WMEP reports $226 million impact

Despite some strong headwinds in the economy, Wisconsin manufacturers report that assistance they received from the Wisconsin Manufacturing Extension Partnership produced an economic impact of $226 million, most of it in sales growth and business expansion.

The fiscal year 2008 economic impact is based on 185 surveys completed by WMEP-assisted companies and compiled by an independent national research firm.

“This year’s impact sends a strong message about the substantial gains that can be realized by manufacturers who invest in change and transformation,” said Michael Klonsinski, executive director of WMEP, a non-profit organization that provides expertise and business assistance to help small and mid-size manufacturers grow and succeed. “Clearly it’s another sign that Wisconsin manufacturers can compete and win in the global economy.”

WMEP-assisted companies reported:

• $128 million in increased or retained sales.
• $16.9 million in cost savings.
• $81.3 million in investment, including new plant and equipment.
• 1,235 created or retained jobs.

In addition, state tax revenues are projected to increase $11 million as a result of higher sales and job creation.

Regionally, manufacturers in Northeast Wisconsin — Brown, Calumet, Door, Manitowoc, Marinette, Oconto, Outagamie, Sheboygan and Winnebago counties — reported a $58 million economic impact with 433 jobs created or retained. Manufacturers from these counties reported $47.2 million in increased/retained sales, $5.6 million in cost savings, and $5.8 million in investment.

This year’s statewide survey data on business investment — the highest ever reported at $81 million — bodes well for future growth. “Many manufacturers are investing in new technology and expanding their plants to accommodate increased demand for products and services from customers here and around the globe,” Klonsinski said. “That’s good news not only for the manufacturers, but for their employees, communities and local economies.”

The investment impact includes expenditures on new plant and equipment, information systems and workforce practices.

In the past year, WMEP has significantly expanded its services to promote growth and innovation. Another core area of services — lean manufacturing — remains an essential strategy to promote efficiency, flexibility and lower costs for Wisconsin manufacturers.

WMEP’s impact data is compiled by market research firm Synovate for the National Institute of Standards and Technology’s Manufacturing Extension Partnership. WMEP is an affiliate of NIST MEP, a national network of more than 60 centers that provide assistance to small and midsize manufacturers. During the past five years, WMEP-assisted manufacturers reported impact of $931 million with 8,635 jobs created or retained.

WMEP provided services to 531 state manufacturers last year. Among them:

• Racine Metal-Fab Ltd. says WMEP has been instrumental in helping the company adopt lean manufacturing and achieve double-digit sales growth in each of the past three years. Racine Metal-Fab has cut lead times 25 percent, reduced inventories by more than 60 percent, and embraced a lean culture. “WMEP’s lean classes provided the building blocks for lean in our organization, and helped our employees understand their role in the success of our operation,” said Tim White, director of operations. Morale is improved, and employees have gained new skills and flexibility with cross-training in other areas of production. Racine Metal-Fab is a supplier of highly-engineered light gauge metal fabrications and assemblies; its primary product, light gauge segmented reflectors, can be found in sports stadiums such as Camp Randall, Lambeau Field and commercial buildings.

• Madison-based Saris Cycling Group has increased sales and productivity as a result of a lean assistance from WMEP. An industry leader committed to innovation, Saris manufactures bicycle racks, parking systems, indoor cycles, trainers and bicycle power meters that give cyclists real-time performance measurements. Dramatic improvements in production floor organization of tools and materials helped the company cut travel time of dies used in manufacturing by 80 percent, and increased throughput for one product line by 30 percent. The efficiency gains allowed Saris to bring back production of a part that had been outsourced to China. “We’ve improved to the point that we’re able to produce the part here at a lower cost,” said Mike Root, production manager. Root says employees have embraced the lean concepts of 5S/Visual Workplace, and have been quick to replicate improvements in other production areas.

• Gary Lofquist, CEO of Pulaski-based MCL Industries Inc., says the company’s lean journey has led to new business and improved performance throughout all areas of the company, including finance, human resources, engineering and sales. “WMEP gave us the ability to look at manufacturing processes and problems with a different set of glasses,” he said. The company used lean techniques to reduce lead times, which led to new business. “Our ability to perform in this new lead time environment resulted in significant new opportunities that are now the core of our future growth plans,” Lofquist said. MCL, which specializes in the engineering and manufacture of electrical assemblies for heavy-duty and on- and off-road vehicles, has done more than 30 improvement projects with WMEP.

Manufacturing contributes $47.7 billion to Wisconsin’s economy and employs nearly 500,000 people. In the past five years, manufacturing’s contribution to Wisconsin’s economy has grown $5.9 billion, according to the federal Bureau of Economic Analysis (BEA).

WMEP is a private, nonprofit organization committed to the growth and success of Wisconsin manufacturers. WMEP is a leader in lean manufacturing, growth services, strategic business planning, quality systems and supplier development. WMEP receives financial support from the Wisconsin Department of Commerce, and partners with many public and private organizations to serve Wisconsin manufacturers. For more information, visit www.wmep.org or call 1-877-856-8588.