What’s next after a year of changes and challenges?
Another year is in the books, and another is on the way as we roll out our 2023 Watchlist. The changes and challenges of the past three years will be tough to top. As the document imaging industry applies the lessons learned during this time, one thing stands out, the industry’s ability to adapt. Dealers and vendors can handle any challenge that comes their way, which shouldn’t come as a surprise to anyone who has been involved in this industry for any length of time.
The trends, companies, people, and events (a new category) are representative of an industry that is no stranger to change or challenges. This year’s list showcases some of the usual suspects and new additions. As we’ve pointed out in the past, just because a company or individual is not included does not mean we won’t be watching them. It’s our job to watch everyone. However, our watchlist would become stale if we included the same individuals and companies every year. This is not an exact science, but we believe this comprehensive list does an excellent job identifying the trends, companies, people, and events we’ll be watching in 2023. We’d be happy to hear your thoughts if you have additional suggestions and will include those in a digital article in January. Please email me at scullen@cannatareport.com with your suggestions.
Trends
The Supply Chain – This year will go down as the year of backorders in the document imaging industry. Every OEM has been affected, some more so than others. Industry prognosticators have been predicting the first quarter of 2023 as a timeframe for when we will start seeing things return to normal, others are saying problems will continue throughout the year.
Diversification Now More than Ever – Driven by the pandemic and supply chain issues, the need to diversify beyond traditional office print technology has never been more pressing. Expect growth in the VoIP, managed IT, production print, and document management segments throughout 2023.
Good People Are Still Hard to Find – Whether it’s hybrid work, The Great Resignation, or shifting attitudes about work, the document imaging industry, like most industries, will continue to have a challenging time finding good talent.
Remote and Hybrid Work Is Not Going Away – Many workers embraced working from home during the COVID-19 pandemic. And many companies that may never have allowed such a thing pre-pandemic have found that employees can be productive wherever they are. This trend will continue to impact print volumes, reducing the need for traditional A3 products. However, the smart money is on dealers figuring out how to accommodate customer’s needs whose employees are working remotely.
Print Volumes Continue Slipping Downward – Most dealers we’ve spoken with have told us print volumes are down, mostly in the single digits. This trend will inevitably continue as we become more fully immersed in a digital world.
Clicking on e-commerce – Despite pockets of significant resistance across the dealer channel, more dealers have realized that this is how a new generation of buyers expects to purchase. E-commerce will never replace consultative selling, but for commodities, why not give more customers that option, especially those who don’t want to deal with salespeople?
Everybody Needs Cybersecurity – No one is indeed immune to hackers, and businesses of all sizes are candidates for a cybersecurity offering. We continue to say that cybersecurity is the ultimate door opener for any dealer offering managed IT, and that won’t change in 2023.
COVID-19 Continues – How many of us came down with COVID-19 in 2022 despite being vaxxed and boosted? Like rock and roll, COVID-19 is here to stay no matter how many precautions we take. Attitudes about COVID are changing with the “it’s going to be just like the flu” mentality. Maybe so, but let’s not minimize this disease too much because many people still suffer from the long-term health effects of the first strain.
EV Chargers – We’re not sure how many dealers are charged up about selling EV chargers, but we believe it is a viable diversification opportunity for dealers in certain markets. Segments of this industry can dismiss sustainability and climate change initiatives all they want. Still, electric vehicles are coming, and somebody will get rich by providing charging stations to keep those vehicles on the road.
Where Have All the A4s Gone? – This product was seriously impacted by supply chain and chip-shortage issues in 2022. When will dealers be definitively able to ride down the street shouting to their customers, “The A4s are coming, the A4s are coming!” Expect to see the significant A4 players such as Brother, HP, Lexmark, and Kyocera lead the charge of A4 products, perhaps as soon as late spring.
Acquisitions Back on Track – After a slow year for acquisitions in 2020 because of the pandemic, we saw acquisitions rise significantly in 2021 and even more so in 2022. The big dealers like DEX, Marco, Flex Technology Group, Visual Edge, and UBEO continue to get bigger, but even mid-size dealers are acquiring. Expect to see even more dealerships with revenues of under $5 million be acquired in 2023 and perhaps a dealership the size of Centric Business Systems, which UBEO acquired, or Standard Office Systems, which was acquired by Flex Technology Group, join the ranks of the acquired.
Digital Transformation (DX) – No denying that DX is a massive buzzword permeating the document imaging industry. It is a term that can be applied to virtually everything a dealership sells. The smart dealers will leverage this terminology in their conversations with customers in 2023 to get them to understand how to improve their workflow and business processes.
Can Dealers Sell Inkjet? – Inkjet technology has a ton of potential at the high end of the printing segment, notably production and industrial print. There was no shortage of inkjet machines at the recent PRINTING United show. At the lower end of the inkjet segment, RISO has found a niche, and Epson is still looking to win the hearts and minds of more dealers with its A3 and A4 inkjet products. No doubt dealers can sell inkjet; the question remains for 2023, do they want to?
Hardware as a Service (HaaS) – We’re seeing more products and technologies delivered to users as a service over the internet. HaaS is a business model where companies sell packages that include hardware, software, maintenance, and, sometimes, installation for a monthly fee. Customers pay for services, not the actual hardware. As a result, contacts typically include a service-level agreement (SLA). During a recent Brother press event, the company was touting its new value services offering to help mid- and large-size organizations streamline processes, reduce operational and device running costs, and create efficiencies.
Anything as a Service – Beyond software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and hardware-as-a-service (HaaS), another trend of note is anything-as-a-service (AaaS) or everything-as-a-service (EaaS). This describes services related to cloud computing and remote access, as well as SaaS, IaaS, and HaaS. The challenge for dealers will be altering their business models to keep pace with this trend.
Driving Diversity – The Cannata Report has long advocated for diversity through our Women Influencers and Young Influencers coverage. Konica Minolta’s Step Forward, a program designed to empower women in the office technology industry, is another example. HP, Inc. has also made diversity a top priority and, as we reported in 2019, has intentionally recruited what is now the most diverse board of directors of any American tech company. Over half of HP’s board are women or minorities, with 30% being underrepresented minorities from demographics often overlooked in discussions about talent and recruiting in the industry. Equally impressive, HP started its first Business Impact Network (BIN) for LGBTQ employees more than 30 years ago. Similarly, CompTIA recently announced that it is collaborating with Out in Tech, the world’s largest community of LGBTQ+ tech professionals that seeks greater diversity, equity, and inclusion in the workplace. It is a diverse world, and it is gratifying to see how the document imaging industry is making positive strides in embracing a diverse workforce.
People
Steve Bandrowczak, CEO, Xerox – Bandrowczak was named Xerox president and chief operations officer in 2018, and then after the passing of Chief Executive officer John Visentin in June 2022, he was named interim CEO. That position became permanent in August, and it will be interesting to see where Bandrowczak takes the company in 2023. In his previous position, he was instrumental in developing and executing a global operations strategy for Xerox’s Software and Innovation businesses. He also focused on the company’s business support functions, including business strategy, product and service delivery, customer billing, and information technology. All that experience is an asset as Bandrowczak enters his first full year in this position.
Tami Beach, head of MPS channel sales, HP, Inc. – Beach’s profile in the channel has been rising considerably over the past year thanks to her many appearances on OEM panels at industry events and in the industry trades, including her multiple appearances on Fridays with Frank. From what we’ve seen, she’s been fearless in responding to dealers’ questions about supply chain issues and addressing dealer concerns about HP’s various programs, including HP Amplify.
Laura Blackmer, president dealer sales, Konica Minolta Business Solutions U.S.A. – Recognized as Best Female Executive multiple times by readers of The Cannata Report, Blackmer was promoted to president of dealer sales this past February. She has established herself as one of the most influential women in the industry and is highly respected by dealers and her industry peers. She’s also closely involved with Konica Minolta’s Step Together program, a unique program that empowers women to support, collaborate, and inspire each other. How can we not continue to watch her?
Melissa Confalone, vice president of sales, Fraser Advanced Information Systems – As of January 1, 2023, Confalone takes over as the new president of Fraser Advanced Information Systems in West Reading, Pennsylvania, succeeding owner Bill Fraser. Confalone is a stellar choice to run the 50-year-old dealership and will be instrumental in helping it grow into a $75-million dealership.
Joe Contreras, head of channel sales and marketing, office print, Epson America – Toshiba’s loss more than four years ago was Epson’s gain. Bringing in Contreras was a brilliant move for a company that is looking to establish itself in the independent dealer channel with its A3 and A4 inkjet products. This past June, he was promoted to his current position, and we expect Contreras to be even more instrumental in raising awareness of Epson’s products going forward.
Jim Coriddi, vice president dealer division, Ricoh USA – One of the many constants at Ricoh over the past few years in the wake of various personnel changes has been Coriddi. He’s a steady and calming influence, and dealers appreciate him, which considering his role, remains a huge asset for Ricoh.
Michael Cozzens, senior vice president, U.S. sales, and corporate vice president, Visual Edge IT – Cozzens is about to begin a new chapter in his career as he departs Visual Edge IT at the end of 2022. In his five years at Visual Edge, he was instrumental in helping the company grow through acquisition and shift its emphasis to the IT segment. Wherever Cozzens goes from here, we’ll be watching.
Sam Errigo, president and CEO, Konica Minolta Business Solutions U.S.A. – Errigo went from the frying pan into the fire in May of 2022 when he took over from Patrick Banno, who went back to Japan. Konica Minolta was hit hard by supply chain problems, which undoubtedly created a challenging first seven months in this position for Errigo. We’ve been impressed by his openness about the issues and will be watching to see if he can win back dealers frustrated at their inability to get products.
Jennie Fisher, senior vice president, general manager, office equipment group, GreatAmerica Financial Services – Fisher has one of the highest profiles of any woman in the industry, and with all due respect, that is impressive for anyone from the leasing side of the business. That’s a testament to the equally high profile that GreatAmerica has at industry events, which places it firmly in the hearts and minds of dealers. Fisher and GreatAmerica set a fine example of what it means to be an industry thought leader.
Patrick Flesch, president and CEO, Gordon Flesch Company – The next generation of leadership is starting to take over, and the recent promotion of Patrick Flesch to president and CEO is a harbinger of this trend. He’s already proven himself a solid leader, and The Cannata Report is fortunate to have him on our Advisory Board.
Bob Goldberg, BTA General Counsel – Just when he thought he was out, they pulled him back in. This is supposed to be the year that Goldberg steps down from his role as BTA General Counsel, but we expect he’ll be around for a little longer. Or at least until he figures out how to clone himself.
Frank Mallozzi – The recently retired EFI chief revenue officer is now a free agent and, although still consulting for EFI, will likely continue to be a key industry figure in the coming year. We don’t know where yet.
Mike Marusic, president and CEO, Sharp Imaging & Information Company of America – Nobody does it better than Marusic if you look at the results of our Annual Frank Awards, where he has been awarded Best Male Executive for four consecutive years. But that’s not why he’s on our list; it’s for the brilliant way he and his team handled and communicated with dealers about supply chain issues in 2022. Can he do it again if those issues persist through 2023? We’re betting he can.
Paul Meyer, VP, director of sales, U.S. Bank – Meyer is well-known and respected throughout the office technology manufacturer community. From a dealer perspective, much of his work is done behind the scenes, however, we have it on good authority that Meyer and his team have orchestrated and managed some of the industry’s most successful dealer programs. His responsibilities are expanding to include several mega-dealer relationships, and we expect him to be even more visible in 2023. If that isn’t enough, he has a reputation within U.S. Bank as a savvy developer of successful salespeople.
James Morrissey, president, UBEO Business Services – Morrissey was named to his current position in 2019 after serving as UBEO’s northeast region president. His mission is to grow UBEO’s footprint from coast to coast, and if the past two years are any indication, he’s been highly successful in doing so.
Oscar Sanchez, president and CEO, Kyocera America Document Solutions – Sanchez has done an excellent job since taking over as president and CEO in 2018. It hasn’t been without its challenges and hasn’t always been fully embraced by dealers, but we believe that Kyocera is well positioned to compete in the long term in a changing industry. We are especially impressed by how Sanchez has embraced e-commerce and has taken that message to the channel.
Larry White, president and CEO, Toshiba America Business Solutions – White has done a terrific job leading TABS since taking over for Scott Maccabe more than a year ago. It’s not easy considering the persistent rumors about his parent company’s future and, by extension, TABS’ future. But as we said last year, Toshiba takes a licking and keeps ticking. And that’s what we expect to see for the foreseeable future with White at the helm.
Companies
ACDI – They’re bullish, and we’re bullish on the company’s expansion into electric-vehicle (EV) chargers. It’s an exciting new product category that positions ACDI as more than just a distributor of PaperCut software. If it can apply the same formula to EV chargers as it has to PaperCut, this will be a game changer for ACDI.
All Covered – Konica Minolta’s All Covered division has certainly had its ups and downs, and we’re still surprised that more Konica Minolta dealers aren’t taking advantage of its IT offerings, at least based on what we see in our Annual Dealer Survey. That said, the company continues to be honored with numerous awards and recognition in IT circles.
Brother U.S.A. – We continue to see Brother gain traction in our Annual Dealer Survey as an A4 provider. In the past year, they had fewer issues with the supply chain than some of the other A4 manufacturers. In January, the company will be shipping a new generation of A4 devices that could be a massive differentiator for Brother in the A4 segment.
Collabrance – For dealers looking to align themselves with a master managed services provider, GreatAmerica’s Collabrance organization has a proven track record of success. Diversifying into managed IT is high on the list of more dealer’s revamped business models, and because of that, we expect to see organizations such as Collabrance become even more important to the financial health of the independent dealer channel.
ConnectWise – Yes, we are watching all the major players in the managed IT space, particularly those well-positioned to do the heavy lifting for dealers lacking the resources to do it all themselves. ConnectWise is a multiyear winner of the Frank Award for Best IT Services and Security Provider in our Annual Dealer Survey, and recently was acknowledged with a Frank Award for Best Diversification Partner.
Crawford Technologies – The name of the game for this company is its new cSimpl software for businesses that routinely print PDFs. (See article in this issue.) We learned about this product at PRINTING United and the company’s mission to recruit dealers to sell it. We’ll be watching in 2023 to see how simple it will be for the dealer channel to sell cSimpl to their customers.
Datto – This company was not on our radar until our recent Annual Dealer Survey when it was one of the top three companies identified by dealers as Best Diversification Partner. Datto provides security and cloud-based solutions for MSPs and is looking to add partners. It seems to be making inroads into the independent dealer channel, and we’ll be watching to see just how far it goes in 2023.
Directprint.io – This U.K.-based cloud-based print management software company has been touting the cost-effectiveness of its solution for the past year, at least here in the U.S. We only discovered the company earlier this year, but we are impressed by its print management offering and the partnerships that it has established with companies like Sharp and Google.
Distribution Management – In March 2022, Supplies Network and DM Fulfillment Services rebranded as Distribution Management. According to a press release issued at that time, the purpose of the rebranding was to better align with the evolution of the business and position it for future growth. The company offers various products and services, including print supplies, barcoding, and MPS. Meanwhile, DM Fulfillment Services has been engaged in fulfillment since 2012, focusing on e-commerce and omnichannel fulfillment services, which has segued into imaging-related products managed by Supplies Network. We’ll be curious to see how Distribution Management grows in 2023 and what new ways it may find to meet the needs of the independent dealer channel.
DocuWare Corp. – DocuWare remains an industry-leading ECM/document management solutions provider three years after Ricoh acquired it. Even though some dealers not aligned with Ricoh remain leery of partnering with DocuWare, we expect that to be less of an issue going forward as word gets out that the company’s products can benefit any dealership, no matter who their hardware partner is. As reported in this publication after I attended the DocuWorld conference in Orlando in May, the company has been signing up new partners at a rapid clip. We expect continued growth in 2023 as more dealers see value in DocuWare products as their entry point into ECM.
EFI – A private equity group has owned the company since 2019, and it will be interesting to see if any more personnel departures are coming in 2023. We don’t believe those departures will negatively impact the company’s solid product offerings, but they could affect confidence in the organization’s leadership.
Epson America – The company is still signing new dealers, and we’ve encountered some enthusiastic Epson dealers in our travels. However, our most recent Annual Dealer Survey revealed a dip in the number of dealers carrying Epson products compared to the previous two years. We’re unsure if that was because of a different pool of dealers participating in our Survey or if Epson has maxed out on the number of dealers willing to sell its inkjet products.
Fujifilm – Activity was brisk at the Fujifilm booth at the most recent PRINTING United Expo. We’re hearing that this company with its Acuity Prime UV-LED flatbed printer, Acuity Ultra R2 superwide roll-to-roll printer, and its new Acuity Ultra Hybrid LED rigid and roll-to-roll printer is on the radar of more dealers who are selling production and industrial print.
HP, Inc. – This is a company that many dealer’s customers love, and many dealers love to hate. Some dealers continue to lament the burden they believe the Amplify program places on their dealership, while others have embraced or begrudgingly accepted it. Regarding its products, we hear mixed signals from dealers about reliability, which may be biased as most manufacturers’ products have issues from time to time. We don’t expect dealer attitudes to change dramatically in the coming year, but we expect HP to remain a significant player in the channel.
Hytec Dealer Services – The company has diversified over the past two years, partnering with Ametek and Predictive InSight. The addition of power protection and print management offerings has only enhanced Hytec’s legacy of providing quality parts, circuit boards, repair service, and technical support. We can’t wait to see what else Hytec has in store for dealers in 2023.
Intermedia – If the cloud and cloud communications are trends worth watching in 2023, so is this cloud communications company that offers voice, video conferencing, chat, contact center, business email and productivity, file sharing and backup, security, archiving, and other services to businesses. The big deal here is that Intermedia eliminates the need for multiple communications service providers. The company is looking to make inroads into the dealer channel, and you can expect to hear a lot more from Intermedia and about them in 2023.
Kyocera America Document Solutions – It was exciting to see Kyocera at PRINTING United this past fall for the first time with its 15000c. We’re looking forward to seeing its second high-volume color inkjet production device, possibly in the coming year. Beyond that, we’ll be watching what President and CEO Oscar Sanchez and his team have in store for the channel in 2023.
Lexmark International – This is still one of the premier A4 providers in the channel and a company at the forefront of leveraging the cloud and enhanced security capabilities across its product line. It has been a few years since Lexmark was voted Best A4 Manufacturer in our Annual Dealer Survey (Kyocera is on a five-year winning streak), and the comments from dealers participating in our Survey have not been all that flattering of late. Because of those comments and because of its cloud and security focus, we must still watch Lexmark in 2023.
Konica Minolta Business Solutions U.S.A. – As we reported in our November Survey issue, Konica Minolta received the lowest ratings of an A3 manufacturer in the history of our Survey. The reason is the supply chain. It seems that Konica Minolta had more considerable challenges here than most. Once that supply chain starts flowing again, we believe dealers’ impressions of the company will be much more positive.
MPS Monitor – The print management company went from being a blip in our Annual Dealer Survey to one of the top four print management providers identified by dealers. After its acquisition this past fall by Valsoft, we expect the company to expand its footprint in the U.S. dealer channel even more.
NEXERA – Need comprehensive service data or want to know how your machines in the field are doing compared to others in the field? That’s where NEXERA comes in. We know many dealers using NEXERA to improve their service operations. As accurate and comprehensive data becomes more important to operating a successful dealership, we expect more dealers to embrace the opportunity to partner with companies such as NEXERA.
SalesChain – This is a company whose profile is rising in the document imaging industry. Founded in 2002, SalesChain has long-lasting relationships with some of the most prominent dealers. Its cloud-based technology solutions enable business workflow automation and are beneficial for dealers offering traditional document imaging and IT services. Expect to hear a lot more from this company in 2023.
TAG Solutions – When we asked dealers to select their “Best Diversification Partner” for our 37th Annual Awards, this company ranked in the top three. Dealers participating in our Survey knew something that we didn’t. However, this company, founded in 1991 that offers managed services, cybersecurity, and unified communications, is now squarely on our radar.
Toshiba America Business Solutions (TABS) – Ongoing rumors about Toshiba’s future have been circulating for years. Still, as long as we’ve heard them, TABS has been meeting the needs of its dealer partners, many of whom are extremely loyal to the company.
UBEO Business Services – Slowly and steadily, UBEO has been acquiring dealers and now has more than 20 in its portfolio, including two of its most significant acquisitions, Ray Morgan Company, which it acquired in 2018, and Centric Business Systems, which it acquired in early 2022. Since November 2018, when it acquired Ray Morgan Company, UBEO has acquired at least 14 other dealers, the most recent being COECO Office Systems, headquartered in North Carolina.
U.S. Bank – For the past six years, U.S. Bank has been among the top three highest-rated leasing companies in our Annual Dealer Survey. In this year’s Survey, dealers rated the company 4.5 out of 5.0. That’s an excellent rating, and we will be watching to see in 2023 if U.S. Bank can continue to perform as well for dealers.
Visual Edge IT – For a while, Visual Edge was on an acquisitions tear, snapping up dealers left and right. After a down period of no acquisitions and the rollout of Visual Edge IT Services in 2021, the company has focused on IT companies and dealers with a strong IT offering. We don’t expect to see that acquisition model change in 2023, which is unfortunate news for dealer owners who have been looking to sell but have never ventured into IT services.
Xerox – What’s next for Xerox? It’s hard to tell, as the company has been keeping a low profile with the industry trade press and still seems to be feeling the effects of some key people leaving, as well as the loss of its President and CEO John Visentin, who passed away earlier this year. We don’t expect Xerox to go anywhere and wouldn’t be surprised to see it raise its profile in 2023.
Events
BTA National Conference – This year’s event is scheduled for August 30-31 in Boston, Massachusetts. If a dealer is a member of BTA, why miss out on an opportunity like this to connect with your peers and take advantage of the educational opportunities at this conference?
The Executive Connection Summit (ECS) – Does the document imaging industry need another event? What with dealer meetings, BTA conferences, and dealer peer group meetings, who has the time to take four days off to travel to Arizona to attend a conference that brings together various industry segments and vendors on the peripherals who are shaping the future of technology and the industry? We’re about to find out from January 15–18 when ECS returns for its second consecutive year.
IT Nation Secure and IT Nation Connect – These are excellent conferences for any dealer serious about cybersecurity and IT services to expand their knowledge and mix and mingle with the brightest minds in the IT space. Even dealers not aligned with ConnectWise, the sponsor of these events, can attend. IT Nation Secure is scheduled for June 5–7 in Orlando, and IT Nation Connect, November 9–11 in Orlando.
OEM Dealer Meetings – Konica Minolta and Kyocera were the only OEMs that scheduled a dealer meeting in 2022. The OEM meeting schedule is filling up now that the worst of the pandemic is in the rearview mirror, and 2023 will be a busy year with meetings from Ricoh, Sharp, Toshiba, and others who have yet to announce their upcoming meetings.
PRINTING United Expo – After an auspicious debut in 2019, followed by a virtual event in 2020 and no show in 2021, PRINTING United Expo returned in 2022 to great fanfare and success. This show is a must for any dealer selling production print or even thinking about it. I was pleasantly surprised to see more dealers at this year’s event than in 2019, and although this show isn’t for everyone, I wouldn’t be surprised to see even more dealers here in 2023 when the show moves to Atlanta.
The Cannata Report’s 38th Annual Awards & Charities Gala – Forgive us for being self-serving. After a hugely successful event this past November, we anticipate an even more spectacular event in 2023 with a very special guest.
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