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September 26, 2005
FOR IMMEDIATE RELEASE
CONTACT: TOM NEILSEN, 503-585-0040 (w); 503-362-1686 (h)
Tom Neilsen, Chairman of the Board of
Neilsen Manufacturing Inc. today announced a restructuring that will reduce jobs
and production over the coming six months.
Neilsen said the reductions will make the
company more specialized and better able to succeed in a highly competitive
global environment.
The reductions will affect employees,
customers and vendors of the company. Neilsen said NMI will work with customers
and vendors to ensure a smooth transition. Laid-off employees will receive
severance benefits and extensive assistance finding new work.
Work-force reductions will take place in
two phases and affect 124 of the company’s 175 employees. Seventy positions are
to be eliminated approximately December 31; 54 additional positions are to be
eliminated about March 31, 2006. After that, the company will continue with a
workforce of about 50.
Neilsen cited a continuing trend to
outsource manufacturing and resulting competitive pressures as reasons for this
decision. He said that since 2000, the company has found it increasingly
difficult to win new work that is profitable.
Neilsen added that the company remains
financially strong and able to make the investments necessary for a smooth
transition. Following restructuring, the company will operate in a more
tightly focused manner offering a narrower range of services. He said the
company’s board believes that despite the outflow of U.S. manufacturing
to foreign competitors, there remains a niche for locally owned, well
run, nimble companies.
Neilsen said he was saddened to give
notice to the very people who have been responsible for the company’s success.
He met with employees this afternoon to make the announcement, and has arranged
additional staff meetings to answer employee questions later this week.
The company will make local outplacement
resources available to employees at the appropriate time, as well as a
severance-package incentive to remain with the company as long as needed.
Employees of the company will begin working
immediately with those customers who will be transitioned to other suppliers in
order to make that process as seamless as possible.
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FACTS
ABOUT NEILSEN MANUFACTURING INC. |
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Employees |
175 employees
Average longevity of 9.9 years
Production workers are members of Local 16 Sheet Metal
Workers Union |
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Facility |
9 acre parcel
170,000 sq. ft of manufacturing and office space |
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Financial |
Annual payroll of over $7.5 million
Annual sales of over $26 million
Dun and Bradstreet – Top rating in company size group:
DUN 07-796-0656; SIC 3444 or 3089 |
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History |
NMI was founded in 1957 by Jack Neilsen as Neilsen
Metal Industries to serve the needs of food processing and other local
industries requiring custom parts. In addition the company offered a line of
hatchery equipment sold around the world. In 1979 the company positioned
itself to serve the growing array of high tech companies in Oregon. That
continues to be the company’s primary focus. |
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Current Markets |
Currently NMI ships products to customers throughout
the Northwest, California, Colorado, Minnesota, Texas, New York, Mexico,
Europe and Asia. Customers such as Tektronix, Credence, Sun Microsystems and
other high tech leaders generate the majority of NMI’s product volume. |
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Products |
NMI manufactures precision products to customer
specifications. High tech cabinetry comprises the bulk of products
delivered. Other products include test and measurement chassis, assemblies
and internal components, housings and peripheral device stands. |
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Operation |
The company operates three shifts, keeping the facility
in operation seven days a week. |
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Recognition |
The company has been cited in numerous publications
both local and national for its commitment and skill. Areas of focus include
Just-In-Time Manufacturing, Lean Manufacturing, and Open Book Management. |
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Recent Awards |
SEDCOR Business of the Year, July 2005; Oregon
Disabilities Commission, Governor’s Employer Honor Roll, October 2003;
National Family Business of the Year November 2001; Austin Family Business
Program Business of the Year, November 2000; Sun Microsystems Best in Class
Performance Award (worldwide distinction) annually 2000-2003. |
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Community Involvement |
The Company is a member of both the Salem Area Chamber
of Commerce and SEDCOR. NMI supports community organizations both through
employee projects and cash contributions. The company and its employees have
been a top contributor to both the United Way and Marion Polk Food Share.
The American Red Cross holds blood drives at NMI approximately every 60
days. |
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