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Blog Category: Manufacturing Extension Partnership

Making U.S. Manufacturing Stronger

Making U.S. Manufacturing Stronger

Guest blog post by Phillip Singerman, Associate Director for Innovation and Industry Services at the National Institute of Standards and Technology (NIST)

During his visit to Cleveland, Ohio, today, President Obama highlighted increased investment in a unique program that makes sure small and medium-size U.S. manufactures have the support they need to innovate, grow and succeed.

The president visited the Manufacturing Advocacy and Growth Network (MAGNET), one of 60 centers across the country in the National Institute of Standards and Technology’s (NIST) Hollings Manufacturing Extension Partnership (MEP).  MAGNET is one of the Ohio MEP affiliates located at Cleveland State University. These centers have helped manufacturers such as Ohio-based Wright Materials Research and Heather Moore Jewelry make improvements that led to the hiring of new staff, sped delivery of their products and generated new sales.

As a new report released by the White House (which was supported by our colleagues at the Economics and Statistics Administration) finds that small and medium-size companies like these form the backbone of America’s manufacturing supply chains and employ nearly half of all U.S. manufacturing workers.

There are many success stories in MEP’s 26-year history that demonstrate the benefits of investing in these manufacturers. And we plan to support many more. MEP has issued a Federal Funding Opportunity for non-profit organizations to operate centers in Alaska, Idaho, Illinois, Minnesota, New Jersey, New York, Ohio, Oklahoma, Utah, Washington, West Virginia and Wisconsin. This is the second round of competitions in a multiyear effort to update MEP’s funding structure and will strengthen the network. We announced the first competition awardees in February 2015.

Commerce's NIST Awards $26 Million to Support Manufacturing in 10 States

Commerce's NIST Awards $26 Million to Support Manufacturing in 10 States

The U.S. Commerce Department’s National Institute of Standards and Technology (NIST) today announced the award of new cooperative agreements to 10 nonprofit organizations and universities to manage Hollings Manufacturing Extension Partnership (MEP) centers. NIST’s MEP program helps small- and mid-size manufacturers create and retain jobs, increase profits and save time and money. In an open competition, the existing MEP centers in Colorado, Connecticut, Indiana, Michigan, New Hampshire, North Carolina, Oregon, Tennessee, Texas and Virginia, were selected to receive a total of $26 million in federal funding, an increase of about $10 million or nearly 60 percent. The funding will allow the centers to reach new customers and offer new services.

“We are excited to award new agreements that bring increased funding levels to better meet the needs of manufacturers in these 10 states,” said Acting Under Secretary of Commerce for Standards and Technology and Acting NIST Director Willie May. “These awards will allow the centers to help more manufacturers reach their goals in growth and innovation, which will have a positive impact on both their communities and the U.S. economy.”

In August 2014, NIST announced a competition for the centers in these 10 states as the first step in a multi-year effort to update MEP’s funding structure to better match resources with needs. In March 2014, the Government Accountability Office recommended that MEP update its distribution of funds, which were allocated according to the award each center received when it was first established. The original awards to these states were made more than 10 years ago, and the MEP investment in terms of dollars per manufacturing establishment was below its national average, making them the most underfunded of MEP’s 60 centers.

Proposals were reviewed by government and independent experts and evaluated against a number of criteria, including demonstration of a thorough understanding of market needs and how proposed service offerings would meet those needs. The reviewers also looked at the proposed business models, performance measurements and metrics, partnership potential, staff qualifications and program management, as well as financial and non-federal cost-share plans.

The new cooperative agreements are for five years, subject to the availability of annual appropriations and successful annual reviews.

U.S. Manufacturing Attracts Foreign Investment

U.S. Manufacturing Attracts Foreign Investment

By Mark Schmit, National Accounts Manager, National Institute of Standards and Technology, Hollings Manufacturing Extension Partnership

The United States is an attractive destination for foreign investment dollars for a variety of reasons, including a large economy with diverse consumer markets, a skilled labor force (thanks to community colleges with skill-development missions as well as research universities) and a predictable and stable regulatory system. These reasons and more explain why the U.S. has been the world’s largest recipient of foreign direct investment (FDI) since 2006 according to an October 2013 White House report, Foreign Direct Investment in the U.S.

Working for NIST’s Hollings Manufacturing Extension Partnership (MEP), I wasn’t surprised to learn that the manufacturing industry is the largest beneficiary of FDI in the United States, accounting for more than one-third of that investment, according to data from the Commerce Department’s Bureau of Economic Analysis. “Made in America” is, after all, a de facto stamp of approval the world over. We are a manufacturer’s dream!

And investments in manufacturing have powerful multiplier effects on the U.S. economy. Every $1 spent in manufacturing generates $1.35 in additional economic activity. Since 1988, MEP has been committed to strengthening U.S. manufacturing and individual manufacturers, contributing to the growth of well-paying jobs, the development of dynamic manufacturing communities, and the enhancement of American innovation and global competitiveness. 

MEP delivers its own high return on investment to taxpayers. For every dollar of federal investment, MEP clients generate nearly $19 in new sales, which translates into $2.5 billion annually. Last year, MEP centers served more than 30,000 manufacturing clients—a subset of which are foreign-owned. For example, since 2012, MEP centers worked on 900 projects with 322 manufacturers in the U.S. that have ownership ties to other countries. These projects helped those companies create and retain more than $700 million dollars in sales, save about $77 million and create or retain more than 6,000 U.S. jobs.

U.S. Commerce Secretary Penny Pritzker Shares Economic Development Opportunities in California

Representative Barbara Lee, Secretary Penny Pritzker, Clifton Burch, President at Empire Engineering & Construction, Inc. and MBDA National Director Alejandra Castillo

Last year, U.S. Secretary of Commerce Penny Pritzker unveiled the Commerce Department’s “Open for Business Agenda,” a bold policy agenda focused on boosting trade and investment, supporting innovation and entrepreneurship, and unleashing more government data. Yesterday, she took the Agenda on the road to California. Along with Minority Business Development Agency (MBDA) National Director Alejandra Castillo, Secretary Pritzker spoke to local businesses and community leaders about the Obama Administration’s work to spur continued economic growth and job creation through support of exporters, entrepreneurs, and small, women- and minority-owned businesses.

Secretary Pritzker joined Congresswoman Barbara Lee (D-CA), a strong advocate for minority economic development and trade policy, at a regional economic development forum at the Oakland Airport, hosted by Lee. The Secretary delivered remarks highlighting a number of Commerce Department resources available to help foster economic growth. Noting that exporting is an essential tool for economic development, she discussed the Commerce Department’s NEI/NEXT initiative, a data-based, customer-driven effort to help U.S. companies increase their exports to international markets. Secretary Pritzker also talked about the work of the NIST Manufacturing Extension Partnership to help manufacturers boost productivity and growth, as well as investments by the Economic Development Administration (EDA) to help attract new industries and create jobs. Through these and other tools, the Commerce Department is helping businesses in California and across the country to grow and hire. 

Following the Secretary’s remarks, MBDA National Director Castillo led a panel discussion on economic development that helped to connect local business leaders and economic development organizations with the expertise of the Department and its resources. The forum featured OPIC’s Director of Corporate Development, Alison Germak; Port of Oakland’s Director of Aviation, Deborah Ale Flint; Alameda County Supervisor Keith Carson and Oakland Mayor Jean Quan. 

Before the event, Secretary Pritzker also participated in a roundtable discussion with East Bay business leaders, hosted by Rep. Lee. They discussed regional economic development, supplier diversity and the importance of gender and ethnic diversity in corporate leadership. Earlier in the day, Secretary Pritzker and San Francisco Mayor Ed Lee met with leaders of local technology companies, including Twitter, Yelp, Kiva, and others, ​to discuss the Department of Commerce’s expanding role as “America’s Data Agency." Secretary Pritzker specifically asked how the government can most effectively make additional data available, and what public-private partnerships are currently serving as strong models that can be replicated when it comes to data dissemination.​ 

MEP Launches Competition to Fund Manufacturing Centers in 10 States

Making an Impact on U.S. Manufacturing

The National Institute of Standards and Technology (NIST) today opened a competition to award new cooperative funding agreements for its Hollings Manufacturing Extension Partnership (MEP) centers in 10 states. The competition is the first in a multiyear effort to update the funding structure to better match needs with resources in MEP's network of 60 centers. The MEP centers help small and mid-sized U.S. manufacturers create and retain jobs, increase profits, and save time and money.

The current competition will fund awards for centers in Colorado, Connecticut, Indiana, Michigan, New Hampshire, North Carolina, Oregon, Tennessee, Texas and Virginia. The awards will provide half of each center's first-year operating funds, which the centers must match with funding from nonfederal sources. MEP anticipates awarding a total of nearly $26 million for the 10 centers.

Established in 1988, MEP is a public-private partnership that delivers a high return on investment to taxpayers. For every one dollar of federal investment, MEP helps businesses generate nearly $19 in new sales growth and $21 in new client investment. This translates into $2.2 billion in new sales annually. For every $1,978 of federal investment, MEP helps create or retain one manufacturing job.

Each MEP center works directly with area manufacturers to provide expertise and services tailored to their most critical needs, ranging from process improvement and workforce development to business practices and technology transfer. Through local and national resources, MEP centers have helped thousands of manufacturers reinvent themselves, increase profits, create jobs and establish a foundation for long-term business growth and productivity.

Commerce Department Achieves FY 2013 Small Business Federal Contracting Goal

The U.S. Small Business Administration (SBA) today announced that the federal government met its small business federal contracting goal for the first time in eight years – awarding 23 percent, or $83.1 billion, of all federal small business eligible contracting dollars to small businesses in fiscal year 2013.

The Commerce Department played a significant role in that achievement – exceeding its goal of awarding 39 percent of funds to small businesses and receiving an overall “A” rating from SBA for the fourth straight year in a row. In FY13, the Department also surpassed overall federal government and statutory goals for prime contractors who are small disadvantaged businesses, women-owned small businesses, and service disabled veteran-owned small businesses.

U.S. small businesses are the backbone of our economy, and the Commerce Department works to both support those businesses and ensure they know about our many services that can help them grow.

For example, just a couple months ago, Commerce awarded five small businesses with a contract that is expected to save up to $25 million in taxpayer dollars over the next five years. In addition to saving money, contracts that make our work more efficient and effective enable Commerce to focus more resources on our primary mission, including making investments that help businesses of all sizes create jobs and help grow our economy.

To that end, the Department offers a wide array of services to our small businesses and entrepreneurs. For example, Commerce’s National Institute for Standards and Technology (NIST) has a Manufacturing Extension Partnership program with centers based around the country who work with small and medium-sized manufacturers to transform their business plans, access new technology and increase exports. As part of the department’s ‘Open for Business Agenda,’ we are working to make more of our data accessible to more people, which supports start-ups and powers small companies.

Readout of U.S. Commerce Secretary Penny Pritzker’s Visit With Commerce Employees in Denver, Colorado

Secretary Penny Pritzker Meets with Commerce Employees in the Denver Office

While in Denver, Colorado, as part of her nationwide listening tour, Secretary Pritzker met with the heads of the Commerce Department’s local offices, including: International Trade Administration’s U.S. Export Assistance Center (USEAC), the Economic Development Administration (EDA), the National Institute for Standards and Technology’s Manufacturing Extension Partnership (NIST MEP), the Patent and Trademark Office (PTO), the U.S. Census Bureau, the Inspector General (IG), and the Minority Business Development Agency (MBDA). In addition to these meetings, she also spoke to employees about their work and ways in which their efforts are supporting economic growth and development in Colorado.

Today’s discussion in Denver served as an extension of an employee town hall she held yesterday in Boulder. The secretary emphasized how their work is crucial to creating a better quality of life for Americans and more opportunities for entrepreneurs and businesses. She also asked employees for their input in the department’s ongoing efforts to protect, promote, and inform what America needs to be competitive and innovative in the 21st century.

These employee engagement opportunities are part of the secretary’s overall efforts to serve as a bridge to the business community so that the public and private sectors can work together to create jobs and opportunities for all Americans.

NIST MEP helps U.S. Manufacturers Create Jobs and Expand their Businesses

NIST Manufacturing Extension Partnership - Make It In America

National Small Business Week, which is taking place June 17-21, recognizes the contributions of America’s entrepreneurs to job creation and economic growth. One way that the Commerce Department works to support small- and medium-sized enterprises is through the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP), a public-private partnership designed to encourage innovation in American manufacturing.

NIST MEP is a nationwide network of technical experts and business advisers who work with small- and mid-sized U.S. manufacturers, helping these businesses identify growth opportunities. MEP focuses its resources on five critical areas: technology acceleration, supplier development, sustainability, workforce and continuous improvement of manufacturing processes, products, and services.

For every one dollar of federal investment, MEP generates nearly $20 in new sales growth, which amounts to about $2.5 billion in new sales annually. And for every $2,100 of federal investment in the program, MEP creates or retains one manufacturing job. These investments support the administration’s commitment to helping U.S. manufacturers innovate, grow, and create good jobs.

NIST MEP has successfully helped manufacturers across the country grow their businesses. For example:

Federal Government Help for Manufacturing Companies: How Commerce Contributes

US-Made Auto Parts

In last night's State of the Union address, President Obama laid out proposals for how to bring about a new era of American manufacturing, with more good jobs and more products stamped Made in the USA.  A few of the proposals are:

  • Reward companies for bringing jobs back to America.
  • Lower tax rates for companies that manufacture and create jobs in the United States.
  • Get tough on trade enforcement.
  • Create more jobs and make us more competitive by rebuilding America using half of the savings from ending foreign wars.

These proposals build upon the efforts already underway by the White House.

At the Department of Commerce, we support manufacturers in a multitude of ways:

NIST Research/Collaboration Efforts Key to Innovation and Economic Growth

Computer scientist Murugiah Souppaya investigates security techniques for protecting cloud computing systems from cyber attack  (Photo © Nicholas McIntosh)

Innovation drives economic growth and creates skilled, high-wage jobs. To maintain a high standard of living for its citizens, the United States must continue to produce new, high quality products and we must sell them in the global marketplace.  As Secretary John Bryson said recently, the U.S. must “Build it here and sell it everywhere.”

Commerce's National Institute of Standards and Technology (NIST) helps U.S. companies innovate and improve their global competitiveness by providing world class laboratory results and services, business and technology assistance, and research grants.

As we look to the start of a new calendar year, here are just a few numbers that describe how NIST helps U.S. industry and science to create and retain jobs through an innovation-based economy:

  • 8 billion:  The number of times per day that computers across the United States and the world were synchronized with NIST official time over the Internet by the end of FY2011 using the automated NIST Internet Time Service. This number is continually growing. NIST official time is essential for everything from time stamping electronic financial transactions to operation of the U.S. electrical grid to precision timing of computer networks.
  • $8.3 billion:  The amount of new and retained sales generated in FY2010 through business and technology assistance from the NIST Manufacturing Extension Partnership according to an FY2011 survey of participating U.S. companies. Through a network of local centers providing services in every state and Puerto Rico, the program helps companies nationwide to create and retain jobs, increase profits, and save time and money.
  • Up to $5 billion: The amount of money the federal government may be able to save by 2015 by using cloud computing services and consolidating or closing 962 data centers as a result. In FY 2011, NIST issued a technology roadmap (PDF) to help speed the U.S. government’s adoption of cloud computing services. More than 1500 individuals from the public participated during FY2010 and FY2011 in NIST workshops to propose ways the government can exploit the cost advantages of cloud computing reliably and securely.
  • 19.1 million, 32,864, and 18,195:  The number of data sets downloaded from the Web, Standard Reference Materials (SRMs) sold and calibrations provided by NIST to help companies and researchers worldwide produce the highest quality products and scientific measurements. To name just a few examples, NIST data, SRMs and calibration services help high tech companies make computer chips with “wires” only 10s of billionths of a meter wide; build  aircraft engines made of high strength, corrosion resistant alloys; and ensure the safety of drinking water, medical tests, and pharmaceuticals.
  • 2900:  The number of guest researchers, facility users, and other associates hosted by NIST in FY 2011 from industry, academia, and government agencies. State-of-the-art technical knowledge shared through collaborations like these supports billions of dollars in sales of U.S. products that depend in some way on advanced technologies, data, and measurements. In FY 2011, NIST also had numerous patents available for licensing, had 103 formal Cooperative Research and Development Agreements in place with companies and scientific organizations, and published about more than 1,200 research papers in the open scientific literature.