Manufacturing Extension Partnership

“Transforming U.S. Manufacturing -- Challenges and Opportunities”Thursday, April 9, 2015

Presentation to the NACFAM’s Annual Conference & AMLF MeetingPhillip Singerman, PhDAssociate Director for Innovation and Industry ServicesActing Director, Manufacturing Extension Partnership

Manufacturing Extension Partnership (MEP) State Based Competitions – 2015

2U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

MEP Strategic Plan

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MISSIONTo enhance the productivity and technological performance of U.S. manufacturing.

ROLEMEP ‘s state and regional centers facilitate and accelerate the transfer of manufacturing technology in partnership with industry, universities and educational institutions, state governments, and NIST and other federal research laboratories and agencies.

• National program with at least one center in every state and Puerto Rico.

• Federal/state, public-private partnership with local flexibility.

• Cost share policy that matches federal investment with state and private sector investment.

• Market driven program that responds to the needs of private sector manufacturers.

• Leverage partnering expertise as a strategic advantage.

• Local knowledge of, focus on, and access to manufacturers.

PROGRAMMATIC STRENGTHS:

U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

The MEP Program in Short

MEP System Budget$130 Million Federal Budget with Cost Share Requirements for Centers

Global Competitiveness Program was created by the 1988 Omnibus Trade And Competitive Act

Emphasis on PerformanceProgram and center performance based upon impact of center services on client firm

Program Started in 1988At least one center in all 50 states by 1996

National NetworkSystem of Centers serving Manufacturers in each State.

Partnership ModelFederal, Stateand Industry

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The National Network

U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP 5

MEP Client Impacts

U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

N = 6,088

Manufacturers Surveyed in FY 2014

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MEP State Competition – What and Why?• The program is undergoing a multi-year effort to conduct a full

and open competition for MEP centers older than 10 years.• Objective is to optimize the federal investment and allocate

additional funds to areas with higher concentration of manufacturers.

• Will be able to expand the range of services offered with an emphasis on very small, rural and start-up manufacturers.

• MEP just announced first 10 award recipients of competition in Feb 2015. Press release can be found http://nist.gov/mep/awards-support-manufacturing.cfm

• Second round of the competition for 12 states was announced March 2015. Proposals are due June 1, 2015.

7U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

H.R. 5035 – NIST Reauthorization Act of 2014

“To reauthorize the National Institute of Standards and Technology, and for other purposes” passed the House on July 22, 2014, which provided that if a recipient has received a Center award for 10 consecutive years, then the Director shall conduct a competition to select a Center operator. Current Centers in good standing are eligible.

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Government Accountability Office (March 2014)

• MEP: “Most Federal Spending Directly Supports Work with Manufacturers, but Distribution Could Be Improved”

• What GAO Recommends:– “GAO recommends that Commerce’s spending on cooperative

agreement awards be revised to account for variations across service areas in demand for program services and in MEP centers’ cost of providing services. Commerce agreed with GAO’s recommendation.”

9U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

The Budget for Fiscal Year 2016• National Institute of Standards and Technology: Industrial

Technology Services/Hollings Manufacturing Extension Partnership (MEP)…

– “In FY 2013, MEP began a broad based strategic planning process and developed an operational reform agenda intended to optimize program effectiveness, enhance administrative efficiency, and provide greater financial accountability. In FY 2014, MEP initiated a reform of the national system of MEP Centers through a carefully planned, systematic, multiyear series of full and open competitions. These re-competition efforts are ongoing and will continue in FY 2016.”

10U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

Round 1 Competition FundingMEP Center Location and Assigned Geographical Service Area (by State)

Annual Federal Funding for Each Year of the Award

Total Federal Funding for 5 Year Award Period

Colorado $1,668,359 $8,341,795

Connecticut $1,476,247 $7,381,235

Indiana $2,758,688 $13,793,440

Michigan $4,229,175 $21,145,875

New Hampshire $628,176 $3,140,880

North Carolina $3,036,183 $15,180,915

Oregon $1,792,029 $8,960,145

Tennessee $1,976,348 $9,881,740

Texas $6,700,881 $33,504,405

Virginia $1,722,571 $8,612,855

11U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

Round 2 Competition FundingMEP Center Location and Assigned Geographical Service Area (by State)

Annual Federal Funding for Each Year of the Award

Total Federal Funding for 5 Year Award Period

Alaska $500,000 $2,500,000

Idaho $640,236 $3,201,180

Illinois $5,029,910 $25,149,550

Minnesota $2,653,649 $13,268,245

New Jersey $2,814,432 $14,072,160

New York $5,985,194 $29,925,970

Ohio $5,246,822 $26,234,110

Oklahoma $1,309,080 $6,545,400

Utah $1,147,573 $5,737,865

Washington $2,534,872 $12,674,360

West Virginia $500,000 $2,500,000

Wisconsin $3,250,792 $16,253,960

12U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

Funding Opportunity Title: Award Competitions for Hollings Manufacturing Extension Partnership (MEP) Centers in the States of Alaska, Idaho, Illinois, Minnesota, New Jersey, New York, Ohio, Oklahoma, Utah, Washington, West Virginia and Wisconsin

• NIST invites applications from eligible organizations in connection with NIST’s funding up to twelve (12) separate MEP cooperative agreements for the operation of an MEP Center in the designated States’ service areas and in the funding amounts identified in the Federal Funding Opportunity - http://nist.gov/mep/ffo-state-competitions-02.cfm

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MEP State Competition

U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

Benefits to Competition• Opportunity to realign MEP center activities with State

economic development strategies• Resetting of State funding levels to reflect the regional

importance of manufacturing and the national distribution of manufacturing activities

• Reduction and simplification of reporting requirements• Five year awards reducing the annual paperwork burden• Immediate readjustment of the local cost share from 2:1 to

1:1

14U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

Additional Information• Proposals due June 1, 2015• Informational webinars for interested applicants

– March 30th 2:00pm; April 13th 2:30pm; April 16th 1:00pm– Email mepffo@nist.gov to register for a webinar– Webinar recordings and presentations will be made

available on the MEP website.

• For more information http://nist.gov/mep/ffo-state-competitions-02.cfm

15U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

The National Network for Manufacturing Innovation

Misperception - Productivity on Employment

0

0

0

1

1

1

1

10

12

14

16

18

20

1965 - Jan 1975 - Jan 1985 - Jan 1995 - Jan 2005 - Jan

Millions

Gray bars indicate

recessions

Rising Productivity does not create employment losses1965 – 2000 : US Mfg output rises 6x, stable employment

BACKGROUND

Challenge: US losing leadershipin Advanced Products

U.S. Trade Balance for Advanced Technology Products

+ 40

+ 20

0

-20

-40

-60

-80

-100

US Trade BalanceAdvanced Technology

Products($ Billion)

BACKGROUND

Products invented here, now made elsewhere - not driven by labor cost

BACKGROUND

PCAST: The independent basis of NNMI

PCAST 2011Recommends Advanced

Manufacturing Initiative as national innovation policy

PCAST 2012Recommends Manufacturing

Innovation Institutes to address key market failure

PCAST 2014Recommends strong, collaborative

network of Manufacturing Innovation Institutes

President’s Council of Advisors on Science and Technology

The “Scale-up” Gap or Missing Middle

Basic R&D Commercialization

Common termsThe “valley of death”

The “missing Bell Labs”The “industrial commons”

Initial Network Proposed

• President asks Congress to authorize initial network of up to 15 Manufacturing Innovation Institutes

• President directs Agencies to work together on Pilot Institute, while designing Institutes with input from Industry and Academia

“Sparking this network of innovation across the country, it will create jobs and will keep America leading in manufacturing…" President Obama, March 9, 2012

The Institute DesignCreating the space for Industry & Academia to collaborate

White House ReportNNMI Framework Design

January 2013

23Partnership: Industry – Academia – Government

Working better, together to create transformational technologies and build new products and industries

Institute Major Activities

Institute

Applied Research & Demo projects for • reducing cost/risk on

commercializing new tech.• Solving pre-competitive industrial

problems

Tech Integration - Development of innovative methodologies and practices for supply chain integration Small/Medium Enterprises

• Engagement with small and medium-sized manufacturing enterprises (SMEs).

Education, technical skills and Workforce development

Education and training at all levels for workforce development

Building the Network:Network Status and FY16 Plans

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Smart Mfg.

Flex. Hybrid Electronics

America MakesAdditive Mfg.

Youngstown, OH

PowerAmericaPower Electronics

Raleigh, NC

LIFTLight/Modern Metals

Detroit, MI

IACMIAdv. Composites

Knoxville, TN

DMDIIDigital Mfg.Chicago, IL

FORTHCOMING FY15

New Institutes Planned for FY16:

Full Network Goal: 45 regional hubs

Open topic competition – addressing “white space” between mission agency topics

Selected topic competitions supporting Agency mission – using agency authorities and budgets

FY17-26 – central fund proposed for remaining institutes, via open topic process

TopicTBA

Integrated Photonics

The First Pilot Manufacturing Innovation InstituteAdditive Manufacturing/3D Printing – Youngstown OH

Prime Awardee: National Center for Defense Manufacturing and Machining

• Initial $30M federal investment matched by $40M industry, state/local

• Strong leveraging of equipment, existing resources• Strong business development• Tiered membership-based model, low cost to small

business and nonprofits

• Now at $50M federal, $60M co-invested• OVER 100 Participating partners!

2nd Pilot Institute: Next Generation Power Electronics

Mission: Develop advanced manufacturing processes that will enable large-scale production of wide bandgap semiconductors, which allow power electronics components to be smaller, faster and more efficient than silicon.

President ObamaNorth Carolina State University, January 15, 2014

Lead: North Carolina State UniversityHub Location: Research Triangle Park, NC

Poised to revolutionize the energy efficiency of power control and

conversion

$70M public investment, $70M match

• 17 Industry Partners• 5 Universities• 3 Labs and Other Organizations

3rd Pilot Institute: Digital Manufacturing & Design Innovation

Mission: Establish a state-of-the-art proving ground that links IT tools, standards, models, sensors, controls, practices and skills, and transition these tools to the U.S. design & manufacturing base for full-scale application

Lead: UI LabsHub location: Chicago, Illinois• 41 Companies• 23 Universities and Labs• 9 Other Organizations

$70M public investment, $105M match

4th Pilot Institute:Lightweight and Modern Metals

Mission: Provide the National focus on expanding US competitiveness and innovation , and facilitating the transition of these capabilities and new technologies to the industrial base for full-scale application.

Lead: EWIHub location: Detroit, MichiganRegional location: I-75 Corridor

• 34 Industry Partners• 9 Universities and Labs• 17 Other Organizations

Positioned to expand the US Industrial base for new products and technologies for commercial and USG demands that utilize new, lightweight

high-performing metals

$70M public investment, $70M match

50% Lower cost

Using 75% Less Energy

And reuse or recycle >95% of

the material

ObjectiveDevelop and demonstrate innovative technologies that will, within 10 years, make game-changing advanced fiber-reinforced polymer composites. The Institute’s negotiation is led by University of Tennessee-Knoxville. The full team includes: 57 Companies, 15 Universities and Laboratories, 14 Other Entities, w/ 36 Consortia Members.

Application Estimated Current CFC Cost

Institute CFC Cost Reduction Target

(2018)88

CFC Ultimate Cost Target (2024)

CFC Tensile Strength CFC Stiffness

Production Volume

Cycle Time

Vehicles(Body Structures)

$26-33/kg >35%<$11/kg by 2025

~60%0.85GPa (123ksi) 96GPa (14Msi)

100,000 units/yr <3min cycle time

(carbon)<5min cycle time

(glass)

Wind (Blades)

$26/kg >25%$17/kg ~35%

1.903 GPA (276ksi)

134GPa (19.4Msi)10,000 units/yr (at

>60m length blades)

Compressed Gas Storage (700 bar –

Type IV)$20-25/kg >30%

$10-15/kg~50%

2.55 GPa (370ksi) 135 GPa (20Msi)500,000 units/yr

(carbon fiber)

5th Pilot Institute: Selected, Negotiations UnderwayAdvanced Composites Manufacturing

$70M Federal + > than $180 Non-Federal investment over five years. This National institute

has 6 State partners CO, IN, KY, MI, OH, TN with (Over 2:1 cost share) Source: www.iacmi.org

6th Pilot Institute Funding Opportunity Integrated Photonics Manufacturing Innovation Institute

More than $100M federal investment over five years

ObjectiveDevelop and demonstrate innovative technologies for:• Ultra high-speed transmission of signals for the

internet and telecommunications • New high-performance information-processing

systems and computing• Sensors and imaging enabling dramatic medical

advances in diagnostics, treatment, and gene sequencing

All these developments will require cross-cutting disciplines of design,

manufacturing, packaging, reliability and testing.

This Institute will focus on developing an end-to-end photonics ‘ecosystem’ in the U.S., including domestic foundry access, integrated design tools, automated packaging, assembly and test, and workforce development.

Reprinted with permission from Intel Corp

“In my State of the Union Address, I asked Congress to build on a successful pilot program and create 15 manufacturing innovation institutes that connect businesses, universities, and federal agencies to turn communities left behind by global competition into global centers of high-tech jobs.

“Today, I’m asking Congress to build on the bipartisan support for this idea and triple that number to 45 – creating a network of these hubs and guaranteeing that the next revolution in manufacturing is ‘Made in America.’”

- July 30, 2013

AP Photo/Susan Walsh

The President’s Vision – Network of 45 Institutes

NNMI Authorized: Revitalize American Manufacturing & Innovation Act

118 bipartisan RAMI Bill Sponsors

December 16, 2014 – Signed By President Obama

September 15, 2014 – Passed House

100 Cosponsors (51D, 49R)

December 11, 2014 – Passed Senate with 2015

Appropriations18 Cosponsors (10D, 7R, 1I)

Bipartisan Momentum Supporting NNMI Passage

Sen. Sherrod BrownD Ohio

Sen. Roy BluntR Missouri

Rep. Tom ReedR NY-23

Rep. Joe KennedyD MA-4

RAMI and Commerce/NIST

Call to Action: RAMI calls upon the U.S. Secretary of Commerce and NIST to establish:

1. The “Network for Manufacturing Innovation Program” (Network function) - to convene and support a network of Institutes

2. New “Centers for Manufacturing Innovation” (Institutes) - using an open topic, open competition process

3. The National Program Office at NIST - to oversee and carry out the program (coordination, network support, and reporting)

MEP and NNMI IMIs Revitalize American Manufacturing and Innovation Act of

2014 / Consolidated and Further Continuing Appropriations Act, 2015, pg 241: “The Secretary shall ensure that the National Program

Office incorporates the Hollings Manufacturing Extension Partnership into Program planning to ensure that the results of the Program reach small and medium-sized entities.”

AMP 2.0 Report called for major MEP role, including: Support for MEP as an intermediary to help small-to-midsize manufacturers

leverage manufacturing technologies; & to assist small-to-midsize manufacturers with market entry support and scale-up

Support to ensure that the MEP becomes a major “tool in the NNMI toolbox”

U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP

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NNMI FY 2016 Budget Request

Continues operations for previously funded institutes. Through FY 2015, funding was provided to DOE and DOD to initiate nine institutes.

Requests over $350 million for seven new institutes. Funds are requested in the discretionary budgets of DOD (1), DOE (2), USDA (2),

and DOC (2).

Includes a mandatory proposal to build out the full Network of 45 institutes over ten years $1.9B mandatory request with spending beginning in FY2017

For DOC specifically, the Budget proposes $150M for two NNMI Institutes on industry-proposed technologies and NNMI Network coordination

Conduct open competitions for two DOC-funded institutes on industry-proposed topics ($140M) To be awarded in CY 2016 through cooperative

agreements Two institutes each with $70M in federal funding

matched by $70M or more in private funding Winning public-private consortia would bring together

leading manufacturers, universities, and workforce non-profits

Technology topics chosen by industry Support the Network of Institutes ($10M)

Working with DOD, DOE, NASA, and NSF, convene and support the network of institutes to ensure sharing of best practices

Facilitate stakeholder access nationwide across institutes

Create long-term public-private governance structure and reporting mechanisms

Transform innovative technology into manufacturing capability

NNMI Hill Day September 18, 2014

NIST FY16 Plans

Industry-proposed Institutes at NIST• NIST institutes can address manufacturing “white space” technologies

proposed by industry that cannot currently be covered by other USG missions NIST issued RFI soliciting private sector input that generated 135

topics, many of which were outside of the energy and defense sectors

Key focus of the NNMI from its conception was the critical linkage between Innovation and Manufacturing. NIST is the only Federal Agency focused solely on supporting

technological innovation across the board

NIST support for manufacturing cuts across all NIST programs (Labs, MEP, AMTech, BPEP, AMNPO) Critical mass of technical expertise Non regulatory Mission is industry focused (not tied to a USG need) Works effectively in partnership with industry, academia, and other

organizations.

Thank you

For questions or comments, please contact the Advanced Manufacturing National Program Office

amnpo@nist.govwww.manufacturing.gov

301-975-2830

Unless otherwise labeled, images are courtesy of The White House, the National Institute of Standards and Technology, and Shutterstock