini-Offix.jpg\" alt=\"\" class=\"wp-image-48120\"\/><figcaption>Matteo Recanatini,<br>Offix<\/figcaption><\/figure><\/div>\n\n\n\n<p>One trend noted by Matteo Recanatini, marketing director for Gainesville, Virginia-based Offix, is digital acceleration, the increase in digital advertising and personalized content. Be it websites, email, third-party properties, out-of-home personalized messaging or social media content, these vehicles\u2014at one time relegated to B2C circles\u2014have witnessed a dramatic increase in B2B spending.<\/p>\n\n\n\n<p>The access to easy-to-use platforms and the amount of time B2B decision makers spend working through online platforms are making the tools vital to success. \u201cAdapt or become extinct,\u201d Recanatini observed. \u201cAny dealer or B2B manufacturer who doesn\u2019t evolve beyond having a basic website will become progressively less relevant to a content-hungry market.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Any dealer or B2B manufacturer who doesn\u2019t evolve beyond having a basic website will become progressively less relevant to a content-hungry market.<\/p><cite>\u2013 Matteo Recanatini, Offix<\/cite><\/blockquote>\n\n\n\n<p>The growing acceptance of e-commerce\u2019s role in the dealer space is indeed a factor many dealers can\u2019t ignore, notes Jennie Fisher, senior vice president and general manager, Office Equipment Group, at GreatAmerica Financial Services. She expects to see more dealers forge ahead with online purchasing capabilities.<\/p>\n\n\n\n<p>\u201cThe pandemic has likely permanently altered the habits and preferences of buyers \u2013 and even within our high-touch, high-value channel, more consumers expect to make their purchases online,\u201d Fisher said. \u201cDealers will come to the realization that they need a strategy, one way or another, and begin making considerations around how they\u2019ll approach pricing, present products and descriptions, emulate a highly personalized experience digitally, and embed ecommerce alongside their current sales processes.\u201d<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>M&amp;A Uptick<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2021\/12\/Ray-Belanger-Bay-Copy.jpg\" alt=\"\" class=\"wp-image-48121\"\/><figcaption>Ray Belanger,<br>Bay Copy<\/figcaption><\/figure><\/div>\n\n\n\n<p>With the downward pressures on business, dealers that are not well-positioned to make changes to ensure profitable sales will be seeking to divest or join forces with larger competitors, according to Ray Belanger, president of Bay Copy in Rockland, Massachusetts.<\/p>\n\n\n\n<p>\u201cOur industry will probably continue to consolidate, so the smaller dealers will face a different playing field,\u201d he said. \u201cHowever, with the consolidation, there will also be less competition, particularly in the mid-market. There are many good customers that are being orphaned by their vendors.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Our industry will probably continue to consolidate, so the smaller dealers will face a different playing field.<\/p><cite>\u2013 Ray Belanger, Bay Copy<\/cite><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>As the sands continue to slip through the hourglass, we\u2019re often reminded that the things we could once count on as givens have become fewer and less reliable\u2014a not-so-gentle reminder that change, no matter how welcome (or even frightening) it may be, is perhaps the lone assurance. In our little world of office technology, that point was driven home repeatedly in 2021. For many dealers, hardware sales are stuck in dry dock. Millions of dollars in written (but unfulfilled) orders hang in limbo, impacting dealer profitability, sales commissions, end-user capital expenditure plans and untold other victims of the supply chain headaches wracking the industry\u2019s many servants. And with so many variables impacting the chain, it\u2019s fruitless to point fingers and attach blame to any one entity\u2014it\u2019s a hassle for all to reconcile. Yes, the pandemic continues to fester in numerous, indirect fashions, dragging on incessantly like a Little Feat musical jam. The multitude of ships waiting offshore for the opportunity to offload cargo adds a fitting visual to the frustrations hammering away at commerce. There\u2019s little solace in the knowledge that this is a shared phenomenon, but history may see 2021 as the year of transition. Whether it\u2019s the Great Resignation and the mass exodus of employees in search of a better work life, or companies recognizing a bona fide turning point in the need to readdress how they approach the market, the American business landscape spent many hours in deep contemplation, reaching the same conclusion: it\u2019s time for change. It\u2019s time for diversification. Some of the adverse effects might be offset by increased margins for the equipment sold\u2014if the dealer is savvy\u2014since the new costs to the business will be compared to the prior costs for more equipment. \u2013 Mark DeNicola, Centriworks Our annual State of the Industry report on trends and predictions aggregates more than 20 viewpoints from across the industry spectrum. We begin on the trends side, with an equally compelling look at what our colleagues are forecasting, which can be found on page 20. We have no doubt that you\u2019ve entertained many of these considerations during long periods of reflection and are preparing (if not already implemented) many significant changes in your 2022 business plans. If nothing else, these insights will provide motivation, or at least reinforcement, to the belief that regardless of whether the changes brought about by the pandemic are temporary or permanent in nature, they stand to be with us throughout the foreseeable future and thus can\u2019t be ignored. Addressing Print Volumes There\u2019s little doubt that the trend toward declining print volumes will continue, notes Mark DeNicola, CFO\/CSO for Centriworks of Knoxville, Tennessee. The tumble will see aftermarket revenue decrease and have a downward impact on the bottom line for dealers, manufacturers and suppliers. MFP box sales will decrease as businesses consolidate printing to centralized devices, affecting top-line revenue and bottom-line profit. \u201cSome of the adverse effects might be offset by increased margins for the equipment sold\u2014if the dealer is savvy\u2014since the new costs to the business will be compared to the prior costs for more equipment,\u201d DeNicola pointed out. \u201cThe statistics for the calendar year may look good if they don\u2019t adjust the volume for the equipment sold in the last six months of 2021, but delivered and billed in 2022.\u201d The industry will continue to be confronted with aftermarket challenges associated with the decline in clicks and printing. Given the evolution of the hybrid office and the changing nature of how business is conducted, that impact will continue to be felt among dealers, notes Brad Cates, president and CEO of Cincinnati-based Prosource. Hopefully, the supply issue will improve, so that by Q2, we can get back to some normalcy. \u2013 Van Seretis, Premium Digital Office Solutions \u201cThe companies best positioned to absorb that impact are those that are finding new ways to grow by adding new customers, capturing clicks and growing market share, but also by adding new, problem-solving solutions\u2014whether that\u2019s managed IT, managed cybersecurity, telephony, cloud-based solutions, and so on,\u201d Cates related. \u201cThe best-positioned companies are those that are strategic and aggressive about delivering services and solutions focused on solving the problems their customers are facing both now and in the future.\u201d When a manufacturer can\u2019t supply toner to support the client needs of larger segment copiers, that leaves it upon the dealer to furnish end-users with a different copier until the supplies become available. That\u2019s the tight spot Premium Digital Office Solutions of Parsippany, New Jersey, currently finds itself in, according to Van Seretis, a partner in the firm. \u201cWe can\u2019t have the client down with no supplies,\u201d Seretis said. \u201cIt\u2019s the equivalent of having a car with no gas. (The manufacturer) has dropped the ball on many of us here. The question is, do we support our clients with (the OEM\u2019s) units in the field if they don\u2019t support us with supplies? Hopefully, the supply issue will improve, so that by Q2, we can get back to some normalcy.\u201d Product Diversification Mike Marusic, president and CEO of Sharp Imaging and Information Company of America, notes a strong movement toward dealers diversifying their product and service portfolios. Many of the OEM\u2019s resellers expanded their offerings in areas such as displays and Dynabook laptops, which helped offset lower print volume by adding millions of dollars in revenue. \u201cBy offering a broad lineup of complementary products, Sharp dealers were able to gain entry into new accounts that they can later leverage to obtain print business,\u201d Marusic said. \u201cWe\u2019ve seen many dealers become exceptionally successful with that strategy and anticipate that this will continue into 2022.\u201d As Impact Networking of Lake Forest, Illinois, continues to solidify its standing as an IT thought leader, the organization is adding emphasis to tools centered on cybersecurity. The influence of artificial intelligence (AI) as a key component in product and service offerings also can\u2019t be ignored, according to Frank Cucco, Impact\u2019s CEO. He believes the time is now for dealers to gravitate toward AI. \u201cMost dealers [&hellip;]<\/p>\n","protected":false},"author":166,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4092],"tags":[],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/48122"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=48122"}],"version-history":[{"count":4,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/48122\/revisions"}],"predecessor-version":[{"id":48301,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/48122\/revisions\/48301"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=48122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=48122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=48122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}