Being the dependable partner in uncertain times

Despite the challenges, ACCO Brands achieved further growth in 2022 and is eyeing a sustainable future, with dealers and consumers at the heart of its strategy. We sat down with MARK WILKINSON, regional vice-president and general manager of ACCO UK, to find out more

From humble beginnings in 1903, when Fred Cline founded a paperclip company in New York, ACCO Brands has grown into a multinational giant; today it is one of the world’s largest designers, manufacturers and marketers of premium business, technology, academic and consumer products.

For Mark Wilkinson, regional vice-president and general manager of ACCO UK, 2022 was a year of both challenges and opportunities - notably, the high rate of inflation has steered his decision-making and, as he sees it, this will continue through into 2023.

“Almost all companies - and indeed consumers - will have felt the impact of inflation, so managing for that has been the biggest challenge, and this will continue to be a challenge for all parts of the industry going into 2023.”

Adding to this were difficulties in maintaining margins, as supply input inflation grew to record levels; coupled with the potential for a recession in the UK, this makes for a rather unsettled outlook but that, Mark says, is where

ACCO’s integrity comes into play. “In times of uncertainty you need solid, reliable, dependable partners, and we aim very much to be that.”

Regardless of the challenges faced, ACCO had a strong 2022 - and even managed to grow the business, something that Mark is proud to share.

Lessons Learned

Coming out of a year that has been both challenging and rewarding for the whole industry, 2022 served up its fair share of lessons to be learned for ACCO. Mark notes that agility has been key to what ended up being a successful year for the firm. “Our biggest lesson learned was to be agile, and have a plan. I’m always a fan of having a plan, but don’t stick religiously to it if certain aspects aren’t working…you must be quick to recognise when you need to do something different.”

Going into 2023 ACCO hopes to maintain its positive momentum and also to return to one of its key success strategies from decades before. Ten or so years ago, the dealer channel was a much larger part of ACCO’s operations; now it is looking to grow that again.

“We did really well with our dealer channel in 2022, perhaps surprisingly so given the environment. We want to continue to grow that, and we’ve got the plans and resources in place to do it.”

Sustainability Focus

As with all contemporary businesses, ACCO is keenly eyeing the opportunities presented by a more sustainable future. More products are being offered with sustainability labels - driven by customer demand - but Mark also wants to ensure that the company continues to have the integrity to back up its green claims.

“We want to make sure we’ve got the credibility, which means not just creating a shiny, glossy spin - ‘Oh, yes, it’s all carbon neutral. Don’t worry about us, it’s fine’ - but making sure we can actually back that up, making sure we’ve got the right accreditation across all of our sites including offices, warehouses and factories; ISO 9001, 14,5001 EcoVadis, those kinds of things.”

For many companies, being more sustainable can seem unachievable in tough economic times but while there can be a cost associated with going green, Mark is quick to point out that it doesn’t always have to be that way. “Sustainability doesn’t have to be about producing something vastly more expensive just to give it a ‘green’ label. It can be about producing good quality products that last, and making sure that you’re doing that in as low carbon a way as possible.”

FUTURE-PROOFING THE COMPANY

During the pandemic ACCO took the decision to invest in the development and manufacturing of new products. As the workplace adjusts to the new normal, this means the ACCO product portfolio is fit for the future, regardless of how today’s office landscape might look.

“Back in 2020 we took the decision to continue to keep investing in new products. We now have lots of products and categories that were very relevant during the pandemic, and are now equally relevant in a hybrid post-pandemic return to work environment.”

As a company that’s been around more than 100 years, ACCO remains proud of its heritage of traditional office products. With a portfolio that includes brands like Rexel, Nobo, Derwent, Kensington and GBC, those well-known and loved remain core to the companybut that doesn’t mean it’s stuck in the past, as Mark explained. “We’re constantly bringing out new products in our artisan craft brands, technology and business machines categories as well as hybrid working solutions.

“The investments in brand, the investments in new products, and the investments in acquisitions in more technology and consumer-oriented companies, are really what we’re doing to future proof our business.”

Mark believes that diversification offers huge opportunities for dealers - and not just in terms of products. In this period of uncertainty, having more options open, and more choice, is a safe bet to spread the risk. “It’s really important that dealers diversify their supplier base, their product mix, and their customer base, because you don’t know which of those bets are going to take off.

“Try some different areas, and give yourself a chance, because existing traditional product categories are always going to have some element of leakage. You need something else to fill the funnel, and that’s usually new customers, new products, or new routes to market.”

Challenges And Opportunities For 2023

While 2023 presents a bright new year full of opportunities, it’s not without its challenges. From the residual effects of the pandemic, to the war in Ukraine - not to mention the underlying issues relating to Brexit - dealers still have some headwinds with which to contend.

Heading into a potentially recessionary environment will make it more important than ever that dealers work with the best supply chain partners - and Mark warns against falling into the trap of having all eggs in one basket. “We’ve seen, time and time again over the last three years, that supply chain uncertainty means that, being fired back up; as businesses find they don’t work as well as they once did, an opportunity for replacement emerges. As leases are renewed, and many businesses relocate to smaller office spaces, opportunities for furniture replacement present themselves - and, of course, there’s the new and emerging market for hometo-work and domestic office equipment.

“The return to office and hybrid working are still two big opportunities. Don’t forget, hybrid working means multi-location - and the chance to sell stuff for the home and stuff for office. That’s still a very, very good opportunity, and something that served us very well over the last few years.” sometimes, our customers go out of stock, and they come to us because they want a reliable source.”

Engineering a workplace that allows workers to connect, collaborate and feel a sense of purpose will be key for offices up and down the country to ensure a productive workforce. “It’s about collaboration tools, ease of use, and not having really loud shredders sitting right next to someone’s collaboration space.

In tandem with this he encourages dealers to price their products fairly. Given the effects of inflation over the past year, under-pricing is a real risk that should be studiously avoided.

“Don’t fall into the trap of thinking that cheap is best, and you’ll somehow win the sales war that way. I don’t think you will - or at least, if you do, you won’t win it for very long!”

Mark sees an ongoing need for products that meet new hybrid working patterns. Across the industry, the time spent in the workplace varies between employers but, in almost every case, people are back in the office for at least part of the working week.

This, Mark believes, opens up some interesting opportunities for dealers. For example, machines that have been redundant for months or even years are

“Businesses will invest in products that make them more productive, allowing people to focus on what they want to do when they go to work - collaborate, socialise and feel connected.”

Supporting Dealers

Supporting dealers is a core part of ACCO’s strategy. A dedicated sales team focuses purely on both sides of the dealer channel. The online shop enables maximum visibility for the entire ACCO catalogue, and provides easy browsing of its many products.

ACCO is also hosting a series of ‘Dealer Days’ in 2023 where partners can visit its Halesowen warehouse, meet the management team and help ACCO to better understand the needs and challenges of its dealer community.

These innovative dealer workshops are due to kick off in March, and Mark directs interested parties to dealer group heads for more information. “Come and talk to us – we’re here for you,” says Mark.