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The Evolution of MEP: The New Strategy Roger D. Kilmer, Director NIST Manufacturing Extension Partnership | (301) 975-4676 |

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Presentation on theme: "The Evolution of MEP: The New Strategy Roger D. Kilmer, Director NIST Manufacturing Extension Partnership | (301) 975-4676 |"— Presentation transcript:

1 The Evolution of MEP: The New Strategy Roger D. Kilmer, Director NIST Manufacturing Extension Partnership | (301) | NIST MEP Blog:

2 MEP – A Federal Program Focused on Manufacturing MEP provides manufacturers with services and access to public and private resources that enhance growth, improve productivity, and expand capacity. MEP works with manufacturers ready to invest in their future, to make improvements in the short term, and position themselves to be stronger long-term competitors both domestically and internationally. 60 MEP Centers with over 400 field locations – System wide, Non-Federal staff is over 1,300 – Contracting with over 2,100 third party service providers 2 April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum

3 The MEP Program in Short...  Program started in 1988, with at least one center in all 50 states by 1996  Objective – enhance the productivity & technological performance of U.S. manufacturers... particularly small and medium sized manufacturers (SMMs)  Focused Mission – driven by manufacturers’ needs & opportunities  Partnership Model – Federal/State/Industry  Primary Asset – national network with direct access to SMMs  Network of public-private partnerships – nationally and locally  MEP System budget ~ $300M - 1/3 Federal, 2/3 State and Industry (fees for services)  Emphasis on performance – program and center – measured based upon impact of center services on client firms. April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum3

4 Manufacturers completing projects with MEP report: 18,069 jobs created in one year and 43,070 jobs retained preventing the unemployment rolls from increasing and providing value-added new products to new markets $2.5 Billion in new investments – equipment, information systems, and workforce skills $2.5 Billion in increased sales – new sales opportunities realized Data Source: FY2011 Client Impacts Resulting from MEP Services (7,637 surveyed, 6,047 completed) For every one dollar of federal investment, MEP generates nearly $20 in new sales growth and $20 in new client investment. This translates into $2.5 billion in new sales annually. For every $2,100 of federal investment, MEP creates or retains one manufacturing job. Outcomes 4April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum

5 MEP Centers Across the U.S MEP.4MFG April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum

6 Partnering to Drive a National Program Customers > 306,000 Small& Medium Sized Manufacturers - SMMs Over 2,100 Affiliated Services Providers Over 1,300 Center Staff 400 Service Locations 60 MEP Centers Integration, Knowledge Sharing, & Evaluation NIST Service Delivery April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum6

7 What MEP Does  MEP Center areas of common strength -Engineering Services for products and processes -Growth Services – new or expanded market opportunities -Market Diversification -Sustainability -Workforce Development -Lean Manufacturing -Quality Systems  Reach over 31,300 manufacturing firms and complete over 7,600 projects per year* *Based on FY2012 MEP Center reported performance data. *Based on FY2012 MEP Center reported performance data. 7April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum

8 MEP N EXT G ENERATION S TRATEGY 8April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum

9 What we all know… Manufacturing has and continues to change!  Globalization is here to stay and U.S. manufacturing firms are adapting to increasing competition.  Supply Chains are becoming more global, more exclusive, and more competitive.  Innovation (product, process, service & business model) is critical for survival.  Technology advances will be incremental and disruptive. Unfortunately, technology adoption rates at smaller firms still lag those of larger ones.  Sustainability is an increasingly powerful business driver for industry. The triple bottom-line approach to economic, environmental, and societal balance is defining many corporate strategies. 9April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum

10 MEP Program Evolution Build a System Optimize Performance and Accountability Build a System Optimize Performance and Accountability Deliver Higher Value-Added Services Deliver High Value Deliver Higher Value-Added Services Deliver High Value Focus on Strategic Management Developing Leaders Focus on Strategic Management Developing Leaders Develop and Deploy Technology Foster Innovation Develop and Deploy Technology Foster Innovation Increase Economic Impact Technology Based Economic Development Increase Economic Impact Technology Based Economic Development April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum10

11 NACFAM - Advanced Manufacturing Leadership Forum11 Challenges Facing MEP Clients April 10, 2013 As you look forward over the next 3 years, what do you see as your company’s three most important strategic challenges?

12 Innovation Pays off For Firms and Employees Source: Georgia Tech University, “Innovation in Manufacturing: Needs, Practices, and Performance in Georgia ” Innovation, new technology 8.5% High Quality, 56.1% Quick Delivery, 12.7% Adapting products to customer needs, 12.7% Low price, 17.1% April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum12

13 Increasing manufacturers’ capacity for innovation resulting in profitable sales growth is the overarching strategy for the MEP. The approach is to provide a framework for manufacturers that: ­ Reduces bottom line expenses through lean, quality, & other programs targeting plant efficiencies – which frees up capacity for business growth. ­ Adds to top line sales through business growth services focused on the development of new sales, new markets, and new products. Next Generation Strategies (NGS) – 5 key inter-related areas: Continuous Improvement Technology Acceleration Supply Chain Sustainability Workforce Next Generation MEP Strategy 13April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum

14 I NNOVATION S ERVICES Providing a reliable system that guides companies through the creation of new ideas, discovery of market opportunities, and the tools to drive the ideas into implementation N EXT G ENERATION S TRATEGY 14April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum

15 MEP’s System for Innovation Decreases Risk Increases Speed Clarity on Raw Concept Discover Plan-Do-Study-Act Cycles on Key DEATH Threats Develop Make it REAL Deliver Go to Market Define Developed in Partnership with Eureka! Ranch, Newtown, OH April 10, NACFAM - Advanced Manufacturing Leadership Forum

16 Tools and Services Supporting Innovation Examples of MEP System Tools LEAN Product Development Tech Scouting Patent Acceleration ExporTech Sustainability Examples of MEP System Tools Innovation Engineering Jump Start Technology Driven Market Intelligence National Innovation Marketplace DevelopDeliver Define Discover April 10, NACFAM - Advanced Manufacturing Leadership Forum

17 T ECHNOLOGY A CCELERATION N EXT G ENERATION S TRATEGY Systematically identifying, and capitalizing on, opportunities to leverage technology into the processes, products, and services of manufacturers April 10, NACFAM - Advanced Manufacturing Leadership Forum

18 MEP Approach to Technology Acceleration Technology based growth & competitiveness needs Technologies and Business Opportunities available from the nation’s research laboratories (universities, Federal labs, private companies) Accelerate technology deployment by connecting needs of US manufacturers to technology sources Translate new technologies into real-world applications by:  Connecting manufacturers with solutions  Providing commercialization assistance to manufacturers – Manufacturing strategy, product development, IP management, financing, manufacturing scale-up  Leveraging 3 rd party partners Test and develop new tools and approaches:  National Innovation Marketplace  Technology Scouting, Supplier Scouting, SBIR MEP Making the Connection Technology and Business Opportunity Sources U.S. Manufacturers April 10, NACFAM - Advanced Manufacturing Leadership Forum

19 Technology Acceleration Framework April 10, NACFAM - Advanced Manufacturing Leadership Forum Markets

20 Influencing Manufacturers’ Growth Strategies Partners Trade Assoc. OEMs DOE DOD DOL DOT EDA EPA ITA – USEAC SBA USPTO Tools and Services Continuous Improvement Innovation Engineering E3 Tech Scouting ExporTech Market Diversification SMARTalent IP Assessment National Innovation Marketplace Supplier Scouting - Buy American Innovation Black Belts Sales Support Markets April 10, NACFAM - Advanced Manufacturing Leadership Forum

21 Connecting to Technology Developers Tools and Services Technology Translation National Innovation Marketplace SBIR Technology Scouting Partners Universities Federal Labs USPTO Technology Intermediaries Innovation Organizations April 10, NACFAM - Advanced Manufacturing Leadership Forum

22 Bridging the Gap Tools and Services Technology Scouting Lean Product Development Technology-Driven Market Intelligence - TDMI National Innovation Marketplace Prototyping Technology Access to Finance MTACs (proposed) Partners Universities Federal Labs Prototyping Firms Technology Intermediaries Innovation Organizations Financial Organizations NNMI (initially NAMI) April 10, NACFAM - Advanced Manufacturing Leadership Forum

23 S UPPLY C HAIN N EXT G ENERATION S TRATEGY Helping manufacturers strategically understand, maintain, and expand their positions in supply chains April 10, NACFAM - Advanced Manufacturing Leadership Forum

24 Supply Chain Framework 24April 10, 2013NACFAM - Advanced Manufacturing Leadership Forum Future of Markets Future of Companies Collaboration among companies Working with companies Government and Partner Relationships Supply Chain Strategy Supplier Scouting MBE GSN Supplier Development Operational Excellence New Markets New Customers New Sales

25 ExporTech ExporTech is a “how to” service to help companies expand into global markets by developing a proactive international growth plan customized for their business, moving the company into actual, profitable export sales. ExporTech is a collaborative effort between Commerce’s NIST MEP, the U.S. Export Assistance Centers, and District Export Councils, the SBA’s Small Business Development Centers, and State-based international trade programs. ExporTech helps companies enter or expand in global markets. The program assists participating companies to: Develop a vetted international growth plan Obtain and apply expert knowledge specific to their needs Reduce risks and increase chance of success April 10, NACFAM - Advanced Manufacturing Leadership Forum

26 Defense Logistics Agency (DLA), Land & Maritime : Helping DLA find manufacturers capable of producing hard- to-source National Stock Number (NSN) parts by leveraging the knowledge and relationships of our national network. BAE Systems, Inc.: Working with BAE Systems and Army ManTech to assess and develop capabilities of military suppliers to operate in a Model-Based Enterprise (MBE) environment as a critical step in DOD’s implementation of MBE throughout its supply chain. Department of Veterans Affairs / NAVAIR: Developing procedures to find and assist veteran-owned and service disabled-veteran-owned U.S. manufacturers capable of supplying material to meet NAVAIR demands. Supplier Scouting Pilot Projects April 10, NACFAM - Advanced Manufacturing Leadership Forum

27 Collaboration of federal agencies and MEP to scout for U.S. manufacturing capabilities to support the Buy American Provisions of federal funding programs, including the American Reinvestment and Recovery Act (ARRA). MEP’s supplier scouting program focuses on finding business opportunities for small manufacturers by matching their capabilities with the supply chain needs of America’s original equipment manufacturers (OEMs) The Department of Energy (DOE), the Department of Transportation (DOT) and National Institute of Standards and Technology (NIST) are currently involved. Supplier Scouting Buy American April 10, NACFAM - Advanced Manufacturing Leadership Forum

28 DOE Pilot Scouting Progress 116 Total Items Scouted 56 Items Match Found Buy American opportunities have totaled over $28M MEP has found interested companies to match capabilities needed for nearly $20M of these opportunities Avg $ amount for each opportunity that MEP has found a company with capabilities is $335K April 10, NACFAM - Advanced Manufacturing Leadership Forum

29 Next Generation Rail Supply Chain The U.S. Department of Transportation (DOT) and U.S. Department of Commerce (DOC) recently formed a partnership to leverage agency capabilities to ensure the development of a domestic supply base to support intermodal transportation in the United States The Next Generation Rail Supply Chain Connectivity brings large carbuilders and OEMs together with smaller, capable and interested U.S. manufacturers to facilitate reaching the goal of 100% domestic content in railcars that will be funded by state and federal dollars. Provides an opportunity for U.S. manufacturers to grow and diversify into entering the rail industry. April 10, NACFAM - Advanced Manufacturing Leadership Forum

30 Edison Nation An initiative to bolster U.S. manufacturing by providing to U.S. small and medium manufacturers competitive opportunities that would otherwise go offshore Edison Nation hosted Made in America themed searches for new product ideas Innovators were invited to submit ideas to eight large retailers Retailers will select their top ideas and seek U.S. based manufacturers — through the NIST MEP network — to bid to make the products April 10, NACFAM - Advanced Manufacturing Leadership Forum

31 Diversification: Innovating into New Market Clean Room and Medical Devices With an onsite assessment, MMTC helped management set an operational transition plan. Omega Plastics, located in Southeast Michigan, over a period of 5 years executed that plan and refocused their customer base from 90% automotive to clients in medical (65%), consumer packaging (10-12%), automotive (12-15%), and security and safety products (8%). Other results include a 93% increase in value add per FTE, $160k investment in a clean room and more than 25 new customers in new markets. April 10, NACFAM - Advanced Manufacturing Leadership Forum

32 Support U.S. Manufacturing Suppliers Keep manufacturing production in the U.S. – “Home-shoring” – Improve productivity and innovate to increase competitiveness Bring manufacturing production back to the U.S. – “Re-shoring” – Collaborate with the “Reshoring Initiative” – Total Cost of Ownership – cost and risk assessment to inform business decision making Attract foreign direct investment (FDI) in the U.S. – “In-shoring” – New manufacturing facilities – Create opportunities for suppliers – SelectUSA – Make It In America Challenge April 10, NACFAM - Advanced Manufacturing Leadership Forum

33 Pilot to develop supply chain optimization services for MEP centers to deliver to manufacturing clients Pilot conducted by MEP centers from Illinois, Virginia, South Carolina, California and Texas Improve supply chain performance by quantifying supply chain requirements and then focusing on reducing/eliminating bottlenecks in the process through lean, technology scouting, product development and process improvement services New tools include: Risk Management Workshops, Total Cost of Ownership Workshops, and a Total Cost of Ownership (TCO) Calculator The TCO Calculator considers costs such as: product information, vendor information, financial data, transportation, oversight, expediting, inventory and warehousing, risk management, transportation greenhouse gas emissions, etc. Anticipate rollout of these services to the MEP centers late in 2013 MEP and Total Cost of Ownership April 10, NACFAM - Advanced Manufacturing Leadership Forum

34 Created by the Executive Order of the President of the United States in June 2011 Mission is to facilitate business investment – from both domestic and foreign firms – in the United States Housed in the U.S. Department of Commerce, International Trade Administration - leverages staff in 72 markets around the world What we do: 1.Facilitate Business Inquiries 2.Act as Ombudsman and Advocate 3.Connect Investors with State/Local EDOs and Provide Guidance to EDOs 4.Conduct Investor Outreach and Educate Investors 5.Lead and Coordinate an Interagency Working Group Contact info: or (202) www.SelectUSA.gov SelectUSA April 10, NACFAM - Advanced Manufacturing Leadership Forum

35 Assessing Manufacturing Costs & Risks April 10, NACFAM - Advanced Manufacturing Leadership Forum

36 Make It In America Challenge An initiative of three Federal Agencies to: – encourage re-shoring of productive activity by U.S. firms – foster increased foreign direct investment (FDI); – encourage foreign and domestic companies to keep or expand their businesses and jobs in the U.S.; and – train local workers to meet the needs of those businesses. Four partnering agencies – EDA, MEP, DOL, Delta Regional Authority Target March for release of Federal Funding Opportunity 15 awards anticipated, up to $40 million available total MEP Activities: Scout suppliers, determining their capabilities and capacity, defining gaps; Deliver technical assistance to address gaps; Collect impact and performance metrics. April 10, NACFAM - Advanced Manufacturing Leadership Forum

37 S USTAINABILITY N EXT G ENERATION S TRATEGY Helping manufacturers gain a competitive edge, maintain profitability and job creating growth while increasing energy efficiency and reducing environmental impacts April 10, NACFAM - Advanced Manufacturing Leadership Forum

38 Benefits for Manufacturers & Communities Cost Savings  Increased process efficiencies and reduced waste  Profitable sustainability practices Increased Competitiveness  State-of-the-art sustainable business practices  Technical support to drive entry into new markets  Job creation and retention Access to Technical and Financial Resources  Additional funding through federal and state programs  Enhanced skills and capabilities for workers Economic Growth  Improved competitiveness of existing manufacturers  Enhanced ability to attract new business  Increased manufacturing jobs or job retention  Trained workforce with skills for a sustainable economy Benefits for Manufacturers & Communities Cost Savings  Increased process efficiencies and reduced waste  Profitable sustainability practices Increased Competitiveness  State-of-the-art sustainable business practices  Technical support to drive entry into new markets  Job creation and retention Access to Technical and Financial Resources  Additional funding through federal and state programs  Enhanced skills and capabilities for workers Economic Growth  Improved competitiveness of existing manufacturers  Enhanced ability to attract new business  Increased manufacturing jobs or job retention  Trained workforce with skills for a sustainable economy MEP Partnering to Support Manufacturing through Sustainability What are GSN and E3? Innovative models for collaboration among manufacturers, utilities, local government, and federal resources to enhance sustainability and competitiveness in local and regional economies as well as supply chains and to spur job growth and innovation. Partners The joint collaboration has expanded to include five U.S. federal agencies: DOC, SBA, DOL, DOE, and EPA. These federal partners work directly with local utilities, local government, and small- and medium-sized manufacturers. GSN: Green Suppliers Network E3: Economy, Energy, and Environment April 10, NACFAM - Advanced Manufacturing Leadership Forum

39 W ORKFORCE N EXT G ENERATION S TRATEGY Helping manufacturers engineer innovation and business growth utilizing a strategic focus on workforce planning and implementation April 10, NACFAM - Advanced Manufacturing Leadership Forum

40 SMARTalent Technology April 10, NACFAM - Advanced Manufacturing Leadership Forum

41 A Fact & Challenges in Serving SMMs  SMMs want and will pay for “services” and “solutions” that lead to profitable growth How do we deal with – Integration across diverse business models of partners to create a seamless, efficient system Geography Capacity – not 10’s, but 100’s or 1000’s of manufacturers Scale – incremental, not necessarily disruptive Time frame to transition and implement April 10, NACFAM - Advanced Manufacturing Leadership Forum

42 Stay Connected Search NISTMEP or NIST_MEP VISIT OUR BLOG! Get the latest NISTMEP news at:


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