Independent Dealer Dec 2025/Jan 2026

INDEPENDENT DEALER

the official publication of WSA

SPARKING CHANGE 2025 has been called a “catalyst year”— what reactions will we see in 2026?

DECEMBER/JANUARY 2026

Editorial & Contents Well, another year is almost at a close, and I’m pretty sure that many in the IDC will be glad to see the back of it.

It has been a tricky year, with tariff-related uncertainty over supply chain and pricing issues already causing concern before the sledgehammer news of Essendant’s withdrawal from the independent office products channel.

I’m not going to expend too many more words in this column about the atrocious way in which the wholesaler chose to go about its business; I’ll just note that there was a fair amount of anger directed at Essendant by a number of the dealers I spoke to at Industry Week, including several who suggested they would avoid using it in the future.

Speaking of Industry Week, it was great to see the IDC out in force in Denver for the combined ISG and AOPD meetings. As usual, the event was well organized and ran smoothly, with an excellent balance of business and social gatherings. You can read an in-depth report on page 12, but I would like to extend my personal thanks to all those at the two groups who helped make the show so memorable.

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WINNER’S CIRCLE Good things happening to independents

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SECRETS OF SUCCESS Dawkins Office Supplies, Greenville, Mississippi

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INDUSTRY NEWS

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WSA FOCUS

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Rowan McIntyre, editor and publisher rowan@idealercentral.com

It should come as no surprise at this time of year that our cover story on page 34 sees Lisa Veeck gathering the views of a number of dealers on what 2026 may have in store for the IDC. Again, it will not be a shock to discover that AI, wholesaler diversification and Amazon are all frequently mentioned.

We also spoke to three Essendant dealers about how they have dealt with the loss of their first-call wholesaler and how they see their businesses adapting going forward.

But I said I wasn’t going to say any more about that situation in this column, so you’ll just need to look for yourselves on page 38.

All that remains is for me to wish you all the happiest of holidays and plenty of success for the forthcoming year.

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S.P. RICHARDS MARKETING 2026 SPR’s Simplifying Complexity marketing strategy

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COVER STORY Sparking Change: 2025 has been called a “catalyst year”—what reactions will we see in 2026?

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MOVING ON We talk to three former Essendant first call dealers about their experiences

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COLUMNS 42 West McDonald: The AI playbook for 2026 46 Jennifer Vitanzo: Generative engine optimization 48 Tom Buxton: Cutting small accounts 50 Marisa Pensa: Transforming business reviews 52 Troy Harrison: Gen Z’s AI skepticism

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An OPI publication

the official publication of WSA

Editor and publisher Rowan McIntyre

Finance and operations Kelly Hilleard

Associate editor Lisa Veeck

Head of creative Joel Mitchell

Head of media sales Chris Turness

Digital manager Aurora Enghis

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AT OPI CEO Steve Hilleard Director Janet Bell

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Winner’s Circle

Bailey’s celebrates its centenary In 1925, Mr. Bailey opened Bailey’s Typewriter Exchange, a small storefront in Ottumwa, Iowa, squeezed between a bank and a cigar shop. The company allowed customers to switch out their malfunctioning machines for a recently serviced, fully operational model. The idea took off and Bailey’s soon had contracts with all the courthouses in the area. By the 1950s, the business had become so successful that it bought out the bank and then the cigar store, creating a large three-story storefront— Bailey’s current headquarters.

Over the last century, the company has had numerous owners, including several father-and-son and husband-and-wife teams, most of whom are descended from the previous generation’s partners. Its name was changed to Bailey Office Outfitters; and in 2017, Robert “Bob” Witt and his wife, Stevie Nelson Witt, purchased it. Today, Bailey’s has 13 employees when fully staffed, annual sales of $2.1 million, a fleet of eight delivery trucks and a second retail location in Oskaloosa, Iowa; and it has expanded from servicing 17 counties to more than 40 throughout the state.

Like many independent dealers, Bailey’s has embraced the need to

DECEMBER/JANUARY 2026

move beyond office products, adding furniture and janitorial supplies to the product mix. “We also bought a printer and have been really promoting that category,” says vice-president Nelson Witt. “We do all the print work for a lot of municipalities, including all their letterhead, envelopes, etc. Print now accounts for about 25% of our business and continues to grow.”

The company’s philosophy is simple: “Whatever a business needs is something we should have. If we are already there to deliver copy paper, we

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should be delivering that customer’s toilet paper and can liners. And no order is too small. This month, maybe all a customer buys is a pen, but next month it could be a chair.”

And if the order is for a chair, it has to be the right one, hand-selected from the company’s fully stocked showroom.

“We look at selling furniture as like selling shoes,” Nelson Witt says. “Most customers don’t want to buy a chair from a catalog or online. They want to sit on it, to try it out. We even let them take it with them and try it out for a week if they want and return it if they don’t like it. Even if they find they don’t like it six months later, we will do what we need to make it right. And if they can’t find what they’re looking for, our two locations are only about 30 miles apart.

We tell customers we can bring them other options, but often they will just drive to the other location.”

Bailey’s mentality is the same when it comes to other products. “We carry a large variety of items and if they order something and don’t like it, we’ll exchange it,” continues Nelson Witt.

“But 99% of the time they like it—we rarely have things returned.”

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Winner’s Circle And this seamless exchange policy, when needed, isn’t the only reason why Baileys is thriving.

“We have a reputation for great customer service,” says Nelson Witt. “Our customers rely on us and being reliable builds trust and keeps relationships strong. We have a huge Amish population here that I sell to.

They know and trust me. We talk about everything from horses to gravel. I am never giving up those Monday and Thursday delivery routes!”

Indeed, many of Bailey’s sales interactions are face to face. “We are not in a metro area,” explains Nelson Witt. “Southeast Iowa is rural. We serve a niche market of many old, established businesses that don’t want to shop online. Of course, we have a website, but many of our customers prefer a catalog. I also think it is swinging

back where people want to buy local and that’s been good for us. We are members of the chamber and are visible and participate in the community, and our customers see that.”

According to Nelson Witt, Bailey’s employees are another reason for the company’s longevity: “Right now, we have nine employees; four of them recently celebrated their 30th anniversary with us. I have a military background and my husband has a farming background, so we have some pretty high standards. Our employees meet those standards. They go above and beyond.”

Another factor that has kept customers buying from Bailey’s is its “nothing is impossible” attitude. “No is not in our vocabulary,” insists Nelson Witt. “If we don’t have it, we will find it.

Our employees view finding what our

customers need as a challenge.”

Some of the more unique orders that the company has filled over the years bear this out: “One of our more unusual requests was for bike racks.

Another was a memorial bench that a sheriff wanted to put by the river on his property in honor of his parents. We also had to find food-grade shovels and pitchforks for a wine cellar. People have no idea of the kind of business we do—how much and how varied!”

Nelson Witt’s advice for other dealers looking to stay in the game is straightforward: “Never say no until you have exhausted every possible avenue. That’s how you become a trusted resource. Also, dealers should realize their employees are their most important asset. Without them, you won’t have customers. They are golden and should be treated that way.”

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Winner’s Circle

Eakes unites for fun and charity

Eakes Office Solutions, Grand Island, Nebraska, found innovative ways to raise money for United Way Week, including games, goodies and even a duct-tape employee showdown.

The company raised $36,645 for Heartland United Way, surpassing its original $30,000 goal. More than three-quarters of Eakes’ corporate and Grand Island branch team members participated in the campaign.

According to Paul McKinney, Eakes chief financial officer and chief operating officer, Eakes

supports United Way campaigns in communities where the company has an office. He said this was the dealer’s largest campaign because it included both a branch and corporate shared services team members.

“Eakes is committed to actively engaging in and enhancing the communities we serve,” McKinney says. “As an example of this commitment, we have established a policy that provides each employee with up to four hours of paid time off per month to volunteer within their

local communities. Additionally, we are proud to be longstanding supporters of the Heartland United Way and many United Way organizations across our market area.

These organizations partner with numerous agencies in our market area to improve the quality of life for individuals and families.”

Heartland United Way’s mission is to help create a community where all individuals and families achieve their human potential through education, income stability and healthy lives.

AAA Named a top 100

AAA Business Supplies and Interiors, San Francisco, California, has been recognized by the San Francisco Business Times as one of the Top 100 Fastest Growing Independent Privately Held Businesses in the Bay Area “This honor reflects our unstoppable momentum, our team’s tireless drive and our commitment to delivering innovative workspace solutions that empower businesses to thrive,” says AAA founder, owner and CEO Steve Danziger. “Thank you to everyone who makes this growth possible—our customers, our partners and our amazing crew. Let’s keep shaking things up and making workspaces work better!”

DECEMBER/JANUARY 2026

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Winner’s Circle

Blaisdell’s lends a hand to three charities

Blaisdell’s Business Products, Oakland, California, donated 300 children’s pajamas, 300 socks and 300 warm socks for Lend A Hand Foundation’s Joy of Giving event, which supports children and families in need this holiday season.

Lend A Hand’s mission is to uplift underserved children, youth and families in the Bay Area by providing educational support, health and wellness resources, and essential basic needs.

“The Lend A Hand Foundation is a nonprofit we’ve worked on numerous projects with annually for about 10 years,” says Michael Witt, Blaisdell’s chief operating officer. “This year, they needed help with donations for the organization’s 26 Days of Giving. This was an easy one for Blaisdell’s: we were able to donate the pajamas, hats and socks just in time for Christmas!”

In separate giving news, Blaisdell’s kicked off the holiday season on November 25 using its fleet of 16 trucks to deliver over 3,400 hot Thanksgiving meals as part of the City of Oakland’s Community Day of Thanks. The meals went to unhoused residents, seniors and low-income families in Oakland. This was Blaisdell’s fifth year making the deliveries.

“We notified our customers that they would not be receiving their daily deliveries for this cause and they were very supportive and happy to see our community involvement,” Witt says.

Lastly, Blaisdell’s moved its normal Monday morning sales meeting in early December to Meals on Wheels to help pack 1,200 warm meals for the elderly that were delivered that same night. “In addition to helping the community, it was a great team-building exercise,” Witt says.

Walker’s rebrands as Walker’s Supply Company Walker’s Office Supplies, Rocklin, California, has rebranded as Walker’s Supply Company, with the tagline, “Everything for your Workplace.” The rebrand took effect on October 21, 2025.

Jarrod Anderson, Walker’s president and co-owner, explains the decision: “I’ve thought about rebranding for a few years now. My brother, Matt, and my wife, Laura, were also involved in the decision. Our company and name were founded by my great-grandfather, Gordon Walker, but our legacy was created by my father, Steve Anderson, who always kept the name. I knew I DECEMBER/JANUARY 2026

wanted to keep it simple, inexpensive and timeless, and add what was true without losing our history. It’s a small shift that represents who we are today— a B2B supply company. Most of our marketing has been just Walker’s without the ‘Office Supplies’ for a while now. Today, we lead with janitorial and furniture, then add on office supplies, breakroom and promotional materials.

We always seemed to be selling around the name as we introduce ourselves to prospects. We wanted our name to align with what we are now and not who we were.”

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Winner’s Circle

Suburban delivers community assistance

Suburban Office Products, Middletown, Connecticut, recently participated in the Middletown Community Thanksgiving Project.

Suburban office employees and some outside sales reps helped pack and distribute food boxes containing turkeys and other Thanksgiving meal staples that reached more than 1,200 families in Middletown and surrounding communities. The company also collected over 500 canned items and pies to distribute. According to Suburban’s marketing director, Donata Barber, the event is a tradition that the company’s entire team looks forward to every year.

To make the event even more fun, Suburban hosted a box-building contest and paid the employees who participated. Partners with Suburban for the event included Lara SantaMaria, who runs the Middletown Community Thanksgiving Project, the Middlesex United Way and Fellowship Church. Middletown Mayor Gene Nocera joined volunteers to help load up the turkeys.

“The Middletown Community Thanksgiving Project is more than just a volunteer day; it’s a chance for our team to bond while giving back to the community that has supported Suburban for decades,” Barber says. “Seeing the scale of the effort, especially this year, to feed over 1,200 families is incredibly humbling and we love the spirit of friendly competition and teamwork it brings out in our staff.”

Cultivating leadership and partnerships, bringing resources together and investing in the community, Middlesex United Way acts as a catalyst to achieve measurable, positive impact in youth opportunity, creating healthy communities, financial security, equity and community resilience.

DECEMBER/JANUARY 2026

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Taylor Business Products donates $5,000 to local college

Taylor Business Products of Roxboro, North Carolina has donated $5,000 to the Piedmont Community (PCC) Foundation to support the College’s College and Career Readiness (CCR) program.

This contribution will directly benefit CCR students by helping cover exam fees and course registration costs, reducing financial barriers so students can stay on track toward their educational and career goals.

“Taylor Business Products is committed to giving back to our community,” said Ray Wilkins, president of Taylor Business Products. “We are honored to present this gift to the PCC Foundation to be used to help the students get their GED and then move on to a program that will further their education in order to obtain a great job.

Dr. Shawnee Seese, director of the CCR program, expressed her appreciation for the donation: “Piedmont Community College is deeply grateful for the generous donation,” she said. “[It] will provide meaningful support to students striving to achieve their High School Equivalency diploma and continue their education through workforce development, industry-recognized certifications and degree programs.”

“Under Dr. Seese’s guidance, this program will flourish and help our community that has a need for the CCR program. We have been blessed here at Taylor Business Products and honored to partner with PCC on this endeavor.”

Caption: (l-r) Dr Shawnee Seese; Ray Wilkins; PCC president Dr Kevin Lee; Jane Harris, PCC executive director; Tammy Duncan, associate director, PCC operations and stewardship.

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Winner’s Circle

Storey Kenworthy unites with United Way As part of its celebration of Giving Tuesday, Iowa dealer Storey Kenworthy, headquartered in Des Moines, raised $14,615.72 for the United Way of East Central Iowa (UWECI) 2025 campaign.

The funds were distributed between Central and Eastern Iowa.

“We are proud to host our annual United Way campaign, reinforcing our commitment to building stronger communities,” explains Storey Kenworthy partner Nicole Boyington. “United Way has been a trusted partner that helps address complex local needs and we are honored to support their mission.

“During the campaign, we not only encourage financial contributions but also provide employees with volunteer opportunities to use their VTO hours. We find that this opportunity allows our team to get more engaged with charitable organizations in our community and deepen their understanding of the local challenges and the impact we can make with our time.”

UWECI ‘s mission is to unite the caring power of communities to invest in effective solutions that improve

people’s lives. The organization partners with donors, volunteers, corporate partners and agencies to help members of Benton, Cedar, Iowa, Jones and Linn counties reach their goals through education, financial stability, and access to healthcare when and where they need it.

Since 2016, Storey Kenworthy has awarded grants to non-profit organizations throughout Iowa whose programs align with the company’s key giving priorities. In addition to other charitable initiatives, three organizations voted on by employees are awarded $10,000 grants annually.

Fireside takes part in Celebration of Trees Fireside Office Solutions in Bismarck, North Dakota, has sponsored and decorated a tree to help local charity Pride Inc’s Celebration of Trees—a community tradition that helps bring holiday joy to individuals and families who may not otherwise have a Christmas tree.

Local companies sponsor a tree and can decorate it. The tree then goes on display at the Bismarck Event Center, for visitors to the Holiday Food and Wine Experience, and the Pride of Dakota Holiday Showcase to enjoy.

The decorated trees are subsequently donated to area families. All proceeds DECEMBER/JANUARY 2026

from the sponsorship are kept in the community and used to help meet the needs of individuals who suffer from intellectual disabilities or mental illness, Pride supports.

Meanwhile, Fireside also recently collected and delivered donations to the Great Plains Food Bank.

The only food bank in North Dakota, Great Plains distributes almost 15 million pounds of food annually to 196 partner agencies across North Dakota and Clay County, Minnesota, giving more than 160,000 neighbors-in-need access to nutritious food.

“We’re so proud to support an INDEPENDENT DEALER

organization that helps so many in our community and grateful for our staff and the spirit of giving that makes days like this possible,” said a statement from Fireside.

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Secrets of Success

Dawkins Office Supplies For over six decades, Dawkins Office Supplies has demonstrated that long-term success in the IDC isn’t about chasing trends; it’s about people, adaptability and an unwavering commitment to service.

Dawkins was founded in 1960 in Greenville, Mississippi, when Roy Dawkins Jr. purchased McCree Office Supply, a company he had previously managed throughout the late 1950s. From the start, he believed exceptional service would be the company’s greatest differentiator. One of his most ingenious ideas was also one of the simplest: five-minute bicycle delivery. At a time when same-day delivery was virtually unheard of in the delta, Dawkins was already setting a new standard for service—a bold, customer-first move that continues to define the company.

That philosophy carried seamlessly into the second generation. R.E. Dawkins III joined the business full time in 1971 and became an owner in 1984, learning directly from his father not only the mechanics of the company but the values behind it. Today, Dawkins remains family owned and operated, with management including R.E. III, his wife, Belinda Dawkins, four daughters and a son-in-law.

While the bicycles are long gone, growth has never diluted Dawkins’ values. The company now operates two retail locations in Mississippi, an active outside sales team and a robust website. Yet, according to vice-president Jennifer Dawkins Spencer, the most important things have remained the same: “A newspaper article dated April 27, 1965 quoted our grandfather: ‘We have nearly everything every office could possibly need.’ We still follow that motto today, only we’ve added ‘and more!’”

Another motto the company lives by was coined by one of Spencer’s sisters: “Adapt or die.” The company’s strategy during the COVID-19 pandemic exemplified this approach.

“Johnnie is great,” says Spencer. “She’s a research geek and during COVID, she found different vendors so we could source and sell disinfectant sprays, hand sanitizers, masks, and other things our customers needed.”

Company info Headquarters: Greenville, Mississippi Top management: Belinda Dawkins, president; Jennifer Dawkins Spencer, vice president; Anne Marie Shelley, secretary; Johnnie Allen, treasurer; R.E. Dawkins III, advisor Number of employees: 15 Annual sales: $10 million Sales by category: Furniture 30%; office products 31%; technology 27%; janitorial/food service 12% DECEMBER/JANUARY 2026

This drive to adapt ties into a third Dawkins mantra: “Never tell a customer no.” “If you need it, we have it; if we don’t, we will get it,” explains Spencer. “A lot of customers call us first because they know this about us.”

And Dawkins’ employees also embody this can-do attitude: “What sets Dawkins apart is our people and the services we provide. Those are two significant factors you can’t get from Amazon. Everyone has over 15 years of experience and wears multiple hats, yet each product category has a dedicated specialist, ensuring customers receive both comprehensive service and deep expertise. And our delivery team provides an extra personal touch with every order.”

Dawkins’ enduring success is also locally driven. “We’re actively involved in our community,” says Spencer. “Local commitment runs deep for us. Supporting local organizations helps build relationships that extend far beyond transactions.

We are all in this together. We support our community and they support us, because customers know Dawkins isn’t just a supplier—we’re a partner invested in their success.”

Dawkins’ mission reflects that belief: the goal isn’t simply to sell, but to help customers thrive in a constantly evolving work environment.

Like any independent dealer, Dawkins has had to weather its fair share of challenges but always seeks to find the silver lining: “Rather than panic, we focus on what we can control: operational flexibility, strategic partnerships, inventory optimization and transparent communication. We view industry-wide challenges as opportunities to grow.”

So, what other wisdom can Spencer share with dealers keen to thrive? “Our advice for other independent dealers is to highlight the value of local service, trusted relationships and community connection. Independent dealers can’t outprice Amazon and big-box stores, but they can out-serve them. Stay alert, stay flexible and always go the extra mile.”

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Industry News

If you have news to share, email it to rowan@idealercentral.com

ISG and AOPD share successful Industry Week in Denver

Industry Week ’25, powered by ISG, was run in conjunction with national buying group AOPD this year. The event took place against the background of a channel in flux, coinciding with the end of Essendant’s 60-day “transition period” for exiting its IDC office products operations.

The mood at the Gaylord Rockies Resort and Convention Center in Denver, Colorado, was upbeat, however, with attendees keen to discuss the situation with peers in what is always a calm and relaxed atmosphere. Of course, much of that conversation centered on Essendant’s move and the “disappointing” manner in which it was announced—although stronger language may have been used on the show floor.

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When pressed about plans for the future, dealers were generally sanguine about their prospects, as one might expect in the IDC; but there were predictions of further consolidation and the potential loss of dealerships that continued to ignore the need to diversify their product portfolios, as margins would continue to be squeezed. Other hot topics included how wholesaler conversions were progressing (largely positive, a few product number problems aside) and alternative sourcing strategies that might be put in place.

To that end, S.P. Richards executives were out in force at the show, explaining that the company has made key investments—adding staff, trucks

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and distribution centers—to cope with the increased volume it is now dealing with. It also assured attendees in both ISG and AOPD sessions that it is committed to doing all it can to help dealers through the ongoing changes; and, following its acquisition by Central National Gottesman, that it has the financial stability to do so.

Several other wholesalers had a notable presence at the show, including Distribution Management, Educators Resource, RJ Schinner and TD Synnex. Indeed, Distribution Management president Greg Welchans gave a presentation during the ISG General Session showcasing his company’s capabilities, primarily in the print and imaging sectors.

The show opened on November 4 with the first round of AOPD marketing workshops and one-on-one dealer/ vendor meetings. There were also

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Industry News events for dealers that are part of the Pinnacle buying group, comprising a member meeting and a peer exchange session—the group having decided not to hold its own one-on-ones at Industry Week this year.

Tuesday evening saw the inaugural Giveback Games, a fundraiser for City of Hope. This enjoyable event involved a drinks reception at which attendees could take part in a variety of fun activities, such as curling and soft-tip archery—both of which turned out to be far trickier than they looked—in return for a donation to the industry’s flagship charity. The proceeds went toward a $10,000 donation that ISG director of marketing Ashlee Hunt presented to Greg Welchans at the General Session to help kick off his year as City of Hope’s National Business Products Industry Spirit of Life Honoree.

The following morning began with a breakfast featuring presentations from Mike Tucker, executive director of industry trade body the Workplace Solutions Association, who spoke about the benefits of membership for dealers; and Matt Dodd, senior executive director of corporate philanthropy at City of Hope, who thanked the assembled crowd for all the industry’s fundraising efforts.

Breakfast was followed by the ISG General Session. This started with an introductory address by president and CEO James Rogers, who described 2025 as a “catalyst year of disruption” and emphasized his group’s commitment to supporting its dealers through these turbulent times. Next, Jacey Putlak of the HON Company highlighted a number of marketing trends in both the IDC and the broader furniture market; while OPI’s Steve Hilleard interviewed principals from two dealerships, Southeast Office Products & Paper and Walker’s Supply Co., on the advantages of operating in the IDC. Greg Welchans’ aforementioned presentation was then followed by ISG board chair Paul McKinney of Eakes Office Solutions, who also explained how ISG can help members in “weathering the storm.” He went on to present awards to outgoing and long-serving ISG board members Jordan Kudler of Legacy Workplace Solutions and Kevin Johnson of Warehouse Direct.

Following a short break, keynote speaker Dr. Dhamu Thamodaran—a retired executive vice president from Smithfield Foods—shared his thoughts on today’s volatile and

uncertain economic environment in an entertaining talk covering everything from President Trump’s tariff program to how Chinese recessions can be predicted by tracking Estée Lauder’s share price. The session ended with a slew of dealer and supplier awards presented by the ISG hierarchy.

The first of these was the Outstanding Commitment to Community Award, which is given to an independent dealer member that has gone above and beyond in its local charitable work. This year, Storey Kenworthy of Des Moines, Iowa, was recognized for its efforts.

Next came ISG’s Member Excellence Awards: • Online Marketplace Excellence: Zbeem Group • Access Member Excellence: Bauman Office Equipment • Shareholder Member Excellence: Metropolitan Office and Computer Supplies • ISG+ Member Excellence: GBP Direct • Pinnacle Member Excellence: Innovative Office Solutions • EPIC Business Essentials Member Excellence: Guernsey Office • ISG Buy Direct, Sell Brands: Eakes Office Solutions

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Industry News ISG also recognized a number of its supplier partners: • Supplier Partner of the Year 2024: RJ Schinner • Members’ Choice Best Supplier 2025: The HON Company • Supplier Growth Achievement 2024: Distribution Management • Rising Star: Kutol Products • EPIC Business Essentials Partner of the Year 2024: ACCO Brands Lunch followed the General Session, at which OPI director Janet Bell took to the stage to present the 2025 North American Office Products Awards, which included six product-focused categories and three honoring outstanding individuals. The latter went to John Kenworthy, CEO of Storey Kenworthy Company, who was named Professional of the Year; Nicole Jones, director of finance and operations at Office Plus of Kansas, who scooped the gong for Young Executive of the Year; and recently retired former AOPD executive director Mark Leazer, who accepted the coveted Industry Achievement Award. (For more details of the awards, see page 16.)

The rest of the working day was taken up by the first part of the education program, which offered a

DECEMBER/JANUARY 2026

selection of eight sessions on a range of industry topics hosted by both ISG and AOPD staffers and external industry experts, including Flashlight Marketing’s Andrew McCauley; Barry Farbstein of 3D Associates; Michelle Warren of Catalyst Consulting Group; Veritiv’s Paul Eichkorn; and Jacey Putlak, Stephen Anderson and Colleen Martin from The HON Company.

The evening’s entertainment commenced with two mixers: one for ISG’s NEXT Young Leaders group and the other for Office Products Women in Leadership. These were followed by the official welcome reception, styled as “Mountain Time,” which afforded a convivial atmosphere for assembled guests to engage in a spot of networking.

Thursday morning saw an early start for AOPD members, who gathered for the group’s Opening Session, which included an address from outgoing president Dutch Jones.

In a rousing speech, he not only highlighted increasing sales in 2024 and 2025 (up 11 percent and 8 percent, respectively) but spoke about the need for collaboration in today’s turbulent business environment. “Don’t ask ‘How’s it going?’” he suggested, “ask ‘What can I do to help?’”

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Following a dual session of peer exchanges—one for ISG members and one for AOPD members— attention turned to the trade show.

Following last year’s forced change due to Hurricane Helene, the trade show once again had a morning start and, once again, it was a roaring success. There was a clear buzz of excitement on the well-attended show floor. Booths were busy and orders were written. The business day concluded with a final round of seminar sessions.

Industry Week’s social program resumed in the evening with the Whiteout Wonderland dance party.

The event featured bespoke cocktails, dancing and delicious food—all to the backing of a live band, which played a range of hits. There was also the drawing for the tradeshow’s Rocky Mountains Riches contest and Andrew Rapp of JB Office in Chatsworth, California was the lucky winner of the $2,500 first prize.

Friday was entirely given over to AOPD, as the one-to-one meetings and vendor marketing workshops continued once the group’s annual member meeting and board elections had taken place. The following appointments were made:

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Industry News • President: Jon Rossman, Chuckals Office Products • Vice president: Mark Porter, Porter’s Office Products • Treasurer: Wayne Stillwagon, Miller’s Supplies at Work • Secretary: Chris Crumpton, Business Essentials • Director: Alisa Fraga-Kautzman, Tejas Office Products • Director: Lindley Herring, Officewise The week came to a close with AOPD’s cocktail reception and awards dinner, at which eight new awards were presented to recognize dealer success in 2024: • Highest percentage growth by a Contracting Dealer: Business Essentials • Highest dollar growth by a Contracting Dealer: FSIOffice • Highest percentage growth for the OMNIA Contract: A-Z Office Resource • Highest dollar growth for the OMNIA Contract: Miller’s Supplies at Work • Highest percentage growth for the Premier Contract: Intivity • Highest dollar growth for the Premier Contract: Innovative Office Solutions • Highest percentage growth for the Vizient Contract: Apex Office Products

• Highest dollar growth for the Vizient Contract: Independence Business Supply In addition, the AOPD President’s Award for dealers went to Matthew Donaldson of A-Z Office Resource in Columbia, Tennessee; while the Business Partner recipient was Rick Yoakam from HP Inc. The biggest ovation of the night, however, was reserved for the winner of the MC “Bud” Mundt Award. This is a prestigious honor that AOPD only bestows on people who have dedicated years of service to the group and its members. It was won by much admired former executive director Mark Leazer.

“Our Annual Meeting came at the perfect time, as our industry continues to experience significant change,” said current executive director Angela Price. “It is more important than ever that we work

together, share strategies and strengthen our partnerships. Through collaboration, we can continue to adapt, find new opportunities and build a stronger future for the IDC and our customers.”

ISG’s Rodgers added: “Industry Week ’25 delivered an exceptional platform for productivity, collaboration and strategic engagement across our membership and supplier network. We welcomed nearly 1,000 participants, including 450 representatives from over 220 member companies and more than 330 ISG supplier partners. Against a backdrop of market disruption, our members expressed optimism and confidence in the opportunities ahead.”

The final word, however, should go to Ashlee Hunt, who succinctly summed up the views of all at the show when asked for her view of Industry Week ’25. Her response? “Amazing!”

» DECEMBER/JANUARY 2026

INDEPENDENT DEALER

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Industry News

NAOPA winners revealed

Energy, innovation and a strong sense of community defined this year’s North American Office Products Awards (NAOPA), presented during Industry Week ’25 in Denver, Colorado. Hosted by OPI in partnership with Independent Suppliers Group (ISG), the awards once again celebrated the achievements that drive our industry onward and upward.

From cutting-edge design to everyday functionality, the 2025 NAOPA winners—including one product that succeeded in two categories—demonstrated just how vibrant the sector still is.

The awards session, compered by OPI Director Janet Bell, highlighted not only product innovation but also individuals who continue to raise the bar. The people awards segment was a particular highlight, shining a light on impressive talent and leadership.

DECEMBER/JANUARY 2026

INDEPENDENT DEALER extends its congratulations to all the winners for their commitment to growth and support for the industry as a whole.

The winners in the products categories were: Best Product: Core Business Product Bi-silque MasterVision: The Loop Rolled Dry Erase Board Best Product: Facilities Energizer: 3-in-1 Child Shield Best Product: Furniture & Design Ghent: Groove Sliding Glassboard Best Product: Technology Fellowes Brands – Fellowes Array Relay Innovation of the Year Energizer: 3-in-1 Child Shield People’s Choice The HON Company: Ignition 2.0 with Spectrum Mesh The second group of awards recognized individuals who, in one way or another, have made—and continue INDEPENDENT DEALER

to make—an outstanding contribution to the IDC, and who are at varying stages of their careers.

The Young Executive of the Year award recognizes rising leaders whose energy and proactivity will help shape the industry’s future. The 2025 winner, Nicole Jones, was described by judges as “an outstanding young executive” with professionalism, drive and leadership who inspires everyone around her. Laurie Jones, Office Plus of Kansas president—and Nicole’s mother—presented the trophy, sharing her pride in Nicole’s achievements.

As director of finance and operations, Nicole plays a central role in the company, setting high standards and leading by example in everything she does. She has also been active within ISG, serving on its NEXT Committee and championing the involvement of young professionals in the industry.

“Amid the challenging times our PAGE 16

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Industry News industry has been navigating, I’m especially grateful for this recognition and hope to continue representing our profession with dedication and optimism in the coming years,” Nicole added.

Professional of the Year rewards outstanding leaders whose vision and influence shape the IDC and encourage peers across the channel.

These are individuals driving growth, innovation and positive change, in the process setting new standards of excellence. Past winners include Jack Reagan, Barry Lane, Charlie Kennedy, Ian Wist, John Rossman, Bob Shulman and Yancey Jones Jr. Ric Anderson, vice president and general manager of The HON Company, presented this year’s award to John Kenworthy, CEO of Storey Kenworthy. Anderson highlighted the remarkable journey of Kenworthy, who started out in 1990 in the warehouse at Storey Kenworthy. He progressed through sales to ultimately head the Iowa-based business as CEO. “Over his career, John hasn’t just led Storey Kenworthy – he’s transformed it,” said Anderson. “Under his leadership, this family-owned institution has evolved from a respected regional

dealer into a statewide powerhouse with over 180 employees across eight locations. He stewarded a legacy built by generations before him and made it futureproof.”

Kenworthy’s impact extends far beyond business growth. He has navigated disruptions—from digital transformation and the COVID-19 pandemic to hybrid working and supply chain volatility—by investing in people, culture and the client experience.

“I was pleasantly surprised to receive award,” enthused Kenworthy. “It’s been a challenging, rewarding and gratifying 36-year journey. I’m indebted to our team who have committed to living our vision every day. Their hard work enables us to make a difference in the communities where we live, work and play.”

The final award, Industry Achievement, honors an individual whose career has left a lasting mark on the industry—someone whose leadership and drive have influenced individuals, organizations and the wider business products community, helping to move the sector forward in meaningful ways.

Bill Jones, senior vice president of sales at AAA Workspace, took to the

stage to present the trophy to Mark Leazer. Jones spoke of Leazer’s long and distinguished career, noting his many achievements that are testament to decades of service and impact.

Having worked alongside Leazer on the AOPD board for nearly 20 years, Jones recalled how the group was unanimous in supporting Leazer’s reappointment as executive director after Bud Mundt stepped down. “Mark led with transparency, respect for every member and a steadfast commitment to our business partners,” Jones said.

Grounded, principled and dependable, Leazer has been described as a “salt-of-the-earth” leader. Evidencing this, he commented: “Receiving the Industry Achievement award is a truly humbling experience.

I’ve learned so much from so many people in this industry and I’m thankful to have been part of a community that values excellence, collaboration and integrity.”

In their deliberations, the judges praised him for his deep industry knowledge, forward-thinking approach and genuine heart – qualities that have strengthened not just organizations, but the wider business supplies community.

Raab joins Harbinger

US business products exec Andrew Raab has joined manufacturer rep group Harbinger National in a senior sales position.

Raab spent more than 20 years at Essendant, handling some of the wholesaler’s largest accounts. Now, he has been named director of national accounts at Harbinger. In this role, he will focus on the national, MRO, industrial and hardware businesses, serving new as well as existing national customers.

“Andrew’s skills will help to develop Harbinger’s strategic vision for manufacturers and customers as they continue to grow their national footprint within the industry,” the company stated.

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Industry News

ISSA announces 2026 International Cleaning Week Cleaning association ISSA has announced the return of International Cleaning Week (ICW) for 2026.

This weeklong event—taking place from March 22–28—includes the second annual Spotless Spaces competition and the first-ever ICW Awards dinner in Washington DC. Spotless Spaces—sponsored by Essity’s Tork brand—recognizes individuals and groups whose dedication ensures environments such as offices, hospitals, schools and public spaces support wellbeing, accessibility and excellence every day. The winners of the three categories will be announced at the ICW Awards dinner on March 23.

The dinner ties in with the ISSA Clean Advocacy Summit taking place

in the US capital from March 23–24.

This fly-in brings together leaders, advocates and stakeholders for policy briefings, advocacy training and direct engagement government representatives.

ISSA is holding a webinar at the end of January to give cleaning industry stakeholders tips on how they can leverage ICW in their marketing messages, etc. More details can be found here.

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Industry News

ECI launches AI Agent ECI Software Solutions has announced the launch of a tool called AI Agent that is built into its EvolutionX e-commerce platform.

AI Agent is designed to simplify daily operations for merchants by combining real-time business insights, automated content generation and fraud detection in a single interface. The purpose-built plug-in, also used in ECI’s Spruce e-commerce solution, provides users with instant access to sales and customer data, a chat function for trend analysis and automated product listing features designed to enhance visibility and conversion rates.

“E-commerce businesses today are managing more digital complexity than ever, from maintaining e-commerce catalogues and product data to keeping pace with evolving customer expectations,” said Chris Fisher, ECI’s vice president of global e-commerce.

He added: “Most don’t have the time, budget or in-house expertise to implement advanced AI tools that typically only large companies can afford. By building AI directly into our

e-commerce platform, we’re eliminating those barriers and giving users a practical, simple and secure way to streamline everyday tasks, uncover insights in real time and build the kind of digital resilience they need to compete long term.”

AI Agent will be available to all EvolutionX and Spruce e-commerce stores from November. It will also support other ECI-integrated platforms, including DDMSPlus, Red Falcon, e-automate and Deacom, as well as customers in distribution sectors such as industrial, safety and MRO.

For more information, please contact Harbinger National and your local representative will reach out to you. info@harbingernational.com

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Industry News Wight rejoins ODP Business products executive Bryan Wight is back at ODP Business Solutions less than a year after he left the organization.

In a social media post, Wight confirmed he had been appointed president of ODP Business Solutions, the B2B arm of The ODP Corporation (ODP). The news came just days after the closing of ODP’s acquisition by Atlas Holdings and is the second confirmed leadership change after Craig Gunckel succeeded Gerry Smith as CEO. Wight—who spent 14 years at S.P. Richards— initially joined ODP at the

end of 2019 to head up its Federation dealer program.

He left in March this year to become CEO of distributor Midland Industries.

Now, as of December 1, he is leading ODP’s $3.4 billion North American reseller business, which also includes Canada’s Grand & Toy operations.

Wight revealed that the Veyer supply chain subsidiary will be combined with Business Solutions.“By doing so, we will redefine our market presence across revenue-generating verticals, with a distribution promise that will simplify and solve our customers’ unique sourcing needs.”

School Specialty buys rival supplier

North American education sector reseller School Specialty has acquired Nasco Education US, expanding its offering of specialized learning materials for the K-12 market.

The Wisconsin-based company—owned by a consortium of private equity groups including TCW and Cerberus—said the deal strengthens its ability to serve core customers by broadening the product range available to schools.

School Specialty CEO Ryan Bohr noted that a significant portion of Nasco Education’s customer base already overlaps with School Specialty’s.

“Combining our companies will bring procurement efficiencies to our customers

and expand the scope of products available to them,” he commented.

The two organizations will continue to operate independently in the near term. School Specialty said integration will be phased in gradually to ensure a smooth transition for customers of both companies.

Bohr added that the enlarged group would be able to “provide even greater support, innovation and value to schools nationwide,” with the goal of helping educators deliver effective learning experiences.

The deal marks School Specialty’s first acquisition since it bought physical education supplier Flag House in 2023.

HON reimagines Chicago presence with New Fulton Market showroom The HON Company has announced it will launch a new 12,000-plus square-foot showroom in Chicago’s Fulton Market district.

The move to Fulton Market represents a significant strategic investment and a reintroduction of the HON brand to Chicago’s architecture and design communities.

The new showroom, located at 320 N Sangamon St., will open in June 2026, in conjunction with the Fulton Market Design Days event.

“Creating and bringing to market this new space is a pivotal moment for HON and a declaration of our commitment to the future of work, learning and the entire Chicago design community,” said Jason Hagedorn, president of HNI Workplace Furnishings. “We feel energized by the fresh direction of the space and look forward to reintroducing HON as part of Fulton Market Design Days.”

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Industry News

Kimberly-Clark makes healthcare move

Kimberly-Clark has demonstrated its ambitions in the consumer healthcare segment after agreeing to buy Neutrogena, Tylenol and Band-Aid owner Kenvue in a deal valued at nearly $50 billion.

The cash and stock transaction—if it goes through—will create a health and wellness company with annual sales of over $32 billion. The combined businesses will be led by current Kimberly-Clark CEO Mike Hsu and will be based out of his company’s headquarters in Irving, Texas.

Kenvue is currently embroiled in several legal battles over claims linking its Tylenol painkillers to autism and talc products to cancer. Kimberly-Clark said its board had consulted with “the world’s foremost scientific, medical, regulatory and legal experts” before going ahead with the proposed merger.

Following the Kenvue deal news, Kimberly-Clark’s share price fell by almost 15 percent as investors reacted nervously to the tie-up.

Essity strikes feminine care deal Hygiene and health company Essity has entered into an agreement to acquire Edgewell Personal Care’s feminine care business in North America.

The asset deal—valued at up to $340 million—includes the well-known brands Carefree, Stayfree and o.b. in the US, Canada and the Caribbean; the global feminine care rights for the Playtex brand; and a US production facility in Dover, Delaware.

For the 12 months ended June 30, 2025, the acquired business reported sales of $261 million and an operating profit of $17 million. It has around 500 employees, with about 450 based at the Dover location.

Essity said the acquisition—expected to close in the first quarter of 2026—is in line with its strategy to focus on high-yielding categories in attractive geographies.

DECEMBER/JANUARY 2026

INDEPENDENT DEALER

John Williams transitioning to advisory role at Domtar

John Williams, former president and CEO of Domtar, is transitioning from his role as non-executive chairman of the Domtar management board into a new role supporting Domtar owner Jackson Wijaya. The new role, senior advisor to the owner’s office, will allow Williams more time to focus on his health.

Williams served as president and CEO of Domtar from 2009–2023 and transitioned to non-executive chairman of the Paper Excellence Group in 2023, when legacy companies Paper Excellence, Resolute Forest Products and Domtar began integrating into a privately held forest products manufacturer. A visionary and customer-focused leader, Williams was instrumental in Domtar’s transformation from a strictly paper manufacturing enterprise to a significant player in the forest products industry, and most recently played a key role in uniting Paper Excellence, Resolute and Domtar under the Domtar brand.

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Industry News

Acquisition for Vectair Aircare and hygiene solutions vendor Vectair has made another acquisition, this time in the restroom hygiene segment.

Following on from June’s deal for odor control specialist Big D, the firm has acquired WizKid Products, a Georgia-based manufacturer known for its patented restroom hygiene products.

The purchase strengthens Vectair’s position in the global air care and hygiene market, expanding its manufacturing base to include in-house screen and antimicrobial mat production.

It also enhances the company’s ability to develop and launch new products aimed at improving hygiene standards and user experience in commercial washrooms.

Vectair CEO Peter Lipke said WizKid’s expertise in “practical, patented solutions” complements the company’s own focus on innovation. “By joining forces, we’re creating a powerhouse of creativity, technology and product excellence that will lead the market into its next phase of growth,” he commented.

WizKid’s well-known products include the Splash Hog vertical urinal screen and antimicrobial mats. Together, the companies aim to accelerate product innovation and deliver next-generation hygiene and odor control solutions to facility managers, cleaning professionals and other end-users worldwide.

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205.640.4270 matthew@officepar tners.com

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Industry News

Katun names new CEO

Imaging supplies and printer vendor Katun has appointed Chenyi Chiu as its new CEO. Chiu succeeds interim CEO Kuoying Wang, who became chairman of Katun’s parent company, General Plastic Industrial, in July 2025. Wang continues to serve as chairman of Katun, a role he has held for the past five years.

Since joining Katun as chief strategy officer in September 2024, Chiu has impressed in shaping the company’s long-term growth plans. The vendor said his promotion reflects his “strategic insight, collaborative leadership and commitment to driving transformation.”

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Xerox appoints Chuck Butler as chief financial officer

Xerox Holdings Corporation has announced the appointment of Chuck Butler as chief financial officer, effective December 3, 2025. As part of the company’s evolving leadership structure and following a mutual decision, Mirlanda Gecaj will be departing Xerox to pursue new opportunities.

Butler brings extensive financial and operational expertise to the role and will retain leadership of the Global Business Services organization. His appointment reflects Xerox’s ongoing effort to align its leadership structure with the company’s strategic priorities and strengthen operational integration across the enterprise. Prior to joining Xerox, Butler served as senior vice president and chief financial officer at Lexmark, where he helped guide the company through its acquisition by Xerox in July 2025.

“Chuck is a trusted leader with deep expertise and a strong record of driving operational excellence,” said Steve Bandrowczak, chief executive officer of Xerox. “Chuck’s experience leading large-scale organizational change and his focus on empowering teams will be invaluable in advancing our next phase of growth and performance.”

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WSA Focus

Gridlock economics:

understanding the business and workforce impact of federal shutdowns Paul A. Miller, legislative counsel, Workplace Solutions Association

The federal government shutdown of 2025 was not just a political skirmish in Washington—it has had pervasive effects on the economy, the business community and ultimately taxpayers.

For small businesses and staffing firms, which operate on tight margins and rely on stable contract flows, government uncertainty and a pause of services can mean disruption, deferred growth, lost revenue and even existential risk. The 2025 shutdown of the federal government serves as a critical case study.

Impact on the Treasury and taxpayers Taxpayers ultimately absorb costs in multiple ways: back pay for federal employees, lost tax revenue from economic slowdown, delayed services leading to higher costs later and so on. Even when the government “reopens,” the backlog of work means additional productivity loss (i.e., taxpayers

paying twice—once for the halt, again for catchup). For the taxpayer base, longer shutdowns mean less revenue coming into the Treasury (due to weaker economic activity) and higher costs of stabilizing the system.

The announcement that unpaid federal workers went without pay or worked without pay places both moral and cash-flow burdens on the system, which ripple out into households, municipalities and ultimately local business ecosystems.

Disruption to the marketplace The marketplace expects continuity: federal procurements, contract awards, regulation, inspections, permitting, loan programs, tax processing … When these stop or slow, companies must pause decisions, hold off investment, deter hiring or scale back.

The macro impact: government, country, Treasury and taxpayers National economic consequences When the federal government ceases non-essential operations, there is an immediate and measurable drag on economic activity: • According to the Congressional Budget Office (CBO), the 2025 shutdown could cost between $7 billion and $14 billion in gross domestic product (GDP) loss.

• One White House memo warned that the US could lose up to $15 billion per week of growth.

• Local communities feel the pain: one local government association notes that the loss of federal funding has “expanded beyond the Washington, D.C. metro region” and will have both immediate and long-term impacts.

DECEMBER/JANUARY 2026

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WSA Focus Uncertainty breeds risk aversion.

For small businesses, a paused or delayed contract may mean layoffs, scrapped expansion, idle inventory or lost financing. For the economy at large, delayed government purchases or services reduce demand for goods, drive down supplier activity, lead to slower growth and constrain private investment.

Effects on small businesses Direct contract and funding impacts Many small businesses depend on federal contracts or federally guaranteed financing. A shutdown halts new award decisions, freezes routine contracting flows and delays payment.

For example, analysis conducted by the US Chamber of Commerce in October found that in FY 2024, 65,500 small business contractors received over $155 billion—but during the

shutdown, nearly $3 billion a week of payments were at risk.

The US Small Business Administration (SBA)—a key provider of small business financing—halts processing of its popular 7(a) and 504 loan programs during a shutdown, meaning businesses waiting on capital may see deals stall entirely.

For many firms, the fourth quarter is mission-critical (holiday season, end of year contracting). The shutdown hit that window hard: small businesses reported reduced customer spending, cancellations of projects and abrupt shifts.

Cash flow, hiring and staffing disruption When contracts are delayed or payments withheld, small businesses face increased cash-flow stress: they are unable to meet payroll, keep inventory or invest in growth. Because small businesses often have leaner reserves, they are less able to absorb shocks compared to larger firms. They often respond with layoffs or hiring freezes. A wait-and-see attitude slows down new hiring, training and onboarding, which delays growth and productivity.

Competitive disadvantages; tariff and cost pressures Many small businesses already face rising input costs, tariff uncertainty, supply chain pressures and labor cost inflation. When the government shutdown adds disruption on top of this, the cumulative effect is magnified.

While larger firms with more diversified revenue streams and stronger cash positions can ride out the pause, smaller firms may not survive.

Specific to staffing agencies and staffing models For staffing agencies that supply federal contractors (or federal agencies), contract calls are frozen, hiring is

DECEMBER/JANUARY 2026

INDEPENDENT DEALER

paused and placement volumes fall.

They may have to pivot to private sector roles, but that transition takes time and may mean margin erosion.

Agencies servicing federal contractors also face risk of nonpayment if contracts are suspended or payments delayed— meaning the temporary staffing firm itself becomes exposed.

Meanwhile, the inability to guarantee continuity of placement (e.g., when a contract is resumed but rehiring is needed) means that staffing firms face churn, higher recruitment costs and uncertainty.

Finally, if federal worker furloughs affect vendor staffing (e.g., if government sites shut down or work is paused), staffing firms may have to tell temporary employees to stand down, reducing utilization and revenue.

The 2025 shutdown: key details and impacts Scope and staffing of federal workforce The 2025 shutdown was the longest in US history. According to compiled figures, approximately 900,000 federal employees were furloughed and another 700,000 worked without pay during the shutdown. In some agencies, essential personnel (e.g., air traffic controllers) had to work without pay, leading to morale, safety and overtime exhaustion issues.

Impact on air travel and broader ripple effects Faced with staffing shortages (controllers working without pay, some calling in sick), the Federal Aviation Administration directed a reduction in flights to maintain safety margins. The cuts were phased: they started at ~4 % and were projected to reach ~10 % at the largest 40 airports nationwide. Major hubs were affected, including Washington Dulles and Reagan National. Delays and PAGE 27

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WSA Focus cancellations mounted (average delays of four hours at Chicago O’Hare during the early stages).

For businesses that rely on air travel (client visits, regional placement, logistics), these disruptions translated into increased costs, delayed shipments, canceled trips and heightened uncertainty. The breakdown in air travel also damaged traveler confidence, creating knock on effects in hospitality, business travel and tourism—all sectors with small business participation.

Impacts on small business financing and loans The SBA announced that it was unable to deliver about $5.3 billion in guaranteed loans to approximately 10,000 small businesses during the 43-day shutdown.

The freeze on approving new SBA-backed loans also meant that many small businesses were sidelined just as they intended to invest or hire.

Disruption to federal contract pipeline According to the US Chamber of Commerce and analyses, for small business federal contractors, “at risk” payments exceeded $12 billion in just one month of the shutdown. Contracts paused, new awards stopped and

operations were delayed. This was especially hard for firms that counted on federal flow for much of their revenue.

Many small contractors had to consider shifting their focus away from government work, pivoting markets and operating in different revenue streams—all within an already stressed environment.

Staffing and human resources fallout Federal employees working without pay (or furloughed) saw household income drop; small business customers and local economies that rely on their spending pulled back.

For staffing agencies servicing the federal sector, the ripple effect—fewer placements, fewer contracts, greater risk of nonpayment—resulted in an urgent need to diversify, heightened liquidity risk and increased cost of doing business.

Time to recovery While the government has reopened (and employees will receive back pay), the work backlog is formidable.

The SBA will have to clear pending loan applications, agencies will have to ramp up operations and federal contractors will need to restart projects and catch up.

The delay in contract execution means delayed revenue for small businesses, which in turn delays their hiring, investment and growth. In practical terms, while the shutdown days might be “caught up,” the opportunity cost (lost growth, lost market share, deferred hiring) may take many months to recover.

Political dynamics and who bears the blame Historically, the political party that conditions or insists on additional policy provisions in the funding measure tends to bear public blame for the shutdown. In 2025, this is still being assessed: a poll referenced in an AP article showed roughly 60% of adults said the executive branch and Republicans in Congress had “a great deal” or “quite a bit” of responsibility; while 54% said likewise about Democrats in Congress.

The politics of a shutdown are particularly important to small business advocates because the longer the impasse, the deeper the economic damage—and small businesses often don’t have a “buffer” to wait out protracted uncertainty. The political messaging, blame game and delays can stretch the shutdown timeline and thus magnify damage.

» DECEMBER/JANUARY 2026

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PAGE 29

WSA Focus Marketplace disruption: why small businesses feel it first • Uncertainty leads to postponement: Small business owners may delay hiring, investing or expanding when they don’t know when federal funding or contracts will resume.

• Interruptions of revenue streams: For those dependent on government work (either direct contracting or supply chain), paused payments equate to lost revenue, delayed payroll and pressure to reduce costs.

• Reduced customer spending: When federal employees are furloughed or unpaid, they cut back on discretionary spending, affecting local small businesses (e.g., restaurants, retail, services) around federal hubs.

• Input and financing bottlenecks: With loan programs paused, new financing delayed and tariffs high, small businesses face a double whammy: access to capital is squeezed just as costs are elevated.

• Competitive disadvantage: Larger firms can absorb the pause; small ones may not. Also, when firms “pull back” investments, staffing and training are deferred—meaning that when things restart, the bridging gap may disadvantage these firms further.

• Operational and staffing agency impact: Staffing agencies have to adjust—when federal contracts are frozen, the demand for temporary staff drops, placement slows and firms may have to redeploy or downsize. The temporary labor model is vulnerable during shutdowns.

Implications for staffing agencies and workforce solutions providers Many workforce solutions firms are vendor partners to federal contracts (either directly or through subcontracts).

During a shutdown, those contracts are paused, meaning demand for placements falls. Agencies may also have to pay staff even when contract DECEMBER/JANUARY 2026

revenue is delayed or suspended, thereby increasing their own risk.

The sudden stop-start nature of shutdowns complicates workforce planning: • Onboarding may be paused; • Staff may need to be reassigned; • Clients may cancel or postpone roles; and • Turnover may spike in the crisis.

Meanwhile, if federal sites reduce travel (because of flight cuts) or cut back projects, staffing agencies in those locations will see fewer assignments, less utilization and reduced margins.

Finally, after the government reopens, there is a surge of work (backlog), but staffing firms must ramp quickly, possibly hire quickly, train quickly and manage costs—all of which strains smaller agencies without scale or buffer.

Staffing firms should thus plan for contingencies by: • maintaining liquidity; • diversifying their client base (avoiding over-reliance on government work); • communicating proactively with clients and internal staffing about fiscal year/ contract risk; and • building flexibility into their workforce planning.

Recovering after the shutdown: the lagged effects Even once funding resumes and agencies reopen after a shutdown, operations do not return to “normal” instantaneously. Loan approvals, contracting decisions, hiring and onboarding all have lag. For example, the SBA must process a backlog of paused loans; lenders will have to catch up. This delay means small businesses that postponed expansion may lose momentum.

The longer the shutdown, the longer the recovery period. Productivity loss INDEPENDENT DEALER

during the shutdown cannot always be regained, meaning lost growth potential. The CBO estimates that while much of the decline in GDP will be reversed, some portion will be permanently lost.

For staffing and business service providers, the “restart” period will require new costs associated with reopening sites, reacquiring staff, rebuilding pipelines and catching up with postponed deliverables. That all takes time and money.

For small businesses, the delay may mean lost market opportunities, delayed hiring, missed seasonal windows (especially important for Q4/ holiday sales) and hence reduced profitability for the year.

Conclusion A federal government shutdown is far more than an episodic headline or political standoff. It has cascading consequences, affecting everything from the national economy (GDP, growth, tax revenue) to local businesses (cash flow, hiring, spending) and workforce solution providers and small staffing agencies (placements, contract risk, staffing churn). The 2025 shutdown underscores how vulnerable the chain is when government functions pause: key loan programs freeze, contracts halt, air travel is cut, federal workers go unpaid and small businesses and staffing firms pay the price.

For members of the Workplace Solutions Association, the imperative is clear: build resilience, diversify, plan for uncertainty, engage with policy and recognize that even short disruptions can create long-tail effects. The marketplace may reopen, but the lost weeks (or months) may not easily be recaptured. The sooner the business community realigns, adapts and mitigates, the better positioned it will be to weather this kind of systemic risk.

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WSA Focus

Looking forward: trends and strategies for the coming year Mike Tucker, executive director, Workplace Solutions Association

Industry prospects for the coming year remain generally positive. The trade association that serves it is looking to the future with optimism and confidence.

Customers no longer respond to “the right product at the right price”; their needs are becoming increasingly complex. Suppliers must offer systems and solutions tailored to meet individual needs and requirements.

At the Workplace Solutions Association (WSA), we believe helping you meet changing customer needs is one of our major responsibilities.

Through research, education, various committees and other industry gatherings, we are committed to providing services and programs to enhance your professionalism and help you serve customers better and more efficiently.

I urge you to draw on the resources available from WSA and ISSA and make them an important part of your business planning. For the alert and progressive dealer, the opportunities the coming year offers are truly exceptional.

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What will your company do in 2026 that’s new and exciting? New products have always been the lifeblood of our industry. Office product sales are soft and a new pen or Post-it Note won’t move the needle. If you were just at ISG Industry Week or the ISSA show, you would have seen hundreds of jan/san and technology products and solutions.

Did any of these become part of your business plan for 2026? This strategy is not new, but it must be embraced with enthusiasm and commitment.

How about new strategies for customer engagement? Are you familiar with ISSA’s Certified Facility Auditor Workshop for Sales and Engagement? This provides office product and furniture dealers with a new opportunity to actively expand their service offerings and create stronger customer engagement through site audits, identifying areas of concern in a building to align product solutions for your customers.

How about your AI strategy—do you have one? Most businesses have INDEPENDENT DEALER

at least a handful of employees who are experimenting with AI for email responses and other administrative functions. Have you checked out WSA’s 10-part webinar series introducing businesses to ChatGPT, exploring its capabilities, limitations and value across various functions (e.g., sales, marketing, administration and data analysis)? This is a great tool to help your team move from experimentation to a game plan that will benefit your entire organization.

Lastly, reach out to your manufacturers, reps and wholesale partners. With Essendant exiting the channel, they too are looking forward to helping customers recover and regroup for the new year. Networking and sharing are the glue that has kept the channel resilient and alive through decades of challenges. Leverage all the resources at your disposal, develop a strategy that meets the needs of your customers and look forward to another exciting and successful year!

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SPR

Simplifying complexity:

how SPR marketing helps dealers win The independent dealer channel has never been more tested. In today’s rapidly shifting industry, operational strength alone is not enough to compete. A clear and strategic marketing plan is crucial to winning and growing business.

In response, SPR has introduced a new tagline— “Simplifying Complexity”—reflecting its commitment to helping dealers navigate this environment with clarity and confidence.

This new message reflects how SPR Marketing can empower dealers not just to respond, but to lead in their local markets. Because when dealers simplify complexity for their customers through clear, compelling, capability-driven messaging, they win.

How does SPR Marketing intend to deliver on this promise?

Through three strategic pillars—service, flexibility and reach—and its innovative marketing platform, The Exchange.

Service Positioning dealers as the people who show up and make a difference Service is the IDC’s strongest competitive advantage. At a time when many national providers rely on automated systems and faceless support models, SPR Marketing

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reinforces the dealer’s personal touch with: • messaging that showcases fast, reliable delivery; • marketing assets that reinforce personal touch and local expertise; and • communication tools promoting customer service, operations support and field engagement.

SPR helps dealers tell the story of service in a way national providers cannot, through personal, reliable, local marketing.

Flexibility Helping dealers speak to every market Dealers operate in diverse environments and customers expect solutions tailored to their needs. SPR Marketing enables that adaptability through: • customizable campaigns for varied delivery models and service programs; • templates focused on market-specific needs (education, healthcare, government, enterprise); and • marketing support for expansion into jan/san, breakroom, packaging and facilities.

This flexibility positions dealers to pursue larger opportunities, diversify revenue streams and compete more effectively across more customer segments.

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SPR Reach Marketing a national network with a local feel Dealers thrive when they can promise consistency, product availability and scale. SPR Marketing supports that reliability with: • branded campaigns featuring a customer’s ability to execute nationally with a local feel; • content showing depth across national brands, private labels and category expertise; and • messaging that positions dealers as both nationwide and locally invested.

SPR helps dealers prove they compete like a national partner, but care like a local one.

The Exchange: SPR’s marketing platform Amplifying dealer brands with modern marketing tools SPR’s marketing platform, The Exchange, offers industry-leading tools to elevate dealer marketing with ease, including: • digital marketing automation for coordinated outreach; • flyer building tools for promotions and category campaigns; • a robust manufacturer marketing library with ready-to-use content; and • customizable printed catalog collections that reinforce expertise.

With The Exchange, dealers get professional, consistent, scalable marketing that amplifies their brand and drives engagement.

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SPR Marketing: a clearer path forward “Simplifying Complexity” is more than a tagline. It represents SPR’s commitment to strengthening the IDC. By emphasizing service, flexibility and reach, and by providing modern tools like The Exchange, SPR is helping dealers grow in their local markets, expand into new categories and win with confidence.

SPR Marketing is not just supporting dealers—it’s helping them lead the way in a changing market.

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Cover Story

by Lisa Veeck

SPARKING CHANGE 2025 has been called a “catalyst year”— what reactions will we see in 2026?

To say 2025 has been a tumultuous year would be something of an understatement, by anyone’s standards.

So, what should independent dealers expect in 2026? Will AI live up to the hype? Will tariffs rise, fall or be lifted? Will Amazon continue to claim market share or will it stumble, as so many of the other DECEMBER/JANUARY 2026

big-box stores have done? Of course, no one has all the answers; but here are some predictions from seasoned dealers across the country who have survived—and thrived—past storms in the industry.

(Don’t worry, we’ve not forgotten about Essendant—see page 38.)

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Cover Story Lincoln Dix, vice president, Storey Kenworthy, Des Moines, Iowa We will continue to see diversification of product categories and—given what Essendant just did—diversification of wholesaler relationships across categories. For example, dealers will buy their jan/san products from more than just their primary wholesaler to gain access to more products and greater fulfillment reliability. As an industry, office products will continue to decline, but strong, progressive independent dealers should be able to hold steady or pick up volume as the national companies struggle and smaller dealers without much product diversification look to exit the industry.

I believe mergers and acquisitions will continue in all segments of the supply chain, including manufacturers,

dealers and wholesale distributors.

There will be an ongoing need for strong content control on our e-commerce platforms, especially as AI advances. In the new year, I expect to see growth in the number of national contracts and collaborative programs, such as EPIC and AOPD, with stronger retention in national or group contracts, even if margins are thinner.

I also think we will see more logistical collaboration among the IDC now that the wholesaler variable is no longer an issue. For example, more dealer partnerships for last-mile delivery should be a no-brainer in every market in the country. One last thing I’d add is a stronger focus on the “service-driven sale”: dealers will continue to give up

Gary Moltz, vice president, EZ Office Products, Madison, Wisconsin

I foresee continued decline in the office products segment, but it will be more than offset by the rise in other categories—at least here at EZOP. As for AI, everyone talks about it and everyone is using some type of it, whether they know it or not. I see Amazon’s market share rising because it is a ubiquitous seller of everything. “Amazon” is no longer a noun; it’s a verb. I expect the company will still have momentum on its side.

One disturbing trend is manufacturers selling on Amazon at lower prices than they do through the office products channel. Lastly, I envisage the trend toward decreased reliance on wholesalers continuing.

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ground on commoditized distribution but should—and will—gain ground and take share in categories where service remains critical to success.

Stacy Duke, president, Butler Business Products, Katy, Texas We have started warehousing and handling all logistics for customers, including carrying custom items in our trucks and delivering them so they don’t have to store or distribute them, making it more convenient for them. I think AI will eventually reduce document handling, which will in turn require fewer supplies per task (and yes, I used AI to answer this!). We still offer assembled furniture to all our customers; however, there has definitely been a decline, which I expect to continue. The worst part for us is that budgets for state and federal businesses have been cut and we definitely depend on them. The biggest trend I see is that our schools are offering virtual training to compete against homeschooling, which has lowered the amount of supplies they are purchasing.

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Cover Story Greg McLeod, 1st, CEO, Source, Minneapolis, Minnesota I think we’ll see stasis in sustainability in 2026. Those who are currently focusing on it are likely to continue, while those who do not prioritize it are unlikely to see any real pressure or need to make it a priority. I believe concern over PFAS—the carcinogenic “forever chemicals” showing up in human tissue, breast milk, etc.—will continue, as more and more states implement bans on everything from food service items to firefighter turnout gear.

Barring any major global disruptions or geopolitical intrigue, I feel that the tariff and surcharge challenges we faced in 2025 will diminish. I wish I had a crystal ball on this, but that’s my best guess at this point. A lot of the moves made in response to the tariffs—such as transferring manufacturing to countries that were not subject to the tariffs or were hit with lower tariffs—have mostly been implemented. Much of this has already been baked into current pricing. We are seeing some large increases scheduled for 2026. However, at this point, I believe some of these increases are simply opportunistic on the part of the manufacturers. Finally, we reshored

a meaningful amount of our production to the United States in 2025 and unless things change dramatically on the import front, we’ll likely hedge our bets and keep some of our production close to home.

As for AI, we are delving deeper into the possibilities but moving forward with caution. I think AI is incredibly powerful, but it’s not a panacea for all the current challenges and opportunities we face. I believe there is no substitute for human interaction, relationships, problem resolution and creativity in customer interactions; and making our company easy—and pleasant—to deal with still reigns supreme. There’s no doubt that AI can and will have a profound impact on much of what we do, but I think companies that bull-rush through the AI door or apply AI solutions to every problem may be overreaching. I certainly see our largest, multibillion-dollar competitors going down that road, and it’s opening new doors for us with customers who are sick of chatbots, automated phone prompts, canned answers, impersonal/ formulated email messages etc. In many cases, I see companies dumping

experienced employees in favor of far cheaper AI models, but I think the tribal knowledge and relationships they’re jettisoning will cost them down the road.

We’ll be standing by to take advantage of that and hopefully pick up even more new business from customers who are no longer getting the support, responsiveness and relationships they crave.

Mark Porter, visionary, Porter’s Office Products, Rexburg, Idaho Given the considerable turmoil surrounding Staples, I see an opportunity to target those customers and win business as Staples’ service levels continue to decline. Smaller customers will continue moving to Amazon, while dealers can’t expect to win new customers in that demographic to fill the gap.

I also see a trend of independent dealers targeting larger customers that are part of group purchasing organizations (GPOs) that have more control over where they spend their money. The majority of that business is currently serviced by Office Depot and Staples. Yet most, if not all, independent dealers have access to sell under GPO agreements to win that business.

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Cover Story Donata Barber, marketing director, Suburban Office Products, Middletown, Connecticut As you know, in a business our size, many of us wear multiple hats, especially in marketing and customer service. So, AI has become a very valuable tool for helping us move faster without losing the personal touch our customers rely on. For example, a big part of our value as an independent dealer is analyzing a prospect’s invoices to show them a true cost comparison with big-box retailers. Traditionally, this meant manually reviewing dozens or even hundreds of line items, which could take hours. We’ve recently started running larger comparisons through AI to reduce the time spent on matching items and identifying where we can offer better pricing or substitutes. It doesn’t replace our review, but it speeds up the initial analysis and lets us focus on the insights that matter most to customers.

And if we’ve learned anything from Amazon, it’s that customers don’t want to wait; fast service is always best.

AI has also been a game-changer behind the scenes, whether I’m checking code, generating marketing images or troubleshooting something

that isn’t working as expected. It helps us stay nimble, improve the user experience more quickly and, at the very least, provide customers with timely solutions. On the customer service side, it has helped streamline our live chat without making it feel robotic. Customers expect fast answers, but they also expect warmth.

I use AI to create smarter canned responses for repetitive questions, but I always edit them to make sure they sound friendly and human. It saves time, but it never replaces the human element.

Marketing is another area where AI has been very helpful. I use it for clean voice recordings when we need quick digital content and for drafting early versions of campaign ideas or product descriptions. It’s like having a creative assistant: it takes the time-consuming work off my plate so my focus can be applied to bigger-picture issues or customer operations.

However, I avoid using AI for email communication. You can almost always tell when someone is replying with AI and you lose the personal

connection that’s so important in our industry. Our relationships with customers and vendors are built on authenticity and I never want to compromise that. So, while AI helps us be more efficient, I’m intentional about keeping email communication genuinely human.

Looking ahead to 2026, I see AI continuing to be a vital support for small businesses—a way to work smarter without sacrificing the service and relationships that set independents apart. For us at Suburban, it helps us operate like a bigger team while preserving the personal touch our customers value.

Jennifer Dawkins Spencer, vice president, Greenwood, Mississippi When it comes to AI, I believe you have to be careful; but if you want your business to survive, you have to incorporate it somehow, someway. I don’t think technology of any kind will replace the need for sales reps or for staying in touch, because it is too easy for customers to get online and order. Customers need to see faces and dealers need to have feet on the road. I also expect sustainability to become increasingly important as more customers look for ways to better care for the Earth. We are not in California, where it is a bigger topic, but we promote it and more customers are receptive to it. We also see furniture as a way to continue setting ourselves apart from Amazon and Office Depot. Our team goes into customers’ sites, measures and suggests design ideas. We assemble the furniture, install it and take away the garbage. Amazon is not going to do that, so I see furniture as a plus for dealers and don’t envisage this advantage going away.

Neither is IT. We sell TVs, computer monitors and other electronics, and I don’t see this trend changing.

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Dealer View

MOVING ON

It’s not hard to isolate the single most seismic change of 2025, which no doubt will have aftershocks continuing into 2026: Essendant’s sudden withdrawal from the IDC. But how have former Essendant dealers handled the news and what issues do they envisage coming down the line? We spoke to three dealerships about how they handled the switchover and their view of its ramifications.

Nate Morales, vice president, strategic sourcing division, Intivity, Rochester, New York We were with S.P. Richards (SPR) for around 26 years, but we had a few issues during COVID-19 so we ended up making a switch. We’d been with Essendant as first call for about three and a half years and things were going great, so we were shocked when we got the news—just like the entire industry.

There were definitely signs that it wasn’t a healthy organization, but not to the level of: “You’ve got 60 days—good luck.” I thought it was going to be a slow one to two-year decline, where we would eventually have to make a move. But it all happened so abruptly.

Our initial main goal was to secure the supply chain—make sure that we at least had product to fulfill an order—which has gone well. Then there’s the issue of pricing, which is DECEMBER/JANUARY 2026

substantially higher for a lot of people, but it is what it is—you need a healthy organization to back you.

We may not be taking it as hard as some other independent dealers because traditional office supplies are a smaller part of our business. We therefore have less hesitation about forwarding on the additional costs to our customers; whereas some of our counterparts, where it’s the majority of their business, have found that harder and are taking more of a hit from a margin perspective.

We finished the transition two weeks prior to Industry Week.

As I said, our main goal was to secure the supply chain and we are now back with SPR. Currently, we don’t have a contract, which doesn’t feel great; but we have a supply chain where we can confidently get our customers’ products. We are actively working with SPR to try to have a contract put in place by the beginning of next year, but with everything going on, I feel like it may drag on later into Q1.

Like everyone, we are also looking at other wholesale options. We’ve talked a lot with Veritiv from a jan/san perspective. We’ve also worked with TD Synnex in the past and now we’re working a lot more closely with them, especially on the technology front. Those are probably the two main ones that we’re working with at the moment. We are also trying to leverage ISG direct buy relationships.

I see us working with additional wholesalers, as I would like to take more away from Essendant. In all honesty, I don’t really want to support the business. So I’m having to go to more places to buy from. That potentially spreads my

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Dealer View purchasing department a little too thin, when they could just be going to one place, but it’s something we’re juggling; and we’re trying to start backing specific manufacturers.

We will definitely be stocking more products. While we are considered stockless, there are 300–500 SKUs that we typically have on hand. I see that increasing a little bit, especially as we continue working through these supply issues and pricing.

It’s really important for independent dealers to diversify. It’s not just about getting into as many categories as you can; it’s also about making sure that you’re concentrated and not spreading yourself too thinly in a particular category. If you are just starting to get into jan/san, for instance, start with something like paper goods and do that well. Once that’s done, move into chemicals and build that up. To jump in and try to sell everything immediately— that’s not a good strategy to grow and be sustainable. You need to build a level of expertise in each category before you move on.

We can also use this current period of turmoil as an opportunity to implement some changes. We should all be looking at compensation plans. We need to incentivize our sales teams to go after the business that we need as independent dealers, versus just managing business.

This could be our chance to do that and it’s a conversation we should be having. We need to redevelop the whole independent dealer community—start fresh and ensure that we’re making the right decisions moving forward.

Chris Crumpton, owner, Business Essentials, Grapevine, Texas We completed the conversion just after mid-October. We just thought we needed to pivot and make the change sooner rather than later—simply because, after the news, we didn’t really know what service levels would look like with their end-of-run stocking levels on items with everybody jumping in at the same time. We just thought it best—especially with SPR and ECI—to be on the front end of that rather than on the back end and in line.

The biggest challenge overall was just the enormity of it.

When you consider all the things and the effort that it takes to complete a conversion—item cross-referencing, contract DECEMBER/JANUARY 2026

reviews, price changes, web changes, back-end changes— all of it had to be worked out; and then when we flipped the switch, it all had to be done at the same time. You couldn’t just change contracts and wait; you had to do it all on a weekend after you’d put everything together. It was just a lot.

We have managed to maintain access to most products.

The Boardwalk brand for Essendant has been a good brand for our customer base overall and I think SPR has some challenges ahead of it on the jan/san side. But I think they’ve already made considerable strides in a short amount of time and the work that their team’s done really has been remarkable. So, I’m hopeful that they will continue to review that category and implement changes where needed.

For a lot of dealers, this has forced them to take a hard look at the procurement side—whether that’s using their buying group and buying more items direct or building better relationships with other wholesalers out there like RJ Schinner, Bunzel or whoever it may be in their market. This is not a high-margin industry, so margin management is of the utmost importance right now for the IDC. Customer communication is also vital. You’ve got to have touches with your medium and larger customers and ensure they’re aware of the changes happening in the industry.

This isn’t the first change that’s happened: for two years, our customers have dealt with tariffs, manufacturers buying out competitors and other changes all throughout the industry.

It’s not something they’re unfamiliar with and brand loyalty, in many respects, has changed tremendously, as customers increasingly look to their bottom dollar.

If the product works and the price is right, customers don’t seem to care too much. And for us, the less you can bring up the “price” word, the better off you are. We’ve got to continue pushing to our loyal customer base our value-add and what we bring to the table. If we’re just out there selling a pen for the same price as Staples or Amazon, we’re not going to win that way. The way we win is by showing what we bring to the table: service, quality and value. Our team is focused on that daily.

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Dealer View Jeff Lurcook, president, Strive Workplace Solutions, Portland, Oregon Obviously, the news from Essendant was a shock and came with what we considered to be very short notice, given that we basically had to change our entire business and buying model. So, we had a lot of meetings internally and just had to prepare for the inevitable. We

didn’t have a choice.

We were already second-call SPR, so now we’ve built a supply chain that goes to SPR first. That was pretty easy, although there were a lot of technical changes involved—a few new account numbers, different product numbers, things like that.

If we can’t get something from SPR, we will then try Essendant to see if we can get it from them. If we can’t, we’ll go out and turn over every rock we can to find product to fill the customer’s order—right down to running to the local store so we can ship what’s needed to our customers. Our vendor selection has quadrupled because everybody has now become a vendor Anyone that we can buy from, we’re looking at. One of the first things we did when we got the news was to re-evaluate.

We were basically a non-stocking dealer, other than copy paper and some unique items we stock that the wholesalers don’t carry; we didn’t carry a lot of SKUs in our warehouses.

We’ve now ramped that up. We started analyzing the top 250 items in our seven locations in three states, looking at usage warehouse by warehouse. We then compared the wholesalers’ cost to direct buy through ISG programs and AOPD programs, to find out where the best cost was. Also, there was product that wasn’t in our local wholesaler distribution center and was creating a backorder.

So, in order to raise our fill rate and maintain margin, we had to add between 100–250 new SKUs. That’s a work in progress: every month we’re re-evaluating— bringing in items and looking at the base costs, lead times and stock levels. There are a lot of analytics we do with that and it’s a constant process.

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In the future, I can certainly see more consolidation in the dealer community. I guess our main challenge now is keeping up with how fluid the pricing profile is for every item out there and keeping that transparent for our customers.

During COVID-19, we were proactive and started calling customers when we had supply chain issues. We decided that every morning after we ran our backorder report, our customer care team would reach out to affected customers and explain that part of their order would be delayed. If they were not okay with that, we’d offer to sub it with an equivalent item and get it to them the next day. I would say 95 percent of our customers always said, “Oh, there’s no rush.”

We are still doing that today—and we’re doing something similar with the volatility of the pricing. One of our biggest challenges right now is the pricing profiles. Amazon has changed the way they work. We’re scrubbing pricing daily.

We’re looking at every order and if we feel the algorithms that are created by our price plan hit the mark too high, that it’s not competitive, we are going in and lowering the price.

Our customer care team call the customer and present it as that we were able to get them a better price on that item. They don’t need to know the whys and wherefores of it. They don’t need to know the politics. They don’t need to know there was even a change.

I know there are different schools of thought—other dealers like to go out and tell customers what’s happening in the market; but my opinion is when you do that, you invite them to shop. We’re trying to keep this behind the curtain, keep everything in front of the curtain looking normal and keep the customer satisfied—that’s our goal every day.

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Cover Story

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West McDonald

AI AND THE DEALER’S PLAYBOOK FOR 2026 Every year brings a new set of challenges for independent dealers, but 2026 feels a little different— and as the new year approaches, you can already sense the shift. The pace of change keeps accelerating.

Customer expectations keep increasing. And the economic mood swings are real. No one has to mention the “T” word for dealers to feel the sting; and honestly, it is almost theraputic not to say the dreaded word out loud. Everything from paper DECEMBER/JANUARY 2026

to safety gear to technology accessories seems to bounce in price whether the demand is up or down.

The result is simple. We are thinking more strategically about what we sell. We are looking at new categories, new suppliers and new ways to diversify so we are not dependent on the same old mix. We want more stability and more margin opportunities. The problem is that doing this research the old way takes far too long. Pages of supplier

PDFs, endless spreadsheets, outdated catalogs, random email threads and hours of searching can drain a team before we ever get to selling.

This is where AI has stepped in. AI has finally become the practical tool that helps us work smarter. It gives our teams the research power and analytical abilities that only the biggest companies used to have. We finally have a way to explore new categories with more confidence and a fraction of the effort.

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Category expansion is now a requirement Customers want fewer vendors and more convenience. Even small and midsize businesses expect their suppliers to carry a wider range of items than they did five years ago.

Meanwhile, the national distributors continue to expand into every corner of the workplace. Cleaning chemicals, ergonomic accessories, wellness products, tech peripherals and supplies that did not PAGE 42

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West McDonald

West McDonald, founder of GoWest. ai, is a recognized expert in AI solutions, with extensive experience across various technology sectors. His work focuses on generative AI applications and strategies for maximizing recurring revenue, guiding businesses toward innovative growth.

West is dedicated to fostering a culture of learning and excellence through AI-driven innovation.

even exist 10 years ago are now part of their mix. I’m in Canada and at Staples, they are even selling snacks and school lunch containers!

We get it: staying competitive means expanding categories; but it just feels hard. That used to be a huge lift—but no longer, thanks to AI. Today, AI brings the time commitment down to something manageable. What used to take a week of digging now takes a few minutes of focused questions and smart analysis. Read on to learn how this works in practice.

Make AI your full research department in 2026 The biggest shift heading into 2026 isn’t what the big DECEMBER/JANUARY 2026

AI vendors say it is. It is NOT “AI agents”—at least, not for folks like you who don’t play in the “enterprise” realm (and in studies, 95 percent of their AI efforts fail). The biggest thing for dealers looking to do more research, expand categories and not have to hire an army is the rise of “deep research” through tools like Copilot, ChatGPT, Gemini and Claude. We can now hand these systems a dozen PDFs, a website, a stack of supplier sheets and a few questions and get back a clean, accurate summary that would have taken a team of people days to assemble.

At GoWest.ai, we have already built customized prospect research GPTs for clients and the results

have been immediate. Our clients’ sales reps stopped spending hours Googling and cross-referencing. The AI simply did the heavy lifting. The same capability now applies to any of us researching new suppliers or category opportunities.

Using AI, you can get a full back-office research team without adding a single headcount.

We can now ask questions like: • “Show me the fastest-growing categories for office environments in 2025 and tell me which ones align with what we already sell.”

• “Read these supplier catalogs and explain the

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differences in margins, required commitments and logistics.”

• “Tell me which of these product lines will fit our customer base and which ones probably will not.”

AI takes the mountain of information and instantly produces something useful.

AI helps us find categories our customers already want The real magic happens when we bring our customer data into the picture. AI is incredibly good at reading patterns across our CRM notes, past orders, product returns, quotes and even email chains with customers.

It spots opportunities that most of us never see.

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West McDonald A few examples are enough to demonstrate the potential. If our customers keep asking about monitor arms and we notice a trend of ergonomic chair purchases, AI will tell us that expanding into sit-stand accessories might be an easy win. If our breakroom supply orders keep growing at the same time as more customers bring people back to the office, AI can highlight snack programs or cleaning supply bundles as natural extensions. If more of our clients are asking about IT support, we might have a new services category waiting to be developed.

AI gives us a much clearer picture of what our customers will buy next.

That insight alone can save us time, reduce our risk and lead to stronger margins.

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Margin optimization and supplier comparison made simple Once we identify potential categories or suppliers, AI steps in again. One of the most practical uses of AI in 2026 is comparing price lists, supplier files and catalogs. We do not need sophisticated tools to do this.

We can just upload simple Excel files or PDFs and let the model sort out the mess.

AI can: • identify duplicate SKUs; • compare cost structure across suppliers; • highlight items with shrinking margins; • evaluate price changes over time; • recommend better margin alternatives; and • create margin improvement scenarios.

It can even produce statements like: “If you shift these 22 items from Supplier A to Supplier C, your margin will increase by 9 percent.”

For those of us who negotiate hard-to-protect margin, this is the kind of clarity that changes the game. A few minutes of analysis can guide our entire year of purchasing decisions.

Faster go-to-market with AI-created sales tools Once the category decision is made, dealers need to bring it to market quickly. AI helps here too.

GAMMA.app At GoWest, we use GAMMA.app for nearly everything that needs to look polished: PowerPoints, proposals, sell sheets,

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handouts, vertical specific versions of presentations and more. It takes a fraction of the time that traditional slide building used to take.

No design team required— just type your message and let the platform build something clean and professional.

What is exciting is that tools like GAMMA, NotebookLM and even the built-in video generators now give independent dealers the marketing power that used to belong only to big-box competitors.

We no longer need an in-house creative team or an expensive marketing agency to keep up. With NotebookLM, for example, we can drop in our notes, supplier materials or meeting transcripts and instantly generate product

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West McDonald overview videos, quick training explainers and even customer-facing summaries. This was “bleeding-edge” stuff a year ago, but now it’s easy to use and more powerful than you can imagine.

As to the benefits of using AI in your marketing efforts— where do I start?! Dealers testing new categories can spin up new sales materials in under an hour. If a vertical changes, or if a customer segment needs a different angle, you can update it instantly. And because these AI tools learn your tone and style, the materials stay consistent, professional and ready to share without weeks of back and forth. This is real marketing leverage—and it is one more way AI levels the playing field for independents.

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AI-generated training Training needn’t mean building long guides. Tools like NotebookLM can take your notes, product sheets, supplier information and internal documentation and instantly generate training videos or overview videos.

It can also create chaptered product walkthroughs, three-minute onboarding videos for new hires or a quick refresher for reps who have to talk about a new SKU line the next morning.

If you are bringing on a new supplier or category, your team can be trained the same day. No slide decks.

No marathon prep sessions.

No scrambling to explain complicated product lines during a Monday morning meeting.

Want examples? You can upload a supplier PDF

on a new ergonomic chair line and get back a clean, narrated training video that explains features, warranty terms and selling angles.

You can feed NotebookLM a messy collection of your notes and internal docs and let it generate a full video walkthrough for reps on how to position a new cleaning chemical line. You can take highlights from a Zoom call with a new supplier and instantly turn them into a short training video your team can watch over lunch.

Sales readiness kits AI can create customer emails, pitch scripts, competitive comparisons, pricing summaries and even objection handling guides.

And these are not generic templates; they are tailored to your tone, your market and your customers. You can upload a competitor’s sell sheet and ask AI to create a comparison chart that gives your reps the upper hand.

You can drop in pricing and ask it to build a bundle offer that increases margin and fits your customer’s buying habits.

Need vertical-specific scripts—for example, one for schools, one for legal offices and one for medical clinics?

AI can generate all three instantly. Need follow-up emails for customers who requested information but have not purchased yet?

Done. Need a quick cheat sheet for a rep heading into a meeting in 10 minutes? AI can build it on the spot.

INDEPENDENT DEALER

It shortens the time from idea to revenue, because all the tools your reps need are created in minutes instead of weeks.

Staying ahead in 2026 AI is giving dealers a clearer view of what is coming next.

It helps track sustainability trends, hybrid office shifts, new technology categories, breakroom expansion and the ongoing rise of facilities and safety products. AI inside procurement and sales workflows is becoming normal, not experimental.

The office products industry has always thrived because of relationships. AI will not change that. What it will do is eliminate the parts of the job that waste time and drain energy. It will help dealers expand with confidence, negotiate with better information and pursue new categories without the heavy lifting they used to face.

2026 belongs to the dealers who use AI to work smarter, move faster and stay ahead of the curve. The tools are ready. The timing is perfect. And the opportunity is wide open.

Here at GoWest.ai, we hope you enjoyed the content, insights and research we shared throughout 2025. We look forward to helping dealers build a stronger and more prosperous 2026 with the right AI strategies and tools.

The opportunities in front of the channel have never been bigger.

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Jennifer Vitanzo

A HANDY GUIDE TO

STRUCTURING PRODUCT PAGES FOR GENERATIVE ENGINE OPTIMIZATION Let’s face it—these days, getting visibility for your brand is its own full-time job. Now, businesses that have spent years perfecting their SEO strategies for traditional search engines are finding there’s yet another new mountain to tackle: generative engine optimization (GEO).

Unfortunately, given how significantly AI-powered tools like ChatGPT, Claude, Perplexity and Google’s AI Overviews are reshaping how consumers discover products, this is one challenge you cannot avoid.

That means rethinking the way you structure your product pages, as this will determine whether DECEMBER/JANUARY 2026

your business thrives or becomes invisible in this new ecosystem. This guide will help you structure your product pages in ways that improve their chances of being found and highlighted

by GEO. Why GEO matters for your business AI-mediated discovery is rapidly becoming the norm.

When potential customers ask AI assistants for product recommendations, these systems scan the Web for comprehensive, well-structured information to synthesize their responses.

If your product pages lack depth, clarity or the right structural elements, they

won’t be recommended by AI engines.

The stakes are high: studies suggest that up to 25 percent of searches are already happening through generative AI platforms and this percentage is growing exponentially. Businesses that optimize these engines now will capture market share from competitors that remain focused solely on traditional SEO. Essential structural elements for GEO-optimized product pages Really want to make your product pages stand out and up under AI search scrutiny? Try some of the following techniques.

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Comprehensive FAQs Generative AI engines excel at answering specific questions, making FAQ sections invaluable.

Structure your FAQs to address every concern a potential buyer might have. Include questions about sizing, compatibility, durability, warranty coverage, shipping times and return policies. Go beyond basic queries and anticipate the nuanced questions that demonstrate purchase intent, such as “Can this work in humid climates?” or “Is this suitable for beginners?”

The key is to provide direct, thorough answers that AI can easily extract and PAGE 46

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Jennifer Vitanzo is a content writer for Fortune Web Marketing. She has been writing professionally for over 20 years. When not wordsmithing, Jenn is performing onstage as a singer/songwriter or out in nature photographing wildlife for conservation organizations.

present to users. Vague or marketing-heavy responses won’t satisfy AI engines seeking information.

“Ideal for …” sections AI assistants frequently receive queries like “What’s the best laptop for graphic design students?” or “I need running shoes for flat feet.” An “Ideal for …” section explicitly states who will benefit most from your product, making it easier for AI to match your offering with user needs.

If you want this section to work for you, be specific. For example, instead of writing “Great for professionals,” write “Ideal for freelance graphic designers working with Adobe Creative Suite on tight deadlines” or “Perfect for marathon runners with overpronation who need maximum cushioning.” The increased specificity helps AI engines (and potential customers) understand your product’s true use cases.

DECEMBER/JANUARY 2026

Jennifer Vitanzo Long-tail keywords in natural context When it comes to both humans and generative engines, semantic understanding trumps keyword density. This is because semantic understanding is much more comprehensive and provides context, both of which are key to how our human minds work (and how AI “thinks” as a result).

Capitalize on that type of communication: • Write as if you’re having a conversation with a knowledgeable customer.

• Integrate long-tail keywords naturally throughout your product descriptions, focusing on conversational phrases people actually use when speaking to AI assistants.

• Use phrases like “If you’re transitioning from …” or “This works particularly well when …” to help AI understand context and relationships between products and use cases.

• Ditch the keyword stuffing and instead focus on answering questions like “How does this compare to …?”, “What makes this better for …?” or “Why should someone choose this over …?”

structured data they can easily parse. Create tables comparing your product to alternatives, highlighting specifications, features, price points and ideal use cases.

Include both internal comparisons (between your own product variants) and external ones (against competitor products, when appropriate). AI engines use this information to provide balanced recommendations, and transparency builds trust with both algorithms and customers.

Detailed comparison tables Comparison tables serve dual purposes: they help human shoppers make informed decisions and provide AI engines with

Use case scenarios and examples AI engines look for real-world applications when matching products to user queries.

Include detailed use of case scenarios that illustrate how

Rich technical specifications Generative AI thrives on specificity. Include comprehensive technical specifications using clear labels and consistent units of measurement. Don’t just list dimensions. Explain what those dimensions mean for practical use. Add context to specifications: “Weighs 2.3 pounds; light enough for all-day wear” is more valuable than a bare number.

Structure specifications with semantic HTML markup when possible, making it easier for AI to extract and understand the data relationships.

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your product solves specific problems. Describe the context, the challenge and how your product delivers results.

For example, rather than saying “Waterproof design,” explain: “The IP68 rating means it’s been tested to withstand submersion up to 50 meters for extended periods, so you can wear this smartwatch without worry while swimming laps or if you’re unexpectedly stuck in a rainstorm.”

Generate AI visibility through smart optimization At the end of the day, optimizing product pages for generative engines isn’t about gaming algorithms.

It’s about providing comprehensive, contextual information that both AI and human customers need to make confident purchasing decisions. As AI-mediated shopping becomes mainstream, businesses that embrace GEO principles will dominate product discovery, while those clinging to outdated optimization tactics will watch their market share evaporate.

The question isn’t whether to optimize for generative engines. That’s quickly becoming a given. The question is: how quickly can you implement these changes before your competitors do? The answer to that will determine where your brand stands in the ever-competitive search game.

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Tom Buxton

SMALL ACCOUNTS ARE COSTING YOU TOO MUCH! If you have ever wondered about who and what AOPD is—or if you have considered joining us as our dealers continue to grow their sales through our contracts and contacts—please read on. However, if your sales to midsize and large accounts have exploded in 2025—congratulations! You probably don’t need us.

AOPD is famous for helping members win business with the assistance of our healthcare expert, Betsy Hughes, or with my help in the state, local, education and “for-profit” space. But we also provide training on a regular basis to proactively help members adjust to the constantly changing sales environment.

Had you attended our AOPD University on competing with Amazon last year, our discussion about changing sales

DECEMBER/JANUARY 2026

compensation in the spring, our AOPD University on market/margin degradation in early October or our conference in November, you would have been better prepared for the explosion of challenges that has rocked our industry.

At each of these events, we shared a report created through Acsellerate about the relative profitability of various sized accounts.

In almost all cases, the report demonstrated clearly that small accounts are less profitable in margin attainment, bad for generating better order sizes and abysmal when it comes to generating profit to the bottom line.

Worst of all, small accounts are less loyal than medium and large businesses because they are focused on saving every penny they can, even when this costs

them expensive employee time. (By the way, if you have Acsellerate and would like this report generated for your company, just contact me and we will get it done for you.) We all need to “run away” from small accounts and AOPD is the best option to help your company achieve this goal.

For members that are interested in getting help, we spend time—at no charge to them—to work through their sales issues, like compensation. And, just so you know, there are steps you can take to minimize the damage that this type of account is doing to your business. These actions can include removing them from your outside sales team; adding delivery charges for small orders; incentivizing your inside team to grow them; or possibly firing them as customers. If they aren’t large enough to generate at least a few hundred dollars a month in gross margin, or if they won’t buy anything from your company except commodities like copy paper, why do you service them? Some dealers have been able to remove an entire route/ truck by managing this sort of account better than they have in the past.

But why does AOPD help members with issues like sales profitability and

INDEPENDENT DEALER

In addition to serving as national sales manager for AOPD, Tom Buxton, founder and CEO of the InterBizGroup consulting organization, works with independent office products dealers to help increase sales and profitability.

Tom is also the author of a book on effective business development, Dating the Gatekeeper.

For more information, visit www.interbiz group.com. compensation that might not be considered part of our normal mission? There are two reasons: • As a nonprofit, AOPD wants members to grow because we have been “in their shoes” and will do anything we can to help them survive and thrive in 2026 and beyond.

• The various contracts we hold on behalf of our members, and the national breadth of our 70-plus dealers that enables our members to provide “Local Service Nationwide,” are our passion and our promise.

AOPD is all about helping the IDC grow. And it turns out that the contracts we have obtained and the people that support them are helping our members grow this type of business every year. So, as 2025 ends, should you consider joining AOPD? It’s not for every dealer, but it just might be what your company needs to thrive in 2026.

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Tom Buxton

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Marisa Pensa

Marisa Pensa is founder of Methods in Motion, a sales training company that helps dealers execute training concepts and create accountability to see both inside and outside sales initiatives through to success. For more information, please visit www.methodsnmotion. com.

FIVE WAYS TO

TRANSFORM BUSINESS REVIEWS Just the other day, I listened to a recorded Zoom call where a customer mentioned they had been with Staples for eight years but had only spoken with a rep twice in all that time. Wow! I’m sure an Amazon customer’s experience would be the same—or maybe they’ve never spoken to anyone at all.

As an independent dealer, business reviews truly give you a competitive advantage—especially when we approach them with a service-first mindset instead of jumping straight into selling.

When we lead with service, we strengthen trust, have meaningful conversations and naturally uncover opportunities to grow. And remember: your best customers are your competitors’ best prospects.

If you’re not taking care of them, someone else will.

Here are five practical ways to make the most of your business reviews and show up as a true partner.

DECEMBER/JANUARY 2026

Open with service first You already have powerful information at your fingertips—order history, usage trends and patterns that tell a clear story.

Start the conversation by demonstrating that you’ve done your homework and genuinely care about their experience, not just their purchases.

Here are three simple questions that immediately set a service-first tone: • “Do you get to see when the deliveries arrive and get to meet our drivers?”

(If local delivery drivers are used.)

• “Is there anything on our website you’d like to add to your favorites?”

• “On a scale of 1–10, how are we doing for you so far? What would make it a 10?”

These questions signal that their satisfaction and experience matter—not just their spend.

Expand who you know One of the biggest missed opportunities in business reviews is keeping the conversation limited to just one person. To get the most impact, use the review to expand relationships across the organization—because the more people you know, the stickier the customer.

Surface issues they may not bring up Most customers won’t bring up problems on their own, unless the situation has become serious. Use the business review as an opportunity to proactively uncover concerns and create a safe space for honest feedback.

Try asking: • “Who backs you up if you’re out of the office?”

• “Is there anyone else we should get to know that receives deliveries, just in case we ever need support?”

• “Is there anyone in billing we should connect with, just in case there’s ever an invoice question?”

Ask questions like: • “Has there been anything recently that hasn’t gone the way you expected?”

Expanding contacts creates new opportunities, internally and externally, and strengthens your position as a true partner, not just a vendor.

INDEPENDENT DEALER

For example, maybe there has been a billing issue that they haven’t mentioned yet.

Catching it early turns frustration into loyalty.

Proactive service is real retention.

Maximize the depth of existing categories Before expanding into new categories, make sure you’re fully supporting the categories you already PAGE 50

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Marisa Pensa provide. Don’t rush to jump ahead—first, confirm you’re servicing the current category as completely as possible.

For example, if they’re already buying 20 lb paper, ask: • “Are you also buying 28 lb?”

• Are you buying different sizes [e.g., legal or ledger]/card stock/color paper?”

• “Are we getting everything within that category?”

Focus on depth before breadth—it’s simpler for them and stronger for you.

DECEMBER/JANUARY 2026

Expand other categories Everyone wants to jump straight to the point above; but when you do, you miss the chance to understand what matters most. Before talking about coffee, breakroom, jan/ san or furniture, check in with the customer: • “How’s the website working for you?”

• “Any delivery challenges?”

• “How are billing and invoicing going?”

Once the foundation is strong and service is solid, then—and only then—explore expansion. Start with simple, customer-centered questions:

• “What else are you buying in bulk that you may not realize we carry?”

• “What else do you buy regularly that we might be able to help with?”

Service first, growth second.

Always.

The bottom line Done well, business reviews aren’t a task to check off—they’re a competitive advantage. They’re where real partnership is built and where loyalty is earned.

When customers feel heard, protected, supported and understood, they stay. They buy more. They introduce us to others. They

INDEPENDENT DEALER

trust us with more than products—they trust us with their business.

And remember: your best customers are your competitors’ best prospects. If you’re not taking care of them, someone else will.

When we lead with service, growth becomes the natural outcome.

Serve well first—and everything else follows If you want your team running business reviews that customers actually value, start by building the habit. Choose a structure, set expectations and model the posture yourself.

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Troy Harrison

THE AI SKEPTICISM THAT WON’T AGE OUT Here’s something nobody saw coming: the generation most skeptical of AI isn’t the one that doesn’t understand it. It’s the one that understands it best.

Every new technology faces resistance.

The Internet? A fad. Smartphones?

Unnecessary. Social media? A waste of time.

But tech skepticism has always followed the same pattern—older workers resisted, younger workers embraced and eventually the skeptics retired and adoption became universal.

Not this time.

The tech skepticism script has flipped Traditional technology skepticism was driven by unfamiliarity. Boomers didn’t DECEMBER/JANUARY 2026

grow up with computers.

Gen X had to learn the Internet as adults. They resisted because the technology was foreign. As digital natives entered the workforce, resistance faded.

AI flips this script entirely.

Sixty-two percent of Gen Z express skepticism toward AI—higher than any other generation. Sixteen percent explicitly don’t want AI on their phones, compared to only 9% of older users.

Forty-nine percent believe AI will harm their critical thinking skills.

This isn’t ignorance.

It’s educated wariness.

Gen Z grew up watching social media algorithms manipulate behavior, mine personal data and damage mental health.

They understand how

“engagement optimization” created filter bubbles and monetized attention at the expense of wellbeing.

They’ve seen technology companies prioritize profit over users—and they figure (correctly) that it will keep happening.

When it comes to AI, Gen Z isn’t asking, “How does this work?” They’re asking, “Who does this benefit, and at what cost?” And they can spot AI-generated content instantly. Years of exposure to algorithmic manipulation have given them sophisticated internal detectors.

The impact for B2B sellers You already know that generational dynamics in B2B selling have become complex. Older salespeople

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struggle to connect with younger buyers who communicate differently and research differently.

Younger salespeople face challenges selling to executives who expect traditional relationship-building.

AI adds another layer of complexity to this already delicate situation.

Consider this common scenario: your sales team deploys AI-powered email outreach, chatbots for qualification or AI-generated proposals.

The goal is efficiency— reach more prospects, respond faster, scale the process. But when that AI touches a Gen Z buyer, it triggers immediate skepticism.

An AI-written email isn’t PAGE 52

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Troy Harrison is the Sales Navigator and the author of Sell Like You Mean It and The Pocket Sales Manager. He helps companies navigate the elements of sales on their journey to success. He offers a free 45-minute sales strategy review. To schedule, call 913-645-3603 or email troy@ troyharrison.com.

just impersonal—it’s a signal that you chose efficiency over authenticity.

An AI chatbot isn’t helpful— it’s a barrier between the buyer and real human expertise. An AI-generated proposal tells the buyer you couldn’t be bothered to understand their specific situation.

Here’s the mismatch: millennial and Gen X sales leaders view AI pragmatically as a productivity tool (which it can and should be, used correctly). They don’t realize their AI-enhanced outreach is actively repelling their youngest prospects. While they see time savings, Gen Z buyers see corporate shortcuts that signal low prioritization of genuine relationships.

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Troy Harrison Authenticity is everything— and you can’t fake it When buyers doubt the authenticity of your communication, they doubt the authenticity of your company.

This hits B2B particularly hard because business relationships depend on trust.

B2B buying decisions involve long-term commitments, significant investment and organizational risk. Buyers need confidence that you’ll deliver, support and stand behind your product over time.

AI-generated content undermines that confidence.

When a prospect receives an AI-written email, the subtext reads: “This company would rather automate than understand our needs.” When an AI chatbot handles initial qualification, the message becomes: “Our time is more valuable than yours.” When an AI system generates proposals, buyers wonder: “If they’re using AI for this, where else are they cutting corners?” And guess what?

These messages are correct interpretations.

Gen Z interprets AI deployment as a values statement. They’ve watched tech companies claim to prioritize user experience while optimizing for ad revenue. They’ve seen platforms promise connection while fostering division. If your technology serves your interests at the customer’s expense, trust evaporates.

AI skepticism will age in, not out Here’s the critical difference: internet skepticism aged out. AI skepticism will age in.

Gen Z is entering the workforce now. Within a decade, they’ll hold senior leadership roles. Their sophisticated understanding of AI’s capabilities and limitations will shape how organizations approach AI. And their skepticism isn’t going away—it’s informed by direct experience with technology’s dark patterns.

The choices you make today about AI deployment will determine whether future decision-makers view your organization as trustworthy or opportunistic. Companies that use AI thoughtfully, transparently and in service of genuine customer value will differentiate themselves. Those that deploy AI primarily for internal efficiency will find themselves shut out as skeptical buyers gain purchasing authority.

What you should do Don’t abandon AI. Use it; but use it well. The technology offers legitimate value for data analysis, research, ideation and productivity.

But deployment must be strategic and behind the curtain.

Distinguish between internal AI use and customer-facing AI deployment. Using AI to analyze customer data and identify patterns? That’s smart. Using AI to generate

INDEPENDENT DEALER

customer communications?

That’s dangerous. The former enhances human decision-making. The latter replaces human connection.

When AI does touch customer interactions, be transparent. Don’t try to make AI-generated content indistinguishable from human communication.

Acknowledge the tool’s role while demonstrating human oversight. Let prospects know that AI helped research their industry, but a human shaped the insights specifically for their situation.

Remember: AI is your intern, not your manager, salesperson or decision maker. As an intern, it’s great: it has a high IQ, it has 20 degrees—and it has no street smarts whatsoever.

Your job is to give it the street smarts.

Most importantly, recognize that generational differences in AI perception aren’t temporary. Gen Z’s skepticism reflects a permanent shift in how buyers evaluate vendor authenticity. Companies that double down on genuine human relationships, transparent processes and customer-first values will thrive. Those that view AI primarily as a cost-cutting tool will become irrelevant to the generation they’re trying to reach.

The question isn’t whether to use AI. It’s whether you use it in ways that build trust or destroy it. Gen Z’s skepticism provides the answer—and it’s not going away.

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From Our Family To Yours We appreciate your support in 2025 and look forward to a prosperous 2026!

DECEMBER/JANUARY 2026

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Learn more by visiting Domtar.com PAGE 54

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