Team, It’s hard to believe we are already in the home stretch of summer. The good news is that means football is right around the corner and training camps are opening! It is my favorite time of year, and I am happy to report that I will once again be able to enjoy it!
This month’s opening will focus on some highlights from the first half of 2022.
The Spacesaver Group continues to operate at a very high level despite all the challenges. Through six months we are at 125% of order plan. Great work! This clearly reinforces that our plans and initiatives are working and that we are continuing to gain market share from our competition, especially in our core mobile products.
In terms of sales (shipments), we are at 93% (consolidated) of plan through June. While we have a very large order backlog, labor and supply chain issues continue to challenge our ability to improve on delivery times. However, as announced in late June, lead times on standard mobile and shelving were reduced to 10 weeks. We are committed to improving both late shipments that result from supply chain issues and lengthy lead times. As usual, I will provide updates on our progress.
We continue to see increases in most of our commodity costs (materials we purchase to manufacture, package, and ship our products), as well as increases in the cost of labor. Steel, our largest commodity, appears to be leveling off in price, and we are cautiously optimistic that we could start seeing some pricing relief in Q4. While this is positive news, steel alone won’t correct the negative purchase price variance (PPV) attributed to our entire product cost structures, most of which we have absorbed over the past two years. These will be key inputs to our strategic planning for 2023.
In addition to the recently released Mod-Glider Pro™, we have two more launches planned before the end of 2022 and are currently setting goals for 2023. Product Innovation remains a priority at Spacesaver, and our teams are committed to identifying opportunities and bringing them to market quickly.
We will continue to navigate through these unchartered turbulent times and remain nimble and resilient. 2023 will present its own set of new challenges, but if we continue to focus, work the plan, fill the pipelines, and work together, the Group will continue to dominate and thrive.
The Spacesaver Group – 50 years strong and building an even better future together!
Please stay safe, and God Bless. Mark Haubenschild | President/CEO
Congratulations to our Area Contractor teams that have a Spacesaver Group anniversary in August & September!
Modern Office Systems (August – 39 years)
Spacesaver Intermountain Addl. Idaho and Wyoming (August – 16 years)
HBI – Office Plus (September – 14 years)
Kanstor (September – 14 years)
The Casper Corporation (September – 49 years)
Spacesaver Scorecard
For the 4th consecutive month, the Spacesaver AC Group collectively exceeded our monthly incoming order quota – putting us at 115% YTD as a team! We had 13 PARs over quota in July, led by Patterson Pope Midwest entering over $2.2M (558% of quota)! The team at McMurray Stern continued their charge up the leaderboard, submitting almost $900K (251%) in July. Donnegan Systems also had another great month, led by their upper New England PAR sending in over 454% of their monthly order quota.
On the year, there are 22 PARs over YTD incoming order quota, with Patterson Pope Midwest dominating the field with nearly $9M entered through July (299%) – carrying the P2 Team to just under $15M (139%) on the year. There are several PARs over 150%:
Dexion Australia (488%)
Donnegan Massachusetts (207%)
Systems & Space (198%)
Donnegan E. NY (184%)
Donnegan VT/NH/ME (158%)
Midwest Storage (153%)
Interior Solutions (150%)
For shipments, the AC Group exceed monthly quota as a team (101%), led by Patterson Pope ($1.46M – 103%) and Bradford Systems ($1.12M – 180%). There were 16 PARs over their monthly shipment quota, bringing our YTD total to 10 PARs over quota – 93% as a Group.
StorageLogic leads the way for % of quota with 182%, while Diversified Storage Systems is holding the PAR revenue lead with over $4.8M in shipments YTD. August is off to a great start … let’s keep the trend rolling!
Sales Support Tips & Tricks
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:
Typically, it’s springtime that’s associated with renewal, but Spacesaver is buzzing with energy as we marked our return to office following the July 4 holiday. Teams are excited to be back in person, collaborating face-to-face once again and reconnecting in ways the last 2 ½ years have prevented. The spirit is building with every hug, each high-five, and all those random hallway meetings. The timing is perfect as we set out with renewed intensity for the second half of the year – selling the new Mod-Glider Pro, driving end of year Military sales, canvassing higher education campuses, and so much more. Our goal is to continue to renew your energy and excitement for Spacesaver as we connect in various ways – phone calls, market emails, visits, and yes, even those Teams meetings! – to propel the Spacesaver Group forward.
Speaking of connecting, Spacesaver hosted a fantastic group of 58 people last week for Product School. It was fun to meet new faces and see some old friends building and renewing their knowledge of our market-driven solutions. Thank you to all who joined!
Vertical Market Updates
Library and Education
Record-Setting Orders: First off, we want to give a big shout out to everyone that helped make June a record setting month with over $5 million incoming net orders!!!
ALA in DC was AOK for SSC: June 23-28 our team attended the American Library Association Tradeshow in Washington, DC. There were 14,000 library professionals in attendance that had the opportunity to swing by our booth to see two of our library carts on display. Attendees shared that their greatest challenges are providing access to information, having spaces that are adaptable, and being able to accommodate patrons’ varying working styles.
Bi-monthly Library & Education Market Calls
Next call: August 19
Double the Expertise at SAA: The annual meeting of the Society of American Archivists will be held in Boston on August 25-26 and Spacesaver’s Library and Higher Ed and Museums teams will be there exhibiting for the first time! We’re looking forward to attending sessions and gaining VOC and new leads, and attendees can look forward to a wide array of informative education sessions, pre-conference workshops, networking opportunities, special events, exhibits, and tours of local repositories. Come see us at Booth #405!
Contact Zak Hermans anytime with questions, comments, or insights.
Stepping In and Standing Up for UBC
More than two decades ago, Spacesaver lost the opportunity to provide solutions for the University of British Columbia’s (UBC) library archives project in a very competitive bid with Montel. However, the systems Montel installed did not maximize the space, leaving only some room for future expansion. Fast forward to when UBC was ready for expansion in 2016, one thing was for sure, they had no intention of dealing with Montel – citing poor representation and poor installations in other areas of the campus as two of the main reasons. Knowing this, administrators at UBC reached out to Spacesaver to provide engineered to order (ETO) carriages to work on the unique width and spacing of the existing Montel rails. They were so happy with this installation and its performance that they called Spacesaver in 2021 to help with an additional expansion. Spacesaver is currently in the process of installing new custom-sized carriages and wide-span shelving to accommodate existing map cabinets on the bottom and shelving above.
K-12
Welcome Back, Welcome Back: For administrators, teachers, and students, the time has come to get back to school! As you read this, fall sports training camps are underway, learning materials are in route or in wait, and students are preparing to get back to getting educated. Now is the time to evaluate the storage needs of your school’s respective departments for this year and many more to come. We have quick ship 4 post/case options if any customers are looking for an order/install before the school year starts!
Bi-monthly Library & Education Market Calls
Next call: August 19
Show Us Your (Storage) Space: The best way to show off the value our systems can provide in the K-12 market, is to show installations that are providing value for the K-12 market. So please, pretty please, send us pictures/info on your K-12 installs so we can best provide you with the invaluable marketing collateral you’ve been asking for!
Contact Zak Hermans anytime with questions, comments, or insights.
High(land)er Density
Needing help consolidating their growing supply of athletic gear, Homestead High School reached out to Ryan Mawhinney at Bradford Systems to help open up and repurpose an internal space in its locker room, freeing up existing space for the development of a new weight room. Upon visiting the space, Ryan was able to provide a mobile storage system that combined 12 sports who utilize a myriad of totes, hanging uniforms, and specialized equipment. This was just the first of several scheduled installations at the school. Keep an eye out for more!
Museum
Glide and Seek: “Did you see Spacesaver’s New Modular Art Rack Spacesaver has launched?” “Unlike any other, I tell you!” These are just a couple conversation starters for you to try when selling this innovative new solution. Or, if you’d like additional options, reach out to our team for more information on this unparalleled solution!
Two For the Show at SAA: If having one vertical market at a show is good, two must be better, right? We completely agree and will be exhibiting at SAA 2022 with our Library and Higher Ed market to provide an all-encompassing look at Spacesaver’s archive-oriented storage solutions. Come see us in Booth #405!
Monthly Museum Market Calls
Next call: August 16 (third Tuesday of every month)
Let’s Meet Up at WMA: Spacesaver will be attending the Western Museums Association’s (WMA) Annual Meeting from October 6-9 in Portland, OR. The WMA Annual Meeting is known as a premier venue for those who work in the museum industry to exchange ideas and best practices, network with colleagues, and learn from each other by attending valuable sessions. Reach out to our team to learn more and meet up with our team at the show!
Contact Ben Adamitus anytime with questions, comments, or insights.
Walworth The Wait
Spacesaver will be installing its Mod-Glider Pro™ modular art rack system – along with other quality storage solutions – at Walworth County Historical Society (planned for late September) and we want you to be the first to know. The installation will be used as a hallmark example of the versatility of our systems and our engineers’ ability to make them functional no matter how large or small your installation may be. Keep an eye out for our upcoming case study on the project and let us know if you’d like to schedule a time to see it in person!
Agriculture
GROW’s Use is Higher Than You Think: Though it’s easy to only think of Spacesaver’s GROW system when you’re focusing on cannabis production, don’t forget it can be used to help ALL indoor grow operations. From leafy greens to berries and vegetables, our storage systems give cultivators the ability to grow – safer, higher, and more efficiently. Helping the sustainable food industry’s indoor growers maximize the footprint of their harvest is a seamless transition. We provide the farmers the ability to custom design any size grow facility with our innovative grow system products, allowing them to save space, time, water, and money. GROW MORE with us.
Monthly Agriculture Market Calls
Next call: August 31
Contact Scott Loreaux anytime with questions, comments, or insights.
Everything Under the (Artificial) Sun
Spacesaver’s GROW mobile and drying systems are a valuable resource for those in the cannabis cultivation industry. But, did you know, they are designed for use with any type of indoor plant growth use? A New Jersey-based hydroponic grower is a prime example of this flexibility, utilizing five (5), four-tier carriages for the research, development, and growth of leafy greens used in local restaurants and schools. Thanks to Andrew Gannon from Diversified Systems for bringing the story and order to our team! Keep an eye out for more advancements on this growing operation!
Military
The End is Near: Direct and to the point, the end of the fiscal year is fast approaching. Let our experts and solutions help you make the most out of your clients’ remaining budget, and plan for what’s to come. Make sure to continue to provide our end of year info sheet to your customers.
Monthly Military Market Calls
Next call: August 25 (last Thursday of every month)
Storing the Future of Firearms: In anticipation and preparation for the fielding of Sig Sauer’s XM5 and XM250 rifles with the Vortex Smart Optic in late 2023, we have updated our UWR info sheet for your use. Backed by the trust and recommendation of Picatinny Arsenal, you can feel confident that Spacesaver’s UWR will provide the security, mobility, and versatility to keep your unit ready for action while utilizing the weapons of today and tomorrow.
Contact Pete Rooney anytime with questions, comments, or insights.
Addition By Consolidation
When Air Force Special Operations Command (AFSOC) 26th Special Tactics Squadron (STS) broke ground on its new building in 2019, they were looking to future growth. By the time the new building was finished, they had already outgrown their space allocated for personnel and gear. Needing a solution to optimize their space and allow future growth, they reached out to Rick Rogers of MOTUS Space Solutions. Utilizing a TLS procurement program through ADS, MOTUS provided High-Density Mobile Storage Systems, UWRs, 4-Post shelving, parachute storage, storage lockers, and workbenches that helped the squadron consolidate its gear, freeing up valuable space for existing service members and future recruits. The project’s sales cycle was approximately 6 months and Spacesaver NET of ~$500k.
Major Projects
The Proof and Nothing But the Proof:MOTUS Space Solutions’ Sam Ausloos recently worked on a project with an architect for the University of Wyoming’s Campus PD. Sam’s efforts resulted in Spacesaver being listed as the Basis of Design, and the project had a pre-bid requirement of all interested shelving vendors being approved as a substitute. Spacefile, who was also interested in the project, submitted a written request to be approved but the architect did not approve them to bid.
So, when Spacefile heard MOTUS was to receive the award, Spacefile protested, saying they were not given a fair opportunity to bid. The architect reached out to MOTUS for help on how to respond to Spacefile. Sam reached out to Joe Leibfried from the Major Projects team for advice, and together, MOTUS and Spacesaver were able to supply technical verbiage that showed Spacefile did not provide sufficient proof to qualify as a substitute, solidifying award of the project to Sam/MOTUS!
Marketing Minute
Mod-Glider Pro™ Is Ready to Go: On June 23, 2022, Spacesaver launched its revolutionary Mod-Glider Pro™ Modular Art Rack system. Designed to incorporate smooth operation with versatile storage capacity, its pullout screen loading transfers directly to the floor to allow for smooth and uninterrupted movement. In addition, our welded wire and punched triangle pattern screens offer versatile and secure storage for many forms of visual art in large and small institutions. The Mod-Glider Pro is a valuable addition to our art rack lineup. Make sure to utilize its BIM object when showing your clients how they can Experience Innovative Storage! And our new marketing material.
WELCOME ABOARD! We are proud to announce the addition of Alex Burns to Spacesaver’s Marketing Team! Alex has filled the role of Campaign Marketing Specialist and made his debut on July 11. In this role, he will be researching and identifying the ideal customer profile for each market, in addition to building and implementing contact lists, creating unique content, facilitating A/B testing, constructing and sending emails, and reporting on campaign performance to drive continued lead generation and list acquisition. Alex is looking forward to learning more about email, growing his marketing experience, and continuing to be involved in the great culture her in Spacesaver. Keep your eye out for Alex’s insightful and informational market emails, and make sure to say hello when you see him in the office!
Spacesaver hosted a live webinar on June 21 featuring our Designing Healthcare Facilities Presentation. This is one of our most requested presentations, as it reveals to participants how convenient and thoughtfully designed storage for supplies and equipment can improve productivity, patient care, and profitability. Please share this offering with your AEC partners that focus on the healthcare market to see if this would be of interest. Contact Megan Skinkis for help with continuing education course scheduling or presenting.
