Gene Geiger Discusses Decision to End Geiger's Manufacturing Business
As for its printed properities, the company is looking into options for the future. Geiger will still remain the publisher of the Farmers' Almanac, with printing and binding handled at another plant to be determined in the future. The company is in talks with other manufacturers to possibly produce the SunGraphix line.
The company's CEO reaffirmed that the distributor business, which makes up the bulk of Geiger's revenue, is doing well and that the decision to end manufacturing does not reflect on the company's overall state. "[The distribution side] is growing and is profitable and, in all likelihood, grew faster than the industry as a whole did last year. Things are fine over there," he said. Geiger came in No. 5 on Promo Marketing's Top 50 Distributor List of 2012, moving up from the No. 7 position in 2011 with about $18 million more in sales.
"That's the positive side of this decision: we're all-in with the distributor business," he said. "We've invested there and we are not going to have resources bleeding into an area that is not profitable. We can invest those resources into something that is profitable and have the greatest benefit from a business point of view." The funds spent on the manufacturing side of the business will be redirected toward the distributor side, investing in e-commerce and other technologies.
The focus going forward, Geiger said, is in adapting to the marketplace to better serve its customers. While ending the company's legacy printing business is unfortuante, he said it was a sign of the times. "It's an example of how business and market conditions change and how businesses have to change with them," he explained. "If you don't change, you're going to end up going out of business. Change is disruptive and it can be personally harmful but it opens up new opportunities, and that's how we are looking at it."