Study Finds More Than 14:1 Return on Manufacturing Extension Program
A recent study by the W.E. Upjohn Institute for Employment Research titled “The National-Level Economic Impact of the Manufacturing Extension Partnership (MEP): Estimates For Fiscal Year 2018” found the National Institute of Standards and Technology’s (NIST) Hollings Manufacturing Extension Partnership (MEP) Program generates a substantial economic and financial return of nearly 14.4:1 for the $140 million invested in FY 2018 by the federal government. The study also finds that total employment in the U.S. was nearly 238,000 higher because of MEP Center projects. In addition, the Upjohn study examined additional areas of economic impact not previously reported by the MEP Program: (1) personal income is $15.0 billion higher and (2) GDP is $24.9 billion larger, translating into an increase of $2.02 billion in personal income tax revenue to the federal government than without the MEP Program. DVIRC is a part of the the National MEP Program.
According to the Upjohn Institute, the study is consistent with Upjohn Institute research finding that customized business services such as manufacturing extension can be 10 times as effective as tax incentives in creating local jobs. Communities that invest in customized services for local businesses perform better than those relying on business tax cuts or tax incentives. The study is available here.