Guest Opinion: Bill would gut small manufacturers’ program

Congressional appropriators agreed before the holiday recess 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 Commerce, Justice and State Subcommittee leadership.

By STEVE HOLLAND
Montana Manufacturing Extension Center http://www.mtmanufacturingcenter.com/

http://www.billingsgazette.com/index.php?id=1&display=rednews/2003/12/21/build/opinion/guest2.inc

Montana’s delegation, Sens. Max Baucus and Conrad Burns, and Rep. Denny Rehberg, supported continued full funding for the Manufacturing Extension Partnership (MEP) 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 on American manufacturing from China and other foreign competition. Montana has lost 3,000 manufacturing jobs since 2001, contributing to the total loss of national employment for 2.5 million American manufacturing workers.
‘Gold mine’ for business

It is ironic that this severe cut would come on the heels 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 manufacturers 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."

Despite such observations, Congress proposes to 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 of about $700 billion to 12 federal departments.

"MEP is an extremely valuable program that helps keep business and jobs here in the U.S.," Burns said. "This year has been a tight fit getting things completed, but I am disappointed to see the cuts made to MEP. I will continue to work to make sure this program gets the funding it needs in next year’s round of appropriations."

MEP, a public-private program, provides small manufacturers with critical support to bolster domestic production and keep manufacturing jobs in the United States. The cuts in MEP will result in deep cuts in state-based programs across the country. Many in Congress are still working to turn this decision around for fiscal 2005. This week, both the House and Senate Manufacturing Task Forces gathered signatures for a letter to the director of the Office of Management and Budget and Secretary of Commerce urging them to reinstate full funding.
Red Oxx expands

Montana’s 2,000 small manufacturers receive services through the Montana Manufacturing Extension Center and report impressive improvements from the assistance. For the biennium 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. They reported improved processes, increased quality, better cash flow and lower employee turnover.

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Montana Manufacturing Extension Center

Advanced Tech Park •

P.O. Box 174255 •

Montana State University •

Bozeman, MT •

59717-4255
Phone: 800-637-4634 •

(406)994-3812 •

Fax: (406) 994-3391

E-mail: [email protected]

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The Bush administration and Congress are definitely on the wrong track, according to MMEC client Jim Markel 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," said Markel, whose company manufacturers carry-on luggage and gear bags. "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, (it) should be investing heavily in MMEC and MEP. The direct and immediate payback is evident to anyone who comes in contact with the organization."
Curtailing services

The severe reduction of federal MEP dollars that help to support MMEC will have an immediate impact here. As a result of this action, MMEC has suspended a search for a field engineer located in Kalispell. 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.

This approach is so backward, it’s absolutely incredulous to me. MEP generates $4 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.

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 is director of the Montana Manufacturing Extension Center, which has headquarters at Montana State University in Bozeman.

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