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Hollings Manufacturing Extension Partnership

Where Are MEP Centers Located?

MEP Success Stories

Smaller Manufacturers: Critical to the U.S. Economy

NIST MEP Extension Centers

How Centers Help

MEP Results

Additional Information

Hollings Manufacturing Extension Partnership

The NIST Hollings Manufacturing Extension Partnership (MEP) is a nationwide network of resources assisting the nation's small manufacturers in becoming more competitive by addressing their most critical and often unique needs. MEP provides service to manufacturers through more than 400 locations across the country and in Puerto Rico. Each center represents a unique blend of federal, state, and local resources.

Each year, NIST MEP helps thousands of small manufacturers solve problems, increase productivity, and achieve higher profits. Through continuous assessment and improvement of its products, services, and service-delivery approaches, NIST MEP increasingly is being viewed as a strategic, long-term partner that can help small manufacturers not only resolve problems, but also transform into high-performance, world-class enterprises.

Contact: Roger Kilmer, Director

Smaller Manufacturers: Critical to the U.S. Economy
Manufacturing creates wealth for the United States: wealth in the form of economic growth, increased jobs, and robust trade in world markets. Numbering more than 350,000 small and mid-sized manufacturers make vital contributions to the economy. About 99 percent of the nation's manufacturers are small to medium-sized, defined as having fewer than 500 employees. They account for more than half of the total value of U.S. production and employ nearly 12 million people. That accounts for more than two-thirds of all U.S. manufacturing employment. These jobs are high-skilled and high-wage, paying an average 50 percent more than retail salaries.

As critical as smaller manufacturers are to the economy, the productivity gap between large and small firms is growing. And, as large manufacturers increase their dependence on suppliers for parts and services, the performance and capabilities of small manufacturers become even more critical to the competitiveness of the entire manufacturing sector and to the health of the U.S. economy. Yet, according to a National Research Council report, "Many of these small firms ... are operating far below their potential. Their use of modern manufacturing equipment, methodologies, and management practices is inadequate to ensure that American manufacturing will be globally competitive." Limited budgets, lack of in-house expertise, and lack of access to the newest technologies are but a few of the significant barriers faced by small manufacturers—barriers that NIST MEP helps firms overcome.

NIST MEP Extension Centers
Part of a national network of manufacturing and business experts, NIST MEP centers are local resources serving their local markets. They exist as the result of a partnership among the federal government, state and local governments, and industry to help local manufacturers. NIST MEP centers are non-profit organizations that are created through a competitive, merit-based process where funding is contingent upon successful annual reviews of each center.

While part of a national network, each NIST MEP center works directly with area firms to provide expertise and services tailored to their most critical needs, which range from process improvements and worker training to business practices and applications of information technology. Solutions are offered through a combination of direct assistance from center staff and work with outside consultants. NIST MEP centers are staffed by knowledgeable manufacturing engineers and business specialists who typically have years of practical experience gained from working on the manufacturing floor, managing plant operations, or both. NIST MEP center staff also know the local business community and the available local resources and can access additional resources available through the NIST MEP network. As a result, centers help small firms to overcome barriers in locating and obtaining private-sector resources.

NIST MEP centers work with companies that are willing to invest time, money, and/or human resources to improve their businesses. Typical NIST MEP clients include manufacturers that:

 have been unable to locate the proper resources or technologies they need;
 want expert, impartial advice in helping them evaluate alternative solutions;
 need help solving a specific problem, such as determining the cause of product defects, modifying plant layout to improve work flow, or establishing employee training;
 want assistance in reversing negative business situations--such as sales decreases, loss of market share, or cost increases;
 want to implement new technologies or processes that will help establish them as market leaders; or
 seek to improve their ongoing business operations for peak performance.

How Centers Help

ASSESSMENTS
Many firms begin their relationship with a NIST MEP center through an assessment of the company's current operations and opportunities for improvement. As part of that assessment, field engineers may review the manufacturing process, the plant layout, the inventory and materials flow, and the policies and procedures. Field engineers, also known as manufacturing specialists, then prepare an evaluation of the firm and its operations. These findings are reviewed with management and other key personnel at the manufacturing company.

As a result of the assessment, NIST MEP manufacturing specialists may recommend a few simple, quick solutions or a detailed plan of action. Both types of recommendations are designed to provide quantifiable, bottom-line impacts on performance by improving productivity, quality, profits, or sales.

For some firms, these assessments are enough to get started. The manufacturer may have the resources to implement the plan or may incrementally pursue new initiatives or changes. For those manufacturers requiring assistance in implementing center-suggested actions, the NIST MEP center can provide the solutions and the support. In many cases, the assessment is the beginning of a long-term partnership between the small manufacturer and the center.

TECHNICAL AND BUSINESS SOLUTIONS
The degree and type of assistance provided to each NIST MEP customer firm are based on the particular need of that manufacturer. For a firm dealing with employee relations and human resource issues, for example, support may come through a management training program, a series of staff workshops, or revamping relevant policies and procedures--all services managed by the center staff either independently or through other experts. If the field engineers identify inefficiencies in the physical layout of the plant, they may provide a number of options for reconfiguration and may guide the process for testing these alternatives. Other services may focus on quality improvement, new product development, new equipment needs, marketing and sales support, or capital investments.

ACCESS TO RESOURCES
Sometimes, the technical guidance needed by a manufacturer is best found beyond the NIST MEP center. That is when the value of NIST MEP is most apparent. Through both its local and national network of partners, NIST MEP staff can identify experts and resources from the region or across the country that can help improve a company's performance. In fact, the NIST MEP network provides small manufacturers with access to more than 3,200 partnerships with federal agencies, national associations, and other organizations. Initiatives with the U.S. Departments of Labor and Agriculture, the U.S. Small Business Administration, the National Association of State Development Agencies, the National Governors Association, the National Association of Manufacturers, state and local employment training organizations, and hundreds of universities and community colleges are examples of how NIST MEP leverages public and private resources to make a comprehensive range of technical services and assistance available to small manufacturers.

SEMINARS AND TRAINING
Every day, NIST MEP centers deal with manufacturers who share common problems and seek similar assistance. Often, manufacturers may not be aware of available resources. To help manufacturers improve their knowledge and capabilities, centers provide a variety of seminars and training programs. These seminars may address issues unique to a specific community or information sought by many firms, such as preparing for ISO 9000 certification, implementing waste reduction programs, finding and hiring employees, or profiling the newest manufacturing technologies.

In addition, NIST MEP centers help provide manufacturing firms with exposure to other manufacturers in the area and the opportunity to share resources and information. Regular events, including tours of local manufacturing facilities, discussions, and demonstrations of the latest industry innovations, give company owners and managers the opportunity to see state-of-the-art processes and discuss common issues with their peers.

MEP Results
Evaluation is a key element of all NIST MEP programs and activities. Results are used to assess the effectiveness of services and their impact on the performance of client firms, and to help guide planning at both the center and network levels. By measuring short- and long-term impacts, NIST MEP can assess economic returns on the federal investment in manufacturing extension services.

Many studies are finding that small manufacturers who work with their local NIST MEP center show dramatic improvements. For example, in a survey of NIST MEP clients served in 2000, 4,890 companies around the country reported that, as a result of NIST MEP services, they:

 created or retained 25,000 jobs,
 increased or retained $2.3 billion in sales;
 realized $482 million in cost savings; and
 invested $883 million in modernization, including plant and equipment, information systems, and workforce and training.

Additional Information

For additional information, contact:

Hollings Manufacturing Extension Partnership
100 Bureau Drive, Stop 4800
Gaithersburg, MD 20899-4800
(301) 975-5020
fax: (301) 963-6556
email: MEPinfo@mep.nist.gov
www.mep.nist.gov
Phone (800) MEP-4MFG for direct access to your local Hollings Manufacturing Extension Partnership affiliate.


Date created: August 17, 2001
Last modified: 1-17-07 Aug. 07, 2007
Contact: inquiries@nist.gov