NIST MEP helps manufacturers respond to the pandemic and thrive despite it

The Hollings Manufacturing Extension Partnership (MEP), a program of the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST), announced the results of its FY2021 Manufacturing Customer Survey, along with the impact of Coronavirus Aid, Relief and Economic Security Act (CARES Act) funding until January 2022.

“The survey shows that even through the industry-wide disruption caused by the pandemic, the MEP National Network has helped manufacturing clients achieve some of the highest impacts yet” said Jennifer Sinsabaugh, chair of the board of the Foundation for Manufacturing Excellence, which supports the network’s educational efforts and chief executive of the New Mexico Manufacturing Extension Partnership. “Each of these impacts is critically important to the health of US manufacturers and to the entire US manufacturing ecosystem.”

The MEP program supports the competitiveness of U.S.-based manufacturing by making manufacturing technologies, processes, and services more accessible to small and medium-sized manufacturers through MEP Centers in all 50 states and Puerto Rico.

According to the survey, for every dollar of federal investment in fiscal year 2021, the MEP National Network generated $26.20 in sales growth and $34.50 in investment from new customers. This translates to $14.4 billion in new and retained sales for US manufacturers. The network also created or maintained one manufacturing job for every $1,193 of federal investment.

In fiscal year 2021, the MEP National Network interacted with 34,307 U.S. manufacturers from nearly every manufacturing industry, providing vital assistance and helping them recover from the COVID-19 pandemic. Nearly 9,000 MEP Center industrial customers responded to the FY 2021 survey, which shows that these services helped U.S. manufacturers create or retain 125,746 jobs and achieve:

• $14.4 billion in new and retained sales;
• $5.2 billion in new customer investments; and
• $1.5 billion in savings.

This year’s survey asked MEP Center manufacturing clients to identify from a list the top three challenges their businesses will face over the next three years. The main challenges they identified are:

• Recruitment and retention of employees (63%);
• Cost reduction (60%);
• Identify growth opportunities (46%); and
• Innovation/product development (38%).

The survey is carried out each year by an independent third party to document the economic impact of the services provided by the experts of the national MEP network. The results of this survey help the network better understand manufacturers’ challenges, identify areas of need, and focus on providing services that help manufacturers overcome the challenges they deem most pressing.

Impacts of the CARES Act

In 2020, NIST MEP awarded a total of $50 million in federal funds authorized by Congress under the CARES Act to MEP centers. Reward amounts were determined by a formula based on each state’s manufacturer population and ranged from $91,000 to $6.1 million. NIST MEP was able to award the awards in record time so centers could quickly implement much-needed COVID-19-related projects.

According to CARES Act Project clients surveyed, through January 2022, MEP Centers served more than 5,300 businesses with more than 7,300 CARES Act-funded projects, resulting in the creation or maintenance of nearly 18 000 jobs. CARES Act funding expanded the reach of MEP Centers, enabling them to serve more than 2,200 new industrial customers. Additional impacts of CARES Act funding include:

• $1.4 billion in new and retained sales;
• $480 million in new customer investments; and
• $175 million in total savings.

MEP Centers in each state are helping businesses in new and different ways, including helping to protect their workforce during the pandemic, finding sources of capital, stabilizing their supply chains, and protecting manufacturers from cybersecurity threats. CARES Act funding has enabled MEP Centers to provide manufacturers with additional services such as:

• Assess the extent and nature of disruption caused by the pandemic;
• Rethink and retool service delivery;
• Forge new partnerships with States and strengthen existing ones;
• Help manufacturers pivot their operations to produce personal protective equipment, medical supplies and medical devices;
• Implement vendor databases for search and matching; and
• Services tailored to operate in the post-pandemic environment.

The National MEP Network is a unique public-private partnership comprising NIST MEP, 51 MEP Centers, the MEP Advisory Council, MEP Center Councils, and the Foundation for Manufacturing Excellence. More than 1,400 trusted advisors and experts at approximately 450 MEP service locations provide US manufacturers with access to the resources they need to succeed. Manufacturers can connect with their local center and find additional resources through the NIST MEP website.