The concerns facing the imaging industry are real and increasingly difficult to ignore. Across the dealer channel, conversations continue to center on declining print volumes, mounting pricing pressure, persistent talent shortages, and the uncertainty surrounding AI and diversification. At the same time, technology is changing the game. AI, automation, cloud-based tools, and better data are reshaping how businesses run and how customers make decisions. These are not new challenges but to really understand where things are going, it helps to look at this a little differently.
This is not really a story about an industry in decline. Our industry is in transition.
While hardware placements and page volumes may be under pressure, the long-term profitability of this business has never been driven by technology alone. It is driven in the aftermarket – service, supplies, contract optimization, and the ability to manage cost structures over time. That’s where dealers still have significant control, and where opportunity remains.
Dealers are right to be concerned about margin compression. Competitive pricing, OEM policy changes, and customer print and buying behavior are all contributing factors. But the path forward is not waiting for manufacturers to introduce entirely new technology categories, it is strengthening profitability within the business models dealers already operate.
There are three immediate areas where dealers can take control:
1. Protecting and Expanding Service Profitability
As page volumes decline, every page becomes more valuable. That means tighter control over cost per page, more strategic use of alternative supplies, and better visibility into fleet performance. Dealers who actively manage their service economics – not just top-line revenue – will outperform.
2. Leveraging Data to Offset Volume Decline
Fleet data, device utilization, and service insights are underused assets. The dealers who are winning today are using data to optimize contracts, right-size fleets, and proactively manage service. This is how you offset declining volumes without racing to the bottom on price.
3. Simplifying the Path to Diversification
Diversification is necessary, but it doesn’t need to be disruptive. Adjacent opportunities like managed IT, workflow solutions, and security services are already within reach for many dealers. The key is choosing solutions that align with existing capabilities, not overextending into areas that require entirely new infrastructure.
While OEMs will continue to invest in new technologies and categories, technology innovation alone will not solve dealer profitability challenges. New products don’t automatically translate into sustainable margins.
Dealers need to maximize what’s happening in their business now.
Larger organizations may have pricing advantages, but smaller and mid-sized dealers continue to win on service, relationships, and agility. Those advantages still matter, especially when paired with disciplined cost management and the right strategic partners.
Talent is another critical issue. The shortage of technicians and sales professionals is real, and it will not be solved overnight. This only reinforces the need for operational efficiency tools, processes, and support systems that allow dealers to do more with the teams they have.
Finally, on AI: it is both a disruption and an opportunity. AI will change how customers buy, how service is delivered, and how businesses operate. But like past technology shifts, those who adapt early, especially in areas like automation, predictive service, and customer engagement, will win.
The takeaway is this:
The industry shouldn’t be waiting to be saved by future technology innovation. It is being reshaped by how effectively dealers manage their profitability, adapt their offerings, and leverage the assets already in their control. Dealers face a tremendous opportunity by strengthening their business foundation. Protecting margins, optimizing service delivery, and remaining competitive regardless of how the market evolves is smarter business.
Kay Fernandez
Kay Fernandez is Vice President of Global Marketing at Katun.