ISHN "FDO"
October 2007
By George J. Hayward
(as well, other channel
partners)
Early
on, the beginning of this year, a successful fellow Commercial Agent, Jan
Bjornum* (as they are referred to in Europe or Manufacturers' Representative
here in North America) from Sweden, exposed me to a conference where Reps were
in discussion about the future, imagine that. Of course, much of our future is
similar to our individual channel partners, at least true in the industrial
safety channel that's true. Not necessarily true in others.
However,
I thought I would share my observations of change and our future with you as
they mostly apply and effect all in our industrial safety channel and many
other channels, too.
My
first thought of change, affecting everyone globally is, the best seller,
"The World is Flat", (by Thomas Friedman - great book)
"means"......the world is now a "level playing field"
or...... there are now, no longer the same or big hurdles or obstacles in
global commerce or activity, as before.
Other
thoughts, for now:
Total
globalization. Free but, fair trade continues be a major issue. Whether in the
Far East, Mid East, Eastern Europe or elsewhere, it is inevitable and will be
accomplished to develop a more level playing field.
Currency
manipulation and theft of intellectual property both, will affect everyone
until they too, are globally, first embraced then enforced, it will occur.
Continuing
specific profession education in a global sense, will continue to be needed in
order for a competitive edge. (CPMR, QSSP and/or other global educational
courses including language will add to leveling the playing field).
Stronger
global acceptance, authority and enforcement from WTO will prevail.
Stronger
global standards and adherence will contribute to a greater level playing
field, in safety & health, environmental, manufacturing, service sectors,
etc.
Global
product compatibility will enhance usage.
Global
joint technology sharing will enhance growth.
Global
joint commercial investment will ease political differences
Global
joint research and development will enhance global joint investments
Global
"InterDEPENDENCE" will rule.
Before
the meeting conference, each one of the participants had received three questions,
which they should be prepared answer at the meeting. The questions:
1.
What changes in the world around you will be of most importance in the next ten
years for your company?
a.
Principal (manufacturers whom we represent) extension of their
"Synergistic Continuum". (means, going beyond &/or outside their
product category with product conflicts with other Principals' lines, before
they complete their own product (continuum) group offering).
b.
Mergers & acquisitions within the complete trade channel.
c.
Lack of additional U.S. safety standards enforced.
d.
Lack of U.S. involvement in global safety & other standards.
e.
Outsourcing of jobs to lower pay scale countries.
f.
Loss of identity as Manufacturers' Representatives within channels as
vertical recognized category.
g.
Loss of trade associations impact and involvement on next generations.
h.
Inferior import products.
i.
Global business educational opportunities ( i.e. CPMR) & continuing
competence within profession.
j.
Safety, health, security, energy, environmental, political &
terrorism issues.
k.
Rapid advancements & developments in IT, our timely response and
competence, and R&D (not just QC).
l.
Proper time &
"mix" allocation with business/pleasure.
m.
Lack of skilled “blue collar” manufacturing employees.
n.
Excessive importing of unskilled, low cost labor.
o.
Diminishing number of engineering and science graduates from U.S. colleges
& remaining in U.S.
p.
U.S. business focus on short-term profits vs. long term business growth.
q.
High social costs mandated by governments in Europe & U.S. could
have dramatic negative effect.
2.
How will this affect your way of working in practice, geographically and
organizing your company?
a.
Communicate with Principals these concerns, encouraging them to complete
their continuum, first.
b.
Seek Principals where this threat is less of an issue.
c.
Throughout our Strategic Planning process we regularly (4 times
annually) address this and many other issues.
d.
Involve ourselves by actively participating in key trade associations
effecting all these issues, through awareness.
e.
Constantly, re-evaluating ( not re-inventing) & challenging
ourselves as a company of our proper business structure & model - adjusting
as needed.
f.
Anticipating, recognizing & remaining current and aware of new
opportunities and threats.
g.
Aware of and recognizing possible new and new types of competition that
may normally unrecognizable.
3.
Structure of customers - what/who will your customers be like in ten years?
a.
Mostly, in the channel, large ( Principals, Distributors, Manufacturers'
Representatives AND the End Users) will become larger, utilizing,
"Synergistic Leverage".
b.
Mostly, in the channel, mid sized (see above) will cease to exist except
in "special" situations (markets, geo., etc.).
c.
Mostly, in the channel, small (see above) will continue to exist as
specialty companies.
d.
Explored changes within United Sales Associates could include:
1. Sell "account specific".
2. Enlarge territory.
3. Alliances, mergers and/or acquisitions.
4. Buy & sell.
5. Logistical expediter.
6. Importer.
7. Exporter.
8. Manufacturer.
9. Distributor
10. Value added services (i.e.
training, product line specialist, etc.).
e. Customer demand(s)
f.
Principal demand(s)
What
a wonderful exercise, it should be asked of each of our companies on a regular
basis. We, United Sales Associates, regularly address many of this issues in
our Strategic Planning sessions four times (or more if needed) yearly, do you?
Think
about it
George
J. Hayward
*
Jan Bjornum, from Sweden, serves with me, as a Vice President on the Executive
Committee of IUCAB (Union of Commercial Agents' & Brokers www.IUCAB.org ) the largest global Rep
association (over 1.2 million Rep's represented).