Global trade growth requires global standards investment

The world is getting increasingly small-
er. That clich masks a more important
reality. As communications tools and
rapid transportation have brought us
closer together, they have also spawned
even greater business opportunities than
ever before. In that sense, our markets
have become bigger and continue to ex-
pand as developing nations emerge into
industrial powers and their communi-
ties become the future consumers of our
manufactured goods.
With that opportunity, comes a par-
ticular challenge. The United States
is late to the international standards
movement and that
has placed our com-
panies at a competi-
tive disadvantage in
some regions of the
world. While NEMA
and its members have
worked diligently
for the inclusion of
domestic products
within IEC standards,
we still have a long
journey ahead in order to maximize our
market potential and collective return on
the time and effort invested.
The goal of international standards
development is to enable companies to
do it once, do it right, and do it glob-
ally. The untold direct and indirect
cost for manufacturers to develop and
market products conforming to mul-
F R O M T H E
C H A I R
tiple standards has been an ongoing
challenge. Not only do international
standards bolster the global economy
and promote safe and effective use of
electrical equipmenta common goal for
both NEMA and its international coun-
terpartsbut it also can have a positive
impact on the bottom line.
We are not living in an ideal world,
however. Current international standards
can serve as an effective technical bar-
rier to trade, thwarting their ostensible
goal. Im sure many in the industry chafe
under these conditions and ponder if the
effort is worth the expected results. There
is only one good answer. Participate and
help shape international standards, look-
ing beyond the immediate constraints,
and help position our companies as major
players in the global market. We must
continue to push for globally relevant in-
ternational standards that recognize and
include our domestic products and tech-
nologies as equivalent to those in Europe.
Establishing and maintaining indus-
try standards is a strategic marketing
decision that many U.S. firms unfortu-
nately overlook. We have the techni-
cal know-how to respond to customer
demand for our products, but we may
fail to exploit this advantage and stand
on the sidelines as companies in Europe
use IEC standards to gain a foothold in
emerging markets and gain a distinct
competitive edge. This has been the
case for many years and IEC influence
has now spread across the globe.
Many U.S. companies have taken
comfort in what they believe to be their
superior ability to make and market
products in a competitive global mar-
ketplace, banking on their competency
in the North American market. Percep-
continued on page 24
Powers
Global trade growth requires
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For more reasons why so many
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Kids who play with toads get warts.
Kids who play with toads get warts.
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t: 978.664.3288
f: 978.664.1345
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NEMA Electroindustry

3
I
04
NAED Award for
Tim Powers
05
Senate Competitive-
ness Caucus
06
Senators address
NEMA Board
08
Anti-counterfeiting
bill passed
09
NEMA fights Medicare
imaging cuts
10

NEMA co-sponsors
Beijing intellectual
property workshop
11
President Bush visits
Johnson Controls, 3M
16
NEMA webcast
on avian flu
18

NEMA in Europe
on chemical
regulation, trade
19
Standardization
trends
20

Battery Section
commits to mercury
removal
21
NEMA opposes take
back legislation
22
2008 National Electrical
Code deliberations
23
Spotlight on the
economy
26
Facts and
figures
NEMA takes initiative on industry
environmental design objectives
In This Issue
In response to a Call to Action issued by
Evan Gaddis, NEMA president, and Tim
Powers, chairman of the NEMA Board of
Governors, more than 50 senior members
of NEMAs membership met in late March
to discuss an industry commitment to
achieving environmental design objec-
tives. The group focused on the need to
eliminate or reduce the levels of hazard-
ous substances in electrical and electron-
ic products in order to meet strict regula-
tory thresholds rapidly being adopted in
domestic and international markets.
Gaddis prefaced the meeting by urg-
ing the industry to take leadership in
environmental design. He noted that
while regulations addressing toxic met-
als and other substances in electrical
products emanated initially from Europe,
it is rapidly becoming a global issue as
governments in Asia and North America
have passed or proposed similar mea-
sures, some more restrictive than those
in the EU. It is time, he said, for NEMA to
take control, work aggressively to devise
an action plan, and set deadlines for
complying with and ultimately exceed-
ing regulatory requirements.
Mark Kohorst of NEMA Government
Relations told participants that the base-
line goal for all NEMA companies will be
to reach the threshold levels for six haz-
ardous substances soon to be in place
for products sold in European markets.
The level that will apply to five of these
substances (mercury, lead, hevavalent
chromium, and two flame retardants:
polybrominated diphenyl ethers and
polybrominated biphenyls) is 0.1 per-
cent by weight in each covered product.
The threshold for a sixth substance, cad-
mium, is more stringent at 0.01 percent.
The meeting lasted six hours and re-
sulted in several strategic outcomes. Par-
ticipants agreed that the initiative should
be guided by a steering committee with
representation from all eight NEMA prod-
uct divisions. Approximately 15 members
volunteered to serve on this committee.
The group also decided that NEMA
should prepare a framework of prin-
ciples that sets guidelines for the
decision-making process, such as the
principle that consumer safety will con-
tinue to be the primary consideration
in all product design decisions. The
statement will also make clear that par-
ticipation by individual NEMA product
sections is a crucial component of this
process. NEMAs Government Relations
department will prepare a draft set
of principles for review by the steer-
ing committee and presentation to the
NEMA Board of Governors for approval.
The meeting ended with a lengthy
discussion of deadline dates for (1)
NEMA companies to achieve compliance
with regulatory standards for all covered
products and for non-covered products,
and (2) identifying thresholds that go
beyond these standards. The group
reached preliminary consensus and will
submit its conclusions to the Board of
Governors for review.
The steering committee will convene
for the first time by teleconference in
late April to review the draft statement
of principles and decide how to move
the process forward. Participants at the
March meeting were in general agree-
ment that a mid-summer deadline for
issuing NEMAs industry-wide commit-
ment is achievable.

ei
Mark Kohorst, (703) 841-3249
mar_kohorst@nema.org
It is time for NEMA to take
control, work aggressively
to devise an action plan,
and set deadlines for com-
plying with and ultimately
exceeding regulatory
requirements.
Evan Gaddis, NEMA president
NEMAs
news
magazine
continues
to evolve 4
NEMA Electroindustry
April 2006
industry news
The National Association of
Electrical Distributors (NAED)
will honor NEMA Chairman
Tim Powers and six other
industry leaders at the 2006
NAED Annual Meeting in Or-
lando on April 24.
Powers, chairman, chief
executive officer, and presi-
dent of Hubbell Incorporated,
will receive the 2006 NAED
Award of Merit, given to an
individual in the electrical
manufacturing business who
has been exceptionally active
in promoting and supporting
wholesale distribution in the
electrical distribution industry.
Powers has more than 30
years of experience in manu-
facturing and is a recognized
leader