WASHINGTON -- Citing its success in helping manufacturers improve their productivity and profitability, particularly during the recent economic downturn, U.S. Senators Herb Kohl and Olympia Snowe today introduced bipartisan legislation to reauthorize funding for the Hollings Manufacturing Extension Partnership program (MEP). The program is a nationwide network of centers that helps small- and medium-sized manufacturers succeed in the global economy by producing advanced products using cutting edge technology and processes. Although the MEP program, which is a federal-state-private partnership, has had broad bipartisan support, in past years Kohl and Snowe and their Congressional colleagues have had to fight to ensure that MEP centers receive sufficient funding. Kohl and Snowe's bill would authorize funding for MEP centers for between $110 and $125 million for the next four years.

"In 2004, with MEP's help, Wisconsin saw a net gain of more than 15,000 manufacturing jobs, but we cannot rest on this achievement. The world marketplace grows more competitive everyday, and we must remain committed to doing all we can to help our manufacturers succeed," Kohl said. "That is why I am such a strong supporter of the MEP program, one of the few federal programs that has provided tangible assistance to the manufacturing sector to help companies stay in business and retain jobs."

"Manufacturing has been a vital element of America's economic expansion," said Snowe. "For over a decade, MEP has helped small manufacturers compete on a global basis and create good jobs here at home. With domestic manufacturing facing increasing challenges today, the MEP is needed more than ever. It is imperative that we provide the MEP the funding it needs to continue to support our nation's small manufacturers."

MEP's top areas of assistance are process improvement, quality inspection, business system and management, human resources, plant layout and manufacturing cells and product development. MEP streamlines operations, integrates new technologies, shortens production times and lowers costs, leading to improved efficiency by offering resources to manufacturers, including organized workshops and consulting projects. MEP removes the drag on profits and maximizes the potential of our manufacturing firms.

Wisconsin is home to two MEP centers, both having a significant impact on the productivity of companies throughout the state. Since 1996, Wisconsin MEP has helped over 1,300 Wisconsin manufacturers improve their productivity and profitability. Over that time, Wisconsin MEP customers have reported a positive impact of nearly $400 million in improvements attributable to the assistance provided by MEP. And, since 1994, the Northwest Wisconsin Manufacturing Outreach Center, targeting the more rural northwestern part of the state, has provided over 3,189 technical assistance activities to over 942 companies, created or retained 1,979 jobs, and achieved client-reported impacts of over $132 million.

The Maine MEP has estimated that from July 2003 to May 2004, MEP's overall affect on Maine's economy included: (a) creating or retaining 723 jobs that paid a total of $21.24 million in employee wages and benefits; (b) increasing or retaining economic output worth $87.33 million; (c) contributing or retaining $36.69 million of gross state product; and (d) generating or retaining over $8.21 million in additional tax and non-tax revenues at the federal, state and local government levels, including $2.54 million at the state and local levels.

In its past two budgets, the Administration proposed deep reductions in the program that would have forced MEP centers around the country to close. In FY2004, despite Senate support for full funding for the MEP Program, funding was reduced from $106 million to $39.6 million. As a result, 58 MEP centers closed and staff was cut by 15 percent. Kohl, Snowe and a bipartisan group of senators succeeded in having amendments adopted on the FY2005 Defense authorization and appropriations bills to permit and direct the Commerce Department to reprogram unobligated funds to the MEP program in FY2004 to keep the MEP network intact. The Senators worked to ensure that the MEP program received $109 million in the FY2005 Omnibus Appropriations bill.

The President will send his proposed FY2006 budget to Congress on Monday, and Kohl and Snowe said they again intend to fight for full funding of the program if the Administration again proposes cuts to the program.

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