NAED 2024 Western, Cold but Productive

Cold weather couldn’t keep much of NAED’s Western Region from getting together last week in Austin, TX.

Overall, about 650 people registered for the conference and many made it although there was weather in the central part of the country and freezing (and some ice) in Texas which caused delays and cancellations (with some reporting burst pipes!)

Attendance

In reviewing the attendee list, it appears that:

There were 58 distributor entities (brand names) and 245 distributor personnel, however, 11 of these entities were national chains (or their affiliates). These companies represented 127 registrants. Perhaps more than usual, however, the Western region is consolidated, and many areas are considered “chain states.”

It was an active conference and NAED put together a more robust agenda normal.

NAED Agenda

The keynote speaker, Joe Navarro, was very good. His speech was titled “the power of nonverbal communications.” He spoke on communicating through body language and what you can learn from others’ body language. The only critique is that Joe’s presentation would have been great for salespeople with less than 3 years’ experience and for emerging leaders / new managers. Everyone walked away with some new information. While the session wasn’t motivational or industry-oriented, it was skills-based and added value. To learn more about Joe and consider his books, visit his website.

There was a session on the EV landscape, one on the economy and NAED’s Future’s Group convened to discuss Talent Innovation, Electrification and Digital. Unfortunately I couldn’t attend and didn’t hear feedback (but saw people leaving the sessions, so there was some attendance … if you attended and want to share observations, either add below in the comments section or email me.)

Additionally, during the General Session Ed Orlet, Interim President of NAED, commented that:

• The Next Level Now campaign has exceeded $6 million in contributions and is now targeting $10 million. The funds are being used to establish a “Digital Center of Excellence” to support the channel. More plans on the vision and initiatives will be forthcoming. One initiative, being spearheaded by Gold Research, will be presented at the NAED National.
• NAED is discussing the supply chain with NEMRA, NECA, and NEMA and together trying to identify opportunities to help each channel stakeholder.
• Commented that the search for a new association leader is ongoing with a decision hopefully soon, however, the business of the association has continued, and the staff seeks to help deliver value to the members.

Paul Kennedy, chair-elect, also commented on the above.

Industry Observations

Some things I heard during the conference:

• 2024 outlook? Feedback was essentially everyone expects a “flat” (+/-2%) market. Individual goals may differ but that is due to individual company strategies (new products, acquisitions, vertical market strategies, winning some of the large projects.) The projection is based upon organic growth, hence excluding project backlogs that people “hope” will be delivered in 2024.
• POS continues to be an issue for manufacturers and reps given continued distributor consolidation, distributor expansion into new territories, and material being shipped into territories from regional warehouses. Some manufacturers are challenged in getting the information from distributors, some in importing the information and then sharing the information (and compensation) with their reps. Interestingly, while some manufacturers commented about the challenge, and importance, of this, many are reluctant to expend financial resources to address the issue, preferring to think that their existing staff can affect change in their processes.
  • NEMRA has tried to guide the industry. There are about 50 manufacturer and distributor entities that have endorsed the NEMRA POS Minimum Reporting Standards. To learn more, reach out to NEMRA or myself as Channel Marketing Group helps facilitate this initiative for NEMRA and can share the standards as well as share some POS resources.
• Wheatland Tube, according to multiple sources, is experiencing some production challenges.
• A few manufacturers commented that they have regional manager openings. They are seeking individuals who can “add value” to distributors and agents. This is defined as bringing product knowledge “to the field” and being of assistance on creating demand / during end-user calls.
  • And at the same time there are some that are undertaking reorganization to become more “efficient”, and yes, some downsizing has occurred. Egret Consulting, a recruiting firm, shared that they were busy during the conference (whether that is companies looking for people or people “quietly” being open to opportunities is unknown.)
• A number of manufacturers commented that a challenge with their NAED meetings is that there is a disconnect in execution between what gets discussed in a meeting and distributors communicating / executing within their organization. This has become exacerbated with consolidation as companies have more “levels” and are further from the field. Communications becomes email messages or “set up a Teams” for well into the future. Hence, generating results, or the ROI on individual meetings, is reduced. The ability to influence change is being diminished.
• One of Channel Marketing Group’s 2024 projects is a Manufacturer of the Future research initiative for NEMRA. This is a precursor to researching an update to the Rep of the Future Report. I met with a number of manufacturers to gain insights. If you would like to participate, either contact me, let’s connect at NEMRA or we can schedule time at the NAED South Central. All input is confidential.

From a CMG viewpoint the meeting with a success as had a number of company / opportunity specific discussions but, unfortunately, some things have to remain confidential.

Next up is NEMRA next week with almost 1950 people scheduled to be in Las Vegas at the Virgin Hotel. A jam-packed week. NEMRA is followed two weeks later by the NAED South Central in Dallas.

Reach out if you’d like to get together in Las Vegas or Dallas.

So, while Austin was cold, much was accomplished.