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December 08, 2003

Republican Congress Kisses Small and Medium Manufacturers Good-Bye

Today, the Republican-controlled Congress approved a two-thirds cut to the Manufacturing Extension Partnership (MEP) program, which will accelerate the loss of American manufacturing jobs while the Administration continues to delay the release of its manufacturing initiative.  According to Rep. Mark Udall (D-CO), "When the time came for action, instead of just talk, a Republican Congress and Administration killed the very program designed to support small and medium-sized manufacturers they claim to support."

The MEP assists small and medium manufacturers in maintaining a competitive edge in the face of increasing global competition.  By the Administration's own accounts the MEP is an extremely successful public/private partnership with return on investment far greater than the level of Federal support.  The real proof of MEP's success is its strong support within the manufacturing community.  Congress and the Administration received over 5000 letters from small manufacturers asking that the program be fully funded.  Rep. Udall stated, "Because of injudicious tax cuts, and with the excuse that ‘we have to make tough choices in a difficult budgetary scenario,’ Republicans eliminated a proven program that assists a sector vital to the overall health of the US economy."

The $39.6 million provided in the appropriations bill will not sustain a viable MEP program.  As a result of this two-thirds cut, MEP Centers will serve 11,275 fewer businesses.  The results: a loss of $1.8 billion in sales; a loss of $446 million in cost savings; $649 million less investment in modernization activities; and either the failure to hire or the layoff of 28,000 workers within the small manufacturing community (estimates by the Modernization Forum).

"Of course we have to make tough choices in difficult budget times, but they should still be smart choices.  The level of funding provided for the MEP in the Omnibus Appropriations bill will all but eliminate the public mission and benefits of the MEP," Udall said.

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