Senators Debbie Stabenow, Lindsey Graham Win Restored Funding for Manufacturing Extension Partnership in Budget Resolution

Senators Debbie Stabenow, Lindsey Graham Win Restored Funding for Manufacturing Extension Partnership in Budget Resolution

Funding supports program that retains and creates jobs, makes U.S. manufacturers more competitive

U.S. Senators Debbie Stabenow (D-MI) and Lindsey O. Graham (R-SC) have won an important victory for U.S. manufacturers. The fiscal year 2006 budget approved by the U.S. Senate last week includes a measure co-authored by Stabenow and Graham that restores $112 million to the Manufacturing Extension Partnership. Funding for the MEP - long recognized as a critical program that successfully helps small and medium-sized manufacturers create or retain jobs, had been cut by almost 60 percent in the budget proposed by the President last month.

"Restoring funds for the MEP reflects the right values and the right priorities. The MEP is a vital program that helps our manufacturers stay competitive, which means they stay in business and American jobs are protected," Stabenow said. "At a time when we are losing manufacturing jobs overseas, we must do everything we can to create, protect and keep manufacturing jobs here in Michigan and the U.S."

"The MEP plays a vital role in helping to create and protect American jobs," said Graham. "Many of our domestic manufacturing industries are being devastated by the illegal trade practices of China and others. The MEP is an important tool in helping to level the playing field. While restoring funding is vital in the short term, it is my hope that the MEP will achieve its goal of becoming self-sufficient and no longer rely on federal funds."

Speaking in support of her amendment in the Senate Budget Committee, Stabenow outlined some of the challenges facing American manufacturers. In addition to having to shoulder the increasing burden of health care costs - in the only industrialized nation where the burden falls on businesses - American companies face the challenge of currency manipulation by Japan and China, which makes their exports to the U.S. artificially less expensive.

Stabenow noted that manufacturing is essential for economic growth, producing 13 percent of the Gross National Product and an astounding 89 percent of export revenue. Making MEP even more important, she said, is the fact that small and medium manufacturers - the very group aided by the program - comprise about 97 percent of all manufacturing firms and employ about half of all manufacturing employees.

"From October 2002 through September 2003, clients of the Manufacturing Extension Partnership reported sales increases of $1.5 billion, creation or retention of 50,315 jobs, cost savings of $686 million, and $912 million invested in new plants and equipment as a direct result of their MEP projects," she said. "Clearly this program more than pays for itself in increased economic activity.

"I was pleased to be able to work with my colleague, Lindsey Graham, to win approval of this restoration of funding in the Senate's fiscal year 2006 budget proposal," Stabenow said. "This is good news for Michigan and for the nation."

http://stabenow.senate.gov/press/2005/032105FundingforMEP.htm