Electrical Industry Roundtable 2014 - 8

matter meet the applicable standards. A lot of the products are moving
well past the point of commodity type products; there are many
products where there are application considerations. Without the proper
support the dangers of globalization becomes apparent.
KERR: What about from an agent's perspective? What do you guys
think?
MURRAY CHAMNEY: Well, it's exactly what John said. Particularly,
with grey market manufacturers because they tend to by-pass not just
the manufacturing and distribution channel, but the rep channel. They
tend to go through an alternative way to market, not the traditional
way through reps or distributors. As far as the globalization of the
larger companies, it's actually been very good for the rep. It's growing
because a lot of these manufacturers may have products which they can
bring forth that can't be sold through their traditional sales forces so
they'll go through a rep just for part of their line, and we think that this
is going to continue to happen.
KERR: Jean-Sebastien (JS), in Quebec, you guys have always been
early adopters if you look back at the history of the electrical industry.
Foreign companies often come to Quebec first because you tend to
have end-users that were entrepreneurial. What do you see coming?
JEAN-SÉBASTIEN BERCIER: I think there's a language barrier that is
sometimes experienced when foreign companies come knocking on
our door as they do in the rest of the country. We live the same thing
that everyone is going through-we are getting pressure of pricing and
challenge for manufacturers to be as competitive because of labour
costs, etc. But at the same time, we have opportunities. Companies are
coming across from Europe and Asia and approaching us, consulting
with us-which is a good thing; instead of coming into the market and'
doing wrong things, at least they're using the channel to seek help. So,
I see it both ways: it's a challenge on one side for existing ones we have
and unfortunately, on the other side, because a lot of companies are
coming from offshore and approaching us.
KERR: What do the distributors see?
STEVE BRANSCOMBE: Essentially, we have come to the same
problem about codes and standards. We find that we have to validate
the product that is coming in from offshore and do a lot more due
diligence to understand what this product is and where it's coming
from. Is the product suitable for our requirements, or will we have
issues down the road? Will there be continued product support? So
8
Canadian Electrical Wholesaler JUNE 2014
www.electricalwholesaler.electricalindusrty.ca
http://www.electricalwholesaler.electricalindusrty.ca
Electrical Industry Roundtable 2014

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