Contact:
Linda Abbott 608-826-6215
WMEP sparks $118 million economic benefit for Wisconsin manufacturers
MADISON, Wis. – For the third year in a row, efforts by the Wisconsin Manufacturing Extension Partnership (WMEP) to improve the competitiveness of the state’s manufacturers have topped the $100 million mark.
Wisconsin manufacturers report that assistance they received from WMEP in FY 2004 resulted in improvements valued at $118 million, including:
§ $78 million in increased/retained sales
§ $15 million in cost savings
§ $25 million in investment in new plant and equipment
§ 1,468 created/retained jobs
In addition, state tax revenues are projected to increase $8.6 million as a result of the jobs and sales impact.
WMEP, a non-profit consulting firm, provides technical expertise and business assistance to help small and mid-size manufacturers become more competitive. The impact data is based on 130 manufacturer surveys compiled for the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP). WMEP is an affiliate of NIST MEP, a network of more than 60 centers across the country that provide assistance to small manufacturers.
WMEP assistance helped IEA, Inc. of Kenosha obtain ISO 9001-2000 certification and significantly improve performance. The company, which manufactures heat-exchange equipment for the power generation market, has substantially increased its profitability despite a huge increase in the price of steel, its primary raw material. General and administrative expenses have declined 7 percent, and capacity has nearly doubled. Phil Jacoby, IEA’s director of quality, said WMEP helped the company ride out a difficult period following a sales decline and subsequent downsizing. Since then, sales have risen sharply, and revenues are on track for a 50 percent increase over 2002.
“Our customers demand high quality and timely delivery, as well as a continuing focus on cost reduction and the application of proven management principles. WMEP has been instrumental in helping us achieve these goals,” said Phil Jacoby, IEA’s director of quality.
“Manufacturers who invest in change reap financial rewards, and so do their communities,” said Michael Klonsinski, WMEP’s executive director. “What we’re seeing here are the significant gains that can be achieved with strategies designed to improve competitiveness, even at a time of intense global competition. We’re pleased with what we’ve accomplished, but there is much more work to be done to revitalize manufacturing in Wisconsin.”
Klonsinski says Wisconsin manufacturers must adapt to fast-changing world by embracing technology, reducing costs and focusing like a laser beam on evolving customer needs. “Today’s manufacturers face great challenges and opportunities.”
Greenville-based Digital Diversified Industries Inc., a wire harness manufacturer, has worked with WMEP for seven years. Company president Jim Hager says WMEP has been instrumental in helping the company embrace lean manufacturing and become ISO certified. “I don’t know where we would be without WMEP. Our whole culture is based on the lean principles that WMEP has taught our employees. We use their problem solving and brainstorming techniques every day,” he said.
WMEP also has helped Digital Diversified become more flexible and ride out the ups and downs of the business cycle. In contrast to the depths of the recession, when survival was the issue, today the company is busier than ever, and is hiring. Employee retention is a key issue, and WMEP is helping the company explore options on that front.
In the past three years, Wisconsin manufacturers who were surveyed reported a $400 million economic benefit as a result of assistance from WMEP. WMEP provided services to 522 manufacturers this year.
WMEP is a leader in lean manufacturing, ISO and supplier development. Manufacturers pay for WMEP’s consulting services, but state and federal funds help keep fees affordable for small and mid-size firms. For more information, visit www.wmep.org, or call 1-877-856-8588.
