It is quizzical that in President Donald Trump's first budget proposal he has proposed eliminating the $124 million federal match for the Manufacturing Extension Partnership, putting in grave jeopardy programs such as Polaris MEP in Rhode Island.
Polaris, and other such programs across the nation, help manufacturers improve their competitive positions, whether through programs to teach lean manufacturing techniques or the Rhode Island Manufacturing B2B program held on March 23, at which nearly 60 exhibitors were scheduled to appear and connect with other Rhode Island companies in order to build a stronger local value chain.
According to research from Polaris, which receives both state and federal funding, every dollar spent in the MEP system yields a return of $8.70. Looked at another way, the $750,000 in federal support in 2016 (about half the program's annual budget) added or saved 138 jobs, increased or retained sales of $27 million and saved manufacturers $551,000.
One reason for the significant cuts in federal spending in some areas is to free up money to make a significant increase in defense spending. And while many enterprises will benefit from that increase, it is as yet unclear if the benefits will be evenly distributed across the states, given that many defense contractors are concentrated in certain locales.
The good news out of Washington, D.C., is that this first pass at a budget is just that, a document that isn't finalized. There is still time for prudent decision-making to overcome poor, broad-brush strokes in governance. •