What's Trending in Manufacturing
The Manufacturing Economic Multiplier Effect is Strong
By John Killam, President and CEO, MassMEP
How do the direct impacts from MassMEP manufacturing clients impact the entire Massachusetts manufacturing ecosystem?
MassMEP creates economic impact by transforming manufacturing enterprises and the manufacturing ecosystem. This is achieved through providing operational excellence, workforce development strategies, and innovative growth initiatives.
The economic impact analyses estimate the impact, in terms of jobs, sales, labor income, and taxes of an initial change in the local economy such as expansion of an existing manufacturing companies, a new business such as a startup or a plant closure.
Over the past 5-year period MassMEP surveyed our clients using a third party survey company Fors Marsh to report the economic impacts of manufacturing clients in Massachusetts. These surveys determine the tax and non-tax revenue generated, Gross State Product (GSP) value added, economic output, and jobs created or retained. These numbers are important not only to the direct impact to MassMEP's clients but to the entire Massachusetts manufacturing supply chain to meet the demands of the Massachusetts manufacturing industry.
Over the past 5 years MassMEP has reported 24,468 jobs created or retained, $691M tax and non-tax revenue generated, $3.2B GSP Value added contributed or retained, $7B of economic output increased or retained, and the jobs created or retained paid a total of $1.6B in employee compensation.
As a part of the MEP National Network the economic impact derived by all 50 states and Puerto Rico, our mission is to continue to provide manufacturers with the tools needed to sustain manufacturing as the strongest economic multiplier.
Over the past year the MEP National Network has surveyed approximately 28,000 manufacturers. Reporting 122,000 jobs created or retained, $16B new and retained sales, $1.7B in cost savings and $4B in new client investments. MEP National Network clients have cited top challenges as ongoing continuous improvement/cost reduction strategies, employee recruitment, and growth and product innovation development.
Because of the MassMEP's affiliation with the MEP National Network, we have a team of trusted advisors across the country. MassMEP's trusted advisors have expertise in the areas of business growth, cybersecurity, ISO and quality management, Lean/Six Sigma, risk mitigation, workforce development, and we are embedded in 6 out of the 14 Manufacturing USA institutes.
As the demand for manufacturing grows, it in turn spurs the creation of jobs, investments, and innovations elsewhere. Manufacturing companies, therefore, have a powerful and positive impact on economic development.