I think many things have happened to change the industry. The internet is a big one. Sales by online shops, big box retailers, etc. have squeezed the market for local fly shops. Local fly shops usually have a dedicated client base, but as the economy suffers, loyalty goes only so far, and dollars make a difference.

Some of the bigger manufacturers have a well established network of shops and even with that they require shops to make yearly purchase qtys, and buy sizes they may not even wish to. The end result is wholesalers and distributors have to come up with new ways to enter the market. Low or no minimums is one way. Another is to offer shops exclusive rights to a product line in their state. That gives them that "difference" to other shops and will have them push that product over others they may carry.

Manufacturers do try to offer that compromise of quality and price that will appeal to a large audience, but it is a difficult line to balance on. There is a good size market who will spend a lot on a quality product. A lot also want a lot for almost nothing. Manufacturers who try to offer that are often short lived. Someone above mentioned small, private owned manufacturers. This is very true, and it presents a problem for shops as well, since they usually sell direct to the public.

In the end shops will survive, but in lesser numbers, and maybe more as "tackle" shops with a full line of gear, than fly shops. With the popularity of destination fishing, outfitters and pro shops will be an important segment of the market. They will all look for new and innovative ways to sell, and they will look for distributors who can help them solve overhead problems by allowing less minimum buys etc. It is a changing world, and fly shops will have to change with it. A lot of goods ones will be lost, and likely already have. It is too bad.

As for manufacturers, they will have to continue to try and innovate products and the ways they deal with fly shops. I am in the process of getting a network of dealers for a new line of product in Canada and the US and being flexible and discerning are two crucial elements in any success i might have.