State's manufacturers reap $215 million as result of help from Extension Partnership

For the first time ever, efforts by the Wisconsin Manufacturing Extension Partnership to improve the competitiveness of the state's manufacturers have resulted in more than $200 million in economic impacts.

"Wisconsin manufacturers are making great strides to meet the challenge of global competition," said Michael Klonsinski, executive director of WMER a non-profit organization that helps small and midsize manufacturers become more competitive. "They're investing in strategies to transform and reposition their companies and the results are impressive."

Wisconsin manufacturers report that assistance they received from WMEP in fiscal year 2005 resulted in improvements valued at $215 million, including:

* $159 million in increased/retained sales

* $21 million in cost savings

* $35 million in investments in new plants and equipment

* 2,381 created/retained jobs

In addition, state tax revenues are projected to increase $15.8 million as a result of higher sales and job creation. WMEP provided services to 459 state manufacturers last year.

Manufacturers in northeast Wisconsin - Brown, Outagamie, Calumet, Winnebago, Fond du Lac, Manitowoc and Sheboygan counties reported a $26.7 million economic benefit with 575 jobs created/retained.

Marion BodyWorks, Inc., which manufactures rescue and fire apparatus trucks, commercial van bodies, truck cabs and military platforms, has been working with WMEP since 2003 to implement a full range of lean manufacturing techniques. Jeff Ross, manager of manufacturing, says lean has helped the company increase capacity, grow sales, improve productivity and reduce costs. Ross also credits lean strategies for eliminating the need for a new warehouse, which freed up funds for other expansion purposes.

Marion Body is celebrating its 100th anniversary this year, and is moving forward on an aggressive program of change. The company is developing a comprehensive quality system, and placing a greater emphasis on employee involvement in problem solving. "You cannot stand still in this business environment. We're constantly looking to improve our culture, our products and processes to maintain a competitive advantage," said Ross.

Many state manufacturers are embracing new technology, adopting lean practices, adding new features and services to their product lines, and aggressively going after customers in new industries.

"Manufacturing is still the engine that drives Wisconsin's economy We believe it will remain that way for years to come if we continue to invest in change and build on the strengths of our industrial sector," Klonsinski said.

And although this year's impact set a record, Klonsinski said there's no room for complacency. Roughly 80 percent of Wisconsin's 10,000-plus manufacturers have less than 100 employees and these smaller firms don't always have the resources to adopt world-class performance strategies. These firms employ thousands and are critical links in the state's supply chains.

In the past three years, WMEP-assisted companies reported a $468 million economic benefit.

The impact data is based on 171 manufacturer surveys completed by WMEP-assisted companies and independently 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 and mid-size manufacturers.

WMEP provides technical expertise and hands-on business assistance to help small and mid-size manufacturers implement advanced manufacturing technologies and business practices.

For more information on the Wisconsin Manufacturing Extension Partnership, visit www.wmep.org, or call (877) 8568588.