Bouncebackability
Reports are all in for Business Supply players in Q4'22. Predictably they show inflated profits but weak sales recovery v pre-Covid 'norm' Q4'19. Proficiency Index reports the Leaderboard of makers, wholesalers & dealers' 'Bouncebackability' performance. It covers 100 leading paper & printer makers, hygiene, foodservice and packaging suppliers, OP/furnituremakers and retailers Updated
Healthy Hygiene
Hygiene is now #1 business supply category alongside technology. Progressive business suppliers: brandmakers, dealers have pivoted into hygiene, safety, foodservice & packaging, WFH-tech & wellness services. Proficiency Index Q4'22 analysis is almost complete with brand volumes slowing, boosted by double-digit price hikes. Updated for KPTissue, Sappi & Suzano. Diversey delayed to 22Mar
Top 50 Women
Marketing to businesses by brandmakers & resellers was traditionally dominated by men. As we celebrate International Women's Day, Proficiency Index recognises the most successful women leaders. This is 16th edition of 'Top 50 Women in Business Supply', the market's real growth achievers, including new entrants from progressive independent dealers.
Office Mkt Legends
It's 10yrs since the top OP mega-independent dealer champs Lyreco's Eric Bigeard and WBMason's Leo Meehan met with Staples CEO Ron Sargent in Boston. We reflected on past glories, Covid, digital transformation and looked forward to a 'hybrid office productivity' future..Updated
Hybrid work future
The contrast in opinions over the 'hybrid work future' & the 'return to work', is stark. New thinking is positive about the huge rise in entrepreneurial productivity. Old thinking believes a return to corporate office control is inevitable. Are corporations underestimating the hollowing out of office space; the time waste and the need to trust workers' motives? Updated
FlexTech takeover;
Flex Technology Group (FTG), the US #3 managed technology services provider has made a major MPS acquisition in the Mid-Atlantic region moving it closer to market leaders Marco & Pacific. CEO Frank Gaspari claims group revenues over "$400m with a strong pipeline of dealers looking to join FTG"
Amazon+Microsoft
WallStreet's obsession with recession rhetoric particularly highlighted by CNBC knows no bounds. Perspective please! Amazon increased employees by +700k over the past 2yrs to 1.5M. Meanwhile, Microsoft increased employees +50% to 221k. The recent sad 37k cuts (AMZN 27k + MS 10k) were a minor adjustment for 2 strongly growing giants....
HPE Greenlake
HP Enterprise just gave its GreenLake on-premises pay-per-use cloud service an AI-based boost with its acquisition of a specialist integrator. “Customers manage different cloud environments that dramatically increase the cost of digital operations management,” said Fidelma Russo.
This could be a game changer....
Diversey divested;
Diversey, the $2.8Bn in sales, international hygiene & infection protection provider just reported delayed and disappointing results for Q4'22. Meanwhile, it changed ownership again, from Bain Capital to public, now back to privately owned via Platinum Equity chemicals making subsidiary. Updated
Old OP Emperors
There's been much recession talk recently: macro economic headwinds, high inflation, depressing optimism. How much is real given the huge prices boost on lower volumes? Whilst ex-leaders eg. Acco, HP, Newell, 3M & VOW decline despite complacent commentary, progressive players reinvented to meet the 'personalized productivity service' needs of users. We highlight losers and the big winners..Complete
FedEx fails from
FedEx ceo Raj Subramaniam opaquely reported again on disappointing & inflated Q3'23 results. Huge price hikes boosted sales, but disguised serious market share losses to UPS & Amazon.The 'market cap gap' between similar sized UPS widened to $109Bn. The future is bleak for arrogant, cost cutting 'new boss, same as the old boss'; who blames the (strong) economy, not incompetent execution. Updated
Mighty 3M mired in
3M's cfo Monish Patolawala spoke with JPMorgan's Steve Tusa at its Industrials Conference yesterday. 3M's market cap is down -30% over past year, reflecting legal issues with defective miltary earplugs and PFAS chemicals. Meanwhile, it's spinning off the Health Care (25% mix) division and struggling with volume decline in its main businesses. Analysis here...
Depot buys back
On 28 Dec'22 activist VC HG Vora Capital took a 12% stake in ODP Corp aka Office Depot plus a board seat. Now as part of its $1Bn buyback plan ODP bought shares at a similar price cutting Vora's stake to 8%. What's going on? Is sinking ship Capt Gerry Smith shifting deck chairs to distract from its core incompetence?
Westrock: doing
Westrock Coffee, the leading custom/private label coffee and tea provider to US restaurants, reported Q4'22 results. We talked with CEO Scott Ford about progress and plans for the "poverty to productivity" purpose driven beans importer from Rwanda through roasting and distribution processes
Imperial Dade
VC Advent owned Imperial Dade has rolled up 62 acquisitions in recent years. Now the hygiene & foodservice distributor is opening its 3rd & 4th RDCs in Las Vegas and Orlando to support growth The persistent question remains: will Advent really invest in integrating systems and brand integration?
"Tomorrow's News Today,
not yesterday's news tomorrow."
