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Challenges, Solutions, and Success Stories Across the MEP National Network

manufacturing challenges

The Manufacturing Extension Partnership National Network (MEPNN) advances U.S. manufacturing by helping small and medium-sized manufacturers grow, make operational improvements and reduce risk. The Network has MEP Centers in all 50 states and Puerto Rico. Each Center is a partnership between the federal government and a variety of public or private entities, including state, university and nonprofit organizations.

The numbers speak for themselves: Manufacturers that work with their local MEP Center see real results. Since 1988, the MEPNN has assisted more than 150,000 manufacturers, leading to an estimated $152.2 billion in new sales and $34.2 billion in cost savings. Those are big numbers and here’s another – MEP has helped create and retain more than 1.7 million jobs – delivering economic benefits to businesses, workers and their families. The numbers also tell the story of the challenges manufacturers are facing and how the MEPNN has the capabilities, expertise and reach to enable SMMs to meet these challenges head on.

The value of MEP services

Each year, the MEPNN helps more than 12,000 manufacturing clients secure reliable domestic suppliers, strengthen supply chain resilience, leverage innovative technologies, and develop a skilled workforce that drives the growth and competitiveness of manufacturing across critical industries like defense, aerospace, automotive and more. Clients appreciate the expertise of MEP Center staff and the affordable solutions they provide, which keep firms coming back to meet their business needs. With strong ties to the local manufacturing ecosystem, each MEP Center is well-positioned to offer valuable support to the state’s manufacturers.

MEP’s client impact survey

To understand the impact of MEP National Network services, NIST MEP conducts an annual client impact survey via a third-party provider. In fiscal year (FY) 2024, nearly 95% of respondents represented SMMs that employ fewer than 500 people. With more than 8,700 survey responses in FY 2024 and many thousands more received through the years, this data helps NIST MEP understand the biggest challenges manufacturers face and track trends in the industry.

Chart showing FY24 MEP Client strategic challenges

Top challenges for U.S. manufacturers

The top challenges selected by MEP clients from a list have remained relatively consistent over time. These include:

  • Continuous improvement/cost reduction: The most commonly reported challenge, focusing on efficiency and cost-saving strategies.
  • Employee recruitment and retention: An increasing concern, demonstrating that workforce challenges have grown more significant for manufacturers than in the past.
  • Identifying  growth opportunities: Manufacturers continue to seek new ways to expand and innovate.
  • Product innovation/development: Staying competitive by developing new products is crucial for many manufacturers.

While continuous improvement and cost reduction have long been top priorities for MEP Center clients, employee recruitment and retention have become increasingly important. Ten years ago, only 41% of surveyed manufacturers highlighted these issues, but in FY 2024, 55% listed them as a key challenge. This shift reflects the growing impact of the manufacturing sector’s workforce challenges.

FY24 MEP client strategic challenges (by geography)

Rural vs. metro client challenges

NIST MEP analyzes survey responses based on the USDA Rural-Urban Continuum Codes, which classify U.S. counties as either urban or rural. This analysis reveals that:

  • Rural clients often face more challenges with continuous improvement, cost reduction and employee recruitment.
  • Metro (urban) clients are more likely to struggle with accessing financing and managing partnerships and suppliers.

Understanding these regional differences helps MEP Centers tailor their services to meet the unique needs of both rural and urban manufacturers.

Customized solutions for you!

The survey data enables MEP Centers to deliver impactful, customized solutions that will help each SMM address its most pressing needs. These services include:

  • Lean and process improvementIncluding value stream mapping, 5S, Toyota Kata and Six Sigma. For example, the Alliance for Manufacturing and Technology (AM&T, part of the New York MEP), provided C&D Assembly, a small contract manufacturer, with facility layout changes to optimize use of its space and increase product flow through production. President and Owner Jeff Cronk said, “We have worked with AM&T for many years, on many projects. Great people, great service! Would not be where I am without this team!”
  • Workforce developmentMEP Centers can help with everything from attracting and recruiting skilled talent to providing training that boosts productivity and reduces turnover. An interactive map lets you explore the workforce programs MEP Centers offer in each state and Puerto Rico. You can search by keyword or click on a state for more details. Keep in mind, this guide isn’t complete, so contact your local MEP Center for more information and personalized help.
  • Business growthMEP Centers help fuel growth through strategic planning, market research, developing and refining marketing and sales strategies, and more. For example, Nebraska MEP helped Wilson Case, a rural manufacturer of shipping cases, create a plan to boost sales and make smart investments in infrastructure and workforce development.
  • Product design and developmentMEPNN experts can help companies validate markets and develop, prototype and launch new products. The Network can also connect you with NIST’s world class technical expertise through the MEP-Assisted Technology and Technical Resource service. NIST’s mission is to promote innovation and industrial competitiveness, and NIST experts are highly motivated to help you work through technical challenges and bring your product to market.

MEP’s role in driving U.S. manufacturing

MEP Centers use data, industry insights and hard-earned know-how to help manufacturers boost productivity and competitiveness. The word “partnership” is key to MEP’s mission – MEP Centers create valuable connections that drive progress in U.S. manufacturing. They act as a central hub, linking manufacturers with government agencies, universities, research labs, trade associations and other resources businesses need to grow and innovate.

MEP can help you!

Whatever challenges you face, the MEP National Network is here to help. To learn more about how it can support your business, contact your local MEP Center for personalized assistance and resources.

About the author

Nico Thomas

Nico Thomas is a Performance Analyst at NIST MEP, working with the Program Evaluation and Economic Research group to help provide tools and information to maximize U.S. manufacturing competitiveness

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