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MSE’s Luke Goldberg urges optimism for 2012

MSE’s Luke Goldberg urges optimism for 2012

December 9, 2011

MSE Senior Vice President Luke Goldberg discusses how the industry trends are in aftermarket favour. 

Luke Goldberg, Senior Vice President, MSE, has decried the aftermarket industry’s defeatist outlook in an editorial and opinion column on Actionable Intelligence, opining that the major trends of the industry are to the aftermarket’s favour.

Goldberg states that a morose attitude has been adopted by the aftermarket due to “drops in paper usage, printing, employment and printer placements” and views “all of this negativity as a huge benefit to the aftermarket imaging supplies business”.

One of the most prescient industry concerns Goldberg noted was “the economy stinks”, although economic decline has been linked to positive trends for the aftermarket. “We already know this is good for our business and leads to new customers seeking price savings. This was proven in 2009, when the aftermarket increased share at the expense of the OEMs.

He also lists OEM price hikes in response to the economic situation as beneficial, “so at the worst possible time for cash-strapped consumers and OEM dealers, HP and Lexmark decide to raise prices. All I can say is thank you! If the aftermarket takes just one percent more share because of these opportunities, we can grow collectively another $700 million (€523 million) as an industry”.

He also espouses a devil-may-care confidence to the multi-tiered pressure the OEMs continue to place on the aftermarket: “I say, bring it! Both the legitimate aftermarket and the OEMs are on the same side regarding the majority of these litigations. We both have an interest in restoring fair competition.

“On the collection side, we need to educate consumers that if they send cores to the OEMs for destruction they are eliminating one of their purchase options [and] the OEMs’ technological innovations only benefit the aftermarket […] represent[ing] an opportunity for aftermarket players to showcare their own engineering investment and technical expertise by bring products to market quickly and differentiating themselves from the competition.”

He concludes by stating that the major trends “are in the aftermarket’s favor […] At a time when the OEMs’ prices are increasing further, I expect the aftermarket to stabilize or even raise prices. If we keep our focus on capitalizing on these trends, we will do more than survive 2012; we will thrive.”

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