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The Opportunity

Saving Local Jobs Through Proactive Business Retention and Layoff Aversion Mark Troppe, NIST MEP mtroppe@nist.gov Cheryl Slobodian, CMTC slobodia@cmtc.com. The Opportunity. MEP -- Workforce system collaboration Wide range of issues faced by at-risk companies requires wide range of expertise

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The Opportunity

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  1. Saving Local Jobs Through Proactive Business Retention and Layoff AversionMark Troppe, NIST MEPmtroppe@nist.govCheryl Slobodian, CMTCslobodia@cmtc.com NIST MEP

  2. The Opportunity • MEP -- Workforce system collaboration • Wide range of issues faced by at-risk companies requires wide range of expertise • Specific expertise brought by different partners in the “early warning” frameworks described earlier NIST MEP

  3. Warning Signs • Financial problems • Quality problems • Supply Chain issues (both directions) • Market issues • Ownership problems • Disinvestment • Declining sales and/or declining employment • Mismanagement • Duplicate capacity • Management instability • Business “climate” complaints • Changes in land use • Inadequate research and development • Changes in management behavior • Removal of equipment • Cash crunch/irrational cutbacks • Unusual bargaining positions • Unidentified visitors and/or cosmetic improvements • Decreased utility use NIST MEP

  4. States With a Track Record • Oklahoma, Missouri, Pennsylvania, New York, Michigan, Indiana • California • EDD Information Notice WSIN09-47 (3/2/10) • “…the wide range of lay-off aversion options available through rapid response…” • Includes “consultation with at risk businesses to explore refocusing or retooling a company to serve new markets…” • “…Establishing contracts with business intermediaries…to conduct prefeasibility studies and implement business intervention strategies…” NIST MEP

  5. Missouri--The Business Retention Team • Composition • WIB staff (i.e., designated BRC) • Local economic development representatives • Community/technical college representatives • MEP staff • Local utility company representative • Other interested organization reps (business associations, Chambers, SBDCs, etc.) NIST MEP

  6. Layoff AversionMissouri Layoff Aversion Results (two regions) CWA Conference April 2010 6 NIST MEP

  7. VISION MEP is a catalyst for strengthening American manufacturing – accelerating its ongoing transformation into a more efficient and powerful engine of innovation driving economic growth and job creation. Mission To act as a strategic advisor to promote business growth and connect manufacturers to public and private resources essential for increased competitiveness and profitability. CWA Conference April 2010 7 NIST MEP

  8. The MEP Program in Short . . . Program started in 1988, 1+ center in all 50 states by 1996 59 centers with over 440 field locations System wide, Non-Federal staff is over 1,550 Contracting with over 2,300 third party service providers Partnership Model – Federal/State/Industry MEP System budget ~ $300M 1/3 Federal, 2/3 State and Industry (fees for services) Address “market failures” (access to information, technical expertise and cost). NAPA Study in 2003 reconfirmed. Emphasis on performance – program and center – impact of center services on client firms. CWA Conference April 2010 8 NIST MEP

  9. What MEP Does • Focus on meeting manufacturer’s short term needs, but in context of overall company strategy • MEP Center areas of common strength • Engineering Services for products and processes • Growth Services – new or expanded market opportunities • Lean Manufacturing • Quality Systems • Environmental Services • Workforce Development • Reach nearly 33,000 manufacturing firms and complete over 10,000 projects per year* • *Based on FY2009 MEP Center reported performance data. CWA Conference April 2010 9 NIST MEP

  10. Client ImpactsResulting from MEP ServicesFY2008 New Sales $3.6 Billion Retained Sales $5.5 Billion Capital Investment $1.7 Billion Cost Savings $1.4 Billion Jobs Created and Retained 52,948 CWA Conference April 2010 10 NIST MEP

  11. Benefits • Preventive measures to promote economic health for businesses, employees and communities • Stabilize operations then connect to growth opportunities (i.e., JOB CREATION) • Proactive approach improves business perception of workforce and economic development • Forges new mutually beneficial economic/workforce development relationships • Leverages complementary core competencies NIST MEP

  12. Two MEP Centers Serve the StateNorthern Cal Manex – Southern Cal CMTC • California has nearly 45,000 small manufacturers, more than TX & NY combined • MEP Centers in every state, 2 in California • Mission to serve small manufacturers • Partnering is critical California manufacturers are being hit hard – 28% of jobs lost since 2001 (543,000) • MANEX • Northern California • Approx 14,000 Small • Manufacturers • CMTC • Southern California • Approx 31,000 Small • Manufacturers NIST MEP

  13. CMTC – WIB Manufacturing Sector Initiatives 7-step Plan for Lay-off Aversion & Business Assistance Services • CMTC & WIB Partners utilizing 7 step plan • Well defined program requirements and regional partnerships • Joint awareness and outreach to manufacturing sector • Discovery meetings utilizing Business Scan™ and Early Warning Checklist review for business viability • Custom business assessment to identify needed assistance • Gain customer commitment to job retention & agree to scope of services/implementation • Customized on-site lay-off aversion training & implementation • Independent 3rd party survey for satisfaction, impact & jobs NIST MEP

  14. Current WIB Funded Partnerships with Manufacturing Sector Focus NIST MEP

  15. Orange County WIBLayoff Aversion – Business Assistance Cosmotronic • Printed Circuit Board Manufacturer in Irvine CA • Employs 82 and 15 are currently at risk of layoff due to turbulent economy, eroding customer base and increasing off-shore competition • Declining sales from $12.9m in 2008 to 2010 forecast of $9.4m • Business assistance: Lean manufacturing implementation from order processing through manufacturing and shipping to increase operational efficiency, reduce production costs and retain workforce • Project started late March 2010 and company forecasts retention of the 15 employees based on implementation plan and forecasted outcomes NIST MEP

  16. Verdugo WIBLayoff Aversion – Business Assistance Center Point Manufacturing Company • Since1966 precision machining components used in a variety of applications for Aerospace & Defense • Employs 23 and all 23 are currently at risk of layoff due to potential loss of key clients Allied Signal, Raytheon, L3 • Without implementation of an AS9100 Quality system they will not qualify as a supplier • Business assistance: Quality system implementation and development of AS9100 quality process with workforce • Project start date April 2010 and company certification for AS9100 targeted for July 2010 meeting customer requirements and retention of business. NIST MEP

  17. Questions & Contact InformationManufacturing Lay-off Aversion Services • Questions? • Contact: Brent Meyers (Northern California) Cheryl Slobodian (Southern California) Manex CMTCToll Free: 1-877-33-MANEX Toll Free: 1-800-300-CMTCPhone: 925-807-5100 Phone: 310-263-3017bmeyers@manexconsulting.comslobodia@cmtc.com NIST MEP

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