Manufacturers gained $137 million, group says: Consultant helps state firms improve sales, cost savings

BYLINE: John Schmid, Milwaukee Journal Sentinel

Aug. 30--The Wisconsin Manufacturing Extension Partnership reported Wednesday that the state manufacturers it aided last year produced an economic benefit of $137 million, much of it in sales growth.

Among improvements companies reported were:

--$75.7 million in increased or retained sales;

--$16.7 million in cost savings;

--$44.8 million in investments, including new plant and equipment;

--855 created or retained jobs.

In addition, state tax revenue is projected to increase $6.2 million as a result of higher sales and job creation, according to the partnership, a non-profit consulting organization that helps small and midsize manufacturers.

With three offices in the state, WMEP has 37 consultants who help small and medium-size manufacturers that lack the resources to grow. Most of its work involves implementation of efficient lean-manufacturing processes. Sometimes, it helps companies find new products or markets.

The economic impact is based on 136 surveys completed by WMEP-assisted companies and compiled by an independent national research firm. Manufacturers are asked to report higher sales, cost savings and investment impact that they attribute to WMEP assistance.

WMEP gets about half its $8.5 million budget from state and federal taxpayer sources and the remainder from its consulting fees. The organization said it uses taxpayer subsidies to keep its fees affordable.

"Very rarely do you have an organization that goes back to a customer after the grant's been made to learn what happened," said Michael Klonsinski, executive director of WMEP.

A Journal Sentinel examination of state records in July found the state distributes millions of dollars of taxpayer money to companies each year to encourage economic growth and job creation but fails to track its subsidies to see whether they worked. Similarly, the Public Policy Forum found last year that the City of Milwaukee fails to track its economic development spending.

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