Team Spacesaver, Supply chain disruptions are real and continue to disrupt our business, which ultimately disrupts your business. Recently, our focus has been on unprecedented rising costs of commodities that account for most of our cost of goods sold (COGS).
However, the disruptions are much more than rising costs. Like all manufacturing businesses across the country, we are experiencing late deliveries, short deliveries, and supply uncertainties on most of our commodities. This is directly affecting our ability to consistently ship on time or forcing us to backorder materials for your shipments. Just like all of us, our suppliers are facing labor shortages, transportation issues, rising costs, and supply issues.
Please understand our sourcing team continues to work relentlessly seeking out material with alternative sources of supply, increasing safety stocks where practical, and managing the impact on manufacturing and deliveries.
These issues are out of our control, and we will continue to proactively communicate with your teams so you can communicate with our end users. We consider these circumstances “force majeure” and cannot be liable for any additional costs associated with late deliveries, additional freight, or additional installation as a result of these uncontrollable events.
You will be hearing from Product Management and Sales Operations with a formal proactive communication plan to assure timely and efficient information for you and your teams.
Let’s continue to work together and support each other through these turbulent times. I am confident, and we have proven time and time again, that we will come out of this stronger than ever!
Enjoy your summer with family and friends and watch for some exciting new launches in the very near future.
All the best! Mark Haubenschild | President/CEO
Congratulations to our Area Contractor teams that have a Spacesaver Group anniversary in June!
Les Solutions (5 years)
Southwest Solutions Group (24 years)
Spacesaver Scorecard
The Spacesaver Group is showing it is capable of meeting—and overcoming—any challenge it faces. The upward trend continued in May and with the forecasts we have received, we are optimistic June will follow suit. THANK YOU ALL!
We now have 20 PARs at 90%+ quota YTD for incoming orders, and 13 of those are at least 102%. We have 6 that are over 150%! Patterson Pope has entered nearly $6.4M on the year (91%) and Southwest Solutions Group has sent in $4.1M (111%). For May, we had 12 over their monthly quota, led by Henderson-Johnson booking 591% (over $500k), Southwest Solutions Group ($772K, 109%), Bradford Systems ($705K, 125%) and MOTUS Space Solutions ($554K, 252%). As a Group, we increased to 94% YTD, after booking 96% in May.
Shipments held steady in May, but a significant increase is expected in June, as predicted by the increased bookings YTD. Systems & Space still holds the lead for invoiced YTD (179%), but they have a lot of challengers sitting over 150%, with Spacesaver Intermountain (162%), Interior Solutions (162%), Patterson Pope Carolinas (151%) and MOTUS Space Solutions (151%) right on their heels! We had 14 PARs ship more than their monthly quota in May, bringing our YTD group total to 87%.
We realize you’re facing challenges every day and we thank you for your continued support and commitment to winning. As Floyd “Money” Mayweather said, “A true champion can adapt to anything.”
There are many definitions of TRANSFORMATION—whether used in biology, physics, or linguistics. But, no matter the reference, it boils down to this simple meaning: TRANSFORMATION is the act or process of changing completely.
How has Spacesaver transformed over the last year? In so many ways. And, in our case, change has been good—ultimately setting us up to get through the turmoil we’ve all faced with COVID-19, supply chain issues, steel costs, and more. Whether we’re launching new products, remaining relevant through a worldwide pandemic, continuing to meet sales goals while other organizations are closing doors, navigating supply chain issues, or executing on continuous improvement suggestions—the reason our transformation has worked is because of our team.
“I have been part of the Spacesaver Group for 23 years, and one thing is for certain—the team assembled at ‘The Fort’ today is the best team we’ve ever had,” said Bill Corbett, President of Diversified Storage Solutions and Spacesaver Advisory Board member. “The synergy is evident, the changes being made are positive, the leadership and forward-thinking strategies are better than ever. We have become more nimble over the last few years and we’ve learned to evolve and change in order to maintain our position as the industry leader.”
“Spacesaver has always been a leader in agility…the ability to adapt to the ever-changing market and global conditions,” says Shelby Russ, President of AOS-Interior Environments and Spacesaver Advisory Board member. “Events of the past year have created change at an accelerated rate. It is wonderful to partner with a manufacturer that proactively stays in front of necessary transformation and change!”
Vertical Market Updates
Library and Education
As schools and libraries reopen, the federal government’s American Rescue Plan (ARP) is unlocking funds for Spacesaver projects in this market. The Department of Education released an update on May 11 with revised guidelines as to what ARP funds can and cannot be used for. Please make sure that you and your customers are aware of the guidelines and how these funds can potentially be used for your projects!
Did you know $1.7 billion has been earmarked specifically for HBCU (Historically Black Colleges & Universities)? Ask your POCs at these accounts if they are aware of this funding and have access to it for their projects. Our team is assisting by targeting HBCUs in various marketing and Business Development efforts.
As schools gear up for summer renovation and construction projects, we’ve been pushing out info via social media and email to selected educational audiences, and our Business Development team has been following up with engaged readers. Make sure to call on your campus and K-12 contacts, too. Let us know how we can support your efforts.
Contracts (also known as cooperative purchasing agreements) continue to be one of our most effective sales vehicles in this market. It’s a win-win: you eliminate the competition, and your client gets our high-quality products while legally bypassing cumbersome procurement hassles. Get the latest marketing tools here or contact Zak if you need an introduction to the concept. As always, you can contact Zak Hermans anytime with questions, comments, or insights.
Bi-Monthly Library & Education Market Calls
Next call: June 25
Helping High School Athletes & Coaches
Congrats to Ryan Mawhinney at Bradford Systems, who helped a high school’s athletics department consolidate storage, securely store gear for multiple sports, and even free up space for a new weight room! The department had a budget surplus due to COVID-related travel cancellations during the past school year, so the director decided to invest the windfall in better equipment storage. After Ryan visited the school and assessed the storage situation in several different areas, he designed two Wheelhouse systems to fit in one room: one locking system for football and a larger system for other sports. Stationary shelving with locking frame doors provides secure storage for particularly valuable gear for each sport, and condensing storage into one room allowed staff to convert a room that had formerly been used for storage into a weight room. The project resulted in $20,000 Spacesaver net.
Museum
Did you know the American Rescue plan is also helping museums? Keep an eye out for institutions in your area seeking quotes for grants!
Nantucket Drawers and Trays launched last month, and the product line is quickly gaining traction. We’ve already landed the first large order, and it’s right in Spacesaver’s back yard in Madison, Wisconsin! We’ll be sure to share photos as the project nears completion.
As always, contact Ben Adamitus for insights into the museum market.
Monthly Museum Market Calls
Next call: June 22
Service Lands the Sale
Congratulations to Scott Martin and Andrew Gannon at Diversified Storage Solutions Inc., who teamed up to preserve historic treasures and land a $251,000 Spacesaver net sale! Scott credits the successful sale to his long-standing relationship with staff at the at the American Philosophical Society, DSSI’s ability to recommend and collaborate with structural engineers, and Andrew’s attention to detail throughout multiple revisions. “Even though we were higher on price, we knew the collections, knew the space, and knew their goals,” Scott said. “That was worth a lot to them.”
Agriculture
As cannabis legalization expands, demand will increase — and we’re here to help your clients GROW MORE! As mentioned last month, we’re continuing to do outreach into newly legalized states to raise awareness with new and multi-state license holders and, as always, we’re passing leads along to you.
On a related note, don’t miss our live webinar and product presentation coming up on June 22 at 1:00pm CST! We want you to be ready with all the information you need to help aspiring growers. Even if cannabis isn’t legal in your state yet, be sure to tune in anyway because it’s only a matter of time!
We’re also continuing to streamline our processes with Hawthorne to make it easier for you to price projects and place orders. Hawthorne trays will be available in the next Configura update.
And last but certainly not least, we’re launching our new drying racks and carts in July. Look for a launch webinar invite to hit your inbox later this month.
Contact Greg Sayre for insights and advice in this market.
Educating a Client & Landing a Sale
Congrats to Dan Clifford at Donnegan, who sold a cannabis project entirely online! Spacesaver’s Business Development team nurtured a web lead until the client was ready to communicate with Dan. The client originally provided sketches of the proposed space to begin discussions and the design process. When Dan saw the sketches, he immediately realized that the client needed help with the system layout. He explained how designing a system with fewer, longer carriages would create more canopy in the same space and reduce the overall project cost. He worked through multiple revisions with the client and the sale resulted in $15,000 Spacesaver net.
Military
The next 60 days are crucial! This is when units will explain to their command / higher headquarters why they REALLY NEED what you have to offer. If you aren’t following up with customers on open quotes and helping them “make their case” to the command, you will miss the FY21 money-train coming in August and September. Now is the time to follow up! Don’t wait for ADS. Don’t wait for the customer. Control your own fate with proactive follow-ups and sales calls. It also isn’t too late for new opportunities to arise in the next 60 days, but you must get in front of the customer!
Planning big projects takes time, so we’re stepping up our military year-end efforts now to help you get ahead of the game. We’re targeting repeat customers and the top 10 bases to be sure you’ll have time to get orders in before the end of the military’s fiscal year this fall.
We’re also ensuring that Spacesaver is represented at in-person shows as they start to return. We attended two regional ADS shows at the end of last month, and interest in our products and services remains high. The two biggest ADS events, Warrior East and Warrior West, are coming up this summer and we’re eager to engage with customers!
Heads up: The Southern border wall cancelation has freed up $3 billion in construction funds, and the Air National Guard and Reserves have around $1.5 billion to spend. This is a big opportunity for you to help military clients in your territory deliver on major Defense directives: reduce footprint, promote readiness, and prevent property loss!
What’s your plan to get in on the flurry of military spending? Contact Pete Rooney to strategize.
Monthly Military Market Calls
Next call: June 24
Securing Weapons During Deployment Training
High fives to Selina Smelser at MOTUS Space Solutions, whose persistence has paid off again! The Mobilization and Demobilization Brigade at Fort Bliss needs to accommodate varying numbers of weapons as National Guard and Army Reserve units visit the base for training. Selina has been talking with the end user for years about the need for better weapons storage, and the funding finally came through last month. The project consists of high-density mobile systems in six rooms, all outfitted with UWRs, and all needing to be carefully designed because of architectural obstructions. The project resulted in $336,379 Spacesaver net.
Marketing Minute
A couple announcements from the Spacesaver Marketing Department:
With the summer upon us and busy vacation schedules, the June Marketing Tribe meeting will be postponed. An email and invitation with the new day and time will be coming soon.
We recently partnered with Equalis on an outreach campaign about the American Rescue Plan. Please check out our ARP blog and the Equalis website for more information—and share with your customers as it makes sense.
In the month of May, our Business Development team garnered nearly 500 sales-ready opportunities for your teams and set 55 appointments for your sales reps. We continue to see a positive impact on orders from projects the team has uncovered. We’re also excited to be adding a new team member this week!
Channel outreach continues to be strong—with Laura Walton giving 13 presentations and reaching nearly 100 people in May. We also have some exciting insight to share related to the AEC community. Watch for updates coming from Laura in the upcoming weeks.
