The Conference of State Manufacturers Associations (COSMA), chaired by NJBIA President and CEO Michele Siekerka, has called on the U.S. Department of Commerce to continue its support for the Hollings Manufacturing Extension Partnership (MEP) program. This program was defunded by the Trump administration earlier this month.
In a communication addressed to U.S. Department of Commerce Secretary Howard Lutnick, COSMA recommended both ongoing funding for the MEP centers and a targeted restructuring plan to enhance the benefits for U.S. manufacturers. The MEP centers serve as a network that provides small and medium-sized manufacturers with tools, training, and expertise to improve processes, increase capacity, and strengthen their workforce.
“A restructured and refocused MEP network will help American manufacturers improve their productivity and competitiveness,” the letter stated.
The letter further emphasized the need for resources focused on and managed by those closest to manufacturers in each state: “If we are going to realize the full potential of reshoring American manufacturing jobs, it will take resources that are laser-focused on and managed by those closest to the manufacturers in each state. This is an immense opportunity to help thousands of small and medium manufacturers grow American jobs.”
Since their inception, the MEPs have been instrumental, working with over 154,000 manufacturers to help create or retain more than 1.6 million jobs, according to figures from the National Institute of Standards & Technology (NIST). In Fiscal Year 2024 alone, the MEP National Network contributed to creating or retaining more than 109,000 jobs.
In an op-ed in ROI-NJ, New Jersey Manufacturing Extension Program CEO Peter Connolly explained the impact of the program since 2019, noting the creation or retention of 20,278 jobs, a $1.42 billion impact in wages, $130.03 in economic impact for every $1 invested, and support for over $515.6 million in new sales, $1.46 billion in retained sales, and $125.9 million in cost savings for small-medium manufacturers.
Despite earlier cuts, the U.S. Department of Commerce has issued a reprieve to 10 affected MEP programs, confirming renewed funding through the end of the fiscal year pending further review. This comes after the NIST, which manages the MEP network, informed the impacted centers that their contracts would not be renewed after ending in late March as part of the previous administration's federal spending reduction plan.
“While this reprieve is a lifeline for those affected MEP centers, it is not a guarantee as it relates to future funding for all of the MEP network," Siekerka remarked. "That is why we must remain vigilant in our efforts as outlined in the letter.”
The letter proposing restructuring also introduced new guiding principles, such as performance-based funding determined by state manufacturing establishment counts and preference for MEP centers contracted with state manufacturing or similar trade associations.
NJBIA was among the 35 organizations that signed the letter. According to Siekerka, the partnership “greatly benefits our New Jersey manufacturers.”
The full letter is available for review.
