Western Research Application Center (WESRAC) Ken Dozier USC Western Research Application Center Barbara Halsey Halsey Consulting Martin Gutierrez, Jr GMP

Western Research Application Center (WESRAC)

Ken Dozier USC Western Research Application Center

Barbara HalseyHalsey Consulting

Martin Gutierrez, JrGMP Plating, Inc.

California Workforce AssociationMeeting of the MindsSeptember 2-4, 2014

Monterey, CA

Strategies for At-Risk Businesses


TAAF-What is it??

• Trade Adjustment Assistance for Firms• Federal Program-US Dept. of Commerce• Cost Sharing• Pays for consultants/industry specific

experts• Goal: Improve Manufacturer’s

Competitiveness


TAAF-Who does it help?

• Businesses recovering following the recession• Businesses at risk now• Businesses that lack capital to implement

improvements• Businesses poised to take the next step


How can WIBs use it?

• As part of a comprehensive sector strategy in cooperation with EDCs

• As a central component to Rapid Response and Lay-off Aversion strategies

• As an alternative to MEPs where federal to federal match is prohibited

• As a critical life-line to saving companies and jobs in manufacturing.


Program Comparison


WESRAC Web Site


WTAAC Home Page


Success Stories


Forged Metal Manufacturer


Western TAAC Steps


Litmus Test


Good News


Petition Application


Results• Manufacturing/Distribution: Custom Wood and Laminate Casework/Countertops

– Faced increased competition from lower cost foreign competition from China and Canada– Experienced a 15% decrease in annual sales and a 6% decrease in employment

• Certified as trade impacted by the US Dept. of Commerce, Economic Development Administration (EDA) in 2010.

• Strategy: Western TAAC and the company management team from the company developed an adjustment proposal and focused on

• enhancing sales and marketing capabilities • increasing operating productivity • lowering manufacturing costs.

• Status: The company is in its 4th year in the implementation phase of the TAAF Program. With Western TAAC assistance the company has successfully implemented two information technology projects for $35,637 in matching funds.

• Outcome: Since beginning its public/private sector partnership with the TAA for Firms Program, sales increased 23% to $4.6 million and employment improved 29% to 40 employees.


Results• Design/Manufacturing: Packaging Supplies

– Suffered from a continued shrinking market share due foreign competition from China. – Sales decreased 17% & Employment decreased 14%.

• Certified as trade impacted by the US Dept. of Commerce, Economic Development Administration (EDA) in 2007

• Strategy: Western TAAC and the company’s management developed a strategy to:• Implement efficiency and productivity improvements’• Develop a green packaging initiative to keep current with increasing customer demand

• Status: 2007 graduated from the Western TAAC program in 2013

• Outcome: While in the program the company implemented eight projects totaling $49,600 in matching funds from WTAAC:

• Four information technology projects• Two quality management system development projects • One general management project • One marketing project

The company realized a sales increased of 22% to $17M, employment increased by 63% to 68 and 18 new jobs were created since working with the TAAC program.


Results• Manufacturing: Custom Stamping Fabrication of Metal Parts

– Faced increasing competition from contract manufacturers located in China – As customers began sourcing production offshore, the subcontracting jobs were also sourced locally – Resulted in a 7% decrease in annual sales and an 11% decrease in employment

• Strategy: Western TAAC and the company’s management developed a strategy to• Specialize in the manufacture of more complex precision stamped and fabricated parts, • Diversify its customers and industry markets

• Status: Company completed the post implementation phase of the program in June 2011.

Western TAAC tracks graduates like this one for three years to monitor the company’s accomplishments and provide valuable feedback to the Trade Adjustment assistance for Firms Program

• Results: With Western TAAC’s assistance, the company, successfully implemented – two quality management projects focused on

• significantly improving manufacturing efficiency,• reducing production cost and• shortening cycle times.

Since beginning its public/private sector partnership with the TAA for Firms Program, sales increased 3% to $6.5M and employment has climbed back to certification numbers, while profitability increased over 33%.


In Conclusion

• Additional Matching Funds– Up to $60k– Consulting and Training Only– You Choose the Consultants– You Choose the Trainers

• WTAAC Three Year Follow Up For Graduates• WTAAC Program Has Over 600 Active Alums


http://wesrac.usc.edu

For more information, please visit

Contact Information

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Documents

Western Research Application Center (WESRAC) Ken Dozier USC Western Research Application Center Barbara Halsey Halsey Consulting Martin Gutierrez, Jr GMP