MEP HURRICANE RECOVERY EFFORTS: HELPING MANUFACTURERS GET…

        MEP HURRICANE RECOVERY EFFORTS:
   HELPING MANUFACTURERS GET BACK TO BUSINESS
With its years of experience in providing manufacturers with the resources and expertise they
need to grow and thrive, the National Institute of Standards and Technology Manufacturing
Extension Partnership (NIST MEP) was an ideal choice to help ensure that government funds
aimed at spurring recovery from the devastating hurricanes of 2005 were spent wisely and
effectively. The nationwide MEP network of manufacturing experts and its well-established
centers in the five affected states (Alabama, Florida, Louisiana, Mississippi and Texas) were
perfectly positioned to immediately mobilize for the development and direction of several
innovative projects to help manufacturers rebound and grow in the aftermath of the disruption
and destruction caused by the storms.

MEP's success in generating recovery and business growth in hurricane-damaged areas is no
surprise. Each year, MEP collaborates with tens of thousands of manufacturers to solve
problems, increase productivity, improve their economic competitiveness, and enhance their
technological capabilities. As a result, MEP clients achieve higher profits, save time and money,
invest in physical and human capital, and create and retain thousands of jobs.

The projects spearheaded by MEP in response to the hurricanes of 2005 demonstrate the
program's agility, vitality and ability to have a measurable impact on manufacturers, their
communities and the economy overall.


Gulf States Shipbuilders Consortium
In order to assist Gulf Coast shipbuilders affected both by hurricane damage to facilities and
equipment and the lack of skilled workers caused by the displacement of coastal residents, MEP-
affiliate Alabama Technology Network established the Gulf States Shipbuilders Consortium
(GSSC) in conjunction with the MEP affiliates in Louisiana and Mississippi. The consortium is
a membership-based, regional cooperative group of shipbuilding companies, suppliers,
educational institutions, economic developers and area MEP centers in Alabama, Mississippi and
Louisiana. Its goals are to raise public awareness of the shipbuilding industry in the Gulf Coast
region, establish a steady stream of technically trained workers for the shipbuilding industry in
the region and establish a foundation for sustaining and growing the consortium.

The project has engaged 12 shipbuilding and repair companies as full participants along with 16
other shipbuilding and repair vendors and support organizations. The consortium has developed
a strong working relationship among coastal shipbuilders, the MEP centers and state community
colleges to address the industry's most critical and pressing problems.

In July 2008, GSSC will launch a campaign to increase public awareness of career opportunities
in the shipbuilding and repair industry along the Gulf Coast and attract, develop, and retain a
robust labor force in Alabama, Louisiana, and Mississippi. Specific initiatives related to the
public awareness campaign that have been completed include: the GSSC web site
(www.gsship.org); a shipbuilding and career resources web site (Goships.com); a call center to
connect individuals interested in working in the industry with appropriate partners; a
shipbuilding career awareness program attended by more than 400 middle- and high school
students from Mississippi and Alabama, including training and shipbuilding simulation kits for
over 75 teachers and counselors; and career fairs resulting in over 300 leads from interested job
applicants that were referred to member shipyards.

Another project initiative is a shipfitter job analysis aimed at developing comprehensive job and
training information for the shipfitter position. This will serve as the foundation for the
development of a shipfitter curriculum, scheduled to launch this winter, that will ultimately lead
to the development of an industry-recognized portable skills certificate. Also under development
are three pilot shipfitter boot camps to quickly train workers for this critically needed occupation.

Best practices resulting from the various project initiatives will be shared among the MEP
centers and across industries as a model for addressing economic development needs impacted
by workforce issues.

Manufacturing Assistance in Other Affected States

Florida:
The Florida MEP affiliate is using its NIST MEP grant to help small manufacturing enterprises
increase revenue levels, participate in defense and commercial supply chain opportunities and
prepare business continuity plans. Some 54 percent of Florida's small manufacturers were
affected by the hurricanes.

Approximately 155 manufacturers in the 23 designated hurricane-impacted counties have been
trained by Florida MEP through 14 training seminars on acquisition response training and lean
manufacturing techniques. Florida MEP has facilitated and is in the process of completing
training projects ranging from two to twelve months for 66 companies. This training includes
preparation for ISO certification, lean transformation, plant layout and business continuity
planning.

In addition, Florida MEP has provided to more than 200 companies access to the SupplyPoint®
(www.supplypoint.com) database. Through one-on-one mentoring Florida MEP has provided
information on the government solicitation process, and offered guidance on how to conduct
business with the government. With the training provided under this grant, multiple companies
have successfully submitted and been awarded bids to various government agencies. These
winning bids are expected to continue as companies become more experienced in the solicitation
process.

All of the grant participating manufacturers have demonstrated reduced costs, sales increases, job
retention and, more importantly, new revenue opportunities through government contracts.

Mississippi/Louisiana:
The Manufacturing Extension Partnerships of Mississippi (MEP.ms) and Louisiana (MEPOL)
formed a partnership to restart, recover and enhance those manufacturers affected by Hurricanes
Katrina and Rita. The partnership provides a comprehensive array of business management and
technical services to companies and facilities that can demonstrate adverse hurricane impacts.

Since June 2006, MEP.ms has served over 125 companies affected by Hurricane Katrina through
projects and interactions with concentration in six coastal counties in Mississippi hardest hit.
More than 40 projects have been completed, with more than five additional hurricane projects in
the pipeline.

Specifically, MEP.ms has helped manufacturers operate more efficiently than prior to the
devastation from Hurricane Katrina through the implementation of lean manufacturing
techniques, value stream mapping and ISO/TS registration, among other efforts. To date,
companies that have participated in the MEP.ms hurricane assistance program have reported 2.5
million dollars in impact, with more positive results expected as time progresses.

MEPOL has served over 72 companies affected by Hurricane Katrina and Rita through 130
projects and training sessions thus far. Of these 130 projects, 89 are completed with 33
completed enterprise discovery assessments.

Specifically, MEPOL has helped manufacturers improve efficiency and has provided accounting,
marketing, quality and business assistance. Some project topics include e-commerce, strategic
planning, employee training, and patent application assistance. To date, 16 of MEPOL's
Hurricane clients have been surveyed and reported more than $1.2 million in cost savings, nearly
$4 million in increased sales and more than 50 jobs created or retained.

Texas:
The Texas Manufacturing Assistance Center (TMAC) provided timely and efficient recovery,
planning and implementation assistance to manufacturing firms in the Texas Gulf Coast region
whose business activities were negatively impacted by the hurricanes of 2005, particularly
Hurricane Rita.

The hurricane assistance project funds enabled TMAC to help manufacturers recover from the
devastation caused by the storms and to better prepare for future storms and other disasters.
Specifically, TMAC helped area manufacturers to: design facilities to operate more efficiently;
train and develop the current workforce and new employees needed to replace workers displaced
by the storms; improve quality, reduce scrap and increase throughput; improve safety, increase
morale and improve productivity; develop plans for business continuity in the event of future
disasters.

Using a database to focus on manufacturing businesses with at least 15 employees in the eligible
20-county area, TMAC identified 572 eligible firms and sent them a postcard announcing the
availability of no-cost business assistance. Another 100 candidate companies were identified
through collaborations with local economic development groups and other referrals. Ultimately,
center staff categorized 96 interested companies and conducted formal assessments of 61
companies. With the hurricane assistance project funds, TMAC completed 30 individual
implementation projects with 21 companies. Additionally, TMAC conducted five group projects
focusing on disaster preparedness and business continuity. These training events attracted
attendees from more than 100 organizations.
Participating companies have reported significant cost savings, sales increases and job creation
as a result of the post-hurricane assistance.


FINAL 7-17-08