04/13/2012 | 08:05am (from a story on www.4-traders.com)
Improving U.S. economy spurs new and replacement purchases
In remarks leading up to next week's ITEX Expo & Conference in Las Vegas, GE Capital's Office Imaging team noted that total OI industry unit shipments are expected to grow 3% this year, with the fastest-growing industry segment being value-added devices paired with services and supplies. Sales of color office imaging devices are showing more modest growth, while sales of black-and-white ones are declining.
The two major types of value-added programs, basic print services (BPS) and managed print services (MPS), are expected to grow strongly through 2015. BPS refers to basic print services plus usage assessment, reporting and optimization. MPS encompasses multi-function devices, service and supplies, which are typically packaged together as multi-year contacts with consolidated fleet billing and remote monitoring.
"The improving economic environment in the U.S. is likely to spur businesses to make new and replacement equipment purchases," said Glen Clark, vice president and general manager of GE Capital's Office Imaging business. "As MPS in particular continues to grow strongly, vendors are also expanding into adjacent IT services to offer end-users a one-stop shop."
Clark will be speaking at the MPS Strategy Forum during next week's ITEX event. On April 19, 1 PM-1:50 PM, Clark will share strategies to help dealers evaluate revenue opportunities, including cost allocation and the impact of servicing the product. He will also provide best practices for developing an annual business operating rhythm that maximizes growth while minimizing risk.