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

The W.E. Upjohn Institute released a new study that found the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP) Program generates a substantial economic and financial return of 14.5:1 for the $128 million annually invested by the federal government.

Using the national REMI® model, along with the results from the FY2017 NIST MEP client impact survey conducted by Fors Marsh, the W.E. Upjohn Institute for Employment Research study finds that economic returns are substantially higher than previously reported by the MEP program due to broader economic effects.  Each year, an independent firm surveys manufacturers regarding the impact they have achieved from MEP Center services. In 2017, MEP clients reported $12.6 billion new and retained sales of which $3.5 billion is new sales providing an economic stimulus of 27 to 1 (based on the $128 million federal investment) and the creation or retention of more than 100,000 jobs.  The Upjohn study reports that the $128 million invested in MEP during FY2017 generated a 14.5 to 1 increase in federal personal income tax ($1.86B/$128M federal investment).  The study looked solely at personal income tax and not business taxes, and provides a conservative estimate of the return.

In addition, the Upjohn study finds more jobs were generated by the MEP program than directly reported by its clients. The study finds that more than 219,000 additional jobs existed in the U.S because of MEP center projects last year than would have without the program.  This estimate includes direct, indirect, and induced jobs generated by MEP projects.  These jobs support additional manufacturing jobs critical to U.S. supply chains and jobs outside of manufacturing.  Lastly, the Upjohn study also examined additional areas of economic impact not previously reported by the MEP Program; personal income is $13.76 billion higher and GDP is $22.01 billion larger, translating to an increase of $1.86 billion in personal income tax revenue to the federal government than would be reported without the program.

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