MEP Overview (301) Layoff Aversion: A Natural Partnership for WIBs and MEP Centers

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 Take Away from Today’s Presentation NIST MEP 1.MEP – who we are, what we do for Manufacturers 2.MEP, WIBs and Rapid Response: A partnership potential for delivering & documenting lay-off aversion services and job retention How MEP centers are partnering with WIBs to identify and engage potential risks early 3.Demonstrated outcomes Cited by GAO as a best practice Documented Impact Results

MEP Overview MISSION To enhance the productivity and technological performance of U.S. Manufacturing. “ “ ROLE MEP’s state and regional centers facilitate and accelerate the transfer of manufacturing technology in partnership with industry, universities and educational institutions, state governments, and NIST and other federal and research laboratories and agencies. (301) MEP Overview

MEP Program in Short (301) MEP System Budget $130 Million Federal Budget with Cost Share Requirements for Centers Global Competitiveness Program was created by the 1988 Omnibus Trade And Competitive Act Evolving Role Program continues to evolve in order to support manufacturers during changing economic situations. Program Started in 1988 At least one center in all 50 states by 1996 National Network 60 Centers with over 550 Field Locations. System wide, Non-Federal Staff is over 1,200. Contracting over 3,200 third party service providers. Partnership Model Federal, State and Industry

MEP Overview Partnering to Drive a National Program (301) The MEP network focuses on solving manufacturers’ biggest challenges and identifying opportunities for growth. Nearly 300,000 Manufacturers Over 3,200 Affiliated Service Providers Over 1,200 Center Staff 559 Service Locations National Network Customers Small and Medium Size Manufacturers MEP Program Integration, Knowledge Sharing, and Evaluation Service Delivery

MEP Overview National Network (301)

MEP Overview How Centers work with Manufacturers (301) Initial Contact Group sessions, referral Assessment Informal walk-through, detailed company analysis Identify Find potential issues, define proposed project and approach for solving it Negotiate Consult with company and sign project contract with fee paid to center Project Execution Center staff, partner organization, and/or third party consultants After completion, project follow-up by center to assure customer satisfaction and explore further project opportunities Project impact data collected by contractor for NIST approximately 6 months after project completion

MEP Overview What MEP Does (301) Work with small and medium size manufacturers to help them create and retain jobs, increase profits and save time and money Focus on meeting manufacturer’s short term needs, but in context of overall company strategy. Reach over 30,000 manufacturing firms and complete over 10,000 projects per year. Provides companies with a consistent set of services including: Technology Acceleration Supply Chain Development Workforce Development Innovation and Growth Lean Process Sustainability

MEP Overview Client Impacts (301)

MEP Overview MEP Program Initiatives & Services MEP’s Program Initiatives & Services are aimed to help manufacturers identify opportunities that will accelerate and strengthen their growth and competitiveness in the global marketplace (301) Growth and Innovation Sustainability Supply Chain Technology Acceleration Make it in America Workforce Export Continuous Improvement

MEP Overview Workforce MEP is committed to supporting the U.S. Department of Commerce’s Strategic Objective "to accelerate the development of industry-led skills strategies that result in a productive workforce for employers and high-quality jobs for workers." MEP helps manufacturers address their challenges at multiple levels: Training and Education of Workforce Promoting organizational policies that reflect progressive workforce and business practices Assisting in cost reduction and sales growth to avert layoffs. Strategic Management Acquisition and Retention of Talent (301) Workforce Development Nationally Driven Efforts: Manufacturing Day Strategic Management Acquisition & Talent Retention

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 DOL – TEN #38-11 Commerce NIST/MEP Collaboration NIST MEP

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 DOL TEGL – LOA Definition and Appropriate Use of WIA Funds NIST MEP “Averting layoffs is one of the functions of the public workforce investment system...” “ Layoff Aversion Strategies : There are a wide variety of approaches and strategies available to assist in this endeavor, including early identification of at-risk companies, assessing the needs of such companies, and delivering services to address at-risk factors.”

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  California  South Carolina  Pennsylvania  New York  Michigan  Indiana  Rhode Island  Iowa and Connecticut (demo grants) 14 19

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 MEP – WIB Manufacturing Sector Initiatives 7-Step Plan for Lay-off Aversion & Business Assistance Services NIST MEP 1.Well defined program requirements and regional partnerships 2.Joint awareness and outreach to manufacturing sector 3.Discovery meetings utilizing Early Warning Checklist review for identification of at-risk businesses 4.Custom business assessment to identify needed assistance for job retention 5.Gain customer commitment to job retention and/or creation & agree to scope of services & implementation plan 6.Delivery of customized on-site lay-off aversion training & implementation services 7.Verification of employment 90-day post-implementation  MEP surveys at 6-12 months 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 MEP – WIB Manufacturing Sector Outreach to Manufacturers NIST MEP MEP Centers outreach to manufacturers continually  Telemarketing, Referrals, Website Leads, Inbound & Outbound Marketing We Do NOT market Lay-off Aversion Services but are meeting vulnerable but viable manufacturers during our outreach We do hold a Discovery Meeting with manufacturers to identify the current state of their business and needs If at-risk factors are present and lay-off aversion/business assistance funding is available we discuss potential LOA implementation Go Forward with request for implementation funds from WIB Partner requires  C Level commitment for retained jobs and support of implementation  Documented at-risk employee list  Approval of implementation plan If client is not viable and plans to lay-off they are referred to the WIB for services

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 Companies “At Risk”: 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  Sequestration  Decreased utility use NIST MEP

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 Best Practice Highlighted – GAO Report NIST MEP

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  Alameda County  City of Anaheim WIB  Fresno County WIB  Kern, Inyo, Mono County WIB  Los Angeles City WIB  Los Angeles County WIB (Goodwill/SASSFA/JVS)  Orange County WIB  Pacific Gateway WIB  Riverside County WIB  San Bernardino City WIB  San Bernardino County WIB  San Diego County  Tulare County WIB  Verdugo WIB (Burbank/Glendale) MEP – WIB Partnerships NIST MEP MANEX CMTC

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 Case Study  40-year old, family-owned aerospace parts supplier with 23 workers  Company was continually losing business to other contractors, many of whom utilized low-cost labor  Company cut staff from 50 full-time workers to 25 part-time workers due to loss of contracts  CMTC implemented an aggressive strategy for AS9100 (aerospace) quality certification  After achieving certification, the company started to win back contracts. Workforce was boosted back up from 25 part-time workers to 40 full-time workers  Company is well-positioned to acquire more contracts NIST MEP

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 Voice of the Customer Erin Dyer, Quality Control Manager for Accurate Dial, talks about a challenge which threatened their ability to serve their customers

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 RECAP: Take Away from Today’s Presentation NIST MEP 1.Well defined process developed jointly with WIB partners for delivering & documenting lay-off aversion services and job retention 2.Process and forms are applicable regardless of the industry sector although our partnership is focused on manufacturing sector retention 3.Process allows for customization to meet partner requirements 4.Demonstrated outcomes – cited by GAO as a best practice 5.Process supports a state-wide partnership Don’t hesitate to call or with Questions!