Team,
It’s hard to believe we are already through the first quarter of 2022. Overall, the performance of the Group remains strong. Orders are at plan and shipments are slightly behind plan, mainly due to continued constraints in supply chain and labor.

The good news on the labor front is our initiative to hire 30 new technicians in the plant was achieved. Now we will focus efforts to continue to recruit for skilled labor positions. What this ultimately means is reduced lead times and better on-time delivery. You should see standard mechanical-assist mobile and shelving lead times back in the 8-10 week range by mid-June, and other product lead times will continue to improve throughout the year.

Our biggest challenge, aside from the supply chain, is the upward cost increase of all materials and components, not just steel. Steel was forecasted to decline but now supply is being choked and mills are again raising prices. In addition, prices for paint, packaging, electronic components, and transportation, to name a few, continue to climb without notice. Due to these constant price increases, we have no choice but to raise our surcharge again. There is no way we can ask the market to absorb all our costs so we will continue to share in the pain and will be still absorbing much of our price increases. You will see an announcement with all the specific details later this week. These continue to be very turbulent times and we must all be willing to react and change as needed to adapt and remain the market leader.

On a more positive note, you will soon be hearing from the Product Innovation team on some new products and exciting launches.

In the meantime, thanks for all you do and the business you share.

All the best and be sure to “eat the cake”!

Mark Haubenschild | President/CEO

Spacesaver Scorecard

Spring is here and the Spacesaver Group is continuing to warm up – increasing our month-over-month incoming order and shipment totals for the third straight time to start the year! The Patterson Pope team combined to book over $1.5M in new orders, led by the Midwest ($676K) and the GA/AL ($600K) teams. Not to be outdone, the Spacesaver Systems MD group hit 330% of their monthly quota by submitting nearly $1.2M in new orders. Also joining the $1M club for orders was the Southwest Solutions Group (109% of monthly quota), fueled by the team in the Pacific NW, hitting nearly 200% of their monthly quota ($435K). Overall, we had 14 PARs exceed their monthly order quota; bringing our YTD total to 10 PARS over 100%, with an additional 5 over 90%.

As if booking nearly $8M in new orders wasn’t a highlight, we shipped over $8.6M in product! We had 17 PARs exceed their shipment quota – 16 of which are over their YTD shipment quota. StorageLogic took the crown for highest % (471%), while Diversified Storage Solutions and Patterson Pope both exceeded $1M; with Southwest Solutions Group just behind at $960K.

This Group is showing how champions rise to any challenge and find a way to come out victorious! Thank you all for the constant push for excellence!

We had a great Principals’ Meeting in February and appreciate everyone that dedicated time to be in attendance. We were not only able to share our 2022 strategic plans with you, but also ReIGNITE the energy within each of you, ReNEW our commitments to support you, and ReVISION our collective future. Our strategies are aligned to continue to be a world-class manufacturer that feeds a world-class distribution group. This will be achieved through:

1. Improved operational efficiencies which result in best-of-class, quality manufactured products.
2. Investments in R&D to provide new transformational and innovative solutions for our customers.
3. Actionable go-to-market strategies to drive thought leadership in our 6 focus markets.

We are excited about the possibilities that 2022 will bring and are eagerly waiting for the return of in-person, face-to-face meetings with our co-workers, distribution partners, and mutual customers. As many of you know, 2022 is also a monumental year for Spacesaver; we’re celebrating our 50th anniversary! We have accomplished so much, but there is still so much more that remains ahead. Now is the time to seize the day!

Vertical Market Updates

Agriculture

Scott Loreaux rejoined the Spacesaver family on March 7, 2022, in the role of Vertical Market Manager – Public Safety & Agriculture. Scott brings a wealth of knowledge of the storage industry that includes over 10 years with Spacesaver. Scott will work closely with our Area Contractor Group and internal departments to drive continued growth of the Public Safety and Agriculture Markets through strategic planning and execution of key initiatives, helping to maintain our position as the industry leader. He’ll be rolling out the markets’ conference calls in early May, so watch for those invites!

Cannabis Regional Trade Show Calendar

There are regional shows all over we think you should check out/participate in! You can find the complete list for the remainder of 2022 here: Regional Trade Shows for the Rest of 2022.

As always, you can contact Scott Loreaux anytime with questions, comments, or insights.

Major Projects

The Government of Yukon’s large-format archive storage is a project that came to us from Scott Crawford, our new Canadian Distribution Sales Manager! He reached out to Director of Storage Systems, Hannah Bare, and inquired about the possibility of working together as a Joint Project. The project consists of installing an MA Mobile System in an existing building and will include a mix of 4-post shelving, Safco cabinets, Viking 420 Flat Files, Widespan, and even a wall-mounted art rack. It was a true team effort between Emily Martin, Joe Leibfried, Scott Crawford, Hannah Bare, Steve Pyne, and Scott Adkins to win this project. We’ve just received the contract; if all goes according to plan, this project should be installed by the end of the year.

Marketing Minute

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