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January 26, 2007
Manufacturing legislation
While the competitiveness agenda is far from front and center in Washington these days, that does not mean it has disappeared completely. At the beginning of this new Congress, Rep. Vernon Ehlers (the former Republican Chair of the House technology subcommittee) introduced the HR 255 ‘‘Manufacturing Technology Competitiveness Act of 2007" -- which was identical to the Manufacturing Technology Competitiveness Act of 2005 that passed the House (but not the Senate) in the last Congress.
One of the elements (that was striped from the bipartisan Senate competitiveness bill introduced in the waning days of the 109th Congress) was a grant programs to the Hollings Manufacturing Extension Partnership (MEP) Centers "to develop projects to solve new or emerging manufacturing problems". Specifically, the grants are for "projects associated with manufacturing extension activities, including supply chain integration and quality management, or extend beyond these traditional areas."
Those are the magic words: "beyond these traditional areas." That phrase would allow the MEP Centers to get into the business of helping companies with innovation -- not just manufacturing processes.
I have long argued that "design" is the new "quality". And that manufacturing and services are fusing. Small companies that are solely manufacturing are going to be less and less able to compete (and create jobs) in an economy of increased automation and globalization. To survive, these companies need an array of technical services and advice in areas such as design, marketing, and servicing.
They know it and MEP knows it. In fact, the MEP Next Generation Strategy states:
With success in the marketplace dependent upon product differentiation, service innovation, and speed to market, MEP is prepared to position manufacturers to compete in this global economy through services that are grounded in business strategy development, advanced marketing techniques, new product development, the integration of supply chains, and increasing the technical and problem solving skills of the workforce.
The grant program in the Ehlers bill is an important tool in implementing the MEP strategy. I know the Democrats will want to craft a new version of the legislation. Let's hope they keep this provision -- and even expand upon it. That would go a long way to helping 21st Century manufacturing thrive in the American I-Cubed Economy.
Posted by Ken Jarboe at January 26, 2007 8:05 AM
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