Manufacturing & Distribution

MEP network gives small manufacturers competitive cachet

The Manufacturing Institute — the research and education arm of the National Association of Manufacturers — cites the manufacturing extension partnership (MEP) as a best practice for small and midsize manufacturers. According to the study, an MEP network can help smaller manufacturers stay competitive in a global market.

Small manufacturers face unique hurdles

Small manufacturers (those with fewer than 500 employees) account for 70% of all U.S. manufacturing employment and more than half the total value of U.S. production, according to the U.S. Census Bureau.

These businesses face significant barriers, including limited budgets, lack of in-house expertise and limited access to the newest technology. And as larger manufacturers increase their productivity, they rely more heavily on smaller suppliers, making small and midsize (fewer than 2,500 employees) companies critical to the overall success of U.S. manufacturing.

MEP defined

MEP is a network of 350 nonprofit centers that serve the United States and Puerto Rico. Funded by federal, state, local and private resources, the centers provide guidance in areas ranging from process improvements to information technology applications. Technical assistance and training, however, account for more than 90% of MEP activity — with the overarching goal being to improve productivity.

Using a combination of staff and outside consultants, MEP centers work with manufacturers in areas such as quality and lean manufacturing, as well as strategic marketing and supply chain strategies. Business strategy, new product development and improved training to increase workers’ technical and problem-solving abilities also are among MEP centers’ areas of expertise.

MEP analysts can tailor their activities to your company’s needs, but a typical approach involves MEP project managers assessing plants and processes to suggest opportunities for improvements. They may, for example, recommend work cells rather than line production.

In recent years, MEP has focused on radio frequency identification (RFID), which continues to be more widely adopted both for internal manufacturing operations and by large purchasers, such as the federal government and “big box” retailers.

Strategies for success

RFID and other technical and operational improvements are just strategies MEP project managers may suggest as part of their overall goal to improve every company’s long-term prospects in an increasingly competitive market.

The approach appears to be working, according to the National Institute of Standards and Technology (NIST), which coordinates the MEP program.

Gain a competitive advantage

Going forward, MEP leadership plans to build and strengthen partnerships with technology and work force development providers, and with federal agencies to support manufacturers as they strive to remain competitive. Additionally, they want to establish a nationwide system for deployment of manufacturing technology and increase MEP system capacity and funding.

That’s good news for small and midsize manufacturers who are struggling to overcome foreign competition, an aging work force and ever-increasing energy and insurance costs. MEP assistance may prove to be all the competitive advantage they need. For more information on MEP or to locate a MEP center, visit the MEP Web site at www.mep.nist.gov.

For more information about our services to inventory based businesses,
Contact: Mark Walker, Partner, Director of Inventory Based Businesses Practice at 817.882.7724.

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