Senator Olympia J. Snowe

SNOWE, COLLINS CALL FOR INCREASED SUPPORT FOR THE MANUFACTURING EXTENSION PARTNERSHIP

Senators Cite Negative Impact to Small Manufacturing Without Increased Funding

Contact: Antonia Ferrier (202) 224-5344
Wednesday, March 2, 2005

WASHINGTON, D.C. – U.S. Senators Olympia J. Snowe (R-Maine) and Susan Collins (R-ME) today urged Senate Budget Committee Chairman Judd Gregg (R-NH) and Ranking Member Kent Conrad (D-ND), to include $112 million for the Manufacturing Extension Program (MEP) in the Fiscal Year (FY) 2006 budget. Snowe and Collins are concerned that without sufficient funding for the program, small manufacturers nationwide will be adversely impacted.

“Manufacturing has been the engine of our nation’s economic expansion. For more than a decade, MEP has helped small manufacturers compete and expand their horizons. Because of the importance of these employers to our economy, the time is now to ensure their future success and that they remain competitive in the global economy by adequately funding this critical program,” the Senators said in a joint statement. “At this time when our domestic manufacturing sector faces many challenges, the MEP is needed more than ever. To maintain this program’s high-level of performance and help our nation’s small manufacturers, it is imperative that $112million is included in the FY 2006 Budget for the MEP.”

Snowe and Collins joined a bipartisan group of 44 Senators in sending a letter to Senators Gregg and Conrad urging the inclusion of $112 million in the FY 2006 budget for the MEP.

“Without strong federal support, MEP will not be able to maintain its mission of serving American manufacturers and its benefits will be lost to our economy. At a time when economic recovery, supply chain reliability for consumer and defense goods, and global competitiveness are national priorities, MEP is a truly wise investment. We believe that MEP is a reasonable priority that fits within a fiscally responsible budget, and we urge you to include $112 million to fully fund MEP in the fiscal year 2006 budget resolution,” the letter to Gregg and Conrad said.

The MEP assists America’s small manufacturers and helps boost productivity, sales, investment in modernization, and employment. MEP is a cost-effective, public-private partnership. Those utilizing the expertise offered by the program experience productivity increases four times greater than comparable non-MEP clients. In fiscal year 2004, the MEP’s clients reported sales of $4.12 billion, 50,315 new or retained workers; $686 million in cost savings, and $912 million invested in new plant and equipment as a direct result of their MEP projects.

“Supporting MEP is pro-growth, pro-manufacturing and will improve the climate for keeping manufacturing jobs in the United States. By improving America’s small and medium manufacturers’ productivity, MEP significantly contributes to job growth and expansion of our economy. Without adequate funding, MEP’s ability to assist small and medium manufacturers across the country will be severely hampered,” the letter continued.

Maine's Manufacturing Extension Partnership operates from six offices throughout the state. Each MEP center is a partnership involving federal, state and local governments; industry; educational institutions; and other sources of expertise, information, and funding support. In 2002, Maine’s program helped 455 clients. Between 1995 and 2001, employers assisted by Maine MEP created or retained 990 jobs. In all, MEP estimates that there are more than 1,800 manufacturers throughout Maine which are eligible to benefit for services at its centers.

Manufacturing produces 13 percent of GDP and 89 percent of export revenue. Small and medium sized manufacturers comprise about 97 percent of all manufacturing firms and employ about half of all manufacturing employees. They account for $3.9 trillion per year in manufacturing receipts and pay their workers 22 percent more than other small businesses.

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