The National-Level Economic Impact of the Manufacturing Extension Partnership (MEP)

The Manufacturing Extension Partnership (MEP), which is part of the National Institute of Standards and Technology (NIST), contracted with the Upjohn Institute to conduct an analysis of the overall effect of MEP projects on the U.S. economy. MEP centers provide assistance primarily to small and medium-size manufacturing businesses to help them improve their productivity. Each year, NIST MEP surveys their clients using an independent third-party vendor to obtain a reading of the impact of the services provided. This study’s purpose is to use the client-reported outcomes to estimate the overall effect of MEPs on the U.S. economy. Using the REMI model, Upjohn staff forecast the indirect and induced effects of the reported increase in jobs, sales, cost savings, and investments by MEP clients. Comparing forecasts with and without MEP activities included, the study found that the $130 million invested in MEP during FY2016 generated $1.13 billion in federal personal income tax, which is an 8.7:1 return to the federal treasury. 

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