NEMRA Powers Forward

Last week’s NEMRA conference, where independent manufacturer representatives celebrated their 50^th anniversary, brought together over 2000 manufacturer representatives and manufacturers to conduct the industry’s largest set of meetings.

The theme of this year’s conference was “Powering a Smarter World, 50 Forward.”

Massive sales meeting

Essentially the event was a massive sales meeting. Thousands of one-on-one meetings were held between manufacturers and their sales organization. Additionally, many of the 200+ NEMRA manufacturers held group meetings, sharing 2019 performance, highlighting 2020 initiatives and recognizing top performers.  There were also a number of manufacturers showcasing products in search of representation.

And while there were lots of meetings, there was also much networking among agency principals.

Other observations

In addition to the meetings,

• The association celebrated its 50^th Anniversary reminiscing about the inaugural meeting in 1969 at the Sheraton Inn at LaGuardia Airport. The association was founded to “assert a positive voice in the industry” in support of independent sales agencies based upon commonality of purpose given that manufacturers are focused on sales performance and reps are compensated based upon sales performance.
• Today NEMRA agencies represent over 4000 salespeople and the association has over 200 manufacturers as members.
• Jim Johnson, in his inaugural presentation, shared insights from his first six months. During this time period he has visited with over 100 members. He emphasized that many are forward thinking and progressive but that there is the need for “more.”  He also highlighted that the agency sales model is a very cost-effective one for manufacturers and that NEMRA’s goal is to be a bridge between manufacturers and reps with both parties having the same goal – move more product and earn a “fair reward.”

Jim’s message balanced telling members that they need to invest, utilize NEMRA programs and be actively involved for NEMRA to thrive while also communicating to manufacturers what is needed to be more effective with their sales agents.

He highlighted a number of 2020 of initiatives including a healthcare and employee benefits administration service.  The organization also announced a partnership with the Gary Sinise RISE Foundation to give back.

The NEMMY Awards recognized top performers based upon a nomination process.

• Partnership Award went to Hawkins Sales and Leviton
  • Manufacturer Choice Award went to Rouzer Group
  • Rep Choice Award went to Milbank
• Keynote speaker with Jon Dorenbos, formerly a Philadelphia Eagles long snapper who is also a card magician. He shared his life story of tragedy and perseverance, telling the story through card tricks. Very entertaining with motivational messages woven into his story.
• NEMRA shared some of the results from its just released Rep of the Future study, which was conducted by Channel Marketing Group.  Some highlights mentioned by Jim Johnson, president of NEMRA, during the General Session, included:
  • The need for increased agency stability to support the building of an agency and the challenge of the 30-day contract.
  • Competition for the customer
  • Erosion of the electrical distribution channel as we know it, based upon manufacturer input
  • That consolidation changes an agent’s relationship with distribution
  • Recruitment challenges and the need for improved compensation and training
  • Commission $ / PO as a metric for agencies and manufacturers
  • The need for manufacturers to compensate for specification work
  • The role of customer service and how manufacturers have outsourced this to agencies with, typically, zero compensation
  • The need for manufacturers to understand rep economics
  • Marketing will become more important as a “tool” of the rep of the future
  • Utilization of technology within an agency

The report is available, for free, to agency and manufacturer members.  To obtain a copy contact the NEMRA office or email Jim Johnson.

• Heard from a number of reps that they were interviewing for lines. Seemed to be more manufacturers than normal looking for new representation. Much may be due to consolidation as also heard some performance dissatisfaction from manufacturers with agencies that have grown through consolidation … the manufacturers feel they are “just a number” and “not getting any focus.”
• More discussion heard from reps and manufacturers about POS reporting. Reps commented that some manufacturers mentioned the initiative at their group meeting. Had more manufacturers inquire about the NEMRA Minimum POS Reporting Standards (more endorsements coming) and POSConnection as a POS data collection process.
• In speaking with Chris Sokoll from DISC, a number of reps and manufacturers were interested in his service, indicating that there is a greater interest in understanding market size and a company’s market share. More of a focus on metrics.
• A number of reps have developed manufacturer measurement tools and shared them. Reps are becoming more sophisticated in understanding the profitability of their lines and using the information for discussion with their manufacturers.  Essentially this is “Activity Based Costing”.
• Many reps commented about Southwire’s commission revisions … downward, with some segments at 0%, .5% or “a 30% reduction”.  Many used the word “frustrated.”  All were resigned to the issue recognizing that they still wanted / felt they needed a wire line. It remains to be seen if a “lack of enthusiasm” could be seen by distributors in the amount of support for the line or if support will be maintained due to support of the distributor (not of the line). This appears to be a case of “leverage.”
• Overall, heard 2020 projections of low single digits. Some are projecting low teens but that is either manufacturer specific (new products) or agencies with focus on specific lines.

Overall, a very busy 2 ½ days as most agencies and manufacturers started meetings as soon as they arrived at the hotel, leaving Orlando harried with much follow-up to do.