COLUMBIA, SC - January 29, 2004 - The South Carolina Manufacturing Extension Partnership (SCMEP) has joined with other MEP Centers across the nation to encourage federal government leaders to increase support for MEP programs in the proposed 2004 federal budget. Secretary of Commerce Donald Evans recently unveiled the Administration’s Manufacturing Report developed over ten months as a response to pleas from beleaguered manufacturers. The report offers little new assistance - repackaged tax cuts, regulation reform, a new interagency council and an assistant secretary as election year pressures mount to provide American manufacturers with a competitive boost.

The plan, "Manufacturing in America," offers a weak endorsement of the Manufacturing Extension Partnership that calls for an evaluation of MEP operations and a "re-competition for all MEP Centers." In his speech, Secretary Evans recommended "flat funding" for MEP but did not indicate a reference point - last year’s $106 million or the $40 million in Congress’ stalled FY 2004 budget? In a press interview afterwards, Commerce Under Secretary Grant Aldonas conceded that the reference point was $40 million.

"South Carolina’s share of $40 million for a $106.6 million national program will not get us very far," said John Irion, president of the South Carolina Manufacturing Extension Partnership. "Despite mounting pressures in the manufacturing economy due to global competition, SCMEP has been able to help its small and mid-sized manufacturers realize cost savings of more than $31 million and add 1,433 new jobs in South Carolina over the past year."

"We hope Congress will find a way to fully fund the MEP program," said Estlean Cook, president of Treblig, Inc., a CNC precision machine shop in Greenville, SC. "Without such cost-effective services as those provided by SCMEP, Treblig would not have been able to afford meeting ISO requirements that enable us to attract large, multinational customers."

"MEPs and SCMEP in particular are the best things going for small to mid-sized manufacturers," said Robert Hurst, president of Phoenix Specialty Manufacturing Company in Bamberg, SC, and SCMEP customer. "My experiences with SCMEP have been most satisfying. The organization has consistently brought talented people to my company, and the results have been outstanding. I could not have made the level of improvements my business has achieved in the last 10 years without its help. I am stunned to see that funding for such a successful enterprise as MEPs using state, federal and private dollars to improve our manufacturing businesses has been cut."

MEP clients report impressive results as a direct result of MEP assistance. For FY 2002, clients reported $2.79 billion in new or retained sales, $681 million in cost savings, $940 million in new investment in modernization, and over 41,000 jobs retained or created. At the state level, SCMEP reported $135.7 million in new or retained sales, $13.1 million in cost savings, $25.5 million in new investment in modernization, and 1,394 jobs retained or created over the same time period.

The Administration had sought an 88 percent funding cut to MEP that would effectively eliminate federal support for the national network of MEP Centers, so the report’s recommendation is being viewed by some as a positive turnaround.

Last year, the Administration proposed $12.6 million for MEP. Despite support from the entire South Carolina Congressional delegation and majorities in both Chambers, Congress struggled to find funds to restore MEP funding. The final Omnibus Appropriations bill, awaiting Senate passage, would provide $39.6 million for MEP in FY 2004 - 63% below the $106.6 million provided by Congress for the past six years.

A September 2003 review by the National Academy of Public Administration determined: "the MEP Program . . . is the only federal program designed specifically to help small manufacturers, and positioned to help create an infrastructure for providing support to these firms as the U.S. economy moves through enormous economic transition."

MEP assists small manufacturers and helps boost their productivity, sales, employment and investment in modernization. As a federal-state-private partnership, MEP supports a national network of over 60 centers with 400 locations across the country and Puerto Rico providing technical assistance and business support services to small manufacturers. These not-for-profit centers employ more than 2,000 professionals who work with manufacturers to help them adopt and use the latest and most efficient technologies, processes, and business practices. You can view a copy of the manufacturing report at: <http://www.commerce.gov/DOC_MFG_Report_Complete.pdf>

About SCMEP

The South Carolina Manufacturing Extension Partnership (SCMEP), headquartered in Columbia, SC, is a not-for-profit organization that helps manufacturers throughout the state solve business and supply chain process problems. Supported by the state legislature and an affiliate of the National Institute of Standards and Technologies (NIST), SCMEP offers business and technology assessments, engineering expertise and lean manufacturing solutions to South Carolina manufacturers in search of a single solution for supply chain synchronization and internal optimization processes. SCMEP provides this business and technology support to manufacturers through onsite consultations, partnerships with state technical colleges, research universities, and the S.C. Department of Commerce to provide educational programs, online assessment, an e-services portal, and other business tools. Using SCMEP’s services enables manufacturers to see business benefits at a faster rate and enhances economic development in South Carolina. To learn more about SCMEP, call 803.252.6976 or visit the web site at <http://www.scmep.org>.

# # #