Small and medium-sized manufacturers make up the lifeblood of the U.S. economy. They include nearly 99 percent of all U.S. manufacturers, produce more than half of the value-added goods and employ about 12 million Americans at wages averaging substantially higher than in the retail sector.

What's more, as large manufacturers increase their dependence on suppliers for parts and services, smaller manufacturers' performance and capabilities become even more important to the entire manufacturing sector's competitiveness and economic health.

Critical as they are to the nation's economy, smaller manufacturers are less likely than larger firms to know about and implement new technology, modern manufacturing processes and current business practices. Small U.S. firms, on average, also make less use of computer-based technologies than their counterparts in Japan and Europe. Not surprisingly, smaller manufacturers' productivity has declined relative to large U.S. producers. In 1967, large plants demonstrated about 25 percent more productivity than small manufacturing sites, as measured by value-added per employee. By 1992 (the latest data available from the U.S. Census Bureau), that difference had grown to 50 percent.

Given these business realities, it's no wonder that thousands of small U.S. companies are taking advantage of a national network of manufacturing and business experts who are helping them grow and prosper.

The Commerce Department's National Institute of Standards and Technology manages the MEP network. Nearly 100 years old, NIST is the only federal agency charged with promoting U.S. economic growth by working with industry to develop and apply technology, measurements and standards. NIST does this through four interwoven programs. In addition to the MEP, they are: the Measurement and Standards Laboratories, a program of laboratory research and services; the Baldrige National Quality Program, which manages the Malcolm Baldrige National Quality Award and provides leadership on quality and competitiveness issues; and the Advanced Technology Program, which provides cost-shared awards to industry for developing new technologies with broad economic potential.

Even though most of the centers have existed for only a few years, the MEP already can demonstrate significant impact. For example, an analysis by the U.S. General Accounting Office found that 73 percent of firms using extension services, including those provided by the MEP, credited this assistance with helping them to improve overall business performance.

Recently, the U.S. Census Bureau surveyed 2,350 firms served by NIST MEP centers in 1996. These companies reported a combined increase in sales of nearly $110 million and showed savings of $16 million in inventory and more than $13 million in labor and material. These firms also invested more than $85 million in modernization. All of this directly resulted from services provided by local MEP centers, according to the survey.

Manufacturing and business experts also are noticing these results. "The Manufacturing Extension Partnership is an important resource for helping smaller manufacturers achieve the kind of world-class gains formerly limited to large companies," observes Richard J. Schonberger, author of World Class Manufacturing: The Next Decade: Building Power, Strength and Value (Free Press, 1996). "Its focus on value-adding activity on the shop floor is exactly right. The MEP network gets results -- quickly and affordably."

Wheelchair company rockets to success -- To make a great wheelchair, evidently you do need to be a rocket scientist. Tom Kruse, founder and chief executive officer of Hoveround Corp. of Sarasota, Florida, wanted to add a quicker, stronger, snugger wheelchair to the company's product line. Kruse asked the Suncoast Manufacturing Technology Center, an affiliate of NIST MEP in Largo, Florida, for design and engineering help. Working with experts from Suncoast, NASA and the Southern Technology Applications Center, Hoveround improved its computer-aided design capabilities and developed a more durable, comfortable and affordable wheelchair. SMTC also provided advice and assistance to Hoveround in meeting compliance demands of ISO 9001.

Business has increased with the new, high-tech product. So much so that, to meet the growing demand, Hoveround moved from an 8,000 square-foot facility to one more than five times as large and increased its work force from 25 employees in 1995 to its current level of 180. In just one year, revenues at Hoveround rocketed from $15 million to $25 million.

Racking up business -- Although Sport Carriers Inc. has been in business only four years, this 20-employee company in Corona, California, is racking up sales with a number of auto manufacturers. The start-up firm makes roof-mounted equipment racks for cars and sport utility vehicles.

Thanks in part to assistance from the California Manufacturing Technology Center in Hawthorne, California, SCi recently landed two major contracts with General Motors to supply these racks as original, factory-installed equipment.

Prior to getting the contract, SCi had to meet GM's QS-9000 quality standards. Normally, this process takes nearly a year. With help from California Manufacturing Technology Center -- the state's MEP center -- SCi achieved its QS-9000 registration in a little over six months. "QS-9000 is not only a requirement of the contracts, it's necessary to maintain GM's business," says Barry Tuck, SCi's quality control manager. Adds product development manager Louis Haug: "Without CMTC, we wouldn't have the direction we needed to complete our goal."

World-class lumber products -- Boozer Lumber, a small manufacturer in Columbia, South Carolina, needed a better, more efficient way to manufacture roof trusses, one of the company's main products. With guidance from the South Carolina Manufacturing Extension Partnership in Columbia, South Carolina, Boozer partnered with Virtek Vision International and MiTek Industries Inc. The partnership took a laser projection system developed for aerospace manufacturing and applied it to manufacturing wood trusses.

As a result, Boozer has improved its production efficiency by 295 percent, added four production lines and doubled its capacity. The company's new facility is one of the largest lumber products facilities in the United States and one of the most efficient in the world. SCMEP also provided work force training, product development engineering and plant layout recommendations. "As a direct result of SCMEP's assistance, we have reinvented our company into a world-class operation," notes Bob Jones, Boozer's chief executive officer.

  Have been unable to locate the proper resources or technologies they need.

  Want expert, impartial advice in evaluating alternative solutions.

  Need help solving specific problems such as product defects, modifying plant layout to improve work flow or establishing employee training.

  Seek assistance in reversing negative business situations such as sales decreases, loss of market share or cost increases.

  Want to implement new technologies or processes that will help establish them as market leaders.

  Seek to improve their ongoing business operations for peak performance.

How do MEP specialists know what a small manufacturer needs to help it improve? It's fairly simple -- they ask and then work together with area firms to provide expertise and services tailored to their most critical needs. Typically, these range from process improvement and worker training to business practices and information technology. The degree and type of assistance each MEP customer receives is based on that manufacturer's particular need.

The relationship between an MEP center and manufacturer might last many months, or may conclude after a single phone call. A center's field engineers might provide technical support, for instance, or the center will act as a project manager, identifying outside consultants and vendors to provide help.

MEP's specialists have years of practical experience gained from working on the manufacturing floor and in plant operations. To help MEP center staff understand local manufacturers' needs, and shape the programs and service delivery best suited for each region, local manufacturers are asked to participate on advisory boards and boards of directors, or act in other capacities.

MEP staff make it their business to know the local business community and available local resources. They also have access to additional resources through the MEP network, NIST, other federal agencies, national trade and business associations, and other organizations.

Some of the services MEP centers offer to smaller manufacturers include:

  Lean manufacturing

  Year 2000 problem risk assessment

  Process improvement

  Quality and business management systems

  Human resource development

  Product and market development

  Materials engineering

  Plant layout

  Energy audits

For example, working with three centers in Michigan, Ohio and Utah, NIST MEP recently developed a tool kit that all centers can use to help smaller manufacturers avoid the year 2000 date problem, which concerns a flaw in the way dates traditionally have been entered into computer systems. Many computers that use two digits to track dates will, on Jan. 1, 2000, recognize the double zero not as 2000 but as 1900. Because computers use dates to make calculations, this glitch could cause them to shut down or generate erroneous information.

Many smaller companies have not yet assessed their risk to the problem. "Smaller manufacturers can't ignore the problem or hope it doesn't affect them," warned Secretary of Commerce William Daley when he announced MEP's year 2000 program in May. "If they do, it could affect not only their competitiveness but also their ability to survive."

In another project that will benefit the entire network, NIST MEP is working with six centers to develop a lean manufacturing strategy. This systematic approach analyzes a company's flow of information and materials to eliminate waste. NIST MEP plans to develop courses to train and certify manufacturing specialists in each center to carry out a 12-step lean manufacturing process.

Other networkwide approaches help smaller manufacturers deal with environmental problems, supply-chain issues and work force training.

Whether delivered to individual manufacturers, firms organized into supplier- improvement groups or classrooms of workers and managers, the services MEP centers provide can make a real difference in the competitive fortunes of smaller U.S. firms.

More than 62,000 manufacturers have worked closely with MEP's locally managed extension centers to solve problems, increase productivity and achieve higher profits. The resulting improvements reversed declines in performance and opened the way to gains in sales, jobs and profitability.

That goal will not change. However, MEP's overall strategy for the future is to transform the network into a fully integrated and leveraged, high-performance system equipped to elevate committed smaller manufacturers into successful, competitive companies.

By helping small firms prosper and create jobs, MEP assistance energizes smaller U.S. manufacturers to actually win the competitive race, not just run in place. And that benefits individual companies, their communities and the country.

Interested companies can call (800) 637-4634 to be connected automatically to the MEP center serving their areas. Manufacturers also can learn more about the MEP network or reach their local centers via the program's Web site at www .mep.nist.gov.