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A LETTER FROM OUR DIRECTOR

To our valued Partners, Clients, Stakeholders and Manufacturers throughout the
State of Maryland:

2021 was a challenging but promising year for the manufacturing industry, our
stakeholders and the nearly 4,000 manufacturers that call Maryland home. The
ongoing effects of COVID-19, disruptions to our supply chains and the continuing
struggle to find, recruit and retain qualified skilled workers continues to
challenge the manufacturing sector on a regular basis.

Despite these challenges, manufacturers across the state have demonstrated a
resilience and willingness to increase investments in their business, develop
and deliver new products, expand facilities, improve operations, and hire new
employees to support opportunities for growth. At MD MEP, we were able to
witness first-hand the overwhelming number of manufacturers that responded to
COVID-19 to support their communities, their employees and their customers. In
recognition of these efforts, MD MEP produced our Maryland Manufacturing:
Resilience through COVID-19 video as a way to highlight and share amazing
efforts of the manufacturing community.

Throughout 2021, our team at MD MEP has had the opportunity to develop and
deliver programs and services to support the manufacturing community like never
before. These services and programs resulted in MD MEP supporting the community
with projects focused on Business Growth, Process and Innovation, Supply Chain
and Defense, Technology and Cybersecurity, and Talent and Workforce. Through
these efforts we are pleased to share that Maryland is at the forefront of
cybersecurity compliance thanks to the Maryland Defense Cybersecurity Assistance
Program (DCAP), one of the leading states in the delivery of workforce training
programs for manufacturing and at the leading edge of developing new programs
and services to support technology adoption and implementation in the
manufacturing community. The launch of the “Proud to Make it in Maryland” banner
campaign has resulted in renewed energy and excitement around manufacturing and
the commitment to make Maryland the most innovative and productive state in the
country.

The collective impact of these efforts on the manufacturing community has been
more than $280million in direct economic impact and the creation or retention of
more than 2,100 jobs! We look forward to continuing to support the manufacturing
community, to advocate for growth and to champion the stories of perseverance,
innovation and success!

Sincerely,

Mike Kelleher, Director, MD MEP



ABOUT MD MEP

The Maryland Manufacturing Extension Partnership (MD MEP) is a non-profit
organization focused on growing the manufacturing industry in Maryland by making
manufacturers stronger, smarter and more profitable.

Serving mostly small and mid-size manufacturers (500 employees or less) across
all industries, MD MEP provides an array of programs and services to that create
economic impact by helping companies operate more efficiently, grow
profitability, implement new technologies and create more jobs and opportunities
in Maryland.

We assist Maryland Manufacturers in five key areas of business:

 * Strategy & Growth
 * Talent & Workforce
 * Technology & Cybersecurity
 * Supply Chain & Defense
 * Process & Innovation




The MEP National Network™ is a unique public-private partnership that delivers
comprehensive, proven solutions to U.S. manufacturers, fueling growth and
advancing U.S. manufacturing.

Focused on helping small and medium-sized manufacturers generate business
results and thrive in today’s technology-driven economy, the MEP National
Network comprises the National Institute of Standards and Technology’s
Manufacturing Extension Partnership (NIST MEP), the 51 MEP Centers located in
all 50 states, as well as Puerto Rico, and over 1,300 trusted advisors at more
than 400 MEP service locations, providing any U.S. manufacturer with access to
resources they need to succeed.

LEARN MORE




GETTING MARYLAND MANUFACTURERS BACK TO BUSINESS

The COVID-19 pandemic caused drastic changes to the Maryland manufacturing
community. Many companies switched their production lines and began making
personal protective equipment and sanitizing products, while others had to
temporarily close their doors or reduce the number of employees in their
workforce.

As the pandemic eased and businesses began to recover, many saw the need to
ensure that their organizations were positioned to overcome future challenges by
investing in the growth of the business through market and product development,
innovation and long-term strategic growth.

During 2021, 20% of the projects delivered by MD MEP, were centered around
Strategy and Growth.

MD MEP delivered projects in the following areas:

 * Acquisition and/or Exit Strategies
 * Facility Expansion & Relocation
 * Organizational & Business Assessments
 * Strategic Planning
 * Market Diversification
 * Sales & Marketing




HELPING MANUFACTURERS FACE WORKFORCE CHALLENGES & BUILD THEIR TALENT PIPELINE

While many businesses were hopeful 2020 was behind them, 2021 proved to have its
own challenges, but with these challenges came unexpected opportunities. In
response to the rapidly changing workforce MD MEP helped clients meet their
training and development needs by delivering programs and services designed to
support the growth and training needs of the organization.

During 2021, MD MEP supported manufacturers through the delivery of programs and
training designed to develop the next generation of manufacturing workforce:

 * Training and Skills Development
 * Leadership Development
 * Apprenticeship Program Development
 * HR Compliance
 * Community Outreach and Engagement
 * College & Youth Internship Programs

The impacts of our Talent and Workforce initiatives resulted in the following:

 * 434 New Jobs Created
 * 1,689 Retained Jobs
 * 50+ College-aged students engaged in internship / apprenticeship
 * 200+ K-12 students engaged in manufacturing programs

CREATING NEW CAREER PATHWAYS THROUGH APPRENTICESHIP

Manufacturers continue to explore ways to attract new talent, in 2021 more
companies began turning to registered apprenticeship programs to help fill the
gaps and create visible career paths for the next generation of workers.

Registered Apprenticeship is a well established career path to help
manufacturers attract, train and retain skilled talent to meet the needs of the
organization.

MD MEP has led a renewed effort to revive old programs, develop and register new
apprenticeship occupations and support manufacturers in the administration of
registered apprenticeship programs throughout the state.

As a result of MD MEP's Apprenticeship Program:

 * 17 Registered Apprentices
 * 12 actively supported companies
 * 6 Occupations including CNC Machinist, Welding Technician, Industrial
   Maintenance Technician, Tool & Die Maker, Additive Manufacturing Technician,
   and PostScript Printing Technician




PROTECTING INFORMATION & INCREASING PRODUCTIVITY THROUGH TECHNOLOGY

As technology continues to change and advance, one of the greatest risks to the
security and financial viability of a business is protecting data and assets
from cybersecurity threats and attacks. Data shows an exponential increase in
the number of cyber incidents that coincided with the shift in work paradigm
created by COVID-19. MD MEP has developed the leading cybersecurity assistance
program in the country, having conducted more than 150 assessments and provided
technical and financial assistance to small businesses to improve their overall
cyber health.

In addition to cybersecurity, identifying and implementing new technologies to
compete in the global economy continues to be challenging and costly. MD MEP’s
programs and services aim to help manufacturers identify, evaluate and implement
the right technologies to meet the changing needs of their industry. This
includes a myriad of advanced manufacturing and Industry 4.0 related
technologies including robotics, automation, additive, AR/VR and the use of
sensors and data to improve productivity.

During 2021, MD MEP supported manufacturers through the delivery of programs and
projects to in the follow Technology and Cybersecurity areas:

 * Cybersecurity Assessments & Readiness
 * Cyber Mitigation & Implementation
 * Technology Acquisition
 * ERP Implementation
 * Robotics & Automation

CONTINUED GROWTH FOR THE MARYLAND DEFENSE CYBERSECURITY ASSISTANCE PROGRAM

Most notably, in the areas of Cybersecurity and Technology, 2021 saw a funding
wrap up as well as funding renewal to the Defense Cybersecurity Assistance
Program (DCAP). The continuation of the program was crucial in the past year as
small businesses are seeing one of the largest changes in the cybersecurity
market with the upcoming implementation of the Cybersecurity Maturity Model
Certification (CMMC). The CMMC will be a unifying standard for cybersecurity
implementation across the Defense Industrial Base (DIB). Unlike prior
contractual requirements held by defense contractors, specifically DFARS / NIST
SP 800-171, the CMMC will verify through third-party organizations that defense
contractors have properly implemented cybersecurity processes.

The DCAP program has been instrumental in improving the overall cybersecurity of
defense contractors throughout the State of Maryland and will continue to serve
the small businesses navigate upcoming their current and upcoming DoD
requirements. In total, DCAP has generated more than $668,000,000 of client
reported economic impact that would have been lost and / or realized if the
program did not exist. Through these contracts retained and/or obtained because
of the compliance, DCAP companies were also able to retain the jobs that
specifically relate back to the DoD work as well as provide an opportunity to
add jobs within their organization due to company growth or because of the need
of cybersecurity expertise.

2021 DCAP Client Reported Impact (Reported impacts include manufacturers and
defense contractors):

 * $513.4m Retained Sales
 * $155.2m Increased Sales
 * 3,051 Retained Jobs
 * 136 Increased Jobs

In addition to client reported impact, the DCAP Program has been able to serve
the small business community in Maryland through direct funding reimbursement
over $500,000.

LEARN MORE ABOUT DCAP PROGRAM



COMBATING A BROKEN SUPPLY CHAIN

The COVID-19 pandemic caused massive disruptions to the global supply chain and
exposed how reliant the United States has become on imported products, ranging
from microchips and metals to the most basic goods such as cleaning supplies and
protective equipment. As the states leading resource for manufacturing,
companies turned to MD MEP for solutions and insight on combating supply chain
disruptions. Managing through these disruptions involves strategies around
communication, demand planning, scheduling and addressing critical supply chain
needs.

FINANCIAL ASSISTANCE PROGRAM FOR MANUFACTURERS ADVERSELY AFFECTED BY COVID-19

In 2021, MD MEP in partnership with the Maryland Department of Commerce received
funding to create Maryland’s first Supply Chain Assistance Program to provide
resources and assistance to help manufacturers address these critical needs.

This initiative will provide opportunities for Maryland manufacturers to learn
and share best practices for improving their supply chains, helping to manage
through the current supply chain crisis, improve outcomes, and reduce risk.
Additionally, it will help manufacturers connect with local suppliers,
customers, and partners.

LEARN MORE ABOUT MD SCRP PROGRAM

During 2021, MD MEP supported manufacturers through the delivery of programs and
projects to in the follow Supply Chain and Defense areas:

 * Supplier Scouting
 * Supply Chain Strategy & Certification
 * Inventory Management




IMPROVING PROCESSES TO DRIVE INNOVATION

Maryland is home to one of the most advanced and innovative manufacturing
industries throughout the United States. With local access to some of the top
technological institutions and universities in the country, Maryland
Manufacturers are continuously finding new ways to improve their productivity by
investing in employee trainings, process improvement and advanced manufacturing
practices.

In 2021, through new partnership and subject matter experts, MD MEP expanded our
service offerings around process and innovation to provide solutions that
continue to drive growth within the manufacturing community.

During 2021, MD MEP supported manufacturers through the delivery of programs and
projects to in the follow Process and Innovation areas:

 * Facility Layout
 * Continuous Improvement Implementation
 * Value Steam Mapping
 * ISO Training & Certifications
 * Food Safety & Quality Compliance




SHOWING OUR MARYLAND MANUFACTURING PRIDE!

SHOWING OUR MARYLAND MANUFACTURING PRIDE

To kickoff MFG Day 2021, MD MEP relaunched our Make It In Maryland initiative
with the new 'Proud to Make It In Maryland' banner campaign!

‘Proud to Make It In Maryland’ is a social media campaign to highlight
manufacturers and tell the story of manufacturing in Maryland. MD MEP’s goal is
to get a ‘Proud to Make it in Maryland’ banner hanging in every manufacturing
facility in Maryland! Photos, images and stories will be shared through social
media platforms and other media channels to raise the level of awareness of
manufacturing in Maryland.

LEARN MORE ABOUT MAKE IT IN MARYLAND


BOARD OF DIRECTORS

The MD MEP Board of Directors is a representation of the state’s industry
leading organizations that exemplify and assist Maryland manufacturers. Their
supportive leadership makes certain that the tasks taken on by MD MEP are
concentrated to fulfill an ongoing need that will help Maryland manufacturing
grow and prosper. We wish to thank these individuals for their leadership and
investing their time.

BOARD CHAIRMAN

 * Mick Arnold, President, Arnold Packaging

BOARD MEMBERS

 * Lisa Davis, Regional HR Director, Berry Global
 * Jim Glowacki, Director of Strategic Operations, Textron Systems
 * Anne Sennet, CEO/Executive Vice President Space & Defense Division, SAFT
   America Inc.
 * Emily Tunis, President / Chief Operating Officer, Hardwire
 * Heather Gramm, Senior Director, Strategic Industries & Entrepreneurship,
   Maryland Department of Commerce
 * Thomas Williams, Resource Manager, NIST Manufacturing Extension Partnership



THANK YOU FOR YOUR CONTINUED SUPPORT!

Moving forward into 2022, the MD MEP will continue to work with industry to
address the ever changing workforce challenges, implement new technologies and
protect critical information, innovate and improve processes and procedures,
solidify supply chain networks, and align organizations with a path to success.

MD MEP

 * info@mdmep.org
 * www.mdmep.org
 * 443.343.0085
 * 8894 Stanford Blvd, Suite 304, Columbia, MD 20145


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