2007 Annual Report

Page 56

MANUFACTURING EXTENSION PARTNERSHIP (MEP) The mission of the Manufacturing Extension Partnership (MEP) of Utah is to raise the competitiveness, performance and profitability of Utah’s manufacturers and related industries. MEP was created by federal legislation to enhance productivity and technological performance in manufacturing. Particular focus is given to small and medium-size entities which comprise 98% of all U.S. manufacturers. Under the direction of the National Institute of Standards and Technology, non-profit centers have been created throughout the U.S. Utah has been active for more than a decade working one-on-one with Utah manufacturers, government, education and other organizations. MEP secures 100% match for every dollar of support by the state for manufacturing extension services. Recently, Utah State University completed an economic impact study of 72 MEP projects. The study evaluated projects impacts, demonstrating that MEP services in 2006 created or retained 2,543 jobs; generated more than $399 million of additional industrial output; more than $87 million of additional employee compensation; and raised more than $10.5 million of additional indirect business taxes. The above was accomplished with an investment in MEP by the state legislature of less than $1 million, less than 9% of agriculture extension budget. With MEP’s current limited budget, 95% of Utah’s manufacturers do not have access to MEP services. MEP could do much more with additional resources. To that end, the 2007 legislature funded a one-time pilot to initiate a network of manufacturAMPAC Filter Table ing extension agents, with the long range Operator inspects goal of creating regional or county agents material on a filter throughout Utah. They would provide adtable at its manufacditional expertise in much the same way as has been proven effective by cooperative exturing facility in Cedar tension agents in the “Ag industry”. City. New, automated controls have added

The total industry wage for manufacturing is the largest of all major industry sectors in efficiency of their the state- over $5.1 billion, a 10% increase processes. American over 2005, and a 15% increase over 2004. Pacific is a specialty chemical company that produces Manufacturing’s above-average wages are 45% higher than the other 3 major sectors (i) energetic products used primarily in space flight and that also employ more than 100,000 Utahns. defense systems, automotive airbag safety systems and Utah’s average monthly manufacturing wage explosives, (ii) Halotron, a clean fire extinguishing agent ($3,974 Q4 ’06) has increased 5.5% over and (iii) water treatment equipment. 2005, 9.5% over 2004 and 13.9% over 2003 figures. Utah’s manufacturing sector continues to grow despite significant challenges and declines elsewhere in the U.S. Jobs in Utah manufacturing are now over 125,000 compared to a 5-year low of 112,000 in 2003 (11.6% increase). to the safety and

MEP is a contract partner with the Governor’s Office of Economic Development.. GOED disburses state funding to the MEP program. Regular reporting by MEP, monthly or more often, is made to GOED

Governor’s Office of Economic Development • Annual Report 2007

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