MEP Overview Layoff Aversion: A Natural Partnership for WIBs and MEP Centers mark.troppe@nist.gov 301.975.5745 www.nist.gov/mep mfg@nist.gov (301)975-5020 MANUFACTURING EXTENSION PARTNERSHIP Take Away from Today’s Presentation 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 NIST MEP 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. www.nist.gov/mep mfg@nist.gov (301)975-5020 3 MEP Overview MEP Program in Short Program Started in 1988 At least one center in all 50 states by 1996 National Network 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 60 Centers with over 550 Field Locations. System wide, Non-Federal Staff is over 1,200. Contracting over 3,200 third party service providers. www.nist.gov/mep mfg@nist.gov Partnership Model Federal, State and Industry Evolving Role Program continues to evolve in order to support manufacturers during changing economic situations. (301)975-5020 4 MEP Overview Partnering to Drive a National Program Nearly 300,000 Manufacturers Customers Small and Medium Size Manufacturers Over 3,200 Affiliated Service Providers The MEP network focuses on solving manufacturers’ biggest challenges and identifying opportunities for growth. Over 1,200 Center Staff 559 Service Locations National Network MEP Program Integration, Knowledge Sharing, and Evaluation www.nist.gov/mep mfg@nist.gov (301)975-5020 5 MEP Overview National Network www.nist.gov/mep mfg@nist.gov (301)975-5020 6 MEP Overview How Centers work with Manufacturers 1 Initial Contact Group sessions, referral 2 3 4 Assessment Identify Negotiate Informal walk-through, detailed company analysis Find potential issues, define proposed project and approach for solving it Consult with company and sign project contract with fee paid to center After completion, project follow-up by center to assure customer satisfaction and explore further project opportunities www.nist.gov/mep 5 Project Execution Center staff, partner organization, and/or third party consultants Project impact data collected by contractor for NIST approximately 6 months after project completion mfg@nist.gov (301)975-5020 7 MEP Overview What MEP Does 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: Supply Technology Workforce Chain Acceleration Development Development www.nist.gov/mep Lean Innovation Process and Growth mfg@nist.gov (301)975-5020 Sustainability 8 MEP Overview Client Impacts www.nist.gov/mep mfg@nist.gov (301)975-5020 9 MEP Overview MEP Program Initiatives & Services Growth and Innovation Sustainability Supply Chain Export Technology Acceleration Workforce Make it in America Continuous Improvement 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 www.nist.gov/mep mfg@nist.gov (301)975-5020 10 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 Workforce Nationally Driven Efforts: Strategic Management Development Manufacturing Day Acquisition & Talent Retention www.nist.gov/mep mfg@nist.gov (301)975-5020 11 MANUFACTURING EXTENSION PARTNERSHIP DOL – TEN #38-11 Commerce NIST/MEP Collaboration NIST MEP MANUFACTURING EXTENSION PARTNERSHIP DOL TEGL 30-09 – LOA Definition and Appropriate Use of WIA Funds “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.” NIST MEP MANUFACTURING EXTENSION PARTNERSHIP States With a Track Record Oklahoma Missouri California South Carolina Pennsylvania New York Michigan Indiana Rhode Island Iowa and Connecticut (demo grants) 19 14 MANUFACTURING EXTENSION PARTNERSHIP MEP – WIB Manufacturing Sector Initiatives 7-Step Plan for Lay-off Aversion & Business Assistance Services 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 NIST MEP MANUFACTURING EXTENSION PARTNERSHIP MEP – WIB Manufacturing Sector Outreach to Manufacturers • 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 NIST MEP MANUFACTURING EXTENSION PARTNERSHIP 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 MANUFACTURING EXTENSION PARTNERSHIP Best Practice Highlighted – GAO Report 12-97 NIST MEP MANUFACTURING EXTENSION PARTNERSHIP MEP – WIB Partnerships MANEX CMTC 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) NIST MEP MANUFACTURING EXTENSION PARTNERSHIP 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 MANUFACTURING EXTENSION PARTNERSHIP Voice of the Customer Erin Dyer, Quality Control Manager for Accurate Dial, talks about a challenge which threatened their ability to serve their customers https://www.youtube.com/watch?v=xDHaBMr-7vA MANUFACTURING EXTENSION PARTNERSHIP RECAP: Take Away from Today’s Presentation 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 e-mail with Questions! mtroppe@nist.gov 301.975.5745 NIST MEP