Looking at Effect of NH Manufacturing Extension Partnership Program on Economy

The New Hampshire Manufacturing Extension Partnership (MEP) program, which is supported by the National Institute of Standards and Technology within the U.S. Dept. of Commerce to help small- and medium-size manufacturers identify and implement advanced manufacturing and management technologies, has unveiled the effects of its efforts on the NH economy in a new study.

This study estimates the total economic contribution to the state's economy from firms whose employment, sales, or investment activity changed as a direct result of assistance provided by the NH MEP. Clients are surveyed roughly one year after the completion of a project and asked questions relating to changes in efficiency and output as well as questions relating to the quality of the MEP services they received. Between October 2008 and August 2013, 205 companies surveyed reported that, as a result of their relationship with the New Hampshire MEP they have:

·        Created 352 jobs

·        Retained 637 jobs that otherwise would not exist

·        Increased and retained $252.1 million in sales

·        Spent $73 million on new investment

·        Experienced $31.4 million in cost savings

The effects of this increased economic activity, extends beyond the client firms. Increased sales by NH MEP client firms require that they increase their purchases of intermediate goods and services from companies located in NH and elsewhere to support their increased output. The supplying companies, in turn, generate additional demands of their own. In this way, dollar expenditures for final demand can be traced to all of the affected industries in the regional economy. In addition, the income from new jobs generated by NH MEP clients and the supplying firm’s results in increased demand for consumer goods. Each of these effects, in turn, generates subsequent ripples throughout the New Hampshire economy.  The sum of these direct, indirect, and induced effects suggests that small- and medium-size manufacturing companies that increased or retained jobs or sales and/or increased investments with assistance from the NH MEP are responsible for:

·        Creating or retaining 2,709 jobs that paid a total of $141.3 million in employee wages and benefits

·        Increasing or retaining economic output worth $610.1 million

·        Contributing or retaining $232.2 million of gross state product

·        Generating or retaining $53 million in additional tax and non-tax revenues.

No client is surveyed more than once in a 12 month period. Data is from 20 Quarterly Surveys, which were conducted from October  2008 – August 2013. Clients are asked about impacts experienced over the past year. Reported impacts modeled using IMPLAN Pro version 3.0 software.