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Manufacturing Industry News Archives:
News from the week of July 28, 2003

Hormel Foods buys Century Foods for $115 million
DaimlerChrysler to sponsor U.S. Paralympics

Volkswagen discontinues traditional beetle

Boeing conducts four-hour ethics course for 75,000 workers

Experience rated No. 1 factor in job-seeker survey

Jobless claims dip for week ended July 26

Bush economic team tours heartland with tax cut message

Goodyear to close Cartersville, Ga., plant

OSHA extends comment period for preventing MSDs

Report: Companies don't teach young workers to be leaders

Gates finalizes decision to close Kentucky belt plant

Titan Tire to consolidate tire manufacturing in Iowa

Consulting firm predicts vast growth in automaking, sales

Consultants list steps to take before economic rebound

Durable goods orders climb 2.1 percent in June

Manufacturing Caucus to take place in Washington, D.C.

ASSE encourages awareness of heat-related injuries
Industrial reps to have seat on ISMA board

Hormel Foods buys Century Foods for $115 million
Hormel Foods Corporation acquired Century Foods International of Sparta, Wis., in a $115 million cash transaction. Century Foods International is a manufacturer of nutritional products, dairy proteins and blends, and cheese products.

Century Foods International has a strong market share in the manufacture and distribution of powders and supplements for many of the nation's top-selling branded nutritional products. This acquisition will further enhance the position of Hormel Foods in the growing specialty foods segment.

Reporting annual revenues of $125 million, Century Foods International operates four state-of-the-art manufacturing plants, which total approximately 400,000 square feet, in Sparta. The company devoted over 20,000 square feet to a modern research center for the development of products.

"Century Foods International's extensive portfolio will significantly strengthen our existing product offerings through our specialty foods group," said Hormel chairman, president and CEO Joel W. Johnson. "The company is well known in the industry for producing differentiated products, with the capability to deliver line extensions and new products."

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DaimlerChrysler to sponsor U.S. Paralympics
DaimlerChrysler entered into a sponsorship agreement with the U.S. Paralympics to serve as an official sponsor of the 2004 U.S. Paralympic Team. The company's Freightliner Sprinter vans will serve as the team's official vehicle sponsor.

"We're extremely excited to be able to enter into this important and worthwhile sponsorship," said Craig Fisher, director of marketing for Sprinter vans. "We feel this is a perfect fit for the Sprinter. In addition to supporting one of the world's most prestigious sporting events, we are also able to expose our product to a new audience where the Sprinter is a clear product leader."

The Paralympic Games are the Olympic equivalent for athletes with physical disabilities and take place two weeks following the Olympic Games, using the same host city and its venues.

More than 4,000 athletes are expected to attend the 2004 Paralympic Games in Athens, Greece, making it the second- largest sporting event in the world (second only to the Olympics).

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Volkswagen discontinues traditional beetle
Volkswagen ended production of its iconic car, the Beetle, at its factory in Puebla, Mexico, on July 30, according to the Associated Press. Some 3,000 "last edition" Beetles were made and the race to collect them has begun.

The last of them will sell for about $8,000 in Mexico, a few hundred dollars more than they normally sell for. But in places like Great Britain, Brazil and Germany, the car is selling for as much as $16,000.

Volkswagen decided to discontinue the model as more and more cheap imported subcompact cars begin to flood auto markets in Mexico and other countries. 

The car will not be available in the U.S. because its rear, air-cooled engine cannot pass safety and emission standards. The car was banned in the U.S. in 1977.

Volkswagen will continue to make the New Beetle in hardtop and convertible styles. It also has a concept car called the New Beetle Dune, an off-road edition of the New Beetle with a wider wheel base, bigger tires and more protection.

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Boeing conducts four-hour ethics course for 75,000 workers
Boeing conducted an ethics refresher course July 30 for all 75,000 employees of its Integrated Defense Systems business unit. Work stopped as IDS employees around the world, from interns to vice presidents to the business unit's CEO, took part in a four-hour course, emphasizing the company's commitment to the highest of ethical standards and integrity.

Members of Boeing's Phantom Works, Shared Services Group and the entire Boeing Washington, D.C., operations staff participated in the course as well.

The training included personal learning assessments and briefings on acquiring and using third party information, proprietary information and case histories. The training objectives included enhancing employees' awareness and understanding of Boeing's ethics policies, and reinforcing the high value Boeing places on its reputation and the integrity of its people and businesses.

The activities were intended to reinforce the role each employee plays in the operation of the company. Ethics training is not a new practice for Boeing employees. Each year, the company strives for 100 percent participation in annual ethics training program.

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Experience rated No. 1 factor in job-seeker survey
More than one-third of hiring managers rated the appropriateness of a job seeker's work experience as the number one factor influencing selection of candidates for open positions, according to a new CareerBuilder.com survey. With almost one half of all hiring managers reporting they are filling open positions in 14 days or less, job seekers will need to move quickly in marketing their experience and skill sets to potential employers.

CareerBuilder.com's Hiring Trends 2003 survey, conducted from June 25 to July 2, polled more than 450 hiring managers.

Hiring managers evaluate candidates based on a number of factors. After experience, hiring managers rated the candidate's professional behavior during the selection process as the most important criteria influencing selection of candidates. Tied for third were the candidate's fit within the company culture and a recommendation by an employee within the company.

"Hiring in an employer's market means companies can cherry-pick top candidates," said CareerBuilder.com vice president of corporate marketing Eric Lochner. "Hiring managers are looking for qualified, motivated candidates who demonstrate knowledge of the company and industry and are compatible with the corporate culture. To get noticed, job seekers need to network and customize communications to show why they are a good match for the company and how they can specifically contribute to its success."

The speed of one's communications will play a role in whether one is considered for a job. Seventy-seven percent of hiring managers said they are filling open positions in 30 days or less, an 8 percent increase over those surveyed in March 2003.

"Hiring managers are gearing up departments now for new business opportunities down the road," said Lochner. "They are moving forward in their recruitment efforts with one in four stating they would increase recruitment budgets for the remainder of the year. In today's competitive job market, job seekers need to be aggressive and creative in their approaches to these hiring managers."

Lochner offers the following DOs and DON'Ts for job seekers.

DOs
• Do use a combination of resources to maximize your visibility to employers. Sign up for CareerBuilder.com's free Personal Search Agent that automatically e-mails job opportunities to you based on your interests.
• Do your homework. Research the companies you are interested in; check out their Web sites and look at recent press releases and news coverage. Pay attention to how the company presents itself and reflect that in your communications.
• Do something the other candidates are not. Call the hiring manager directly and offer to work free for a week to demonstrate your value.

DON'Ts
• Don't overstuff resumes with keywords from a company's job description. Scanning technology used by recruiters will red-flag the resume. Pepper in words from the job description as they apply to your experience.
• Don't show up to the interview in casual clothes.  Even if the office dress code is business casual, you don't want to appear casual about the job.
• Don't be late in any stage of the process. Apply quickly, always show up to the interview 15 minutes early and send a thank you note promptly after the interview.

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Jobless claims dip for week ended July 26
New claims for unemployment insurance declined for the third consecutive week, according to the Labor Department. Jobless claims fell by 3,000 to 388,000 for the week ended July 26, the lowest mark in five months.

The four-week moving average of new jobless claims declined by 11,750 to 408,750, as low as it's been in almost five months. The four-week moving average is considered by economists to be the more reliable of the two because it smoothes out week to week fluctuations.

With both indicators declining, hopes increase for a turnaround in the labor market. However, economists warn that the dip in jobless claims could be caused by the July shutdowns of many auto plants for retooling.

Continuing claims for unemployment insurance increased by 63,000 to 3.65 million for the week ended July 19, showing that while the number of workers beginning to file claims is down, the number of workers trying to find work continues to grow.

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Bush economic team tours heartland with tax cut message
Treasury Secretary John Snow, Commerce Secretary Don Evans and Labor Secretary Elaine Chao rolled across Wisconsin and into Minnesota July 29-30 to spread the word about new tax cuts that would help the economy.

At the first stop -- a Harley-Davidson Inc. plant in a Milwaukee suburb -- the three were met with questions not about the tax cuts, but about the more than 2 million manufacturing jobs lost in the U.S. over the past three years.

All of the six questions asked at the event avoided the tax cut issues and focused more closely on the possibility of an economic rebound and how the federal government plans to spur companies to begin hiring workers.

W.G. Strohwig Tool & Die Inc. executive Michael Retzer asked how tax rebates would revive manufacturing if Americans just spend them on Chinese goods, effectively putting $200 billion in tax cuts back into the $500 billion U.S. trade deficit.

All three answered Retzer's question, but he said "they danced around it," according to the Milwaukee Journal Sentinel.

The bus tour moved on to Green Bay, Wis., and Wausau, Wis., on July 30 and then headed to Minnesota, where it will make stops in Rochester and Minneapolis. Bush narrowly lost the election in both states in the run-off against Al Gore in 2000.

In protest of the tour, a bus sponsored by Wisconsin Citizen Action is trailing the tour bus across Wisconsin with a sign on it that reads "Read Bush's Lips - No New Jobs."

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Goodyear to close Cartersville, Ga., plant
Goodyear Engineered Products will discontinue operations at its Cartersville, Ga., fabric plant by Oct. 1.

"This business decision is based on investments that will be required to keep pace with evolving technology in the fabric industry," said director of manufacturing Jim Pecorelli. "We will not be able to maintain fabric production as a core competency at this plant in the future."

The action will affect 120 salaried and hourly associates at the plant, which has been a primary fabric supplier to the company’s North America conveyor belt facilities. It also supplied fabric for automotive coolant hose and air spring production.

"We are committed to keeping our conveyor belt business flexible and competitive and will continue to pursue breakthrough fabric products for Goodyear high-performance conveyor belts," said Pecorelli.

Goodyear began operations at the plant in 1929.

"This is a tough decision that will impact very dedicated people, their families and the community," said Pecorelli. "Our top concern is to help minimize disruptions to their lives, as they seek new employment opportunities."

The plant’s equipment will be purchased by Industrial Specialty Fabrics (ISF), located at Hogansville, Ga. Goodyear will enter into a supply agreement with ISF.

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OSHA extends comment period for preventing MSDs
The Occupational Safety and Health Administration announced in a 45-day extension of the comment period on the agency's draft guidelines for preventing musculoskeletal disorders in the poultry processing industry.

OSHA received several requests from interested members of the public asking for additional time to comment on the draft guidelines first published on June 4. Ergonomics for the Prevention of Musculoskeletal Disorders: Draft Guidelines for Poultry Processing is now available for comment until Sept. 18.

This is the third in a series of industry-specific guidelines for the prevention of musculoskeletal disorders in the workplace. The guidelines are intended to provide practical solutions for reducing ergonomic-related injuries and illnesses in the poultry processing industry.

OSHA also scheduled a public stakeholder meeting Oct. 2 to discuss the draft guidelines. The meeting will be held from 8:30 a.m. until 12:30 p.m. at the Washington Court Hotel in Washington, D.C. Interested parties must submit their intention to participate in the stakeholder meeting by Sept. 18.

Persons wishing to comment on the draft poultry processing ergonomics guidelines should submit three copies of those comments no later than Sept. 18 to:

OSHA Docket Office
Docket GE2003-2
Occupational Safety and Health Administration
U.S. Department of Labor
Room N-2625
200 Constitution Avenue, NW
Washington, D.C. 20210. 

Comments of 10 pages or fewer may be submitted via fax by calling . Comments and information on one's intention to participate in the stakeholder meeting can also be sent electronically to http://ecomments.osha.gov.

Copies of the guidelines can be downloaded from OSHA's Web site. The fourth set of industry-specific guidelines to reduce ergonomic-related injuries will address the shipyard industry. Those guidelines are expected to be available for comment later this year.

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Report: Companies don't teach young workers to be leaders
Global human resources consulting firm DBM found that 94 percent of human resource professionals polled in a recent survey feel their organizations have not adequately prepared younger generations to step into senior leadership positions.

DBM conducted the survey in various major metropolitan areas throughout North America and polled nearly 200 HR professionals from February to June of this year.

The findings indicate that most North American organizations are not prepared for approximately 60 million baby boomers to leave the workforce over the next 15 years, creating severe manpower shortages and senior leadership gaps.

"Fostering interaction between the younger and older workforces within a company is a necessary step in preparing younger workers for senior leadership roles while preserving valuable institutional memory," said DBM president Tom Silveri. "Organizations that proactively integrate their diversified workforces will reap the benefits of learning from past experiences while preparing for future opportunities."

Additional findings include:
• Forty percent of those polled felt their companies were unsuccessful in encouraging the collaboration of younger and older generations in the workplace.
• Larger companies (more than 5,000 employees) were more likely than mid-sized (501 to 5,000 employees) and small companies (less than 500 employees) to be unsuccessful in encouraging the collaboration of younger and older workers.
• Forty-four percent of those polled from large organizations rated their employers as somewhat to not successful in multi-generational collaboration.

Below are some strategies organizations should consider in preparing for the future shift in workforce demographics:
• Educate employees of different age groups on what each contributes to the work environment and organizational goals.
• Motivate older workers to continue acquiring new skills, thereby increasing their employability both inside and outside the organization.
• Enable workers of all ages to recognize their transferable skills and seek opportunities within the organization before taking their experience and knowledge elsewhere.
• Implement a corporate mentoring program.
• Equip employees of all ages to network across generations, forming connections internally and externally.

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Gates finalizes decision to close Kentucky belt plant
Since announcing the potential closure of the Elizabethtown, Ky., belt manufacturing facility last month, Gates executives met with city, state and union officials to review the company proposal and discuss options.

As a result, Gates finalized its decision to close the facility and plans a phased transition, which is expected to take from six to nine months and will affect approximately 437 workers. The company will provide workers with the appropriate notice of specific timetables as the transition progresses.

Production from the Elizabethtown belt plant will be transferred to other Gates belt plants in North America. The Gates Polyflex plant in Elizabethtown will not be affected by this closing.

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Titan Tire to consolidate tire manufacturing in Iowa
Titan International Inc. subsidiary Titan Tire is consolidating all tire manufacturing into its principal tire facility located in Des Moines, Iowa. The Brownsville, Texas, location will continue as a distribution and warehouse center for Titan, but production will be suspended until market demand requires additional capacity.

The majority of the costs related to the consolidation will occur in the second and third quarters of 2003.

Prior to 1998 labor strikes, Titan Tire pursued an aggressive plan to increase production capacity which included buying control of bankrupt Fidelity Tire in Natchez, Miss., and building a 1 million-square-foot factory in Brownsville, Texas.

Following the resolution of the 40-month labor strike and corporate campaign against the company, Titan steadily increased efficiency at the Des Moines tire facility. Titan decided to consolidate all tire manufacturing to Des Moines until the facility operates at close to full capacity.

Titan said that a turnaround in the farm and construction markets would help its situation. Most vehicles used in those operations need four wheels each.

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Consulting firm predicts vast growth in automaking, sales
The passenger car market is witnessing high growth with a slew of new launches at varied prices. Small cars priced below $12,000 for the masses and luxury cars and sport utility vehicles targeted at wealthy individuals are attracting increasing demand.

"Growing urban disposable incomes, easy access to credit coupled with lower interest rates, removal of price controls, and frequent model launches are likely to propel double digit growth, while triggering intense price competition among manufacturers," said Frost & Sullivan senior analyst Bob King.

Continuing government investment in building road infrastructure is also expected to aid long-term growth, especially in the commercial vehicle industry. There will be higher demand for heavy trucks, which offer better operating economy, while widespread industrial development will increase corporate demand for buses. The component markets are expected to thrive on these growing sales across different vehicle segments.

"China's entry into the World Trade Organization (WTO) is expected to pose several long-term challenges for the highly fragmented domestic automotive industry," said King.

WTO stipulations resulted in the fall of import duties and increased the availability of low-priced imported vehicles and components, while stricter emission norms are necessitating higher investment in engine technologies. This is forcing local companies to either get acquired or exit the market.

"Multinationals are scouting for strategic partners to establish joint ventures and take advantage of the emerging level-playing field, as localization norms, licensing procedures, and quota restrictions are gradually removed and laws protecting intellectual property rights are being implemented," said King.

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Consultants list steps to take before economic rebound
The Herman Group, a consulting company concentrating on workforce and workplace trends, released its top 10 steps to take to prepare your company for the coming economic turnaround.

The top 10 steps include:
1. Re-recruit your employees. For instructions, click here.
2. Develop contingency plans for a slow recovery and very fast economic growth.
3. Reaffirm your relationships with all your valued customers. Build relationships deep in case your primary contact(s) leave for greener pastures.
4. Reaffirm your relationships with all your suppliers. Consider alternative suppliers if you have any doubts about how well they could support you in a fast-growth mode.
5. Engage in serious strategic workforce planning. How many, of what kind of worker, will you need for gradual growth and for fast growth? Where will those people come from? Is your succession planning design up-to-date?
6. Check your positioning in the employment market. How are you viewed by the people you will want to hire? Are you their employer of choice?
7. Engage your entire workforce in an honest critical review of your operating systems and procedures. Is everything working smoothly? Where might strains be expected if you experienced a really strong increase in business?
8. Check your corporate financing. Can you support lagging cash flow if you get a relatively sudden surge of orders?
9. Concentrate on leadership and management development. People who lead or manage well in relatively slow times may need help in shifting gears to a faster pace. Check out this tool for evaluating leadership effectiveness.
10. Defend yourself against the vulnerability of an unstable workforce. Workforce stability can be a competitive advantage in turbulent times.

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Durable goods orders climb 2.1 percent in June
New orders for manufactured durable goods increased in June by $3.6 billion or 2.1 percent to $172.5 billion, according to a monthly report from the Commerce Department. Year-to-date, new orders for 2003 increased 0.7 percent vs. the same period a year ago.

New orders for machinery increased 4.4 percent during June, and orders for fabricated metal products dipped 0.4 percent.

New capital goods orders climbed 3.5 percent and orders for motor vehicles and parts jumped 2.2 percent.

“That’s a mighty big increase and a welcome one,” said National Association of Manufacturers president Jerry Jasinowski. “After three years of weakness in manufacturing, and the loss of more than 2.6 million manufacturing jobs, the sun is breaking through at last. [The] report adds to the mounting evidence that the manufacturing recovery, which stalled last August, is on the rebound. The strong increase in durable good orders last month is the best performance in five months and suggests that a pick-up in business investment is in the making."

To read the entire report, click here.

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Manufacturing Caucus to take place in Washington, D.C.
Twenty-eight bipartisan members of Congress are meeting in Washington, D.C., for a Manufacturing Caucus to help educate other members of Congress about the manufacturing crisis currently under way in the U.S.

"We are hemorrhaging manufacturing jobs in this country, and not enough of our political leaders understand the ramifications of losing our industrial base," House small business chairman Don Manzullo, R-Ill., told the Associated Press. "We formed this caucus to not only educate Washington on the importance of manufacturing in America but to enact policies to stem the job loss and put our people back to work."

For the last 35 months, some 74,000 manufacturing jobs were lost each month, which adds up to 2.6 million manufacturing jobs lost.

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ASSE encourages awareness of heat-related injuries
Preparing for hot weather is essential to prevent heat-related illnesses for those who work in outdoor professions during the summer months, according to the American Society of Safety Engineers (ASSE). ASSE urges employers and employees alike to heed the possible workplace dangers of heat and to utilize precautions aimed at reducing injuries and fatalities.

In the June 2003 ASSE Professional Safety journal article Be Cool: Proper Attire Helps Prevent Heat Stress, Arbill Industries vice president Julie Copeland said that during warm weather, people working in such areas as road repair and construction, surface mining and roofing, landscaping, utility repair, and so forth must be prepared to handle heat-related illnesses. 

Heat-related illnesses are also a risk throughout the year for those working in places like foundries, mines and factories who may not be affected directly by the weather, but by the heat when humidity, heavy protective apparel and exhaustive labor are part of their work environment.

“To protect workers from heat-related illnesses it is important to recognize the signs. Some of the physical effects of heat stress range from heat exhaustion, headache, dizziness, upset stomach, to severe: heatstroke; dry, pale skin; no sweating; hot/red skin; and seizures,” said ASSE president James Kendrick. “In addition, alertness and productivity may also suffer. Another danger from the heat is sweat as it may cause tools to slip out of a worker’s hands and increase the potential for electrical shock. It is important to be aware of the risk and of the precautions one can take.”

Items such as cooling pads inserted into hardhats or around the neck to keep the head and neck cool can help workers reduce the effect of heat. Vented hard hats are another piece of equipment that can prevent heat buildup by allowing air to pass through. Neckbands soaked in cold water and worn during the day can help prevent the body’s pulse points from overheating, and wearing cooling vests may provide relief.

Protective eyewear that features sufficient ventilation or anti-fog lens coatings are recommended for use in hot environments. Sweatbands can prevent perspiration from dripping into the eyes.

Gloves for hand protection can be cumbersome and increase the warmth when doing outdoor work. In her article, Copeland recommended workers use gloves which offer breathability. Copeland noted that gloves with leather palms and cotton or denim backs allow for increased airflow and protection. Some gloves feature strips of nylon mesh or are perforated at the back of the hand. String gloves that feature palms and fingers dipped in rubber but maintain open backs allow for ventilation without sacrificing dexterity or protection against chemicals, punctures and abrasions. As for gloves and perspiration, selecting a glove with a liner to absorb sweat would prevent perspiration buildup.

For those workers exposed to extreme heat, proper hand protection from burns is essential and depends on the application and the temperature to which workers are exposed. Copeland wrote that some of the hottest environments, exceeding 900 F, might call for a terrycloth mitt or glove, which offers multiple layers of protection. Hot mill gloves can be appropriate for a range of temperatures, depending on the weight of the fabric and the number of layers. Caution must be used as this type of protective gear can also increase the chances of heat-related symptoms.

Water loss and dehydration are another major hazard for employees working in a hot environment. According to the National Institute of Occupational Safety and Health (NIOSH), workers may produce up to two to three gallons of sweat each day. NIOSH recommends that workers drink five to seven ounces of fluids every 15 to 20 minutes to replenish the body. Drinks that replace electrolytes (such as sports drinks) lost through perspiration are also effective.

Additionally, it is recommended that workers drink cool water, which is more readily absorbed in the body, and avoid coffee, tea, alcohol or soda, which act as diuretics that further deplete the body of fluid. The amount of sodium in the electrolytic drink should be monitored, as high sodium concentrations may impact employees with elevated blood pressure.

Copeland also noted that limiting work to the coolest parts of the day and allowing workers to take frequent breaks in cooler areas is important as is avoiding double shifts and overtime and educating employees about the dangers of excessive heat.

The Occupational Safety and Health Administration (OSHA) reported that in 2000, 21 workers died and 2,554 others suffered heat-related occupational injuries and illnesses that resulted in time away from work. For additional information on preventing heat-related workplace illnesses, contact NIOSH at www.cdc.gov/niosh or check OSHA’s ‘Working Outdoors’ fact sheet at www.osha.gov.

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Industrial reps to have seat on ISMA board
The rapidly growing constituency of industrial or manufacturer representatives in the Industrial Supply Manufacturers Association (ISMA) will now have a seat on that organization's board of directors, according to ISMA executive director Charles M. Stockinger.

A change in the group's bylaws calling for approval of an associate industrial representative member seat on the board was overwhelmingly approved by the ISMA membership, Stockinger said.

The ISMA board subsequently appointed David P. Turpin, president of Turpin Sales & Marketing Inc. of West Springfield, Mass., to serve a one-year term in this capacity. Turpin is also president-elect of the North American Industrial Representatives Association (NIRA).

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