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FCG predicts by 2020 Electrical Rep Landscape…

Amid the two (2) Sea Changes: 1) Millennial Workforce taking over customer buying decisions and 2) Digital Sales Technology which is the "Millennial Choice" of transacting business, FCG predicts by 2020 Electrical Rep Landscape will look like this…

1. Electrical Channel Consolidation will result in less NEMRA Rep Total Members by 2020.

2. Many weak NEMRA Reps will wrongly blame their competing reps for poaching both their lines and their talented people. Rather than having performed up to their manufacturers expectations and treating their people well. Electrical Manufacturers want and deserve high-performing rep firms. Talented people want the opportunity to grow in responsibilities and be rewarded accordingly.

3. Mid-size NEMRA Rep Firms will become obsolete. These mid-size rep firms will be forced to grow, shrink, or be acquired/merged into a Super-Regional Rep Agency.

4. NEMRA Rep Mergers/Acquisitions will accelerate. Many NEMRA reps are members of at least seven (7) different networking groups. These networking groups are made up of non-competing reps that get together through semi-annual or annual meetings to share best-practices. Among these networking groups there exists many rep firms seeking to merge, acquire, or be acquired by fellow networking group members. Their missions are to form Super-Regional Rep Agencies.

5. Small Rep Firms will survive to serve Small to Midsize Manufacturers and many will shift their focus on a specific industry or product area.

6. Platform Manufacturers will continue to acquire Mid-Size Manufacturers like Arlington, Bridgeport, ILSCO, Electri-Flex, Leviton, Lutron, etc.


7. Several Platform Manufacturers will continue to seek opportunities to sell directly to customers bypassing the traditional Electrical Distribution Channel.

8. Platform Manufacturers will execute Hybrid Sales Models with Super-Regional Reps and Direct Factory Salespeople.

9. Alternate Channels will continue to threaten the Electrical Distribution Channel.
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