Helping Trade-Impacted Manufacturers
What is MATAAC? What solutions do you provide to your customers?
MATAAC is a program funded by the Economic Development Administration to help trade-impacted manufacturers compete globally. With our business strategies we write and submit to Washington on behalf of the firm to help them become more globally competitive. We prepare the adjustment proposals with the various projects, and we bring in industry expert consultants to handle the projects. Once they go through the program and implement these different projects, we help them turn the curve to become more competitive. That’s our goal, it’s to upright the ship.
Can a manufacturer get business consulting without hiring a marketing agency? What are your thoughts on that?
Yes, a manufacturer can get marketing services without hiring an expensive marketing agency that covers a slew of marketing aspects. We come in and hire industry consultants to target and do an analysis of the firm to determine exactly what type of marketing project they need. We hire an individual consultant to address that particular issue, such as a marketing issue or a marketing improvement. Therefore, we’ll target the very specific marketing issue, instead of a marketing agency, which can be very expensive. The TAAF program will cost-share the effort with the firm to reduce the cost. We cost-share up to 50% of a project’s cost to help turn the company around and continue to move them forward, so they don’t need a marketing agency, as that can be very expensive.
What does the program cost? If I’m a manufacturer, what am I looking at? What am I investing in? How am I partnering with MATAAC? Let’s just walk through the cost structure.
First of all, a firm has to be a manufacturer and has to be certified for the program. That process is free to the firm. We determine the eligibility for the firm for the program through an assessment of the sales, employment, and the industry in which they are in to see if imports are coming in or rising in their industry. Once they are certified as eligible for the program, we then create an adjustment plan, also known as an AP. That’s the business’ recovery plan. We then assess the strengths and weaknesses, threats and opportunities of the firm, and determine the projects they will need. We write the business plan and submit it to the Economic Development Administration (EDA). They review it and approve it based on the types of projects we recommend for their turnaround.
Then, based on their sales and the projects, the EDA will determine the amount of the cost-share. Whether they get 25%, which is great for firms who will get approved for an AP, an adjustment proposal for $30,000, the cost-share is 25% for the firm, 75% for the government. However, it’s usually 50%/50%. We’ve done 40%/60%, but it’s usually 50%/50%. Once that is determined through the business plan, we then bring in industry experts, various consultants, and any other necessary support to help in the areas they want to target first. Then, we enter into an agreement with the consultant on behalf of the firm, and we cost-share accordingly.
Do you want to share how rewarding that has been throughout your career, just seeing those turnaround stories?
The success stories are very rewarding because these firms come to us looking for help, and they probably have done their research to find some program or some agency to help them, and the TAAF program will do just that. It’s rewarding for me because I’ve been here for a very long time, and I’ve seen these firms come in. With our assistance and partnership, and by bringing in industry experts to help them with the projects they need, this is truly rewarding. Our success stories are definitely an indication that the program does work. It’s been around for 50 years. Therefore, we have a success rate associated with the TAAF program. For instance, our ROI return on investment for the eleven TAACs nationwide is 550% for 2024. So, this program works
When a manufacturer is in decline, and they reach out to MATAAC or TAAF, and they come to you for the first time, and they don’t know where to start. How do you help a client? What’s a good starting point for them when they first engage with you?
First, we want to find out exactly how they found us. Number two is, what are they looking for? What do they think are some of the issues that they could be suffering from? Once we determine if they have experienced a reduction in sales and employment due to imports affecting their industry, we will ask if they believe they are trade-impacted. Then, we come out and have a conversation with them and collect the necessary documents if they’re interested in pursuing a program. Once we bring them into the program and determine they are eligible, we then write an adjustment plan, which is very extensive and exhaustive of all areas in their business. And it’s with that, we can determine where they need help.
Then we can bring in our industry experts to help them navigate these different areas that require consulting services and help bring their company back on track. If they don’t know where they want to go, the start is that our program is free to get certified. That’s number one: it’s free, so there’s no loss to the firm if they want to find out if they qualify for the program. We do our adjustment proposal to determine the areas where they need help. In addition, we will bring in not only industry experts in consulting, but also work with other third-party agencies that provide various types of assistance. We can assist them in a specific area. Even if they don’t qualify for the program, we do try to connect them with other agencies with which we have affiliations to help them.
Confidentiality is huge for every manufacturer. How do you put their mind at rest? How do you earn or build that trust with manufacturers to ensure them that everything running through MATAAC is completely confidential?
We respect that about manufacturers, whether they are small mom-and-pop shops or big Fortune 500 companies; proprietary and financial information is very important. Additionally, we collect that information, and we share none of it because it is protected by the Freedom of Information Act. We won’t disclose that information; therefore, a firm can be comfortable and reassured that its financial proprietary information will not be released in any way by the TAAF program.
Do they have to be tech-savvy to get involved in the program, to see rewards, and to see success? What’s your opinion on that question?
No, you do not have to be tech-savvy to be a part of this program. We will provide you with the consultants that you would need in the area where you think that you want to grow your business and become more tech-savvy. We will hire consultants to assess where you can benefit from expanding your business technologically. They will bring in the experts to determine exactly where you’re struggling and where you need to improve to elevate your business and become more competitive in this arena.
Share a little bit on what they can invest the money in? Share all the processes, like software, training, marketing, and what are some of the things that they can use?
You mentioned several of them, and it’s very extensive. We don’t cost-share in physical things, such as brick-and-mortar items or equipment that you can touch. It’s an intellectual practice that we are involved in. The type of projects is very broad and extensive. However, on our website, we do have a list of projects that we will cover. This encompasses the broad spectrum, including marketing, manufacturing, management, finance, technology, and IT. There are numerous projects under those areas. It’s very broad, but I’m sure that once we go through the process and we start writing your AP, we will determine exactly where you would need help to grow your business.
Have you personally seen a particular direction that has more success than others? Has there been a trend of what you’ve seen being more successful with the projects for MATAAC in your experience?
Over the years you have had different areas taking precedence over whatever is currently going on in the industry. Years ago, we had a multitude of custom precision projects. Now we’re transitioning into AI doing those things. It all depends on the era, where technology is moving, and the business. I cannot say exactly if we’ve had experience in one area over the other, because it’s been many years.
As a manufacturer, is there a point where I’m too small, or am I ever too big to have a relationship with MATAAC?
No. Our sweet spot is the small to medium-sized manufacturers. At this office, we’ve had revenues at the small mom and pop shops, with two employees. We’ve had revenues of around $500,000 to $750,000 annually. We go all the way up to $25 to $40 million annually. However, we primarily serve small and medium-sized manufacturers.
Describe a little bit of your territory that you cover, and what are some of the hot areas of manufacturing that go on in the Mid-Atlantic area?
The states are Pennsylvania, Delaware, Maryland, Virginia, West Virginia, and the District of Columbia. There is no manufacturing in the District of Columbia; we’re hoping that someday there will be manufacturing in DC. In Pennsylvania, there’s a lot of custom precision. In the early 80s and 90s, in Virginia, we had furniture and hardware industries.
How about reimbursement? When we say ‘cost-share,’ what does that reimbursement look like to the manufacturer? Can you just walk through that process?
When your adjustment proposal is approved, you get a cost-share. Typically, small mom-and-pop shops receive a total of $30,000 in AP funding, which is allocated at 25% firm and 75% government. What that looks like is that you’re doing a project, and we come in, and we do an agreement. First, we receive a scope of work from the vendor. And once the firm and I agree with the consultant, we hire the consultant on their behalf. We enter a three-party contract, and we sign an agreement with the vendor. MATAAC manages the agreement on behalf of the firm. When they start working, we will pay 50% or 75% of the invoice. Once the work has been completed, the firm must pay its share of the services rendered before we pay our share.
We don’t pay for any services that have not been completed. This can sometimes be a sticky point with some vendors and clients, as they may not understand. We don’t cost-share on deposits, because a lot of the IT companies and website, and marketing projects require a 50% deposit to even get the project started. In the TAAF program, we only pay for services that have been rendered. Therefore, when that happens, if the consultant requires a deposit payment to initiate the project, I advise the firm to make a 100% deposit payment. Then, once the consultant has completed some services and submits an invoice, the firm can proceed. I suggest sending MATAAC the matching invoice for their deposit.
So if your deposit is $5,000, then when they complete the first leg of the work, or the first phase of the work, then they send the $5,000 invoice to MATAAC, we can make matching payments, but we only make matching payments for services rendered. Therefore, the firm pays 50%, and then MATAAC comes in and pays 50%. If it’s a $10,000 project, for example, it’s paid in full.
How MATAAC Serves Mid-Atlantic Manufacturers
For over five decades, MATAAC (MidAtlantic Trade Adjustment Assistance Center) has been helping turnaround manufacturers. Mainly by tackling trade challenges, regain competitiveness, and boost profitability. MATAAC provides solutions to manufacturers located in Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and Washington D.C. MATAAC has been chartered by the Economic Development Administration of the U.S. Department of Commerce with responsibility for the management of Trade Adjustment Assistance for Firms (TAAF) program. The TAAF program is a crucial resource that supports businesses in navigating global market shifts.