Industrial manufacturers in the U.S. expect continued domestic & international growth in 2012 according to the Q4 2011 Manufacturing Barometer recently released by PwC (Pricewaterhouse Coopers).  The expectations for moderate growth appear to be balanced by healthy cash levels, improving gross margins and continued strategic investment in spending.

The PwC Manufacturing Barometer (www.pwc.com/manufacturig-barometer) is a quarterly survey based on interviews with 60 senior executives of large, multinational US industrial manufacturing companies.  In the Q4 survey, industrial manufacturers said there would be increased investment spending in 2012 including major outlays in operational spending & expansion into new markets.

Sixty-seven percent of those surveyed plan major new capital investments in 2012 and this level is the highest in the last five quarters.  The average level of new investment spending is expected to be 4.2% of sales.  Almost all of the survey respondents plan to increase operational spending with 57% citing dollars for product or service introductions, 50% for information technology and 40% for business acquisitions.  These plans seem to indicate an ongoing focus for US industrial manufacturers on building liquidity and investing for growth in spite of the uncertain global economy.

Regarding employment, 37% of company executives stated that they plan to add employees to their workforce over the next 12 months with the most sought after being professionals & technicians closely followed by skilled workers.

Are you seeing these types of activities in your companies – or with your customers?  Please share your observations or experiences. We hope you will LIKE this blog and thank you for subscribing to EVERYTHING’S CONNECTED.

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“For I remember it is Easter morn,
And life and love and peace are all new born.”
-Alice Freeman Palmer

I’m sure you’ve heard this before………….80% of your business comes from 20% of your customers.

80/20 is the Pareto Principle and it tends to apply to most anything in life including sales.  Customers that fall into the 20% category do so because they have a strong loyalty to your company – and mine.  But anybody in sales will tell you that their loyalty doesn’t come naturally.  It has to be cultivated.   And how we engage the decision makers is critical in creating that long-term loyalty.  Our engagement with them must be meaningful.  But what exactly does that mean?

In our last blog we talked about The Challenger Selling Model.  Today I want to share with you some other compelling ideas about how we can cultivate long-term loyalty with our customers.

From 3 Critical Factors for Selling to the C-Suite:

• Put the executive first, the relationship second, the sale third, and your ego last
• This strategy sets you apart…..paves the way for a relationship…..and is worth more than any single sale
• “A lost sale in the C-suite is not a failure if trust is earned in the process.”

From Ask, Don’t Tell:  Using Power Questions to Deepen Relationships with Clients:

• Passion questions help you understand what the other person is really excited about in life
  • What in life has given you the greatest fulfillment:
  • What do you like most about your job?
  • What’s something you’ve always wanted to do but never had time for?
• Depth questions help you learn more about the person
  • If you could go back and give advice to your younger self about succeeding professionally what would you say?
  • Who have been influential mentors or role models to you?
  • What was the biggest turning point in your career?

From 3 Letters that Will Change the Way You Sell – WLR:

• Whether you win or lose the sale you owe it to yourself to understand why.
• Knowing why enables you to correct mistakes………enables you to know what approach not to apply to new prospects……..enables you to have insight into what those buyers like and prefer
• Win/Loss/Review………this program can become a treasure trove of ideas, intelligence and hard-won knowledge

Are you using any of these strategies today?  What works?  What doesn’t?  Which one makes the most sense for your customers?  Share your thoughts and you just might get a Starbucks Gift Card!!! Please LIKE this blog – and as always thanks for subscribing to EVERYTHING’S CONNECTED.

A section of Forbes.com is called the Forbes Leadership Forum and last month there was a very intriguing article called ‘The One Kind of Sales Rep Who Does Best at B2B.’  Although I have doubts about some of what’s written there were some compelling points that made me think.

The article begins by referencing a survey by the Corporate Executive Board (or CEB) of more than 6,000 sales representatives across the globe and numerous industries.  Their study identified 5 profiles that B2B sales reps fall into:

• The Hard Worker……always willing to go the extra mile, doesn’t give up easily & self-motivated.
• The Problem Solver……detail-oriented, deals with service issues quickly & highly values post-sales follow through.
• The Relationship Builder……..won’t be pushy, focuses on customer needs & generous with their time.
• The Lone Wolf………self-assured, difficult to control & and follows their instincts.
• The Challenger…… has a different view of the world, understands the customer’s business & and loves to debate.

While there is value in all these styles, the CEB stated that The Challenger is the ‘clear winner’ in B2B complex selling solutions.  The research indicated that nearly 40% of all star-performing sales reps are Challengers.  In addition, when the CEB contrasted transactional sales with complex-solution sales they found that Challengers represented 54% of the star-performers while the Relationship Builder type fell off the map ‘almost entirely’.

I’ve been in sales for more years than I care to count and had I been asked to guess the results in B2B sales I would not have predicted that type of outcome.  But I read on – although somewhat skeptically.  The CEB stated that The Challenger salesperson is defined by “the unique ability to use constructive tension throughout the sale and provide value to customers through a three-pillar approach”.  Lots of words in that definition but who would you guess in the industrial market uses the Challenger Selling Model?

Before I tell you, here’s a quick overview of the 3-Pillar Approach

• Teaching:  the salespersons ability to ‘teach’ the customers something new or challenge their thinking.  Insight is the single quality that customers value most highly in a supplier.
• Tailoring: build consensus among customer stakeholders because decision-makers care that there is widespread support across their organization
• Taking Control: not deterred by hesitation from customers and pushes the conversation back to the value being offered the customer

According to the Corporate Executive Board, “the combination of teaching, tailoring and taking control……may not get your customers to think you’re nice, but it will win you their loyalty – and win you the sale.”  Do you believe that?  Would you believe it more knowing that W.W. Grainger uses the Challenger Selling method?  Me too.

What would your customers think of the Challenger Selling Model?  Can you see your organization using this approach?  We’re curious to read your comments and those of your colleagues – please LIKE and SHARE this blog.  And as always, thanks for subscribing to EVERYTHING’S CONNECTED.

We have been following the blog Electrical Trends for quite some time now.  The authors, who have been conducting business in the electrical industry for many years, often address somewhat controversial issues in our industry.  And their blog for this week is worth discussing here.

Earlier this week Electrical Trends shared thoughts & observations on the declining role of the manufacturer/distributor relationship that were originally presented in the newsletter of Egret Consulting, a recruitment firm specializing in the electrical & lighting industries.  There were two areas in the Electrical Trends blog that caught our attention:

1. Bob Reynolds, Graybar CEO, recently stated “that wholesale distribution has largely abdicated the process of true ‘sales’ in favor of fulfillment. In short, sell what your customers ask you for.”  Remke agrees with this statement. But we wonder, along with Electrical Trends and Mr. Reynolds, what happens if your customers don’t know anything about a certain product or market like solar energy? On this point Mr. Reynolds said “what if they {the customer} do know about those technologies but also know that their regular distributor doesn’t have the technical acumen to professionally advise them on which manufacturer is better, or how to qualify for rebates or tax incentives to support the decision?”  We all know that customers will find the answers wherever they can.  So those distributors who really only sell what customers ask for – what do they do?  And for manufacturers like Remke who are looking to distributors to help sell our products into new markets – what do we do?  Punt?
2. “What’s the future for an electrical industry that is swimming in electronic solutions?”  Egret Consulting answered “Channel Expansion” and then they referenced something we at Remke know very well – the Solar Energy market.  They stated that “We regularly talk to solar installers, who buy some of their material from electrical distributors, but more and more buy their electrical material from solar integrators; who buy wire/cable, connectors, panels, inverters, etc. and package them together into a contractor-friendly system that can be easily priced and installed. They buy all of those electrical supplies from varying sources; distributors, direct from manufacturers and from value-added resellers……..Inevitably, solar is moving to new channels of distribution.”

A couple of years ago Remke Industries established a sister company, Remke Energy, to specifically address the renewable energy market.  Solar energy & wind power integrators, contractors and distributors are the target market for Remke Energy and the 15,000 electrical products that are in stock.  The renewable energy marketplace has a lot of potential and for the most part is served by a different channel of distribution.  It is our hope that more electrical distributors will embrace this market and Remke Energy as a trusted supplier…….but what about those who just “sell what customers ask you for”?

How would you respond to these comments in a conversation? Please let us know your thoughts and as always thanks for subscribing to EVERYTHING’S CONNECTED.

Please visit the Flexible Solutions Center on Remke.com – a new section on our website that’s 100% dedicated to designing custom products, specials, adaptations & variations.

At the Remke Flexible Solutions Center solving the problem is Job One and no order is ‘too small’.  Most other suppliers won’t back that kind of statement but we do.  That’s just how we do it – how we’ve always done it – and how we always will.  Your solution will come from the Remke team at our suburban Chicago location & your product will be manufactured there too.  No overseas red tape to deal with.

For almost 50 years Remke has been helping customers solve their unique problems with custom solutions from simple to complex.  Our process starts with understanding what you need & why.  Once we learn about your specific needs, the Remke Flexible Solutions team will apply our Modification Level Design Process to solving your problem.  Based on our extensive experience in developing custom solutions, this process enables us to determine which of three modification levels is best suited to meeting your precise requirements.

There is no extra charge for our time to design your custom solution and we offer these services to all customers:

• Design engineering & manufacturing based in Chicago
• Quick turnaround in as little as days (based on complexity)
• Turn-key project management
• Prototyping
• Small or large volume manufacturing for any Flexible Solutions Center designed product
• 100% product testing
• Compliance Certification – UL, CSA, TUV, CE, etc. (where applicable)

The Remke Flexible Solutions Center has the ability to fast-track design & create prototypes within days depending on the level of modification required.  Put your connectivity problems into the hands of the Remke Flexible Solutions Center.

Do you have a connectivity problem that needs solving? Visit the Remke Flexible Solutions Center on our website and then contact us.  LIKE this blog and SHARE it with your colleagues.  And as always, thank you for subscribing to EVERYTHING’S CONNECTED.

During the summer of 2011 we were working on a strategic initiative focused on supporting one of our core competencies – Being Easier To Do Business With.  Like many companies, Remke refines our strategic plan on a regular basis but this time something was different.  We needed to add capacity to achieve our objectives.

So here it is – introducing the ‘new’ Remke facility which is located just around the corner from our corporate headquarters in the Chicago suburb of Wheeling.  This additional location gives us the space to add capacity and do even more to make sure we are Easy To Do Business With.  While this is a major undertaking for us you might be saying to yourself ‘Well that’s nice but what does this mean to me?’

Let me answer your question by sharing a few things that I hope you will see as benefits:

• Better Communication – additional space means more room for adding customer service staff to better serve our customers
• More Inventory – additional space means more room deeper levels of finished goods
• Expanded Capabilities – additional space means more room for growing our flexible/custom solutions business and for new engineering staff to serve customers with drawings & specs & consultation in a timely manner
• Top-Notch Delivery – additional space means more room to store completed/fully-built product for quicker shipping

Manufacturing occurs in both locations and our sales, customer service & Flexible Solutions team are also located in the new building.  Creating the best customer experience possible is our goal and we look forward to serving you soon!

Please tell us how we can be a useful resource to you! And thank you for subscribing to EVERYTHING’S CONNECTED.

On 12/2/11 our blog introduced you to Reshoring America – an initiative focused on bringing manufacturing back home.  We shared with you some of the story of Harry Moser, founder of The Reshoring Initiative.  And we provided a link to his free tools for anybody who competes against low cost nations.

Did you know that 60% of OEM’s and manufacturers use “rudimentary total cost models” and ignore 20% of the costs of offshoring?  According to the Archstone Consulting survey this is a fact.  The Reshoring Initiative states that if companies are not accounting for 20% of their costs to offshore then maybe offshoring is not the best or most economical decision to be made.  It seems to me that this type of decision is too important to leave out some possibly critical data.

The Reshoring Initiative has developed a Total Cost of Ownership estimator that is designed to help OEM’s and manufacturers compare the TRUE costs.    And it is FREE!!!  Job shops and manufacturers who supply OEM’s – like Remke – can use this FREE software to make a case for local sourcing, or not.  But it does seem that Mr. Moser’s program can help companies get the real story so that the best decision can be made.  Here’s the link: www.reshoringmfg.com

I wonder how many companies that have moved production overseas would not have done so if they had used the tools from The Reshoring Initiative?  Of course we’ll never know BUT YOU CAN use this software to demonstrate the cost effectiveness of keeping production here in the USA.  Sometimes the numbers won’t support keeping work here but sometimes they will.  And if your company (or the company of a friend or relative) has lost business to China or other low-cost nations then using these free tools makes all the sense in the world.  Wouldn’t it be great to bring some jobs back to the USA because the numbers show that to be the best decision?  Or even better – to not lose those jobs in the first place?  You bet.

Creating more jobs in America is a big deal and The Reshoring Iniative should be part of the solution.

Did you find this information useful?  Do you know somebody who could use information? Please share this blog so more folks will know about The Reshoring Initiative.  And thanks for subscribing to EVERYTHING’S CONNECTED.  See you on January 20^th!

As we prepare to celebrate the holidays, the management & employees of Remke Industries would like to say Thank You for your continued support in 2011. We truly appreciate your business and want you to know that we work very hard to provide you with the best products & service possible. It is our sincere wish that each of you and your families enjoy a holiday season filled with peace, joy and good tidings.

A HOLIDAY FUN FACT:
During the Christmas/Hanukkah season more than 1.76 billion candy canes are made.