Congress is considering a 63 percent cut in small business program .
LEWISTON – Bell Manufacturing is still reaping the benefits of a retraining effort it underwent in 2001 when it tapped a federally backed program to help streamline its work flow.
The training allowed the label manufacturer to realign its work flow so that the product moved seamlessly from one department to the next, cutting down on waste and inefficiency.
“Our departments weren’t arranged in a flow-through manner,” said Ronald Paradis, controller at Bell. “Things zig-zagged around the building.”
The training involved every member of the company – about 95 people at the time – from accounting to production to the shipping department. And it would have been “difficult,” said Paradis, if not for the $12,000 for training provided by the Manufacturing Extension Partnership
That funding is now in jeopardy as Congress considers cutting the national budget for MEP from $105.9 million to $39.6 million. The House Appropriations Committee endorsed the smaller amount in July; the bill heads to the Senate where a showdown is expected this fall.
“The Manufacturing Extension Partnership works,” said U.S. Sen. Olympia Snowe in a press release. “The decision … to cut the MEP leaves small manufacturers across the country without an important tool to remain competitive in the global market economy.”
MEP provides training and resources to small and medium-sized companies to help them increase sales and earnings while reducing costs. It provides consultation services for a fee, and acts as a clearinghouse for information and resources that help manufacturers stay competitive. In Maine, more than 455 companies got a hand from MEP last year.
Snowe and Sen. Joe Lieberman, D-Conn., started a letter that more than 50 senators signed asking the Senate to restore funding to $110 million. They cite a U.S. Census Bureau study that reports MEP clients experience productivity gains more than four times greater than comparable firms.
Steve Boulet, director of administration at WahlcoMetroflex of Lewiston, can attest to the gains. His company, which manufactures customized valves, dampers and joints for the power industry, underwent an MEP training program last year that improved productivity by better organizing inventory and work flow.
“It would be a sad day for businesses if MEP went away,” he said. “As tough as it is out there these days for manufacturers with liability insurance and labor rates, we need to look at every possible way to save money.”
MEP was created in 1988 by Sen. Ernest Hollings, D-S.C. The original legislation carried a six-year sunset provision with the intent of MEP centers becoming self-sufficient, but it was later changed to indefinite funding.
In 2003, President George W. Bush’s budget tried to restore the original six-year limit and proposed $12 million for MEP, but it failed. His 2004 budget also proposes a $12 million funding level to “avoid federally subsidized competition to small, private consulting businesses,” according to the budget description. The House increased the amount to $39.6 million.
In Maine, the MEP is funded by both state and federal sources. In 2002, the split was $860,000 from the federal government and $650,000 from the state.
Between 1995 and 2001, six MEP centers scattered throughout the state helped clients retain or create 990 jobs. Nationally, MEP clients reported $636 million in new sales, $680 million in new investments and 25,500 retained or new jobs in 2001.
“MEP is one of the only supports from the state for manufacturers,” said Wayne Messer, the MEP regional representative for Androscoggin Valley Council of Governments. “It’s my job to go out and assist companies and help them make appropriate choices to make them successful and competitive, especially with global competition.”
“Some companies save thousands of dollars,” he said. “It could be very detrimental to local manufacturers” if MEP is cut.
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