Improving Industrial Iowa by Skip Derra The last couple of years in Del Shepard's life have been something of a blur. Ever since the National Institute of Standards and Technology (NIST) awarded Iowa State a three- year grant to create the Iowa Manufacturing Technology Center (MTC), Shepard has been on the go. The former director of ISU's Center for Industrial Research and Service (CIRAS) was given a task: set up an umbrella organization to remove duplication in existing, and sometimes competing, state organizations. Iowa MTC's goal is to improve the competitiveness of small- and medium-sized manufacturers (500 employees or less) by providing technical and business assistance. It is one of 44 such centers NIST set up across the United States. Shepard first had to organize the center, then race across the state visiting field agents and recruiting staff. With field staff and partner organizations in place, he had to build consensus and make sure the agents were contacting and helping as many companies as possible to get the word out about the fledgling organization. The next couple of years don't look particularly relaxing. Shepard now is tweaking Iowa MTC's operations, working to improve the skills of agents and the services the group can provide, and he's trying to convince federal and state legislators not to cut funding. All the work, and the challenges still to come, have strengthened Shepard's commitment to Iowa manufacturers. "If I can't walk away from a company and feel that it is stronger because of that interaction, then I haven't done my job," Shepard said. "This is true for all of our staff. "The only way the state will remain competitive is to make sure that the industrial base is competitive regionally, nationally, and internationally," he added. Shepard has 24 field agents across Iowa who provide one-on- one contact with manufacturers. Many of these field agents have offices at community colleges rather than in Ames -- Shepard's own office is on the Des Moines Area Community College (DMACC) campus in Ankeny -- to increase their accessibility to manufacturers. While Shepard says he now has a "cohesive group of seasoned field people," it hasn't always been that way. Shepard first had to convince his partner organizations -- DMACC, the Wallace Technology Transfer Foundation, Iowa Technology Transfer Council, the Iowa Small Business Development Center, CIRAS and ISU's Center for Advanced Technology Development -- of the benefits of the set-up. "The first meeting we had with the field agents and partners was like a wedding where you just weren't sure the bride and groom were going to get along," Shepard recalled. "Even I was asking 'How are we going to do this?'" But he managed to build trust and today Iowa MTC agents provide manufacturers a myriad of services such as seminars and training programs, technical assessments, business operations advice and studies on how to move a product line into international markets. It has acted as a conduit, finding expertise to tackle the special problems faced by small manufacturers. For example, Iowa MTC helped a manufacturer of pipe organs tap into ISU's metals analysis expertise so it could expand manufacturing capabilities and maintain product quality. Iowa MTC helped another manufacturer overcome problems in producing cast aluminum parts that resulted in higher-quality parts and lower production costs. And it's helping a scientific incubator manufacturer expand its markets overseas. Interaction with the incubator manufacturer, Percival Scientific, Boone, follows years of success the company had with CIRAS, said President Gary Wheelock. CIRAS helped Percival refocus its product offerings from refrigerators to incubators and now, with the help of Iowa MTC and CIRAS, Percival is working its way into international markets. "Five years ago, 5 percent of our sales were international. Today, it's 25 percent," Wheelock said. "The services provided are very useful to a company like ours." Shepard adds that a recent survey of 32 companies that completed Iowa MTC projects showed a cumulative increase in sales of more than $2.6 million, or nearly $76,000 per project. Despite the success, the federal sponsor of the Iowa MTC, the Manufacturing Extension Partnership, is a target for federal budget cutters. The threat to pull the plug on the program is shortsighted, Shepard said, pointing to his group's early success and the fact that manufacturing accounts for about 25 percent of Iowa's personal income. But Shepard knows the day will come when Iowa MTC will have to stand on its own. Federal funding could end as early as FY97 (there is potential for three more years of funding after that), and he doesn't expect the state, which currently matches federal dollars, to pick up the slack. To fund its operation, Iowa MTC will charge more frequently for services. Currently, 65 percent of Iowa MTC services are free to manufacturers. Shepard wants to lower that to 15 to 20 percent. The life of his organization depends on it. "We built a program in the state that we never had," Shepard said. "We have too many partnerships, made too many advances and created too good of a team to have that unravel now." _____ contact: Skip Derra, News Service, (515) 294-4917 updated: 9-29-95