1. Manufacturing Extension Partnership “Transforming U.S. Manufacturing -- Challenges and Opportunities” Thursday, April 9, 2015 Presentation to the NACFAM’s Annual Conference & AMLF Meeting Phillip Singerman, PhD Associate Director for Innovation and Industry Services Acting Director, Manufacturing Extension Partnership

2. Manufacturing Extension Partnership (MEP) State Based Competitions – 2015 2 U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

3. MEP Strategic Plan 3 MISSION To enhance the productivity and technological performance of U.S. manufacturing. ROLE MEP ‘s state and regional centers facilitate and accelerate the transfer of manufacturing technology in partnership with industry, universities and educational institutions, state governments, and NIST and other federal research laboratories and agencies. National program with at least one center in every state and Puerto Rico. Federal/state, public-private partnership with local flexibility. Cost share policy that matches federal investment with state and private sector investment. Market driven program that responds to the needs of private sector manufacturers. Leverage partnering expertise as a strategic advantage. Local knowledge of, focus on, and access to manufacturers. National program with at least one center in every state and Puerto Rico. Federal/state, public-private partnership with local flexibility. Cost share policy that matches federal investment with state and private sector investment. Market driven program that responds to the needs of private sector manufacturers. Leverage partnering expertise as a strategic advantage. Local knowledge of, focus on, and access to manufacturers. PROGRAMMATIC STRENGTHS : U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

4. The MEP Program in Short MEP System Budget $130 Million Federal Budget with Cost Share Requirements for Centers Global Competitiveness Program was created by the 1988 Omnibus Trade And Competitive Act Emphasis on Performance Program and center performance based upon impact of center services on client firm Program Started in 1988 At least one center in all 50 states by 1996 National Network System of Centers serving Manufacturers in each State. Partnership Model Federal, State and Industry U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP4

5. The National Network U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP5

6. MEP Client Impacts U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP N = 6,088 Manufacturers Surveyed in FY 2014 6

7. MEP State Competition – What and Why? The program is undergoing a multi-year effort to conduct a full and open competition for MEP centers older than 10 years. Objective is to optimize the federal investment and allocate additional funds to areas with higher concentration of manufacturers. Will be able to expand the range of services offered with an emphasis on very small, rural and start-up manufacturers. MEP just announced first 10 award recipients of competition in Feb 2015. Press release can be found http://nist.gov/mep/awards-support-manufacturing.cfm http://nist.gov/mep/awards-support-manufacturing.cfm Second round of the competition for 12 states was announced March 2015. Proposals are due June 1, 2015. 7 U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

8. H.R. 5035 – NIST Reauthorization Act of 2014 “To reauthorize the National Institute of Standards and Technology, and for other purposes” passed the House on July 22, 2014, which provided that if a recipient has received a Center award for 10 consecutive years, then the Director shall conduct a competition to select a Center operator. Current Centers in good standing are eligible. U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP 8

9. Government Accountability Office (March 2014) MEP: “Most Federal Spending Directly Supports Work with Manufacturers, but Distribution Could Be Improved” What GAO Recommends: – “GAO recommends that Commerce’s spending on cooperative agreement awards be revised to account for variations across service areas in demand for program services and in MEP centers’ cost of providing services. Commerce agreed with GAO’s recommendation.” 9 U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

10. The Budget for Fiscal Year 2016 National Institute of Standards and Technology: Industrial Technology Services/Hollings Manufacturing Extension Partnership (MEP)… – “In FY 2013, MEP began a broad based strategic planning process and developed an operational reform agenda intended to optimize program effectiveness, enhance administrative efficiency, and provide greater financial accountability. In FY 2014, MEP initiated a reform of the national system of MEP Centers through a carefully planned, systematic, multiyear series of full and open competitions. These re-competition efforts are ongoing and will continue in FY 2016.” 10 U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

11. Round 1 Competition Funding MEP Center Location and Assigned Geographical Service Area (by State) Annual Federal Funding for Each Year of the Award Total Federal Funding for 5 Year Award Period Colorado$1,668,359$8,341,795 Connecticut$1,476,247$7,381,235 Indiana$2,758,688$13,793,440 Michigan$4,229,175$21,145,875 New Hampshire$628,176$3,140,880 North Carolina$3,036,183$15,180,915 Oregon$1,792,029$8,960,145 Tennessee$1,976,348$9,881,740 Texas$6,700,881$33,504,405 Virginia$1,722,571$8,612,855 11 U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

12. Round 2 Competition Funding MEP Center Location and Assigned Geographical Service Area (by State) Annual Federal Funding for Each Year of the Award Total Federal Funding for 5 Year Award Period Alaska$500,000$2,500,000 Idaho$640,236$3,201,180 Illinois$5,029,910$25,149,550 Minnesota$2,653,649$13,268,245 New Jersey$2,814,432$14,072,160 New York$5,985,194$29,925,970 Ohio$5,246,822$26,234,110 Oklahoma$1,309,080$6,545,400 Utah$1,147,573$5,737,865 Washington$2,534,872$12,674,360 West Virginia$500,000$2,500,000 Wisconsin$3,250,792$16,253,960 12 U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

13. Funding Opportunity Title: Award Competitions for Hollings Manufacturing Extension Partnership (MEP) Centers in the States of Alaska, Idaho, Illinois, Minnesota, New Jersey, New York, Ohio, Oklahoma, Utah, Washington, West Virginia and Wisconsin NIST invites applications from eligible organizations in connection with NIST’s funding up to twelve (12) separate MEP cooperative agreements for the operation of an MEP Center in the designated States’ service areas and in the funding amounts identified in the Federal Funding Opportunity - http://nist.gov/mep/ffo-state- competitions-02.cfmhttp://nist.gov/mep/ffo-state- competitions-02.cfm 13 MEP State Competition U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

14. Benefits to Competition Opportunity to realign MEP center activities with State economic development strategies Resetting of State funding levels to reflect the regional importance of manufacturing and the national distribution of manufacturing activities Reduction and simplification of reporting requirements Five year awards reducing the annual paperwork burden Immediate readjustment of the local cost share from 2:1 to 1:1 14U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

15. Additional Information Proposals due June 1, 2015 Informational webinars for interested applicants – March 30 th 2:00pm; April 13 th 2:30pm; April 16 th 1:00pm – Email mepffo@nist.gov to register for a webinarmepffo@nist.gov – Webinar recordings and presentations will be made available on the MEP website. For more information http://nist.gov/mep/ffo-state-competitions-02.cfm 15 U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP

16. The National Network for Manufacturing Innovation

17. Misperception - Productivity on Employment Gray bars indicate recessions Rising Productivity does not create employment losses 1965 – 2000 : US Mfg output rises 6x, stable employment BACKGROUND

18. Challenge: US losing leadership in Advanced Products U.S. Trade Balance for Advanced Technology Products + 40 + 20 0 -20 -40 -60 -80 -100 US Trade Balance Advanced Technology Products ($ Billion) BACKGROUND

19. Products invented here, now made elsewhere - not driven by labor cost BACKGROUND

20. PCAST: The independent basis of NNMI PCAST 2011 Recommends Advanced Manufacturing Initiative as national innovation policy PCAST 2012 Recommends Manufacturing Innovation Institutes to address key market failure PCAST 2014 Recommends strong, collaborative network of Manufacturing Innovation Institutes President’s Council of Advisors on Science and Technology

21. The “Scale-up” Gap or Missing Middle Basic R&D Commercialization Common terms The “valley of death” The “missing Bell Labs” The “industrial commons”

22. Initial Network Proposed President asks Congress to authorize initial network of up to 15 Manufacturing Innovation Institutes President directs Agencies to work together on Pilot Institute, while designing Institutes with input from Industry and Academia “Sparking this network of innovation across the country, it will create jobs and will keep America leading in manufacturing…" President Obama, March 9, 2012

23. The Institute Design Creating the space for Industry & Academia to collaborate White House Report NNMI Framework Design January 2013 23 Partnership: Industry – Academia – Government Working better, together to create transformational technologies and build new products and industries

24. Institute Major Activities Institute Applied Research & Demo projects for reducing cost/risk on commercializing new tech. Solving pre-competitive industrial problems Tech Integration - Development of innovative methodologies and practices for supply chain integration Small/Medium Enterprises Engagement with small and medium-sized manufacturing enterprises (SMEs). Education, technical skills and Workforce development Education and training at all levels for workforce development

25. Building the Network: Network Status and FY16 Plans 25 Smart Mfg. Flex. Hybrid Electronics America Makes Additive Mfg. Youngstown, OH PowerAmerica Power Electronics Raleigh, NC LIFT Light/Modern Metals Detroit, MI IACMI Adv. Composites Knoxville, TN DMDII Digital Mfg. Chicago, IL FORTHCOMING FY15 New Institutes Planned for FY16: Full Network Goal: 45 regional hubs Open topic competition – addressing “white space” between mission agency topics Selected topic competitions supporting Agency mission – using agency authorities and budgets FY17-26 – central fund proposed for remaining institutes, via open topic process Topic TBA Integrated Photonics

26. The First Pilot Manufacturing Innovation Institute Additive Manufacturing/3D Printing – Youngstown OH Prime Awardee: National Center for Defense Manufacturing and Machining Initial $30M federal investment matched by $40M industry, state/local Strong leveraging of equipment, existing resources Strong business development Tiered membership-based model, low cost to small business and nonprofits Now at $50M federal, $60M co-invested OVER 100 Participating partners!

27. 2 nd Pilot Institute: Next Generation Power Electronics Mission: Develop advanced manufacturing processes that will enable large-scale production of wide bandgap semiconductors, which allow power electronics components to be smaller, faster and more efficient than silicon. President Obama North Carolina State University, January 15, 2014 Lead: North Carolina State University Hub Location: Research Triangle Park, NC Poised to revolutionize the energy efficiency of power control and conversion $70M public investment, $70M match 17 Industry Partners 5 Universities 3 Labs and Other Organizations

28. 3rd Pilot Institute: Digital Manufacturing & Design Innovation Mission: Establish a state-of-the-art proving ground that links IT tools, standards, models, sensors, controls, practices and skills, and transition these tools to the U.S. design & manufacturing base for full-scale application Lead: UI Labs Hub location: Chicago, Illinois 41 Companies 23 Universities and Labs 9 Other Organizations $70M public investment, $105M match

29. 4th Pilot Institute: Lightweight and Modern Metals Mission: Provide the National focus on expanding US competitiveness and innovation, and facilitating the transition of these capabilities and new technologies to the industrial base for full-scale application. Lead: EWI Hub location: Detroit, Michigan Regional location: I-75 Corridor 34 Industry Partners 9 Universities and Labs 17 Other Organizations Positioned to expand the US Industrial base for new products and technologies for commercial and USG demands that utilize new, lightweight high-performing metals $70M public investment, $70M match

30. 50% Lower cost Using 75% Less Energy And reuse or recycle >95% of the material Objective Develop and demonstrate innovative technologies that will, within 10 years, make game-changing advanced fiber-reinforced polymer composites. The Institute’s negotiation is led by University of Tennessee-Knoxville. The full team includes: 57 Companies, 15 Universities and Laboratories, 14 Other Entities, w/ 36 Consortia Members. Application Estimated Current CFC Cost Institute CFC Cost Reduction Target (2018) 88 CFC Ultimate Cost Target (2024) CFC Tensile Strength CFC Stiffness Production Volume Cycle Time Vehicles (Body Structures) $26-33/kg>35% <$11/kg by 2025 ~60% 0.85GPa (123ksi)96GPa (14Msi) 100,000 units/yr <3min cycle time (carbon) <5min cycle time (glass) Wind (Blades) $26/kg>25% $17/kg ~35% 1.903 GPA (276ksi) 134GPa (19.4Msi) 10,000 units/yr (at >60m length blades) Compressed Gas Storage (700 bar – Type IV) $20-25/kg>30% $10-15/kg ~50% 2.55 GPa (370ksi)135 GPa (20Msi) 500,000 units/yr (carbon fiber) 5th Pilot Institute: Selected, Negotiations Underway Advanced Composites Manufacturing $70M Federal + > than $180 Non-Federal investment over five years. This National institute has 6 State partners CO, IN, KY, MI, OH, TN with (Over 2:1 cost share) Source: www.iacmi.orgwww.iacmi.org

31. 6 th Pilot Institute Funding Opportunity Integrated Photonics Manufacturing Innovation Institute More than $100M federal investment over five years Objective Develop and demonstrate innovative technologies for: Ultra high-speed transmission of signals for the internet and telecommunications New high-performance information-processing systems and computing Sensors and imaging enabling dramatic medical advances in diagnostics, treatment, and gene sequencing All these developments will require cross-cutting disciplines of design, manufacturing, packaging, reliability and testing. This Institute will focus on developing an end-to-end photonics ‘ecosystem’ in the U.S., including domestic foundry access, integrated design tools, automated packaging, assembly and test, and workforce development. Reprinted with permission from Intel Corp

32. “In my State of the Union Address, I asked Congress to build on a successful pilot program and create 15 manufacturing innovation institutes that connect businesses, universities, and federal agencies to turn communities left behind by global competition into global centers of high-tech jobs. “Today, I’m asking Congress to build on the bipartisan support for this idea and triple that number to 45 – creating a network of these hubs and guaranteeing that the next revolution in manufacturing is ‘Made in America.’” - July 30, 2013 AP Photo/Susan Walsh The President’s Vision – Network of 45 Institutes

33. NNMI Authorized: Revitalize American Manufacturing & Innovation Act 118 bipartisan RAMI Bill Sponsors December 16, 2014 – Signed By President Obama September 15, 2014 – Passed House 100 Cosponsors (51D, 49R) December 11, 2014 – Passed Senate with 2015 Appropriations 18 Cosponsors (10D, 7R, 1I ) Bipartisan Momentum Supporting NNMI Passage Sen. Sherrod Brown D Ohio Sen. Roy Blunt R Missouri Rep. Tom Reed R NY-23 Rep. Joe Kennedy D MA-4

34. RAMI and Commerce/NIST Call to Action: RAMI calls upon the U.S. Secretary of Commerce and NIST to establish: 1.The “Network for Manufacturing Innovation Program” (Network function) - to convene and support a network of Institutes 2.New “Centers for Manufacturing Innovation” (Institutes) - using an open topic, open competition process 3.The National Program Office at NIST - to oversee and carry out the program (coordination, network support, and reporting)

35. MEP and NNMI IMIs  Revitalize American Manufacturing and Innovation Act of 2014 / Consolidated and Further Continuing Appropriations Act, 2015, pg 241:  “The Secretary shall ensure that the National Program Office incorporates the Hollings Manufacturing Extension Partnership into Program planning to ensure that the results of the Program reach small and medium-sized entities.”  AMP 2.0 Report called for major MEP role, including:  Support for MEP as an intermediary to help small-to-midsize manufacturers leverage manufacturing technologies; & to assist small-to-midsize manufacturers with market entry support and scale-up  Support to ensure that the MEP becomes a major “tool in the NNMI toolbox” U.S. DEPARTMENT OF COMMERCE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANUFACTURING EXTENSION PARTNERSHIP 35

36. NNMI FY 2016 Budget Request  Continues operations for previously funded institutes.  Through FY 2015, funding was provided to DOE and DOD to initiate nine institutes.  Requests over $350 million for seven new institutes.  Funds are requested in the discretionary budgets of DOD (1), DOE (2), USDA (2), and DOC (2).  Includes a mandatory proposal to build out the full Network of 45 institutes over ten years  $1.9B mandatory request with spending beginning in FY2017  For DOC specifically, the Budget proposes $150M for two NNMI Institutes on industry-proposed technologies and NNMI Network coordination

37.  Conduct open competitions for two DOC-funded institutes on industry-proposed topics ($140M)  To be awarded in CY 2016 through cooperative agreements  Two institutes each with $70M in federal funding matched by $70M or more in private funding  Winning public-private consortia would bring together leading manufacturers, universities, and workforce non-profits  Technology topics chosen by industry  Support the Network of Institutes ($10M)  Working with DOD, DOE, NASA, and NSF, convene and support the network of institutes to ensure sharing of best practices  Facilitate stakeholder access nationwide across institutes  Create long-term public-private governance structure and reporting mechanisms Transform innovative technology into manufacturing capability NNMI Hill Day September 18, 2014 NIST FY16 Plans

38. Industry-proposed Institutes at NIST NIST institutes can address manufacturing “white space” technologies proposed by industry that cannot currently be covered by other USG missions  NIST issued RFI soliciting private sector input that generated 135 topics, many of which were outside of the energy and defense sectors  Key focus of the NNMI from its conception was the critical linkage between Innovation and Manufacturing.  NIST is the only Federal Agency focused solely on supporting technological innovation across the board  NIST support for manufacturing cuts across all NIST programs (Labs, MEP, AMTech, BPEP, AMNPO)  Critical mass of technical expertise  Non regulatory  Mission is industry focused (not tied to a USG need)  Works effectively in partnership with industry, academia, and other organizations.

39. Thank you For questions or comments, please contact the Advanced Manufacturing National Program Office amnpo@nist.gov www.manufacturing.gov 301-975-2830 Unless otherwise labeled, images are courtesy of The White House, the National Institute of Standards and Technology, and Shutterstock