Evaluating the Impact of Manufacturing Extension Services on Establishment Performance

This study examines the effects of receipt of business assistance services from the Manufacturing Extension Partnership (MEP) on manufacturing establishment performance. The results generally indicate that MEP services have had positive and significant impacts on establishment productivity and sales per worker for the 2002 to 2007 period with some exceptions based on employment size, industry, and type of service provided. MEP services have also increased the probability of establishment survival for the 1997 to 2007 period. Regardless of econometric model specification, MEP clients with 1 to 19 employees have statistically significant and higher levels of labor productivity growth. The authors also observed significant productivity differences associated with MEP services by broad sector, with higher impacts over the 2002 to 2007 period in the durable goods manufacturing sector. The study further finds that establishments receiving MEP assistance are more likely to survive than those that do not receive MEP assistance