In November 2023, the AIM/R Executive Committee met virtually with two groups of industry leaders, wholesalers and manufacturers to discuss industry trends and how those trends impact our plumbing-heating-cooling-piping and pipe-valves-fittings communities. If there is one thing this industry can count on, it’s change. Let’s look at how we are adapting to a changing industry and forecasting for future successes. 

The Complete Rep Partner

Our first meeting was with the AIM/R Manufacturer Advisory Council (MAC), comprised of six upper-management individuals from AIM/R manufacturer members. A few key topics we covered focused on the economy, the rep-to-manufacturer relationship, and the importance of AIM/R membership. 

It is no secret that the overall health of our economy struggled in 2023; most manufacturers forecasted a down year. Although that has occurred in some sectors, our manufacturers noted some bright spots in our trade channel, most notably commercial and light commercial projects. 

A few keys to those successes were summed up with reps and manufacturers staying agile and responsive. In today’s market landscape, collaboration between reps and manufacturers is more critical than ever. When working side by side, we can align our strategies, share market insights, and work together on solutions that address changing customer needs effectively. This collaborative approach enables both parties to leverage their respective strengths and drive mutual success. 

As the market continues evolving, the significance of returning to classic blocking-and-tackling strategies cannot be overstated. Manufacturers lean on their experienced rep agencies to adapt to industry changes and help grow their businesses and overall market share. 

The key indicators of a successful rep agency, both now and in the coming three to five years, are summed up as The Complete Rep Partner: agencies well-diversified in residential, commercial, specification, hydronics, finished goods, showrooms, etc.; investments into software systems, hiring/retaining/rewarding their team members; and, most notably, recognizing the importance of AIM/R membership. 

The group agreed that AIM/R membership and Manufacturers’ Representatives Educational Research Foundation certifications are key to successful representative firms and directly influence the hiring decisions of manufacturers. 

We finished the MAC session with two simple questions: what should reps start doing, and what should reps stop doing? If reps have not already consistently developed five-year strategic plans, they need to start. A longer-term vision helps with agility in the market and consistency through economic shifts. 

Stay connected to the market; do not get distracted. Get involved in the local recruitment of plumbers. Engage your local trade schools, high schools and community colleges. If we all do our part to attract and retain talent, we will help secure our industry’s success for many years.

The Shift to Digital Transactions

The following day, the AIM/R Executive Committee sat down with four leaders from the wholesale/distributor side of the business for the AIM/R Wholesale Advisory Council (WAC). These individuals were representative of both regional and national AIM/R member partners. 

We kicked off the session by asking, “What are the key challenges being faced by the distribution channel in plumbing and heating today?” One of the common responses is that the channels are getting blurrier — big box, e-commerce, direct-to-consumer — and it is a big challenge for the entire channel. 

Additionally, things have changed over the past few years due to the COVID-19 pandemic, and we are all still attempting to find the new normal. The supply chain was disrupted for an extended period, and different parts of the channel are recovering at different rates. We are forced to serve the old and be ready for the new. It is exhausting!

We then discussed how distributors attract new talent and how the rep firms’ training expectations have shifted. One item of note is that industry relationships are built differently than in the past. The standard meet-ups and face-to-face gatherings are no longer preferred by the younger generations. There is a shift to online social interaction; virtual team building and training are often preferred. Time away from home is not typically desired. 

Reps need to adapt to these new methods and find ways to connect through all forms of engagement, as long-term relationships will always be what drives our business. 

Similarly, the method of transacting is changing. We can thank COVID-19 for that! During the height of the pandemic, customers changed their buying habits as many markets lost the option for casual will-call settings that draw contractors into wholesale distribution counters. There was a noticeable shift by some contractors to the big-box stores due to the ease of ordering online and picking up material in-store. This challenged the trade side of the business to adapt to how customers want to be serviced, which includes more digital transactions. 

The big-box shift also brought to focus that online experiences for tradespeople are often less than appealing. Trade professionals do not get the same full servicing of the products as they do from wholesale distributors. We were encouraged to hear that our wholesale distribution partners have regained this business, and then some, as they quickly adapted to these industry trends. 

To sum up our time with the WAC, we asked them to finish two statements:

1. The best agencies today … 

The common themes were communication, partnership and alignment. These best-in-class agencies develop a business plan for their market and communicate those plans to their wholesale partners. They also can influence decision-makers in their market and have the autonomy to make decisions fast and efficiently.

2. The thing that worries me the most about the rep agency …

Wholesalers worry about rep changes, consolidation and manufacturers who switch from a manufacturer rep model to a direct salesforce. Wholesale partners have established long-term relationships with their existing rep agencies and do not support a transition to a direct salesforce, fearing the loss of familiarity and personalized services they have come to rely on.

Thank you to those who participated in these key sessions. The relationships we enjoy with our manufacturer and distributor partners are what make our industry special, and that will never change. 

Brenda Cashdollar, CPMR, entered the plumbing industry after graduating from George Fox College with a bachelor’s degree in psychology. She has enjoyed more than two decades as a manufacturers’ representative. Cashdollar was one of the founding partners at Synergy Sales NW in 2014 and is looking forward to celebrating its 10-year anniversary in April.