National Manufacturing Continues in Slump and Assistance is Needed

    LOS ANGELES--March 26, 2003--Last week the Federal Reserve reported that in February, manufacturing production dropped by 0.1 percent. This marks "the lowest manufacturing recovery since the Federal Reserve began tracking monthly production back in 1919," stated the National Association of Manufacturers (NAM). Jerry Jasinowski, President of NAM, said, "The recession may be over, but this is the slowest manufacturing recovery since the Federal Reserve began tracking monthly production back in 1919..." Jasinowski then added, "We cannot have a strong economy without strong manufacturing."
    The California Manufacturing Technology Center (CMTC) agrees that in order for California and the U.S. to have a strong economy, a strong manufacturing base is needed. CMTC supports the U.S. Secretary of Commerce Evans' initiative to revitalize manufacturing in the U.S. The principal reason for the decline in manufacturing is the increased competition from countries with low wage structures such as China. However, new production and management techniques are available today that will allow manufacturers to substantially reduce manufacturing costs here in the U.S. Some techniques include speeding up the time a customer receives the order from the time that they place the order. Other techniques include producing a product more efficiently so as to reduce the cost of making the product. In February, the U.S. Congress voted to fully fund the U.S. Department of Commerce's Manufacturing Extension Partnership program (MEP) for FY 03. The MEP teaches manufacturers the new production and management techniques mentioned above.
    Says David Braunstein, President and CEO of CMTC, "MEP is a vital program to California and the U.S. economy. MEP helps our manufacturers to grow and succeed in these uncertain economic times. The U.S. Bureau of Labor Statistics shows that national manufacturing employment has been in a downturn since July of 2001. In California, manufacturing employment has dropped as well. We must help our manufacturers to grow and flourish so that they will create a stable manufacturing base that provides high-paying jobs for Californians. Only with this stable manufacturing base will our economy become more strong."

    About California Manufacturing Technology Center

    A private, nonprofit corporation, CMTC was established in 1992 to provide high-value consulting services to California's high-tech and traditional small and medium-size manufacturers to increase their competitive advantage through improved methods of management and manufacturing. Today, through its seven regional centers, CMTC provides consulting services in the practice areas of Strategic Business, Lean Enterprise, Information Technology, and Quality. CMTC's regional centers cover Los Angeles, the Inland Empire, Orange County, Ventura/Santa Barbara County, the San Fernando/San Gabriel Valley, the San Joaquin Valley and San Diego/Imperial County. For more information, visit www.cmtc.com.