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Sometimes trends just sneak up on you.

I’ve noticed a change in supply and demand for manufacturers’ representatives: Manufacturers’ demand for manufacturers’ representatives is up, and the supply of manufacturers’ representatives is down.

How did I reach that conclusion?

• When I speak to MANA’s new manufacturer members the number-one reason they’ve joined is to access MANA’s database of elite representatives. Or, as economists would say, demand is up.
• I also speak to manufacturers’ representatives whose MANA membership has lapsed. Overwhelmingly they are Baby Boomers who have retired. Or, as economists would say, supply is down.
• To get the right rep on board, manufacturers are increasingly willing to invest in territory development fees to offset representatives’ cost of pioneering new territories. Or, as economists note, when demand is up and supply is down, the available supply is more highly valued.
• And, finally, new manufacturer memberships (demand) are far outpacing new representative memberships (supply).

What happens when demand for representatives outpaces supply? Manufacturers compete for representatives by turning over house accounts, offering extended termination terms, adding Life Of Part/Life Of Program (LOP/LOP) clauses to their contracts, and helping representatives with territory development costs.

That sounds like it’s a good time to be a representative, but it’s important for representatives that the pendulum does not swing too far in that direction.

A manufacturer who struggles to find a representative for a particular territory has two obvious choices: Offer extra incentives to the best representatives or consider hiring a direct salesperson.

So even if having representatives in short supply might look like a boon for representatives, it’s important to remember that fewer representatives available will mean that more sales forces will be direct. To keep our industry healthy, it’s important to help new representatives join our industry.

In this issue, we look at one MANA manufacturer member’s creative solution for getting more young people into the representative industry. Now in its fourth year, Twin City Fan and Blower’s ingenious solution is to hire eight recent college graduates and train them in their business, and then make those trainees available as new hires to its network of 150 worldwide representative agencies. Congratulations, Twin Cities Fan and Blower, on your creativity, and thank you for your outstanding support for MANA and the representative system of selling.