Documents/NIST/3: Small Manufacturers

3: Small Manufacturers

Raise the productivity and competitiveness of small manufacturers

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U.S. manufacturing firms are among the most productive in the world, but small manufacturers consistently lag behind their larger counterparts in value added per employee. Large firms typically have greater financial, technical, and human resources available for production modernization and continuous performance improvement. However, the nation’s 360,000 small manufacturing establishments employ about 12 million people—nearly two-thirds of all manufacturing jobs—and produce intermediate parts and equipment that contribute more than half of the value of finished products. Due to the pervasive role of small firms in the manufacturing supply chain, the future productivity of the nation’s supply base will rest largely on the ability of small firms to improve quality, raise efficiency, and lower costs. The comparatively low productivity growth of small U.S. firms can be attributed to numerous factors, including technical, cost, and information barriers. Through the Manufacturing Extension Partnership (MEP), NIST helps to overcome these barriers by providing information, decision support, and implementation assistance in adopting new and more advanced manufacturing technologies, techniques, and business practices. The national MEP network helps small companies transform themselves into high-performance enterprises—productive, innovative, customer-driven, and competitive businesses—by efficiently providing high value technical and advisory services, including access to industry best practices. MEP’s ultimate goal is to measurably improve the productivity of all its clients.

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