The Manufacturing Extension Partnership Program: Report 2, Alternative Business Models

As Phase I of this study concluded, the needs of U.S. small manufacturing enterprises (SMEs) have changed. The Panel believes the MEP Program has evolved to the point where it needs to consider how it can have a much broader impact on an industry that has suffered significant losses in jobs and business to foreign competitors.

While the Program has performed well delivering the services in its current model, the Panel believes a fundamental change in the mix of the types of services it provides as well as the structures for delivering them needs to be considered.

As the only federal program designed specifically to help small manufacturers, MEP is uniquely positioned to help create an infrastructure for supporting these firms as the U.S. economy undergoes an enormous economic transition. The Panel finds that the time is right for a change to the basic services and approach employed, including an expansion of technology diffusion as a basic function of the Program. The Panel also finds that aspects of the Program which have contributed to its achievements including its funding formula, performance measurement system, and structural changes should be revised to put the Program in a better position for a new approach to its mission.