While some MEP centers across the U.S. were given a six-month extension period to receive funding from the federal government, leaders from Wisconsin’s program are still bracing for an anticipated funding cut, and the necessary re-structuring of the program. The Manufacturing Extension Partnership (MEP) program is a public-private partnership that helps manufacturers grow and make
While some MEP centers across the U.S. were given a six-month extension period to receive funding from the federal government, leaders from Wisconsin’s program are still bracing for an anticipated funding cut, and the necessary re-structuring of the program.
The Manufacturing Extension Partnership (MEP) program is a public-private partnership that helps manufacturers grow and make operational improvements.
Earlier this month, 10 MEP center across the U.S. received a notice from the National Institute of Standards and Technology (NIST) and Department of Commerce stating their leases were not being renewed. This caused concern for the future of Wisconsin's MEP program, which is set to be renewed for funding at the end of the year.
In a statement, NIST said the government is "evaluating how it can best use the resources provided by Congress to most effectively advance U.S. manufacturing capabilities in alignment with statute and the president’s priorities for U.S. leadership in critical and emerging technologies."
The 10 MEP centers that were left unfunded on April 1 have since been granted a six-month extension period, which restores funding until Sept. 30.
This is still only a “temporary fix,” according to Buckley Brinkman, executive director and CEO of the Wisconsin Center for Manufacturing and Productivity.
"We still need a recommitment to the MEP national network by Congress," said Brinkman. "We have the resources to thrive well into next year under the present conditions."
WCMP receives Wisconsin’s federal MEP funding and then disburses it to both the UW-Stout Manufacturing Outreach Center and Wisconsin Manufacturing Extension Partnership (WMEP Manufacturing Solutions).
Sachin Shivaram, CEO of Manitowoc-based Wisconsin Aluminum Foundry and chair of the WCMP board, says regardless of funding, changes are needed to the program.
[caption id="attachment_557514" align="alignleft" width="300"] Sachin Shivaram, CEO of Wisconsin Aluminum Foundry Co. Inc.[/caption]
While he believes both WMEP and MOC are indispensable resources for smaller manufacturers looking to become more efficient and grow, he also thinks the program is “bloated” with too many people managing the process and not enough delivering services.
“If we say we can’t cut anything, that’s being disingenuous,” said Shivaram.
Since federal rules regarding MEP funding say only one entity within each state can receive money, WCMP was formed as a sort of parent company to funnel funds into two pre-existing entities: WMEP and MOC.
“In light of all this cost cutting, it feels absurd,” said Shivaram. “We have a whole agency with employees and their only function is to take federal money and funds from WEDC and redistribute it. It feels wasteful.”
On top of this additional administrative layer, Shivaram says consultants are only spending about half of their time completing billable work for clients.
"It's clear that they're (the government is) headed down the path of cutting off the funding cold turkey. We're trying to stave that off by saying, 'we heard your message,'" said Shivaram. "There's work we need to do, but this is an important agency for a lot of companies, like ours."
Wisconsin Aluminum Foundry has relied on several WMEP programs, including the organization’s Automation Advisor Program.
A few years ago, the company was facing a bottleneck within its operations due to high demand from a customer, Shivaram explained. A particular machine was causing backups, so Wisconsin Aluminum Foundry relied on WMEP for advice on how to rework things. Most importantly, this consulting work was done at a low cost to the company.
Consultations from some of the world’s biggest manufacturers, like Rockwell Automation, can cost as much as $50,000 for a two-week period, according to Shivaram.
“Back when the Reagan administration created the MEP program, they recognized there are thousands of small companies like us that just don't have the knowledge, and somebody needs to be teaching them how to be more efficient,” said Shivaram.
Future unclear
The best way to re-organize WCMP if federal funding is not restored is still being worked out, said Jeffrey Clark, a member of the WCMP board and past board chair. He’s also president and CEO at Waukesha Metal Products.
[caption id="attachment_426423" align="alignleft" width="300"] Jeffrey Clark[/caption]
“We could streamline operations and that's something the board will be considering," said Clark. "We also need to look at how we would do that if we're not under the demands of NIST."
Waukesha Metal Products has used WMEP’s consulting services at least four times over the 20 years.
Right now, WMEP is helping the manufacturer with an AI-focused project. The company is trying to better utilize its data to predict machine failures and necessary maintenance.
Using a regular consulting firm to complete this task would cost more than double what Waukesha Metal Products is currently paying, Clark said.
"This is really important to us as a manufacturer, especially in the small to medium range,” he said. “I can't afford this. When I say can't afford it, (I mean) it's very difficult to justify a return on things like this."
In the past, WMEP has also helped Waukesha Metal Products complete a cybersecurity clearance required by the Department of Defense and a redesign of the company’s floor layout.
Clark believes losing these programs would be a “tough loss” for small and mid-sized companies that rely on WMEP and MOC for consulting services.
"I would argue that shutting down the (MEP) system would be contrary to what our goal is -- of building back American manufacturing," he said.
For now, WEDC, which contributes approximately 25% of WCMP’s budget annually, has committed to continue partially funding the organization, a move Shivaram calls a “meaningful vote of confidence.”
“With more than 9,500 manufacturing companies and 450,000 manufacturing employees in our state, investment in the future of manufacturing is critical for Wisconsin’s economic success," said Missy Hughes, secretary and CEO of WEDC. “Programs like WCMP help small- and medium-sized enterprises to compete in the global market.”
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