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
April 10, 2013
NACFAM - 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, 2013
NACFAM - Advanced Manufacturing Leadership Forum

4. NACFAM - Advanced Manufacturing Leadership Forum
Outcomes
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
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.
Data Source: FY2011 Client Impacts Resulting from MEP Services (7,637 surveyed, 6,047 completed)
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

5. MEP Centers Across the U.S.
800.MEP.4MFG
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NACFAM - Advanced Manufacturing Leadership Forum

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

7. NACFAM - Advanced Manufacturing Leadership Forum
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.
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

8. NACFAM - Advanced Manufacturing Leadership Forum
MEP
Next Generation
Strategy
April 10, 2013
NACFAM - 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.
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

10. MEP Program Evolution 1988-1999 2000 2009 2006 2011 April 10, 2013
Build a System
Optimize Performance and Accountability
Deliver Higher Value-Added Services
Deliver High Value
Focus on Strategic Management
Developing Leaders
Develop and Deploy Technology
Foster Innovation
Increase Economic Impact
Technology Based Economic Development
2000
2009
2006
2011
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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

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

13. Next Generation MEP Strategy
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
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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Innovation Services
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
Next Generation Strategy
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

15. MEP’s System for Innovation
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
Decreases Risk
Developed in Partnership with Eureka! Ranch, Newtown, OH
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

16. Tools and Services Supporting Innovation
Define
Discover
Develop
Deliver
Examples of MEP System Tools
• Innovation Engineering
• Jump Start
•  Technology Driven Market Intelligence
• National Innovation Marketplace
Examples of MEP System Tools
• LEAN Product Development
• Tech Scouting
• Patent Acceleration
• ExporTech
•  Sustainability
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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Technology Acceleration
Systematically identifying, and capitalizing on, opportunities to leverage technology into the processes, products, and services of manufacturers
Next Generation Strategy
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

18. MEP Approach to Technology Acceleration
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 3rd party partners
Test and develop new tools and approaches:
National Innovation Marketplace
Technology Scouting, Supplier Scouting, SBIR
Technology based growth & competitiveness needs
U.S. Manufacturers
MEP Making the Connection
Technology and Business Opportunity Sources
Technologies and Business Opportunities available from the nation’s research laboratories (universities, Federal labs, private companies)
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

19. Technology Acceleration Framework
Markets
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

20. Influencing Manufacturers’ Growth Strategies
Markets
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
April 10, 2013
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, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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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, 2013
NACFAM - Advanced Manufacturing Leadership Forum

23. NACFAM - Advanced Manufacturing Leadership Forum
Supply Chain
Helping manufacturers strategically understand, maintain, and expand their positions in supply chains
Next Generation Strategy
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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

25. NACFAM - Advanced Manufacturing Leadership Forum
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 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
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.
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

26. Supplier Scouting Pilot Projects
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.
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

27. Supplier Scouting Buy American
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.
April 10, 2013
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, 2013
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, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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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, 2013
NACFAM - Advanced Manufacturing Leadership Forum

31. Diversification: Innovating into New Market
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.
Clean Room and Medical Devices
April 10, 2013
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, 2013
NACFAM - Advanced Manufacturing Leadership Forum

33. NACFAM - Advanced Manufacturing Leadership Forum
MEP and Total Cost of Ownership
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
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

34. NACFAM - Advanced Manufacturing Leadership Forum
SelectUSA
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:
Facilitate Business Inquiries
Act as Ombudsman and Advocate
Connect Investors with State/Local EDOs and Provide Guidance to EDOs
Conduct Investor Outreach and Educate Investors
Lead and Coordinate an Interagency Working Group
Contact info: or (202)
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

35. Assessing Manufacturing Costs & Risks
April 10, 2013
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, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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Sustainability
Helping manufacturers gain a competitive edge, maintain profitability and job creating growth while increasing energy efficiency and reducing environmental impacts
Next Generation Strategy
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

38. GSN: Green Suppliers Network E3: Economy, Energy, and Environment
MEP Partnering to Support Manufacturing through Sustainability
GSN: Green Suppliers Network
E3: Economy, Energy, and Environment
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
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.
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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Workforce
Helping manufacturers engineer innovation and business growth
utilizing a strategic focus on workforce planning and implementation
Next Generation Strategy
April 10, 2013
NACFAM - Advanced Manufacturing Leadership Forum

40. SMARTalent Technology
In order to make sound investments, manufacturers must focus as deeply on their workforce investments as they do in new product development or market expansion. So MEP is developing a technology tool called SMARTalent that will help manufacturers operationalize their workforce development strategies and automate basic tasks.
April 10, 2013
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, 2013
NACFAM - Advanced Manufacturing Leadership Forum

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