MEP restructuring proposed

The second report of a two-year assessment of the federal Manufacturing Extension Partnership (MEP) program outlines how best to restructure a program aimed at aiding competitiveness of small manufacturers. This report on MEP, released in May, was the focus of a series of seven industry roundtable meetings over the summer to gather public comment. Re-evaluation and redirection of the highly praised program is timely, given draconian 2004 program budget cutbacks by Congress earlier in the year, with funding slashed two-thirds.

The first of the studies conducted by the National Academy of Public Administration focuses on barriers to productivity improvement for 355,000 small U.S. manufacturers—the largest source of U.S. jobs in manufacturing, and contributing 7% to the GNP. That study also evaluates whether MEP was positioned properly to help reduce those barriers. The second report focuses on recommendations in support of alternative business models in addressing these issues.

It found that "the MEP Program performs capably and effectively, and that the core premise of the Program remains viable," but that the program "needs to consider how it can have a much broader impact on an industry that has suffered significant losses in jobs and business to foreign competitors." The study stated, "that the time is right for a change to the basic services and approach employed," emphasizing a greater mix of services. Congress must give final approval of the program's realignment.