Support For Manufacturers Key To Improving Economy

In August, Congress passed the Budget Control Act, a bipartisan agreement to cut the deficit by at least $2.1 trillion over the next 10 years. This week, we took the next step in that process by approving three specific funding bills aimed at 1) Agriculture, 2) Commerce, Justice, Science; and 3) Transportation, Housing and Urban Development. Altogether these bills reduced discretionary spending by more than $750 million over last fiscal year. My goal as we worked on these bills was to make tough choices, while maintaining important priorities. 

One area I've championed for years is the Manufacturing Extension Partnership (MEP) program. The MEP is the federal government’s main outreach program to small and medium-sized manufacturers. Though spending went down for many other programs, I pressed to maintain funding for the MEP at more than $128 million – equal to last year’s budget. 

The MEP operates through centers in all 50 states – and they do an exemplary job applying their funding, by helping manufacturing companies grow their sales and workforce and become more efficient and competitive. According to a January 2011 NIST Report, in Fiscal Year 2009, companies that received MEP funding created or retained more than 72,000 jobs. The report further states: "For every one dollar of federal investment, the MEP generates $32 in new sales growth. This translates into $3.6 billion in new sales annually."

In Wisconsin, federal funding supports two MEP centers – the Wisconsin Manufacturing Extension Partnership (WMEP) in Madison and the Northwest Wisconsin Manufacturing Outreach Center (NWMOC) on the campus of UW-Stout.  Like their counterparts across the nation, Wisconsin’s MEP centers generate an incredible return on investment.  According to WMEP, companies that worked with the two centers during the 12-month period ending in June 2011 were able to save or create more than 1,300 jobs, generate $102 million in sales, make $37 million in new investments, and produce more than $20 million in cost savings.

I make a point of making frequent site visits to companies that have worked with WMEP and NWMOC so I can see these results first-hand. And every year, I meet small business owners who are adding jobs and see companies become more efficient and profitable. 

Supporting our small and medium manufacturers is essential to improving our economy. The demonstrated results of WMEP and NWMOC, and the continued growth and success of Wisconsin’s small manufacturers are the reasons that I have worked for years to secure funding for MEP – and why I will continue to do so.