Page 6 - BOSS Today Issue 10

BOSS AGM discussion...

Wise heads

Our video cameras were out at the BOSS AGM, finding out what

some industry leaders had to say on a range of topics

INDUSTRY EVOLUTION Manufacturers Forum: looking to pay less, and as they So there will be much more
Geoffrey Betts, managing “I see further consolidation at all do so there is a danger that consolidation and merging
director, Stewart Superior: levels in the distribution channel. people will move away from the going on.”
“We are already seeing people We have seen a lot of it in the brand to unbranded products.”
coming back to the facilities manufacturing sector, but also LOWER COSTS AND
management (FM). Spicers are at the reseller level. It is usually Robert Baldrey, Group INCREASED MARGINS
working much more with dealers healthy for business, especially chairman, Vasanta Geoffrey Betts, managing
to educate the FM market. Vow when they emerge the other “We are at a kind of a tipping director, Stewart Superior
are doing the same. Coffee is the side. point, where we have over “We are in danger of making
fourth biggest selling product in So I see further takeovers. capacity in the industry a rod for your own back
our industry. We are traditionally Spicers have certainly gone reducing demand. In the next 18 because of the pressures we
a filing industry, and yet coffee is through that recently. I also see months we will see either some put on ourselves to deliver,
number four in our market place. a focus on new channels, such business failures or some big with someone placing an
That demonstrates that if you as Amazon’s E-tailer channel. This consolidations in the industry.” order in the morning and you
can grow that sector, you have is something our membership delivering in the afternoon.
an exciting future. In terms of the need to be aware of, because Michael Gardner, chief That’s an enormous pressure
contract stationers, you may see it can take business away executive BOSS Federation to put on a business, and
more consolidation, although from them. It’s a change in the “We have seen massive change you need to ask whether one
they are already pretty big now. marketplace that we need to in the industry in the past 20 needs to do that. Spicers are
One or two of them might address. I also see a focus on years. I can see that continuing. moving away from that model
consolidate further over the next new product categories. We are The recession has not helped in and offering a three-day
five years. In terms of the dealer seeing the emergence of FM, the last two years, but there has delivery on certain non-core
groups, they will continue to janitorial and catering products. been some coming together products. To me that makes
consolidate. If the Banner and It’s vital that the membership of the industry. We have to take a little bit of sense. You don’t
Advantia tie up is seen to be get involved in these product cost out of the supply chain. need to deliver everything by
successful and working, that categories, because these guys Quite clearly there has been 3pm. From a manufacturing
model will be copied.” are encroaching on the office more coming together for the perspective, there is an
product market, so it seems past few years. There will have to opportunity to share some
ON FUTURE CHANGE only natural to go for growth be even more coming together. distribution and logistics
OF THE MARKET by adopting these product We have to be cost effective, we facilities. You could take in
STRUCTURE categories ourselves. The other have to be profitable, we have deliveries from five companies
Sean Starkey, chairman, key indicator is a preoccupation to be able to survive for the next all at one time. There may be
BOSS Federation with own brand. Businesses are generation. synergies there.”

6 BOSS TODAY | November/December 2011

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