{"82361":{"#nid":"82361","#data":{"type":"news","title":"Federal Funding Cuts Threaten Georgia Tech Program That Assists Small- and Mid-Sized Manufacturers","body":[{"value":"\u003Cp\u003EFederal funding for the Manufacturing Extension Partnership (MEP) - in Georgia managed by Georgia Tech\u0027s Economic Development Institute (EDI) - was cut 63 percent under an appropriations bill passed by Congress.  \n\u003C\/p\u003E\n\u003Cp\u003E\u0022Through our state funding, Georgia Tech will continue to provide assistance, but our ability to help Georgia\u0027s small- and mid-sized manufacturers will be significantly reduced,\u0022 warned Larry Alford, director of EDI\u0027s business and industry services.  \u0022This program has demonstrated its effectiveness in saving jobs and protecting the nation\u0027s manufacturing base, so we don\u0027t understand why it is being cut at such a critical time.\u0022\n\u003C\/p\u003E\n\u003Cp\u003EThe program, which provides technology-driven assistance in such areas as quality standards, lean enterprise, information technology and energy management, has enjoyed strong support from manufacturers in Georgia.\n\u003C\/p\u003E\n\u003Cp\u003EJimmy Lindsey, human resources director at Bob\u0027s Candies, says support from Georgia Tech and the MEP has been invaluable to his company.  A 300-person operation in Albany that manufactures hard candies, Bob\u0027s Candies sought assistance from the Georgia MEP in implementing lean enterprise techniques.\n\u003C\/p\u003E\n\u003Cp\u003E\u0022We went from having to shut down in 2002 to having one of the best years ever in 2003,\u0022 Lindsey said. \u0022Georgia Tech\u0027s training and assistance has played a large role in that transformation. We went from unprofitable to profitable.\u0022\n\u003C\/p\u003E\n\u003Cp\u003EThe single most important assistance program for manufacturers, MEP has received strong support from Georgia\u0027s congressional delegation across party lines.  Both Senators Saxby Chambliss and Zell Miller supported the program\u0027s continued funding, and six of Georgia\u0027s 13 representatives signed the \u0022Dear Colleague\u0022 letter circulated to members of Congress.  Nationally, 58 senators and 203 representatives signed the letter, with an additional 43 representatives signing individual letters of support.\n\u003C\/p\u003E\n\u003Cp\u003E\u0022Small and medium businesses provide Georgia and our nation innovation and most of our jobs,\u0022 said Sen. Saxby Chambliss (R-GA).  \u0022If we are serious about building up our economy and creating jobs, we must ensure our small and medium-sized businesses can compete globally.  MEP is a cost-effective program that works and continues to be helpful to Georgia businesses.\u0022 \n\u003C\/p\u003E\n\u003Cp\u003EAs governor, Sen. Zell Miller (D-GA) worked to increase both the breadth and accessibility of the program.\n\u003C\/p\u003E\n\u003Cp\u003E\u0022I\u0027ve seen firsthand how Georgia Tech\u0027s Economic Development Institute works to support entrepreneurs and attract new companies,\u0022 he said. \u0022It provides an invaluable resource for hundreds of small- and medium-sized manufacturers across our state.\u0022\n\u003C\/p\u003E\n\u003Cp\u003EIn Georgia during 2002, MEP assistance helped companies create or retain more than 1,300 jobs, invest more than $33 million, cut $13 million in unnecessary costs - and increase or retain $61 million in sales.  Nationally, MEP assistance helped manufacturers create or retain nearly 42,000 jobs.\n\u003C\/p\u003E\n\u003Cp\u003EPrior to the cut, the national MEP program was receiving $110 million per year to support a network of 60 centers with 400 locations across the country.  The Bush Administration recommended slashing MEP\u0027s funding to $13 million.  The $328 billion omnibus appropriations bill approved by Congress contains just $39.6 million for the program.\n\u003C\/p\u003E\n\u003Cp\u003EThe Administration believes that MEP centers should be self-sustaining, with manufacturers paying market price for services.  But Alford says that\u0027s unrealistic because many small companies - especially those in rural areas - can neither afford nor find the kinds of assistance that Georgia Tech provides through the MEP program.\n\u003C\/p\u003E\n\u003Cp\u003E\u0022We serve as catalysts, providing an independent perspective to help companies implement lean manufacturing techniques or adopt quality systems,\u0022 he explained.  \u0022If this program is eliminated, many small manufacturers will not have access to assistance that can make a real difference in their ability to be competitive and grow.\u0022  \n\u003C\/p\u003E\n\u003Cp\u003EBetween 2000 and 2002, Georgia lost 63,900 manufacturing jobs, and 60 manufacturers closed their doors for good. In terms of layoffs, the number of Georgia manufacturers slashing employment increased from 44 companies in 2000 to 110 companies in 2002. Nationally, the manufacturing sector has lost 3 million jobs in the past three years. \n\u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"An assistance program that helps local manufacturers improve their operations faces a substantial budget cut that would reduce services at a time when struggling companies need help more than ever before.","format":"limited_html"}],"field_summary_sentence":"","uid":"27304","created_gmt":"2004-01-27 01:00:00","changed_gmt":"2016-10-08 03:03:41","author":"Matthew Nagel","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2004-01-08T00:00:00-05:00","iso_date":"2004-01-08T00:00:00-05:00","tz":"America\/New_York"},"extras":[],"groups":[{"id":"1188","name":"Research Horizons"}],"categories":[],"keywords":[],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cstrong\u003E \u003C\/strong\u003E\u003Cbr \/\u003E\u003Ca href=\u0022http:\/\/www.gatech.edu\/contact\/index.html?id=\u0022\u003EContact  \u003C\/a\u003E","format":"limited_html"}],"email":[],"slides":[],"orientation":[],"userdata":""}}}