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Under the new criteria, it will be easier for distribution firms that are newer or that carry industrial products besides PT/MC lines to join the association.
The new standards also recognize the manufacturer members of the European Power Transmission Distributors Association (EPTDA) as qualifying for membership in PTDA. Moreover, the changes allow the association to be more responsive to all foreign manufacturers that are entering the North American market and seeking distribution networks.
PTDA also will now officially refer to its manufacturer members as 'manufacturer members' rather than 'allied members' to clarify the standing and importance of this group within the association.
Response to Changing PT/MC Industry
The qualification revisions reflect changes in current PT/MC industry practices, as well as the growth of global business for and by PTDA member firms. At the same time, the new standards ensure that only legitimate distributors and manufacturers of PT/MC products qualify for association membership.
'The new qualifications allow PTDA to return to its roots of being responsive to newer, entrepreneurial firms,' said Patrick Frater, president of Northwest Power Products, Inc. and PTDA's president for 2002. 'We're also reaching out to the emerging class of specialist distributors, who may not sell a broad spectrum of products.
'At the same time, we're including distributors who sell a considerable amount of PT/MC products, but whose primary business may be the distribution of other lines.'
Specific Membership Qualification Modifications
Changes in PTDA distributor membership qualifications include:
--The firm must be involved in stocking and distribution of PT/MC products. Previously, a member firm's primary business had to be stocking and distribution of PT/MC products.
--A requirement that firms had to be in the PT/MC business for at least two years has been dropped.
--The criterion that firms had to stock and distribute a minimum of six products from a minimum of three PT/MC product categories has been eliminated. Now firms must distribute products from some of a revised and expanded list of product categories.
--Previously a firm had to be an authorized stocking distributor for at least one North American-based PT/MC manufacturer. The new qualifications require distributors to be authorized by at least two PT/MC suppliers who are current PTDA members.
Revised manufacturer membership qualifications include:
--Manufacturing companies need to have a policy in place and demonstrate they currently sell product through authorized distributors. Previously, manufacturers had to sell through North American distributors for two years before being eligible to join PTDA.
--Manufacturers no longer need to have already sold their products on a broad basis through North American distributors. The new wording: The firm must manufacture, market, and support at least one PT/MC product line under its own brand name through authorized distributors. As with distributors, the list of product categories has been revised and expanded.
--Firms no longer need to own facilities in North America, if they have met the manufacturing qualifications for membership in the EPTDA. The EPTDA criteria mirror those for PTDA.
PTDA's Board of Directors and Allied Council (now Manufacturer Council) endorsed the amendments to the membership requirements within the association's bylaws in February 2002. The amendments were approved by a majority vote of PTDA's designated representatives at the association's annual meeting during its convention in September in Palm Springs, Calif.
Founded in 1960, PTDA is an US-based trade association representing almost 230 power transmission/motion control (PT/MC) distributor firms with almost 3,000 locations throughout North America and 16 other countries, as well as over 190 manufacturers that supply the PT/MC industry. PTDA is a member-driven organization dedicated to advancing distribution and strengthening members to be successful, profitable and competitive in a changing market environment.