Dear Chairmen Culberson and Shelby and Ranking Members Serrano and Shaheen:
Thank you for your past support of the Hollings Manufacturing Extension Partnership (MEP) program. We, the undersigned MEP partners and manufacturing associations, are writing to request your continued support of the MEP program as Congress develops the Fiscal Year (FY) 2019 Commerce, Justice, Science and Related Agencies appropriations bill. Specifically, we are asking you to support increased funding for the program to $142.4 million. Since FY11, MEP has been funded at a flat level of $130 million. This requested increase reflects the bi-partisan focus on revitalizing American manufacturing.
The MEP program is our nation’s only network of public-private partnerships in every state that provides small- and medium-sized manufacturers (SMMs) technology-based services they need to create well-paying manufacturing jobs and thrive in today’s economy. The MEP centers form a nationwide network of proven resources that enables manufacturers to compete globally, supports greater supply chain integration, and provides access to information, training, and technologies that improve efficiency, productivity, and profitability.
As a public-private partnership, MEP delivers a high return on investment to taxpayers. The Upjohn Institute for Employment Research conducted a study of MEP this past year and found that the program generates an 8.7:1 return on investment. Each year, an independent firm surveys manufacturers regarding the impact they have achieved from MEP Center services. In 2017, MEP clients reported $12.66 billion new and retained sales and the creation or retention of 110,721 jobs. Considering that the average U.S. manufacturing worker earns more than $82,023 in wages and benefits per year, MEP clients are economic drivers in their communities. MEP clients are also increasing their capacity for the production of goods. MEP clients reported $3.5 billion in new investments directly attributed to their work with MEP.
Since 1988, MEP clients reported 985,317 jobs created and retained, high paying jobs that have a large multiplier effect. Each of these jobs creates 3.4 full-time additional jobs, totaling more than 3 million additional jobs in local communities. The total job impact of the MEP Program generates significant local, state and federal tax revenues.
An increase in funding will allow the program to increase the number of manufacturers receiving MEP services. Specifically, MEP will provide additional services to more companies within critical supply chains, such as automotive, aerospace, and priority defense sectors that support the growth and technological advancement of our military; develop and deploy new services in key areas such as cyber security, 3-D printing, smart factories, flexible materials, broadband technology, and supply-chain optimization; and re-double efforts to assist US manufacturers with re-shoring, manufacturing repatriation, and creating domestic supply-chains.
The MEP program continues to be a cost-effective, job-creating investment that boosts American manufacturing and competitiveness. We respectfully request that you provide $142.4 million in funding for the MEP center network in Fiscal Year 2019.
Sincerely,
