Craig Cumming heads the manufacturers’ rep firm C-Square Industries, Inc.
When Craig Cumming reflects on opening his own agency 28 years ago, he’s asked whether he was apprehensive or scared about making the move. Without missing a beat, he offers, “Fear is not a bad thing; and if anybody isn’t scared about such a move, then something is wrong.”
Obviously, there was nothing wrong with Cumming as today he can look back on almost three successful decades heading C-Square Industries in Colorado. The single-person agency represents manufacturers dedicated to:
- Air and liquid filtration.
- Air movement equipment.
- Waste treatment and water reuse.
- Industrial equipment and systems.
Cumming followed a fairly typical career path when it came to ultimately opening his own rep agency doors. “In 1986, after working as a design engineer for a company in the refinery industry, I took a position as a sales engineer and manager with a satellite agency in Houston. That firm represented engineered power transmission and process equipment. Their focus was also working with distributors. I worked for that agency for several years. Following that my family relocated to Colorado in 1993, and I worked for an agency for a couple of years with the intent to purchase the company. Unfortunately, that did not happen and after several years I decided to leave and start my own agency.”
Cumming adds that heading his own agency is no easy task, but that was always his goal. “I look at it this way: I’m my own boss and when I get up every morning, I don’t have to worry about whether I have a job or not.”
Upon opening his own agency doors, “The first product line my firm represented was in the heat exchanger industry in which there was OEM business in the region and a steady cashflow. The agency’s focus back then was air movement, pollution control, and other process equipment. Since my experience was in the refinery industry that was one focus; however, that business was not as concentrated as it is in the Gulf Coast. Therefore, my focus shifted to coal-fired power plants, mining, hydropower, food and pharmaceuticals. OEMs are also a potential customer with the air-moving equipment.”
Value-Added Presence
Further explaining the markets that he serves, Cumming said, “The area of specialty is engineered equipment in air movement, liquid filtration, and process equipment. I incorporate a value-added presence into my agency. My mission statement is not really that of just sales but more of ‘solving problems’ for customers. What one customer might think they need in a system may turn out to be something entirely different. I like the approach of working with customers to find solutions. I do not have an issue recommending a better solution to a customer that might be to look at other equipment for their application. That way they respect my opinion for a possible future application and sale.”
Typical of other single-person agency owners, Cumming has always faced the task of finding and attracting principals. “MANA has been a good source for manufacturers to find my agency. In some cases, you can look at the MANA database of manufacturers’ reps in different parts of the country to see what companies they are representing and contact those manufacturers to see if any opportunities exist in the region for representation. Unfortunately, you cannot just rely on one source to seek out new prospects. My company website (www.csqind.com) has generated some inquiries from manufacturers.”
The majority of C-Square Industries lines are U.S. manufacturers. However, he explains that he does represent a French company that packages systems in the United States. “I do get many inquiries from overseas, mostly China. The inquiries are for filtration and most of the products are not of interest. My firm would prefer to represent manufacturing companies in the United States. Consideration is given to some companies outside the U.S. if there is a specialty aspect to the product that is manufactured and hard to source domestically. My firm has also done work overseas with U.S. manufacturers. Projects have been done in Eastern Europe and South America that have originated from the U.S.”
Importance of Synergy
When it comes to aligning with a manufacturer, Cumming stresses the importance of achieving synergy with existing product lines. “Whether it’s with your existing products or with the customers you serve, you want to make sure whatever lines you represent that they complement what you’re already selling.”
Cumming, just as so many of his rep peers, has been faced with the prospect of introducing the subject of shared territorial development fees when speaking with prospective principals. He describes his experience this way: “I think that some manufacturers do not understand that our companies have expenses, just like they do. Some manufacturers, not all, expect us to work without regard to business costs. When you ask how much business is in the territory, some manufacturers give you vague answers as if it’s not important, or the dollar figure given turns out to be inaccurate. When you mention fees to do marketing or pay expenses often the conversation goes silent. I have yet to retain a manufacturer that will pay fees for getting their company established in a territory. I have even sent MANA articles that address the very subject of development fees.”
If Cumming wishes manufacturers were more knowledgeable about the expenses that reps face in working for them, he adds that “We are business owners that need to be profitable and should be treated as partners. One of the most important concepts for manufacturers to appreciate is the larger the checks they write to the representative, the more money they are making. There needs to be effort on the side of manufacturers to conduct marketing and generate business opportunities. It doesn’t all rest on the reps’ shoulders. Using their websites to list the reps would be a great start. Out of my list of manufacturers, only 20 percent list the reps on their sites. Following the 80/20 rule, the other 80 percent of the manufacturers could help to participate in marketing efforts.”
Succession Plans
Looking to the future, Cumming is asked if he has any succession plans for himself and the agency. He responds: “No, while I am still actively working, that time is approaching and needs to be addressed in the future. I do have manufacturers asking me that question and one of my answers is if my agency does not get acquired, when the time comes, then I will do my best to see that manufacturers are placed with other representative firms in the region.
“Transition might be in the form of a merger or bringing on a person to take over the company. In my opinion, the ideal candidate might be a middle-aged person looking to leave a factory position or someone that wants to manage their own business. To be successful I would need to assist in the transition period which could be one to two years.”
In conclusion, armed with close to three decades of experience as the owner of his own rep firm, Cumming is asked if during that period of time he’s seen any real changes on how the rep job is performed. “The rep business model has changed along with other industries. The social contact in the industry has diminished, and more is expected at a faster pace due to the internet. Plant personnel are often overloaded with shrinking staff leaving less time to meet unless there is a real need or emergency. I have seen manufacturers that were represented by my firm indicate they will now just market on the internet. I feel sure the thinking is they will no longer pay a commission to the representative. The short side of that thinking is you no longer have a physical presence in the territory.”
“The internet is a good tool and has taken the place of the fax and now the phone. Email is a primary tool that is used, but often email is blocked by the firewall, especially with attachments for marketing. Social media, texting, and direct mail marketing are other tools that are viable in the industry. My firm does have a LinkedIn page but it seems more of an exchange of information for employment.”
Cumming already addressed the value that MANA provides his agency in terms of finding new lines. He goes on to explain, “I worked for a couple of other representative firms and knew about MANA before opening my own agency. My firm has been a MANA member since 1996. The association provides me with a presence in the industry and generates contacts with other manufacturers seeking representation. Also, the profiles of other rep firms, marketing information, industry trends, and legal opinions are very informative in Agency Sales magazine. I have participated in the single-man agency forum and what used to be the capital equipment group years ago to network. All things considered, MANA is an organization worth joining and a good investment.”
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