I was on a call recently with a number of electrical distributor leaders and someone mentioned the words “conglomerate”, “leaders”, and “NSI” in the same sentence (and yes, they mentioned about six other multi-product category manufacturers.

As seen in New England where there seemed to be the “game” of musical chairs with manufacturers and reps making a number of changes, there are limited “top-tier” reps in a marketplace. And “top-tier” nowadays is defined as reps who:

• Have strong distribution relationships
• Have invested in end-user / contractor relationships and are developing demand generation skills
• Investing in technology, processes, training
• Either are deep within their defined territory or have grown to a size to provide strong representation in multiple markets (no longer is 1 person in a large geography sufficient)
• Have a marketing resource
• And have good, complementary, lines or a segmented line card to support different market segments.

And for these conglomerates, they are bringing “volume.”

Back to NSI

• Earlier this fall they expanded their relationship with Casey Electric Sales.
• Then they changed representation in New England, moving to Flynn & Reynolds, which gained them consistent coverage in New England and western New York.
• Now they are expanding their relationship with Rouzer Group

Their expanded relationships build upon their experience with a rep firm who has some of their lines. Now these agencies are “one-stop shops” which enables planning, marketing, technology, reporting, ordering, shipping, billing and “more” synergies.

According to NSI’s press release:

“NSI is proud to announce that it has extended its partnership with St. Louis Park, Minn.-based Rouzer Group for the Minn., western Wis., S.D., and N.D. territory, effective immediately. Rouzer Group has been representing NSI’s Bridgeport and Remke brands, and the partnership will now encompass all NSI brands including Polaris, Tork, and Metallics.

“We have had a great relationship with Rouzer Group who is highly touted in the industry and has a strong foothold in Minnesota, western Wisconsin, North Dakota, and South Dakota, and we are proud to be able to add our Polaris, Tork, and Metallics lines as part of our strategic partnership,” said Rani Salloum, NSI regional vice president. “The upper Midwest is a strong and vital region, and this change coupled with our continued commitment to One Pledge allows us to enhance consistency, simplify order processing, and strengthen our commitment to timely shipments and responsive service. Extending this partnership will further bring their deep experience and dedication to supporting our distributor network in the territory, and we’re confident this transition will make it even easier for you to do business with us.”

Rouzer Group is an award-winning manufacturer representative agency based out of the Twin Cities. They are committed to building results through solid relationships, hard work, and extensive resources. Rouzer Group is among the leading sales agencies, representing only market-leading manufacturers who focus on the engineering of innovative and quality products.

“NSI and its brands have grown exponentially in recent years, and we have been proud to be a part of the Bridgeport and Remke family in the upper Midwest,” said Rouzer Group’s Pete Deeg, Vice President – Electrical, Managing Partner. “With our strong relationships and customer base, we are excited to support the Polaris, Tork, and Metallics brands, as well.”

Congratulations to NSI and Rouzer for strengthening their relationship.

Thinking Beyond

A couple of takeaways from “reading between the lines.”

• If there are 7 conglomerates and they all need representation in a market, can you name 7 comparatively strong reps in a geographic market, so 1 conglomerate / rep firm?
• If not, which ones can co-habitat? And will they admit it?
• If not willing to co-habitat, who gets left out?
  • Will they then split representation of their package based upon brands or market segments?
  • Support “new” agencies and/or invest energy into helping a firm develop?
  • Do they invest in a hybrid model? (which can be expensive and how many want to add FTEs and then manage them?)
  • “Bring in” a firm from outside of the geographic area? Or perhaps, if they have a relationship with a different type of rep (industrial, utility), perhaps help them diversify?
• While manufacturers can have their perception of “top-tier” reps, in reality these are companies led by individuals (and now teams) who have had vision for their firm. The Rep of the Future reports lay a roadmap to help every rep. Perhaps there is a path to being considered “top-tier” either across market segments or by going deep into a segment?

The industry, defined as manufacturer reps and non-conglomerates, or non-market leaders in their category, have talked about the issue of line conflicts and the electrical industry embrace elements of the lighting agency model (carry conflicting lines and focusing more on meeting revenue goals and market segments). But not much progress has been made, especially given companies are publicly or PE held … so need their growth enablers (reps) to be focused. Perhaps better arguments and more planning is needed. Perhaps it will not happen with these companies (after all, you don’t see Acuity, Cooper, or Current on the same line card, but they will tolerate (and I don’t know if that is the right word) “niche” companies. Either way, the message is “invest to achieve your vision.”

Give us a call and we can help you craft a plan … and at least a message to support your upcoming planning meetings.