The American Manufacturer Network

Presentation to:

Idaho Rural Partnership

By:Christine Frei, Clearwater Economic Development Assn.

Gunther Williams, Northwest Intermountain Manufacturers Assn./Idaho Sewing for Sports

Bob Tippett, Valley Vision

Date: July 14, 2010

The American Manufacturer Network

Being Established to Expand Business Opportunity and Increase Profitability of Idaho and Washington Manufacturers by removing barriers to successful Military & Large Manufacturer Contracting.

D8, Inc Potlatch

Primary Partners….

Northwest Intermountain Manufacturers Association

Clearwater Economic Development Association

Valley Vision

Washington State University Center for Entrepreneurial Studies

AMN Mission…

To enhance and assure the domestic supply base for the Department of Defense by working with military installations within the Northwest to supply “problem parts” THE Market

Through the use of a network of manufacturers THE Suppliers

Provide varying level of services to manufacturers to assure contracting success The AMN – Tier One Contractor, Contracting Manager, or TA Provider.

The Manufacturer Problem: Small Manufacturers don’t respond to DoD bid opportunities because:

Once Manufacturers start receiving bid solicitations based on cage code, it is time consuming to wade through the solicitations to determine the “fit” for the manufacturer.

Military Bid Specifications language and length make it difficult for manufacturers to ascertain what is needed;

Small manufacturers have not invested time or money into becoming ISO9000 Certified (Quality Control);

Some parts require “reverse engineering” and manufacturers do not know the resources available for redesign of the part.

Manufacturers lack knowledge of how to handle the bid after the award. They don’t know how to do the paperwork.

The DoD Problem: With TWO wars and aging equipment, the DoD has a HUGE need for suppliers to

provide “small quantity” parts.

The DoD is not meeting their “quota” of small business procurements.

Large Manufacturers do NOT bid on “small quantity” parts because these contracts are not cost effective. Thus, the DoD has a lot of unmet needs. DoD 2007 Contracting

Budget: $438 BILLION

AMN Services…

Tier One Contracting

Establish and Maintain Relationships with Government Procurement Officers

Contract for Reverse Engineering When needed

Commercialize Military Specifications

Determine manufacturer(s) capability to produce part

Purchase Materials

Provide Quality Control

Package and Label Parts

Maintain Design Specs and Drawings for Future Contracts

Maintain a Database of Current Manufacturer Capabilities.

The LEVEL of Services Provided will Depend on the Product and the Ability for a Manufacturer to produce. In many cases, the AMN will ONLY “match” the part to the manufacturer.

The American Manufacturer Network, Limited Liability Company

Planning Team:*Meeting WEEKLY

Bylaw-Operations Committee:

Advisors:

Bob Tippett, Valley Vision John Currin, CEDA Steve Lohman, Lohman Accounting

Joe Harris, WSU Don Bott, CEDA Phil Stonebraker, Stonebraker McQuary Insurance

Dave Bonfield, Bonfield Consulting

Lenny Hill, NIMA Ryan Ketcheson, Stonebraker McQuary Insurance

Christine Frei, CEDA Staff Kim Geist, NIMA Howard Utzman, Attorney At Law

Siris Silva, CEDA Staff Randy Eriksen, Lewis Clark State College

John Currin, CEDA Business Development Council

Kim Geist, NIMA

Ed Endebrock, NIMA

Current Technical Assistance Partners….

Oklahoma State University Enterprise Center: Averaging $25 million in manufacturer contracts per year.

Logistics Specialists, Inc., Utah: Working with the Utah Defense Alliance and the PTAC (Professional Technical Assistance Center) Utah to produce $377 million in contract dollars thus far in FY2010

In addition… AMN is consulting with a Small Business Programs

Specialist, US Dept of the Navy. Met with representatives from Idaho National

Guard, Travis AFB, and Fairchild AFB.

Congressional Representatives Apprised of the the AMN:

State of Washington State of Idaho

Congresswoman Cathy McMorris Rodgers

Congressman Walt Minnick

Senator Patty Murray Senator Michael Crapo

Senator Maria Cantwell Senator Jim Risch

Representative John Rusche, District 7

State of Washington State of Idaho

PTAC - Washington PTAC – Idaho

Washington Manufacturing Services University of Idaho Tech Transfer

TechHelp

Manufacturing Partners:

CURRENT Funders: $21,000: USDA is currently funding a project to develop a electronic list of manufacturer capabilities. Valley Vision is providing the “match.”

Research & Development INVESTMENT to Date:

Cash: Provider: Activity:

$10,000 WSU Consultation Services by Dave Bonfield Consulting for Research and Travel Activities.

$7,500 WSU Testing of Logistics Specialist, Inc. Service

$21,000 USDA Rural Development

Manufacturer Network Development- Capabilities Electronic Database

$7,500 Valley Vision Cash Match for RD Project.

TOTAL:$46,000

COUNTLESS Hours Provided by: NIMA, CEDA, WSU, Valley Vision, Dave Bonfield Consulting, AND Others.

Additional RESEARCH Funding Needed:

$60,0000

JC Uhling Products Cottonwood

Start-Up Funds Needed….

$1,500,000

LightForce USA Orofino

A New Age for American ManufacturersLargest growth in manufacturing will be driven by small manufacturers.

Manufacturing: Adapting to smaller quantities

and higher value added manufacturing.

Increased use of technology and lean processes.Seaport Machine

Clarkston

ManufacturingThe cornerstone of a vibrant economy.

(Stats by IDL) Higher wages and benefits.

› Consistently above average wages Avg. 25% higher than non-mfg

› Improved career ladder Pulls outside dollars into our

community. Creates wealth. 1 mfg job results in additional 4.22

jobs Healthy manufacturing sector

encourages new business development and recruitment through clustering.

Diversification of industries

Advanced Welding & Steel

Grangeville

Generated Economic Activity

The American Manufacturer Network

An investment in our futures………..

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