MMTC President Testifies on CommerceConnect Pilot

U.S. House of Representatives - ..."[M]anufacturers lack knowledge of many programs and do not know how to access their services; that many programs are not focused on the priority concerns of manufacturers; and that the programs are often not aware of each other’s services. Based on those findings, a pilot that came to be called “CommerceConnect” was established."

"Again, it has been fewer than four months since the pilot was launched, so my remarks today certainly do not represent a full evaluation based on hard data. However, I believe that we can begin to draw at least four lessons that should inform decisions about whether to launch CommerceConnect programs in other states and, just as important, how to design the post-pilot phase in a way that delivers the most impact at the least cost."

"First, we have learned that navigating federal programs requires knowing a good deal about what those programs actually do. Their websites help, but are not enough. Only now, after nearly four months, is the current six-person CommerceConnect staff beginning to understand the services of just the dozen or so programs with the most manufacturer-relevant services. This has a clear implication: CommerceConnect needs to have permanent staff that can invest in learning the programs. That staff will be even more effective if it has good general business knowledge. Our pilot benefited greatly by having three individuals, including NIST MEP’s Phillip Wadsworth, with substantial manufacturing and business backgrounds.

Second, after servicing the initial 25 clients, we have learned that doing “case management” well requires more than just making referrals. A great deal of follow-up has been needed to make sure that clients actually got relevant assistance from the programs to which they were referred. CommerceConnect case managers have sometimes shared the frustrations of the manufacturers they serve, not being able to find personnel able to deal with the client’s request. This too has a clear implication: each program needs to have a designated point-of-contact that is knowledgeable about its services and explicitly tasked with addressing CommerceConnect clients’ requests in a timely manner.

Third, we have learned that manufacturers’ needs do not respect agency or program boundaries. A given company may need loan support from an SBA program, IP protection advice and legal aid from an ITA program, and help with lean manufacturing methods from NIST’s MEP program. The clear implication: staff need to understand the full range of business assistance programs, though over time they may reach the useful conclusion that a subset of the programs are more effective and responsive than the others.

Fourth, we have confirmed that there is indeed a vital role for a hands-on navigation function like CommerceConnect. Thus I would recommend that the effort continue in Michigan at approximately its current scale. It probably makes good sense to charter at least a few more pilots in other parts of the country that are less automotive- and less manufacturing-intensive than Michigan to get a sense of how to make federal agencies responsive to distribution and service businesses as well as to manufacturers. It would, though, be premature to move from a pilot to a full-scale program. Much work remains to be done to arrive at a design that is both effective and efficient."

Full Testimony