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NIST Hollings Manufacturing Extension Partnership


Small Manufacturers: The Foundation of American Industry

Manufacturing creates wealth for our nation: wealth in the form of economic growth, increased jobs, and robust trade in world markets. Approximately 350,000 small manufacturers account for over half the total value of U.S. production and represent almost 99 percent of all manufacturing establishments. They employ 11 million people and account for two-thirds of all U.S. manufacturing employment.

Barriers to productivity and competitiveness for small manufacturers include limited budgets, lack of in-house expertise, and lack of access to technology. As large manufacturers increase their dependence on suppliers for parts and services, the performance and capabilities of smaller manufacturers become even more critical to the competitiveness of the entire manufacturing sector and to the health of the U.S. economy.

NIST Hollings MEP Background

The NIST Hollings Manufacturing Extension Partnership started in 1989 with centers in three states—South Carolina, Ohio, and New York. Today, NIST Hollings MEP is a national network of affiliated manufacturing extension centers and field offices serving small manufacturers in all 50 states and Puerto Rico. NIST Hollings MEP centers and field offices are staffed by experienced field engineers and manufacturing specialists; they are not federal employees.

Centers are independent, non-profit entities, including corporations, universities, community colleges, or state governments—created through a competitive process. Federal funding of centers is contingent on successful annual performance reviews.

The NIST Hollings MEP program is a recognized model for federal-state partnerships. Typically, centers receive one-third of their funding from the federal government, one-third from state and local organizations, and one-third from fees for services. While centers usually do not charge for initial assessments and minor assistance, fees are charged for major projects.

NIST Hollings MEP leverages public and private resources to make a comprehensive range of services and assistance available to smaller manufacturers. Organizations that NIST Hollings MEP has collaborations with include the National Association of State Development Agencies, the State Science and Technology Institute, the National Association of Manufacturers, state and local employment training organizations, hundreds of universities and community colleges, and a number of federal agencies, including the Environmental Protection Agency, the Department of Defense, and the Department of Labor.

Impact

In a recent survey completed in September 2005, covering projects completed with a NIST Hollings MEP client in fiscal year 2004, 4,644 clients around the country reported that as a result of NIST Hollings MEP services they:

  • realized almost $721 million in cost savings;
  • invested $941 million in modernization, including plant and equipment, information systems, and workforce training;
  • increased or retained $4.5 billion in sales; and
  • created and retained 43,624 jobs

NIST Hollings MEP Clients

Since the program began in 1989, centers affiliated with NIST Hollings MEP have completed more than 310,000 customer engagements, including technical assistance projects, training, and long-term strategic support. NIST Hollings MEP centers work with companies willing to invest time, money, and/or human resources to improve their businesses. Typical NIST Hollings MEP clients include manufacturers who:

  • have been unable to locate the proper resources or technologies they need;
  • want expert, impartial advice in helping them evaluate alternative solutions;
  • need help solving a specific problem, such as determining the cause of product defects, modifying plant layout to improve work flow, or establishing employee training;
  • want assistance in reversing negative business situations—such as sales decreases, loss of market share, or cost increases;
  • want to implement new technologies or processes that will help establish them as market leaders; or
  • seek to improve their ongoing business operations for peak performance.

Following are examples of small manufacturers who improved their productivity and competitiveness as a result of NIST Hollings MEP services:

  • Semicon Associates, Lexington, Ky.; manufactures communication systems components used in a wide variety of space, medical, and military equipment, including fighter aircraft such as the F 18 Hornet and Tomahawk cruise missiles. As a result of assistance from the Kentucky Manufacturing Assistance Center, the company is more competitive and profitable; has reduced costs, lead times and defects; increased defense sales by about 20 percent; and created 10 new jobs.
  • Since 1964, Garrett Metal Detectors of Garland, Texas, has provided security equipment to airports, law enforcement agencies, schools, and the Olympics. After Sept. 11, requests for Garrett’s metal detecting equipment skyrocketed. With help from the Texas Manufacturing Assistance Center, Garrett improved its assembly process, reducing cycle time by 75 percent and increasing production by 300 to 400 percent with the same number of people and half the space.
  • With 35 employees, All A Cart Manufacturing, Inc., Columbus, Ohio, produces a wide variety of vending equipment such as carts, trailers, and kiosks. The Ohio Manufacturing Extension Partnership helped All A Cart improve production processes, procedures, and systems. As a result, the company has created two new jobs, increased sales by $200,000, saved $120,000 in costs, and invested $82,000 in capital resources.
  • Mattson Technology, Fremont, Calif., is a supplier of semiconductor wafer processing equipment used in fabricating integrated circuits. The Corporation for Manufacturing Excellence, a NIST Hollings MEP-affiliated center, helped Mattson Technology implement lean manufacturing techniques. The company reduced setup time by 20 percent and cycle time by more than 40 percent. As a result of these improvements, Mattson Technology won a multimillion dollar contract.
  • KME Fire Apparatus, Nesquehoning, Pa., manufactures fire trucks and emergency vehicles. The Manufacturers Resource Center, a NIST Hollings MEP-affiliated center, worked with a local educational partner to provide KME employees with training in workforce performance management, managerial skills, and computer-aided design. KME also invested $500,000 in improved information technology. As a result of the training and new technology, the company increased sales by 12 percent and created 17 new jobs.

NIST Hollings MEP Products and Services

The degree and type of assistance provided is based on the manufacturer’s needs—ranging from process improvements to worker training to applications of information technology. Typically, the first step is an assessment of the company’s current operations and opportunities for improvement.

As part of that assessment, field engineers:

review the manufacturing process, the plant layout, the inventory and materials flow, and the policies and procedures;

prepare an evaluation of the firm and its operations; and

recommend either a few simple, quick solutions or a detailed plan of action to improve performance, productivity, quality, profits, or sales.

Products and services provided by NIST Hollings MEP centers include:

Lean manufacturing: Eliminating manufacturing activities or actions that add no real value to the product or service. These techniques have become standard practices in large manufacturing plants but are used by very few
smaller manufacturers.

Strategic management: Planning and executing business strategies suitable to the company’s markets, customers, operations and organization. Only 30 percent of small manufacturers have a clear and compelling vision with coordinated strategies and action plans.

Quality: Continuously defining, measuring, and improving the key processes that drive performance.

Industrial marketing: Better understanding of a firm’s business activities, including analyzing the market potential of products and services and how they meet or exceed customer requirements; reviewing and selecting the appropriate medium and message for potential clients; and developing a system to monitor customer service satisfaction.

Environmental: Improving small manufacturers’ performance in areas such as environmental management systems, energy efficiency, waste reduction, materials selection, recycling, and worker safety.

Human resources: Improving company performance by providing expert advice and service regarding employees, including job design and analysis, performance management, and training and development.

Assessment tools: Assessment tools include e-Scan Security Assessment, which enables small manufacturers to assess their electronic security infrastructure, and Net Knowledge 101, which provides a fundamental understanding of the Internet and eBusiness.

FY 2005 NIST Hollings MEP Activities

Assistance Provided to Clients:
Technical assistance—49 percent
Training—43 percent
Assessment—8 percent

Size of firms served by number of
employees
1-19—22 percent
20-49—19 percent
50-99—18 percent
100-249—22 percent
more than 250—19 percent

59 percent of firms served have under 100 employees

Top six areas of assistance
Manufacturing systems—45 percent
Business services—22 percent
Quality systems—11 percent
Human resources and organizational development—9 percent
Engineering/technical services—8 percent

Top six industries served
Fabricated metal products—18 percent
Machinery—14 percent
Miscellaneous—9 percent
Computer/electronics products—8 percent
Plastics and rubber products—7 percent
Transportation equipment—7 percent

NIST Hollings MEP Recognition
NIST Hollings MEP and its affiliated centers have received numerous awards and recognition,
including:

  • NIST Hollings MEP was a semi-finalist for the 2004 Innovations in American Government award sponsored by the Ash Institute for Democratic Governance and Innovation at Harvard University’s Kennedy School of Government. The award is administered in partnership with the Council for Excellence in Government.
  • The National Academy of Public Administration recently reported “... the MEP Program does perform in a capable and effective manner, delivering impacts significantly beyond the costs of operating the program.”
  • NIST Hollings MEP was named one of the 100 best resources for small businesses in the 2004 BIZBEST 100: “MEP is a potential gold mine for small manufacturers. … BizBest has tracked this program for nearly 10 years and has found it to be well-run and highly beneficial for biz owners.”

Date created: 02/06/04
Last updated: 05/11/06
Contact: inquiries@nist.gov


 
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