NIST Research/Collaboration Efforts Key to Innovation and Economic Growth

Program Helps Create and Retain Jobs, Generating $32 in Sales for Every $1 Spent Today’s release of the latest employment statistics from the Department of Labor—244,000 jobs added in April—makes you wonder, where did these jobs come from? While we know most jobs are created by the private sector, government agencies often do have a role in fostering this job creation.  The Hollings Manufacturing Extension Partnership (MEP) program at the Commerce Department’s National Institute of Standards and Technology has done just that.  As a public-private partnership, MEP delivers a high return on its investments to American taxpayers. In 2009, MEP helped businesses create or retain 72,075 jobs, and for every one dollar of federal investment, generated $32 in new sales growth (PDF). This return on investment translates to $3.6 billion in new sales annually among MEP clients. And for every $1,570 in federal investment, MEP creates or retains one manufacturing job. Such impressive results come from a survey of MEP clients by private marketing firm Turner Marketing, Inc. How did MEP achieve such a large return on its investments?  First, a little history.  Congress established MEP in 1988 to help small- and mid-sized manufacturers increase growth, cut costs, and create innovative new products and services.  NIST, the federal partner in MEP, works with local and regional manufacturing experts across the United States to build a nationwide network of resources for America’s manufacturers.  Several dozen NIST staff leverage over 1,400 technical experts across the nation in every state, focused on solving manufacturers’ biggest challenges and identifying opportunities for growth.

National Small Business Week, which is taking place June 17-21, recognizes the contributions of America’s entrepreneurs to job creation and economic growth. One way that the Commerce Department works to support small and medium-sized enterprises is through the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP), a public-private partnership designed to encourage innovation in American manufacturing. NIST MEP is a nationwide network of technical experts and business advisors who work with small and mid-sized U.S. manufacturers, helping these businesses identify growth opportunities. MEP focuses its resources on five critical areas: technology acceleration, supplier development, sustainability, workforce and continuous improvement of manufacturing processes, products, and services. For every one dollar of federal investment, MEP generates nearly $20 in new sales growth, which amounts to about $2.5 billion in new sales annually. And for every $2,100 of federal investment in the program, MEP creates or retains one manufacturing job. These investments support the administration’s commitment to helping U.S. manufacturers innovate, grow, and create good jobs. NIST MEP has successfully helped manufacturers across the country grow their businesses. For example:

Today, U.S. Commerce Secretary John Bryson traveled to Cleveland, Tennessee, where he visited the Whirlpool Corporation for a ribbon cutting ceremony for their new, one-million square foot manufacturing facility. The $200 million factory is the largest premium cooking product manufacturing and distribution facility in the world, exemplifying the Secretary’s mission to help U.S. business make it here and sell it everywhere. The opening of the facility marked 100 years of Whirlpool manufacturing Made-in-America products. While in Tennessee, the Secretary also made a stop in Chattanooga to visit the Volkswagen manufacturing plant, which builds the 2012 Passat. Volkswagen recently announced that they were adding a third shift to the operation at their Chattanooga plant in response to increased consumer demand, which will create over 700 additional jobs. This development is just one more example of the continued resurgence of the American manufacturing industry. In fact, today, the Economics and Statistics Administration highlighted data showing that automakers are contributing heavily to the success of American manufacturing. The report finds that auto sales are at the highest level since the first quarter of 2008.

This afternoon, Commerce Secretary Bryson delivered keynote remarks at the Steel Manufacturers Association (SMA) 2012 Annual Members conference, where he discussed the importance of the steel industry and the Administration’s efforts to support U.S. manufacturers. As the Secretary said, this Administration understands the importance of supporting U.S. manufacturers. When President Obama came into office, the United States was at risk of losing over 1 million auto industry jobs. The ripple effect on the supply chain would have been devastating, potentially eroding the U.S. manufacturing base and driving the economy from a deep recession into depression. Instead, due to the President’s leadership, the auto industry survived and is now thriving, adding more than 200,000 jobs over the last two-and-a-half years. There is an inextricable link between America’s ability to produce and America’s ability to innovate, compete and create jobs. Manufacturing is responsible for 70 percent of U.S. private sector R&D, 90 percent of patents, and 60 percent of our exports. In addition, the Commerce Department released a report just last week showing that manufacturing workers earn pay and benefits about 17 percent higher than other workers.

This morning, U.S. Commerce Secretary John Bryson delivered remarks at an upstate New York manufacturing summit hosted by U.S. Senator Kirsten Gillibrand and the Rochester Institute of Technology (RIT) at RIT’s Center for Student Innovation. He delivered the keynote address, discussing the administration’s initiatives to help businesses “build it here and sell it everywhere” around the world. Rochester, New York, has a long tradition of leadership in manufacturing and technology. Fueled by a well-educated workforce and commitment to entrepreneurship, Rochester has provided a great example of what American innovation can bring to the U.S. economy.  While in Rochester, the Secretary had a chance to tour RIT’s construction of their brand new facility, where students will soon be performing cutting-edge research in sustainability. The Commerce Department helped make this facility possible through a $13.1 million grant from Commerce's National Institute of Standards and Technology (NIST). In the afternoon, the Secretary visited a business called Schlegel Manufacturing, a company that specializes in weather seals and hardware that helps keep equipment running smoothly. The Commerce Department’s Manufacturing Extension Partnership (MEP) in New York is working with Schlegel Manufacturing to accelerate new products into the marketplace and expand their markets, along with many other companies. Recent annual data shows that businesses that teamed up with the New York MEP had over $400 million in sales, helping to keep or create nearly 4,000 jobs.

Yesterday, U.S. Commerce Secretary John Bryson delivered remarks at a meeting of the Advanced Manufacturing Partnership (AMP) Steering Committee. At yesterday’s meeting, held at the White House, the Steering Committee discussed recommendations targeting issues in manufacturing, focusing on technology development, policy, education and workforce development, and shared facilities and infrastructure.AMP is a collaboration between industry, academia and government leaders to accelerate the development of the U.S. advanced manufacturing sector and to shape the administration’s Advanced Manufacturing Strategy. AMP is guided by a Steering Committee, which is co-chaired by Andrew Liveris, President, Chairman and CEO of the Dow Chemical Company, and Susan Hockfield, President of the Massachusetts Institute of Technology. Their final report will be reviewed by PCAST, the President’s Council of Advisors on Science and Technology, in April. Though AMP is still at work on the recommendations, several were prioritized for early action and implementation by Secretary Bryson.

Ed. Note: This post is part of the Spotlight on Commerce series, which highlights members of the Department of Commerce who are contributing to the president's vision of winning the future through their work. Phillip Singerman is the Associate Director for Innovation and Industry Services at the National Institute of Standards and Technology In January I was honored to be selected by Pat Gallagher, Director of the National Institute of Standards and Technology (NIST), to serve as Associate Director for Innovation and Industry Services, with responsibility for NIST’s suite of nationally recognized industry-partnership programs, the Hollings Manufacturing Extension Partnership, the Technology Innovation Program, the Baldrige Performance Excellence Program, technology transfer and SBIR grants.  These programs are central to NIST’s mission and to the president’s innovation strategy of using science and technology to drive economic development, and are staffed by professionals of skill, dedication and integrity. My professional career has focused on economic development at the local, state and regional levels in public, non-profit and private organizations.  In my current role, I continue to have the opportunity to work with the regional public-private partnerships, young entrepreneurial firms and universities which populate the innovation ecosystem.    This is my second turn at Commerce.  During the latter half of the 1990s I served as Assistant Secretary for Economic Development; what has struck me upon my return to the Department is the higher level of coordination among bureaus, particularly NIST with EDA, USPTO, and ITA, and the leadership exercised by the National Economic Council and Office of Science and Technology Policy to encourage inter-departmental collaboration.

This week, President Obama signed the America COMPETES Act, signifying the importance of science, education and technology to America’s ability to innovate and remain competitive in the 21st century. The America COMPETES Act reauthorizes spending across the federal government on a variety of programs at agencies like the National Science Foundation, the Department of Energy and here at the Department of Commerce.