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M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
CWA Conference April 2010 NIST MEP
Saving Local Jobs Through Proactive Business Retention and Layoff AversionMark Troppe, NIST [email protected]
Cheryl Slobodian, CMTC [email protected]
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
NIST MEP CWA Conference April 2010
The Opportunity
MEP -- Workforce system collaboration Wide range of issues faced by at-risk companies
requires wide range of expertise Specific expertise brought by different partners in the
“early warning” frameworks described earlier
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Warning Signs
Financial problems Quality problems Supply Chain issues (both
directions) Market issues Ownership problems Disinvestment Declining sales and/or
declining employment Mismanagement Duplicate capacity Management instability Business “climate” complaints
Changes in land use Inadequate research and
development Changes in management
behavior Removal of equipment Cash crunch/irrational
cutbacks Unusual bargaining positions Unidentified visitors and/or
cosmetic improvements Decreased utility use
NIST MEP CWA Conference April 2010
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
States With a Track Record
Oklahoma, Missouri, Pennsylvania, New York, Michigan, Indiana
California - EDD Information Notice WSIN09-47 (3/2/10)- “…the wide range of lay-off aversion options
available through rapid response…”- Includes “consultation with at risk businesses to
explore refocusing or retooling a company to serve new markets…”
- “…Establishing contracts with business intermediaries…to conduct prefeasibility studies and implement business intervention strategies…”
NIST MEP CWA Conference April 2010
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
NIST MEP CWA Conference April 2010
Missouri--The Business Retention Team
Composition- WIB staff (i.e., designated BRC)- Local economic development representatives- Community/technical college representatives- MEP staff- Local utility company representative- Other interested organization reps (business
associations, Chambers, SBDCs, etc.)
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Layoff AversionMissouri Layoff Aversion Results (two regions)
NIST MEP 6CWA Conference April 2010
Year 2007 2008 2009 Total
# of companies engaged
29 25 15 69
Jobs retained 76 169 126 371
Jobs created 47 86 69 202
Sales Increases $ 3,454,000 $ 27,973,112 $ 10,825,000 $ 42,252,112
Sales Retained $ 7,208,000 $ 14,321,000 $ 3,855,000 $ 25,384,000
Cost Savings $ 8,371,392 $ 22,595,212 $ 10,257,659 $ 41,224,263
Investments $ 1,770,200 $ 3,182,715 $ 1,753,535 $ 6,706,450
Impact as reported by clients on surveys at the end of the project - estimated or anticipated.
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
NIST MEP 7CWA Conference April 2010
VISIONMEP is a catalyst for strengthening American manufacturing – accelerating its ongoing transformation into a more efficient and powerful engine of innovation driving economic growth and job creation.
MISSIONTo act as a strategic advisor to promote business growth and connect manufacturers to public and private resources essential for increased competitiveness and profitability.
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
NIST MEP 8CWA Conference April 2010
The MEP Program in Short . . .
Program started in 1988, 1+ center in all 50 states by 1996 59 centers with over 440 field locations- System wide, Non-Federal staff is over 1,550- Contracting with over 2,300 third party service providers
Partnership Model – Federal/State/Industry MEP System budget ~ $300M- 1/3 Federal, 2/3 State and Industry (fees for services)
Address “market failures” (access to information, technical expertise and cost). NAPA Study in 2003 reconfirmed.
Emphasis on performance – program and center – impact of center services on client firms.
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
NIST MEP 9CWA Conference April 2010
Focus on meeting manufacturer’s short term needs, but in context of overall company strategy
MEP Center areas of common strength- Engineering Services for products and processes- Growth Services – new or expanded market opportunities- Lean Manufacturing- Quality Systems- Environmental Services- Workforce Development
Reach nearly 33,000 manufacturing firms and complete over 10,000 projects per year*
*Based on FY2009 MEP Center reported performance data.
What MEP Does
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
NIST MEP 10CWA Conference April 2010
Client ImpactsResulting from MEP ServicesFY2008
New Sales $3.6 Billion Retained Sales $5.5 Billion Capital Investment $1.7 Billion Cost Savings $1.4 Billion Jobs Created and Retained 52,948
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
NIST MEP CWA Conference April 2010
Benefits
Preventive measures to promote economic health for businesses, employees and communities
Stabilize operations then connect to growth opportunities (i.e., JOB CREATION)
Proactive approach improves business perception of workforce and economic development
Forges new mutually beneficial economic/workforce development relationships
Leverages complementary core competencies
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Two MEP Centers Serve the StateNorthern Cal Manex – Southern Cal CMTC
NIST MEP CWA Conference April 2010
California has nearly 45,000 small manufacturers, more than TX & NY combined
MEP Centers in every state, 2 in California
Mission to serve small manufacturers
Partnering is critical
California manufacturers are being hit hard – 28% of jobs lost since 2001 (543,000)
CMTC Southern California Approx 31,000 Small Manufacturers
MANEX Northern California Approx 14,000 Small Manufacturers
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
CMTC – WIB Manufacturing Sector Initiatives 7-step Plan for Lay-off Aversion & Business Assistance Services
NIST MEP CWA Conference April 2010
CMTC & WIB Partners utilizing 7 step plan
1.Well defined program requirements and regional partnerships
2.Joint awareness and outreach to manufacturing sector
3.Discovery meetings utilizing Business Scan™ and Early Warning Checklist review for business viability
4.Custom business assessment to identify needed assistance
5.Gain customer commitment to job retention & agree to scope of services/implementation
6.Customized on-site lay-off aversion training & implementation
7.Independent 3rd party survey for satisfaction, impact & jobs
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Current WIB Funded Partnerships with Manufacturing Sector Focus
NIST MEP CWA Conference April 2010
WIB Partner Collaborative Partners Estimated Jobs Retained or Created
Verdugo WIB, City of Glendale & Burbank, Glendale Community College, SBDC, CMTC
100
San Bernardino County San Bernardino County Workforce Dept, WIB100
Orange County WIB, NOCCCD CACT, OCBC, E2, CMTC80
City of Anaheim WIB, City Anaheim Econ Dev Dept, CMTC60
Kern County WIB, Kern County EDC, Kern Community College District, CMTC
80
City of Los Angeles(High Growth Sector)
WIB, SELA Crenshaw Worksource Center, SFV Econ Alliance, UAW, LAVC, SAGE 100
City of Los Angeles(LAEDC LOA)
LAEDC, Valley EDA, SFV Econ All, CMTC70 companies
Non-funded partneringwith Ventura Economic Dev Collaborative & WIB; Riverside County WIB; Fresno EDC
Individual Referrals of Manufacturers
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Orange County WIBLayoff Aversion – Business Assistance Cosmotronic Printed Circuit Board Manufacturer in Irvine CA Employs 82 and 15 are currently at risk of layoff due to
turbulent economy, eroding customer base and increasing off-shore competition
Declining sales from $12.9m in 2008 to 2010 forecast of $9.4m
Business assistance: Lean manufacturing implementation from order processing through manufacturing and shipping to increase operational efficiency, reduce production costs and retain workforce
Project started late March 2010 and company forecasts retention of the 15 employees based on implementation plan and forecasted outcomes
NIST MEP CWA Conference April 2010
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Verdugo WIBLayoff Aversion – Business Assistance Center Point Manufacturing Company
Since1966 precision machining components used in a variety of applications for Aerospace & Defense
Employs 23 and all 23 are currently at risk of layoff due to potential loss of key clients Allied Signal, Raytheon, L3
Without implementation of an AS9100 Quality system they will not qualify as a supplier
Business assistance: Quality system implementation and development of AS9100 quality process with workforce
Project start date April 2010 and company certification for AS9100 targeted for July 2010 meeting customer requirements and retention of business.
NIST MEP CWA Conference April 2010
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Questions & Contact InformationManufacturing Lay-off Aversion Services
NIST MEP CWA Conference April 2010
Questions? Contact:
Brent Meyers (Northern California) Cheryl Slobodian (Southern California)
Manex CMTCToll Free: 1-877-33-MANEX Toll Free: 1-800-300-CMTCPhone: 925-807-5100 Phone: [email protected] [email protected]
