Best Practices to Inflation Proof Your Integration Business

Today, inflation is top of mind for all integrators, with expectations that it will last into 2023 and maybe longer.  We are thrilled to have Matt Barnette, CEO at PSA Security, join Joel Harris on this important episode of ClearTalk, to share some best practices that will help inflation proof your integration business. Protecting yourself as an integrator is more important than ever. Integrators are facing the most competitive market for talent we've seen in years, and with the cost of living rising so fast, it’s placing incredible pressure on wages. What strategies can integrators use to retain talent? Manufacturing costs are going up every day and integrators have seen upwards of 40% to 50% product increases from some suppliers. At the same time, integrators are in the business of selling projects for the future. What happens if you sold a fixed price contract 18 to 24 months ago? The integration channel needs to look at the terms and conditions in their contracts and make sure that they are covered. Prior to the pandemic, the integration industry was embracing just-in-time purchasing to maximize profits. The current supply chain issues have flipped this business model on its head, and suddenly, integrators are having to buy inventory to protect their projects. Some manufacturers have two-to-three-year lead times now. How can integrators protect themselves and help each other with this challenge? Every integrator should have a relationship with their bank, and these are the times when that relationship needs to be solid. This is something that we highly advise even prior to the pandemic, and certainly even more now with what’s going on with inflation. Listen to the full podcast for all this and much more!