MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Future of MEP Centers: 

An MEP Center Perspective

Michael J. Coast, President

mcoast@mmtc.org

Visiting Committee on Advanced Technology

February 6, 2013

47911 Halyard Drive

Plymouth, MI 48170

www.mmtc.org

1-888-414-6682
MICHIGAN MANUFACTURING TECHNOLOGY CENTER
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Our Mission

To enhance the global competitiveness of 

Michigan’s small and medium-sized manufacturers

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Our Focus

Survivable manufacturers with 20-249 employees

(65% of MI mfrs have 1-19 employees ... but they account for 

just 8% of MI mfg jobs) 

Our Metrics

A public-private network measured solely by the business 

results we have on client companies’ costs, sales, and new 

and retained jobs
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

MMTC Business Model 

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Market 

Penetration

CORE Revenue
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Documented Business Results 

Our federal sponsor funds an independent, third-party survey firm to 

measure the impact of the services we provide to Michigan 

manufacturers. MMTC clients are surveyed six months after project 

work is completed. 

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MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Improving the Domestic Supply Chain

Reducing the Total Cost of Procurement,

Reducing Supply Chain Risk

How MMTC Services Impact Large Company Supply Chains

Lower Costs 

Better Quality Outcomes

Shorter Cycle and Delivery Times 

Suppliers with Better Understanding of Own Costs 

More Innovative, Collaborative Suppliers 

More Agile Suppliers 

Excellent $-Denominated Supplier Options 

Lower Disruption Risk 

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MICHIGAN MANUFACTURING TECHNOLOGY CENTER

EVALUATION/ASSESSMENT

• On-Site Assessments

• Performance Benchmarking

• Transformation Planner

• Performed by Credible, 

Seasoned Professionals

TOP-LINE GROWTH

• Customer cultivation (new and existing)

• New Product Innovation

• International Opportunities

 (exporting)

• Sales Training

• Website Improvement

• Market Intelligence/Research

• From Parts to Products

BOTTOM-LINE 

IMPROVEMENTS • Process Innovation

• Facility Layout

• Process Improvements

• Supplier Development

• Information Technology

• Green Resources

LEADERSHIP DEVT

• Vision and Planning

• Financial Understanding

• Executive Coaching

• Succession Planning

• Workforce Development

INNOVATION 

STRATEGIES

MMTC’s Circle of Life:

Assess, Improve, & Train Leaders to Plan & Manage Growth 
MICHIGAN MANUFACTURING TECHNOLOGY CENTER
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Leadership-In-Action

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3-Day Executive-Level 

Hands-on Workshop Focused 

on Planning & Leading 

Change:

• Benchmark Organizational 

Performance

• Create a Culture of 

Improvement

• Expect Results
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Top-Line Growth – Four Strategies

CREATE

COMMUNICATE

COMMERCIALIZE

RFQs

PROSPECTS

LEADS

CUSTOMERS

Current 

Customer

Loyal 

Customer

Advocate

Referrals

Home 

Market

New 

Channels

New Geography

New 

Industries

1. Customer Cultivation

• For fast growth

• Current Customers

• More sales

• More 

 profits

• Build Referrals

• Customer Mgmt 

 Process

2. Lead Generation

• New Customers – current markets

• Identify Prospects, qualify Leads

• More sales

• Build Lead Pipeline

• Sales Mgmt Process

4. Innovation

• New Ideas for Growth

• New products/services

• Speed to market

• Build Idea Pipeline

• Idea Mgmt Process

3. Market Diversification

• New Customers – 

New Markets

• New market Entry

-US & International

• Research “best fits”

• Build Market Pipeline

• Market Mgmt Process 
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

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Growth Services

Shrinking orders from their traditional customers have caused many Michigan 

companies to begin looking for new customers. MMTC’s Growth Services 

program assists your company in aligning its core competencies and 

strengths with new markets and customers, leading to increased sales and 

sustainable growth.
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Innovation Strategies for Transformation: 

Four Case Studies in Growth

 J.C. Gibbons: market diversification beyond a 

dominant automotive customer

 Omega Plastics: from auto tooling to multiindustry contract manufacturing

 St. Clair Systems: leveraging cost reductions 

to succeed as an exporter

 Aluminum Blanking: investment avoidance 

and leadership focus to crack new niche

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MICHIGAN MANUFACTURING TECHNOLOGY CENTER

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Challenge: Heavy 

reliance on one customer 

in the automotive industry

Result: Grew nonautomotive business, 

reducing dependence on 

automotive from 75% to 

29%. Key: repurposing 

existing products to serve 

replacement knee market

Case Study: J.C. Gibbons

Livonia, MI

20 employees
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Case Study: Omega Plastics 

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Challenge: Develop and 

execute a plan to diversify 

customer base from 90% 

automotive

Result: Achieved design and 

production efficiencies, and 

implemented new market 

strategies, to diversify 

customer base into medical 

device and consumer 

packaging markets. Key: 

leadership alignment to 

transform company’s role

Jeff Kaczperski, President & CEO

Clinton Township, MI

45 employees
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

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• Mastered SMED to decrease changeover time to support 

business model with many more smaller jobs for many 

more customers 

• Secured ISO 13485 certification (Medical Device quality 

standard)

• Invested $160,000 in clean room 

• Secured more than 25 new customers in multiple new 

market segments within and beyond medical

• Increased value-added per FTE by 93% through 

efficiency and growth

Omega Plastics’ Success
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

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Case Study: Saint Clair Systems

Challenge: Decrease 

production time to 

compete with low-cost 

countries’ machinebuilders

Result: Sharply cut 

lead time & hence 

production costs, 

resulting in 48% of 

sales from exports 

beyond North America. 

Key: using lean as a 

competitive weapon 

Rob Gladstone, President and Mike 

Bonner, Vice President

Washington Township, MI

22 employees
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

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Saint Clair Systems’ Success
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

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Challenge: Achieve large 

operational improvements to 

regain lost market share in 

metal blanks

Result: Management 

alignment, employee 

engagement, and fixed cost 

avoidance helped secure a new 

$1.6-million contract with a new 

customer in a stainless steel 

market niche. Key: leadership 

focus on time compression to 

gain an advantage in customer 

service

Rick Hole, President

Pontiac, MI

100 employees

Case Study: Aluminum Blanking
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

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• Establishment of autonomous maintenance and a 

work order priority board, boosting throughput and 

saving the company $150,000

• $33,000 in annual energy cost savings

• Avoidance of need for additional floor space, saving 

$3 million

• “Found capacity’ within the existing footprint held 

down fixed costs, helping company secure a $1.6-

million contract in a new stainless steel market niche

Aluminum Blanking’s Success
MICHIGAN MANUFACTURING TECHNOLOGY CENTER

Forecast: More Hard Work Ahead

 Manufacturing performance critical to state’s and region’s comeback: 

 Michigan still down >400,000 mfg. jobs from 1998-2000

 Detroit 3’s share barely half what it was in 1978

 No growth in Michigan mfg. jobs since January 2012

 A moment of threat and opportunity:

 A weak dollar and rising Asian costs could help keep more 

Michigan mfrs. in the game ... if cost & quality are good 

enough.

 Vehicle lightweighting to meet 2025 CAFÉ standards could bring 

a sea-change in materials and fabrication ... if mfrs invest.

 More new products can be designed and built in Michigan ... if 

more mfrs embrace this model & move beyond parts-making. 

... To seize the opportunity, many more MI SMMs will need 

help to invest and improve performance. 

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MICHIGAN MANUFACTURING TECHNOLOGY CENTER

MMTC Moving Forward 

 Leadership competency and sponsorship critical to achieving 

and sustaining success

 Focused management team with competency across full 

range of business domains essential ... and relatively rare

 Employee engagement critical to “discretionary effort” 

needed to take firms to next level

 Profitable growth – not just hanging on – must be the 

explicit goal

To address these, MMTC strives to: 

1. Move more mfrs. toward new product contract mfg. 

model, including through new multi-agency project

2. Engage C-level management to plan succession to owners 

willing to invest 

3. Ensure a fully competent and aligned leadership 

committed to profitable growth

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