Welcoming the New Year
While every New Year’s Eve brings cause for celebration, it’s probably fair to say that people were especially happy to say farewell to 2009. While the records and information management (RIM) industry fared better than many other sectors of the economy in the last year, 2009 was still a difficult time for many RIM companies.
The last year challenged many RIM business owners and executives to look differently at their operations and to question their customary practices. As a result of the recession, many firms say they had to work harder to land new clients by focusing on prospecting and marketing. Some RIM professionals looked beyond their usual markets for additional growth, while others looked at adding new services and further diversifying their client base.
Recovered fiber pricing declined swiftly in the fourth quarter of 2008, and while 2009 saw some gains in value, paper sales contributed less to company revenue in 2009. Many companies looked to make up the difference by seeking additional volume last year.
It looks as if 2010 could see continued gains in the recovered fiber market. Office paper generation remains subdued, though demand at tissue mills is steady, according to Bill Moore of Moore & Associates, a paper recycling consulting firm based in Atlanta. This situation could lead to upward price pressure on sorted office paper (SOP) in the near future.
More good news comes in the form of the Red Flags Rule under the Fair and Accurate Credit Transactions Act (FACTA) and the Health Information Technology for Economic and Clinical Health (HITECH) Act, which modifies the information security provisions established by the Health Information Portability and Accountability Act (HIPAA) and encourages the further development of electronic medical records (EMR) systems. These new regulations will spur additional business opportunities for RIM firms.
The industry also may benefit from two pieces of legislation that are progressing through Congress in the form of the Data Accountability and Trust Act and the Personal Data Privacy and Security Act of 2009. The first act calls for the Federal Trade Commission (FTC) to publicize regulations calling for firms in possession of personal information to establish security policies and procedures and would authorize the FTC to require standard method or methods to destroy non-electronic data. The second act calls for fines and/or incarceration in the case that sensitive personal information is breached.
This news offers RIM professionals hope for a brighter 2010 and gives them reason to welcome the new year.