Industry Professionals Confront Change
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But, as Dunlap observed, "The competitiveness of the market is affecting manufacturers going direct and distributors becoming manufacturers."
"If you want to build to $10 million a year or more, you either have to acquire another company or work in both distribution channels," said Dickinson. "Clearly, the vast majority of independent manufacturers have some direct sales—although, I don't know of any who advertise it very loudly." Some manufacturers, he said, might own or invest in distributorships, but he doesn't believe that it's a growth area for most of them. "The issue really doesn't have much of an impact on guys like me who only sell through distributors," he said.
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