Team, The first quarter of 2023 is officially in the books, and it did not disappoint! So much was accomplished with way more to go:
Our three-year product growth strategic plan was introduced and put into action at the Principals Meeting in January
Sales (shipments) are 113 % of plan
Orders are at 101% of plan
Operations is performing at a very high level, substantially improving on-time deliveries while reducing product lead times
After a 2+ year hiatus, we resumed in-person installation school and basic product school at the Fort
Tradeshows are back in full swing
Our vertical market teams are executing our Go-To-Market strategies
We are making progress with our CET (Configura replacement) and ERP upgrades
Just to name a few…
However, as I have said before, every year presents new opportunities, and this year is no different. As outlined in my March 29th note to the field, there are some industry changes taking place that we were anticipating. The good news is that much of our 2023 strategic plan addresses this and what we need to focus on to continue to dominate our vertical markets. As promised, I will be scheduling a virtual meeting with all ACs in the very near future to give you specifics on our exciting updates relative to operations, product development, and sales/marketing.
Also, as a follow up to the Principals Meeting, your framed commitment plaques and group picture should be arriving at your offices soon, if they have not already. We hope you enjoy them as much as we do and display them in a place of prominence for all to see.
In the meantime, all our teams at Spacesaver stand ready to help you close business and fill your pipelines!
One thing that is evident with The Spacesaver Group is that we are clearly INVESTed, ALIGNed, and DELIVERing results!
God bless, Mark Haubenschild | President/CEO
Congratulations to our Area Contractor teams that have a Spacesaver Group anniversary!
Ergo Office Plus – May – 26 years
STORAGELogic, Inc. – May – 27 years
Les Solutions Spacesaver – June – 7 years
Southwest Solutions Group, Inc. – June – 26 years
Spacesaver Scorecard
The first quarter is officially behind us, and several Area Contractors have started fast out of the gate! Our Group total for shipments is near 105% for the year, with 14 PARs over their YTD quota. Patterson Pope Midwest is leading the way, invoicing over $5M already (296% of quota), carrying a big part of the nearly $9M (165%) total shipped for the entire Patterson Pope team. Shannon’s Storage (Manitoba) is right behind as a % of quota, installing over 287% of their YTD quota. Rounding out our 160%+ group is McMurray Stern, with over $2M (164%) already invoiced after 3 months. Great start to 2023 and an optimistic outlook to a record year!
While our shipments are strong, we have some catch-up to do with incoming orders, sitting just under 90% YTD quota as an entire Spacesaver Group after 3 months. We had 13 PARs exceed their monthly quota for orders, led by HBI Office Plus with a whopping 1795% (nearly $600k) – already exceeding their annual quota! Midwest Storage Solutions is leading the rest of the Group for the year, booking 176% of their Q1 quota, with StorageLogic (156%) and Patterson Pope Georgia (155%) right on their heels.
There are a lot of major opportunities in our pipeline to get us caught up on orders… as always, do not hesitate to leverage the Spacesaver sales resources (VMMs, Major Projects, Marketing, etc.) to assist you to increase our win probability. It is a team effort, and we appreciate the focus and determination of the Group!
Major Projects
Combining Forces to Support Forces: Partnering with Craig Crock from Southwest Solutions, our Major Projects team helped to win a multi-faceted, tightly budgeted project with the Haltom City Police Department in Texas. To do so, Craig worked with the project’s architect to determine an ideal layout based on their needs – one that not only incorporated a great deal of Spacesaver product, but also buyout items that the Spacesaver Group handles. This increased product mix made it difficult for other competitors to understand what the true scope was, leaving limited competition for us.
Taking what he learned from the architect, Craig reached out to Emily Martin at Spacesaver and provided the price for the buyouts and the installation price for all products, allowing our team to sharpen our pencil to bid directly to the contractor and win the project. With that in hand, we were able to issue an authorization to Craig for the buyout systems, which when partnered with our systems, came in under the department’s budget.
The word INVEST connotes a few key elements: time, resources, and certainly capital. The first quarter of 2023 has been a flurry of activity: VMMs in full travel mode (who can keep track of Pete Rooney?), tradeshows off with a bang (from Charlotte to Atlanta, Chicago, and San Diego, we’re putting on the miles), and the Innovation team driving hard to bring exciting developments your way (where there’s smoke, there’s fire). Not to mention, the Production team shipping nearly $30M and the investments required to get those orders out the door! Speaking of which, Spacesaver continues to invest in our production facility to automate and increase plant capacity – targeting an increase of operational capacity by a minimum of 5% per year. One example is a new Amada 6K Fiber laser that will be purchased this year to help provide faster material processing times and support a 24-hour continuous schedule, helping to improve on-time deliveries and reduce lead times.
There’s much excitement about the work that’s being done and for what is to come. It was palpable at Product School we held in March – our first in-person school since early 2020 – and it is continuing to build with each new advancement! Thank you to the Area Contractors and attendees for investing the time and resources to be with us for those few days. We look forward to sharing more with you at our next Product School in June!
From our headquarters to your respective home base, there are endless possibilities for investment this year. How will you INVEST in Spacesaver?
Vertical Market Updates
Agriculture
Ag-Con Recap: Spacesaver hit the floor of the 10th annual Indoor Ag-Con held February 27-28 in Las Vegas. While at the show, we got a feel for the latest advancements indoor vertical farming operations can utilize to emerge strong in 2023! Reach out to Scott to help facilitate growth in your area!
What’s green and made of plants? If you said the cannabis industry or money…you’re right. Spacesaver’s experts were on hand for the Benzinga Cannabis Capital Conference – which covers both of these items – to obtain tips from those looking to propel the industry forward. Stay tuned for more on what we uncovered!
Next Agriculture Market Call
May 4 at 10:30 AM CST
Contact Scott Loreaux anytime with questions, comments, or insights.
The Scene for The Green: 2023
With more states continuing to join the legislation conversation, industry experts believe the production and sale of medical and recreational cannabis is poised to rebound from its current lull. Check out our blog on the state of cannabis in 2023 to see some of the new and upcoming additions to the approved list, as well as our predictions for what may be in store for the market in 2023.
Military
Thank you for being a trend. Shout out to all who have showed up to drive the attendance boost these past two presentations. Reach out to Pete if you need the link to these valuable resources!
Make sure you’re ready to help your clients be ready! Increasing readiness is a main objective of every base. Let’s ensure our clients know we have what it takes to keep them ready at every turn.
Every customer has a budget right now, make sure you are talking to the right person and helping them utilize it!
Don’t forget about the “little guy”. Small, disadvantaged partners in your states/areas can be the difference maker for your deal. Do not overlook the big impact of bringing in the small (but mighty) partner.
Next Military Market Call
April 27 at 1:30 PM CST
Contact Pete Rooney anytime with questions, comments, or insights.
Solutions Riding Shotgun
Calling in the closer… bringing in the big guns…whatever you prefer to call the situation, having the support of an expert can amplify your probability for success immensely. Fortunately, for our ACs working in the Military sector, we just so happen to have one of those ready and willing to go on a ride-along with you! Early in February, Rob Muley of Patterson Pope had Spacesaver’s Military expert and Vertical Market Manager, Pete Rooney, join him and an ADS rep on a few sales calls in the Jacksonville area. (Full Story Available in February’s Military Call Recap Email)
The result of the tour – a 4X increase on anticipated order value and opportunities – was driven by the wider perspective and deeper pool of connections the ADS rep and Pete possess. What started as a focus on one area of a single base, transformed into the team uncovering additional opportunities, providing assessments, and developing proposals for departments on multiple bases, incorporating the wide array of Military storage solutions the Spacesaver Group provides for our clients. Reach out to Pete to arrange a ride along with him, your ADS rep, or both!
Library and Higher Ed
Follow the money: Nearly 550 higher education institutions, including community colleges, public and private colleges, and university hospitals and medical centers, received more than $1.73 billion in earmarks across more than 800 projects. How can we help you serve those recipients in your market?
Flexible Shelving is now available on OMNIA Partners, Equalis Group, and Sourcewell contracts! Reach out to our team to help you put these to work for your clients!
Next Library/Education Market Call
April 28 at 2 PM CST
Contact Zak Hermans anytime with questions, comments, or insights.
Storing A Few of Your Favorite Things
Providing a service for the community is the number one objective of a public library. Of course, this includes the digital and physical rental of books, videos, and audio materials, but some locations have begun to expand their offering to include household items. One such library in Hillsborough, Oregon was having trouble finding efficient storage for the wide variety of shapes and sizes of items available for checkout in its ‘Library of Things’, so they reached out to their local Spacesaver representative at Spacesaver Specialists, Inc.
Knowing the library will eventually replace all of the stacks with lower shelving for better sightlines and more modern end panels, the team at SSI decided that Flexible Shelving units would be ideal because they could move them to a new area to support these major changes when needed. In addition, the four post units will be great for long items that would take up the full depth of the double-sided shelving, making it easier for patrons to browse and find the items available and lend a more organized, neater appearance to the area. They anticipate delivery to be beginning of May. Thanks to Kelly Pendergrass of SSI for sharing this story!
K-12
For fiscal year 2023, the Office of Elementary and Secondary Education (OESE) is authorized to award $200.4 million to organizations identified to receive Congressionally Funded Community Projects (CFCP) grants. Further information on the funds can be found HERE.
Our new Flexible Shelving video is live and ready for use! Keep an eye out for more supporting materials and reach out to our team to get this versatile solution in your showroom!
Next Library/Education Market Call
April 28 at 2 PM CST
Contact Zak Hermans anytime with questions, comments, or insights.
Storing A School’s “Stuff”
Death, taxes, and cluttered spaces. All are inevitabilities we all face in our lives from time to time. Some more arduous than the others, but in the case of the latter, Spacesaver and our team of experts are here to help. So, when Addams Elementary school in Redford, Michigan needed help clearing space for faculty workspace, they reached out to their local Spacesaver representative at The Casper Corporation.
Upon assessing the storage room’s tight space due to a maze of pipes and mechanical equipment, our expert was able to design a solutions layout that perfectly fit the room, the assortment of boxes of papers and other “stuff”, and the school’s budget. The project is scheduled to be completed in August, just in time for the new school year! Thanks to Bart Spencer of Casper for sharing this story!
Museum
Over the Half-Century Mark!: For the first time to date, the IMLS Office of Museum Services (OMS) will receive over $50 million in funding in the fiscal year. Check out all the details of the omnibus package including this increased funding for museums.
AAM 2023 Preview: Spacesaver is taking our high-quality Museum storage solutions to the mile-high city! Come see our innovative Mod-Glider Pro, 920 Series: Preservation Cabinets, and Nantucket Drawers and Trays on display at Booth #1703!
Next Museum Market Call
April 18 at 10 AM CST
Contact Ben Adamitus anytime with questions, comments, or insights.
Art In Every Shape and Size
Not every work of art is large in stature, but each piece certainly carries a significant value for its creator and those who behold it. The Hudgens Center for Art & Learning – located in Duluth, Georgia – is devoted to showcasing artwork from local, national artists and curators in its galleries, in addition to offering an array of classes in a variety of mediums for those looking for further education in the arts. And, while their willingness to provide exposure for as many artists as possible is tremendous, their storage capacity was lacking.
Knowing this, they reached out to their local Spacesaver representative from Patterson Pope to increase their ability to display more paintings from their artists. Upon assessing the minimal available space and the high volume of hanging art pieces that needed to be stored, our expert provided a Mod-Glider Pro system that, when installed in mid-May, will maximize capacity, accessibility, and visibility for staff and students. Thanks to Craig Shaw for sharing this story of the value our modular art racks can provide to institutions of all sizes!
Public Safety
The Inflation Reduction Act (IRA) – passed by Congress in 2022 – allocated $1 billion for efficiency upgrades to state and local government buildings. Support is available for:
Contact Scott Loreaux anytime with questions, comments, or insights.
A More Than Passable Solution
When considering an evidence handling solution for their current space that could easily transfer to the next location, the evidence supervisor at the Lauderdale County Sheriff Office in Alabama had one manufacturer in mind: Spacesaver. So, when the opportunity arose, they reached out to their local Spacesaver expert – Matthew Hails of Patterson Pope – to deliver the perfect mix of current fit and future function.
After more than a year of planning and design, an order was placed through an Alabama state contract for two (2) Pass-Thru evidence lockers. The solutions, a precursor for a larger set of Spacesaver systems to be incorporated within the sheriff office’s new building construction targeted for completion in 2025, are scheduled for delivery and installation by end of May. Thanks to Matthew for sharing this story!
Marketing Minute
Up Close and In-Person(al)
For the first time in nearly THREE YEARS, Product School was held completely in-person at our offices! From March 14-16, we were joined by a total of 16 participants, learning from our product and operations experts and sharing their experiences to help us continue to improve upon on best-in-class products and services. Thank you to all who attended and made the event possible and successful!
We Appreciate Your Feedback
During our most recent installer training, we posed this question to all attendees, “What’s your overall impression of Spacesaver as a company?” One participant provided this as their answer, “Impressive dedicated family of gifted people, Spacesaver is a company that gives Americans a reason to be proud. With high quality products and a progressive business culture I am excited to be a part of their legacy. Well done.” We’re happy to have this individual as a part of our team and would love to hear more from the rest of you as well! Reach out to your favorite team member and let us know what we can do to help (or keep helping) you achieve more!
Help Us Make the Grade with Our K-12 CEU
Do you have a K-12 installation you want us to cover and feature in our upcoming K-12 CEU course? Reach out to Megan Skinkis at mskinkis@spacesaver.com with your projects and keep your eye out in June for the finished product!
Sales & Support
To help you and your team better prepare for your next sales opportunity, our Sales Team will be providing tips and tricks to keep you up to speed on the latest and greatest we have to offer. This edition features the following topics with links to helpful info sheets for each:
