Bell & McCoy Moves North

The rep world continues to change.

While the past few years have been marked with rep consolidation, the emergence of the mega / “national” rep (really, they are all quasi-national), and reps expanding into new contiguous territories, we’re seeing a sense of urgency by some to expand “quickly.”

The agency that appears to have a significant sense of urgency is the Texas-based Bell & McCoy.

Late last year the company announced a “relationship” with FRM. There are questions regarding merger or acquisition but, needless to say, they are “linked” (and their announcement states it is a merger.) FRM expanded into the lighting space with some acquisitions and has been on a hiring spree. They’ve also expanded their supplier network.

Bell & McCoy, at the same time, also made acquisitions and we’ve heard rumors of desires for other geographic expansion.

Today it was announced that Bell & McCoy is expanding into Kansas and Western Missouri. Perhaps this is an early initiative into extending its reach northward.

The company is entering the market with Sentinel Electrical Products, MCXP, Penn Union, Haydon Strut, Peco Fasteners, Commodity Cables and Vitalink.

The question some have asked is “what is fueling FRM / Bell & McCoy’s urgency” for what many perceive as a “land grab.” This is not to say this is positive or negative, but manufacturers are now being faced with the third “mega” agency (FRM / Bell & McCoy, JD Martin and Ewing Foley.)

In the words of one long-time executive, “I never thought I’d be having an agent that covers so many states”.

Based upon discussions I’ve had with manufacturers there are some that are comfortable with large agencies and are developing strategic relationships and others that prefer agencies that are smaller, perhaps more traditional.

The part that is interesting is the rep agencies that appear to be “caught in the middle.” These are agencies that have been committed to a supplier for an extended time period (hence perceive that they are loyal to the supplier and that the supplier will be loyal to them presuming there is continuity and performance.) Some have expressed concern that mega agencies will “pressure” their key suppliers to award them lines in new territories.

This dynamic is different than suppliers supporting distributors as they move into new markets as distributors have options for suppliers and vice versa. That may not be so with the rep / supplier dynamic.

Rep consolidation, and expansion, will continue and we may have a national rep, or two, in the near future. The model works for some manufacturers, it won’t for others, and there are “national” agencies that will have localized / regional line cards supported by centralized (shared) operational resources.

Different models for different companies.

Where will Bell & McCoy (or FRM), go next?