Congress Guts Program for Small Manufacturers in Omnibus Appropriations Bill – The Manufacturing Center needs your help!

Congressional appropriators last week agreed to gut the main federal program serving America’s small manufacturers, despite the 300 members of Congress who supported a Budget of $110 million in letters to the CJS Subcommittee leadership.

By Steve Holland, Director, Montana Manufacturing Extension Center http://www.mtmanufacturingcenter.com/

Montana’s Congressional delegation, Senators Max Baucus and Conrad Burns and Representative Denny Rehberg, supported continued full funding for MEP as a way to combat the decline in U.S. manufacturing.

The Congressional action cutting the budget by 63 percent came despite heightened concern over the recent onslaught to American manufacturing from China and other foreign competition. Montana has lost 3000 thousand manufacturing jobs since the beginning of 2001, contributing to the total loss of employment for 2.5 million American manufacturing workers. It is ironic that this severe cut would come on the heals of the MEP program being selected as one of the top 100 services for small business in the respected BizBest 100 directory.

"MEP is a potential gold mine for small manufacturers,” according to BizBest. “The sole purpose of this national network of 400 not-for-profit centers is to help small manufacturing firms become more productive, tech-savvy and competitive. BizBest has tracked this program for nearly 10 years and has found it to be well-run and highly beneficial for biz owners who’ve used it.”

Despite such observations, Congress will provide only $39.6 million for MEP this year. Last year, Congress provided MEP with continued full funding of $106.6 million. The cut to MEP came during last minute wrangling over a final Omnibus Appropriations bill that would provide about $700 billion for up to12 federal departments.

"MEP is an extremely valuable program that helps keep business and jobs here in the U.S.," Senator Burns said about the program. "This year has been a tight fit getting things completed, and we’ve had to make some changes across the board where appropriations are concerned, but I am disappointed to see the cuts made to MEP. I know how important this funding is for Montana and the rest of the country, and I will continue to work to make sure this program gets the funding it needs in next year’s round of appropriations."

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The Manufacturing Center needs your help in continuing communication with
Congress about the importance of manufacturing and the Manufacturing
Extension Partnership (MEP) using a very simple web communication tool (see
link below).

Early next week, Congress is slated to act on the final Omnibus Funding
Bill that slashes the Manufacturing Extension budget nationwide by 2/3rds.
MMEC is part of that network, and this cut will impact our program here, as
well.

For those of you interested in MMEC and the MEP program, I hope you will
spend a few minutes via a special website to communicate your concern and
disappointment at this outcome to Washington DC. This site which is very
easy to use:
<http://capwiz.com/modforum/issues/alert/?alertid=4322556&type=ML>

1) Click on the website.

2) Below the introduction is a web form to complete that includes a message
(which you will see on the left). The message that appears on the left is
written from a manufacturing company perspective and can be edited. You can
also add your organization name in the text and add any other comments.

3) Be sure to include your state and zip code in the form, as that triggers
automated faxes to the President, Commerce Secretary Donald Evans, and
Senators Baucus and Burns, as well as Rep. Denny Rehberg. (zip codes
outside Montana go to those state delegates and the Administration)

4) Click the "Send Message" on the bottom right under the form.

5) You will receive a detailed confirmation.

Please feel free to forward this link to others that might be interested in
supporting MEP. Congress and the Administration must hear loudly and
immediately that America’s manufacturers and partners are upset about this
cut (on top of all the other pressures on manufacturing right now) so please
take a few minutes, today.
Thanks.

Deborah Nash

Montana Manufacturing Extension Center

Phone 406-994-3812

http://www.mtmanufacturingcenter.com

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MEP, a public-private program, provides small manufacturers with critical support to bolster our domestic production base and keep manufacturing jobs in the United States. The cuts in MEP will result in deep cuts in state-based programs across the country.

Montana’s 2,000 small manufacturers receive services through the Montana Manufacturing Extension Center, which has field offices across the state to reach clients efficiently. MEP clients report impressive improvements as a direct result of MMEC assistance. For FY 2000-2002, surveyed clients in the state reported $22.3 million in new or retained sales, $10.3 million in cost savings, $3.7 million in new investments toward modernization, and over 391 manufacturing jobs retained or created.

The Administration and Congress are definitely on the wrong track, according to MMEC client Jim Markel, co-owner of Red Oxx Manufacturing in Billings.

“I am not one to readily embrace government programs, but I have to say that the taxpayer gets his money’s worth out of the Montana center. MMEC is the best way to foster growth with Montana companies,” said Markel, whose company manufacturers carry-on luggage and gear bags for outdoor enthusiasts. “If not for the direct input of MMEC, Red Oxx would still be searching for answers. If Congress is serious about growth and job retention they should be investing heavily in MMEC. The direct and immediate payback is evident to anyone who comes in contact with the organization.”

Many Montana companies have reported increased productivity, improved processes, increased quality with fewer expensive parts returns, better cash flow, and lower employee turnover as a result of MMEC services.

The severe reduction of federal MEP dollars that help to support MMEC will have an immediate impact on Center activities. As a result of this action, MMEC has suspended a search for a new field engineer for its Kalispell office, leaving only five of its six engineers to cover the entire state. Many of the free services to manufacturers will be curtailed over the next year and program initiatives scrutinized for the long term unless pressure can be put on the Administration and Congress to reinstate full funding.

As Director, I am shocked, given the heightened concern over American manufacturing, that Congress and the Administration would cut a program that everyone agrees has been highly effective. This approach is so backward, it’s absolutely incredulous to me.

MEP generates a $4 return to the federal coffers for every $1 invested. The Administration and Congress have devastated this program when what they should have been doing is looking at why it is successful and modeling programs after it. They are pulling the rug out from under small manufacturers just when they need continued support to keep manufacturing jobs in the U.S. and for increased productivity and emphasis on innovation that will help companies compete.

Montana’s small companies are filled with entrepreneurial spirit. And it is small manufacturing that brings about so much creativity and new product ideas.

The value of the MEP nationally and MMEC here in Montana is supported by independent survey results, governmental panel reviews, and client testimonials. I urge anyone concerned about losing this vital program to contact Congressional delegates and voice your concerns.

Steve Holland or Deborah Nash
Montana Manufacturing Extension Center
406-994-3812 or email