Guest Columnist: Mitch Leahy, GreatAmerica Financial Services
Office technology businesses have shown strong resilience, adapting to hybrid work, supply chain disruptions, and talent shortages. In 2026 new pressures, such as tariffs and global economic uncertainty, add more complexity, yet the channel continues to find opportunities amid constant change. Leasing partner GreatAmerica Financial Services offers some strategies to strengthen resilience and drive profitability in the year ahead:
Contracted Recurring Revenue: The Bedrock of Stability
Recurring revenue is the foundation of valuation, predictability, and long-term resilience. Providers who bundle services and supplies with equipment contracts are better positioned to protect future revenue, while escalation clauses help offset inflation. A recurring model also delivers customer insights that enable predictive upgrades and proactive service. According to Subscription Insider’s Zuora’s 2025 Subscription Economy Index, companies operating with recurring‑revenue models grew 11% faster than the S&P 500 over the past two years, underscoring the accelerating shift toward “as‑a‑service” offerings in IT and related industries.
Leading with Monthly Payment Options
The subscription economy has reshaped customer expectations, and more end users now prefer predictable monthly payments that protect cash flow and prevent obsolescence. Many IT buyers still separate IT and print budgets and often choose capital purchases because they are not offered alternatives during the sales process. Channel businesses need to educate these decision-makers on the benefits of financing, including lifecycle upgrades and reduced capital strain. That education starts internally, with sales teams trained and compensated to position monthly payments as a strategic advantage rather than a concession.
Office Technology Diversification with Intention
Organizations that achieve long‑term growth and valuation often expand into adjacent services, and managed IT continues to represent a strong opportunity for technology providers. Service Leadership’s 2025 IT Solution Provider Industry Profitability Report, from ConnectWise, shows that technology service providers have experienced unprecedented growth for the fifth consecutive year, the longest run in industry history. Financing partners that offer models such as Hardware‑as‑a‑Rental enable providers to add new technologies to existing agreements and support innovation without disrupting cash flow.
Cash Flow as a Growth Engine
Cash flow is the lifeblood of channel business operations, and even profitable organizations can struggle when billing processes fall behind. Automating invoicing reduces disputes and delays, and bundling service charges with equipment financing helps streamline collections. Integrations with platforms such as ECI e-automate, CEO Juice, ConnectWise, or Forza remove manual reconciliation and allow staff to focus on growth. With billing automation in place, businesses can reinvest capital in diversification, talent, or customer experience initiatives, supporting growth while creating a hedge against eroding margins or tariffs.
Retention as a Strategic Imperative
Acquiring new customers costs more than retaining existing ones, especially in a softening economy. Channel businesses need to prove their relevance and value. Periodic business reviews demonstrate impact and reveal upselling opportunities, and responsive service with transparent billing helps build trust. Providers should also look at compensation models and team structures that match their desire to acquire net new customers.
Retention requires a deliberate, customer-first strategy. Businesses that listen closely, adapt quickly, and consistently deliver value can protect their base and create room for expansion. During economic uncertainty, customers scrutinize vendor relationships more carefully. Providers that show clear ROI and offer proactive support stand out as long-term partners.
Efficiency Gains Through Digital Transformation
Businesses strengthen operations when they automate processes and free resources for growth. Financing integrations streamline billing, deposits, and reconciliation. AI-driven analytics predicts service needs and optimizes inventory. Workflow automation reduces administrative work and allows staff to focus on customers. McKinsey’s The State of AI in 2025 report shows 62% of organizations are experimenting with AI agents, with efficiency as the top goal. Businesses that ignore these tools risk falling behind competitors already using them to improve operations.
Digital transformation (DX) also enhances customer experience. Automated service dispatch, real-time usage monitoring, and predictive maintenance create a seamless journey. As customers expect Amazon-like convenience, these capabilities have become table stakes rather than differentiators.
Mergers, Acquisitions, and Succession Planning: Positioning for the Next Era
Consolidation in the dealer channel continues to accelerate and remains a critical factor in planning for the year ahead. Mergers and acquisitions are reshaping the channel, creating larger regional players with broader service portfolios and greater buying power. For independent dealers, this trend brings both challenges and opportunities.
Consolidation can increase competition as larger organizations use scale to offer lower prices or wider solutions. It also creates opportunities for businesses ready to grow through acquisition. Strategic M&A can provide access to new territories, customer bases, and service capabilities that would take years to build organically. Dealers considering this path need to assess financial readiness, cultural fit, integration plans, and their ability to maintain customer relationships during transitions.
Succession planning is equally important for companies that want to sustain operations. Many principals are nearing retirement and, without a clear plan, decades of value can erode. Effective succession planning includes documenting processes, strengthening recurring revenue, and ensuring the business can operate without the founder’s daily involvement. Investing in leadership development builds continuity and reassures customers, employees, and partners during generational change.
Even for those not yet pursuing M&A or succession, understanding these dynamics is essential. Consolidation influences competitive positioning, OEM relationships, and customer expectations. Businesses that recognize these shifts can adjust strategies and define where they fit within the evolving channel ecosystem in the year ahead.
Looking Ahead
Now is the time for businesses to prepare for shifting customer expectations and economic pressures. Challenges have always fueled growth, and focusing on the right priorities will help office technology providers build resilient organizations. Those that succeed will act with intention, embrace change, and plan for sustainable, long-term growth today.
Sources:
- Subscription Insider — Zuora’s 2025 Subscription Economy Index
- ConnectWise — Service Leadership 2025 IT Solution Provider Industry Profitability Report
- McKinsey — The State of AI in 2025
About the Author
Mitch Leahy
Mitch Leahy, vice president and general manager of GreatAmerica Financial Services’ Office Equipment Group (OEG), is responsible for leading the business unit’s growth, strategy, and development. Leahy joined GreatAmerica in 2008 and has held various positions, including senior credit analyst, vendor operations leader, vice president of sales, and, most recently, OEG managing director responsible for sales, sales support, and marketing initiatives across the unit. In his present role as GM, Leahy is responsible for the vision, business strategy, culture, and overall economic performance for the unit. He holds a B.A. in finance from the University of Northern Iowa.
