In 1984, Manufacturing Growth Advocacy Network (MAGNET) launched in Cleveland as a pilot program for the federal Manufacturing Extension Partnership (MEP), which supports small and medium-sized producers through hands-on consulting and training.

Now, MAGNET and its statewide backers are calling for restoration of millions in industry funding after federal and state agencies abruptly suspended the MEP partnership.

Now, MAGNET and its statewide backers are calling for restoration of millions in industry funding after federal and state agencies abruptly suspended the MEP partnership.
Students at Jergens.The interruption comes amid a multi-year audit of the MEP program by the U.S. Department of Commerce Inspector General. This month, the Ohio Department of Development sent a pair of emails reinforcing the suspension levied by the National Institute of Standards and Technology, a federal partner for the program.

“At this time, the Department of Development has made the determination to also suspend the program at the state level,” stated a department email dated last Friday, Dec. 5, and shared by MAGNET with Fresh Water Cleveland. “As a result, all MEP-related activities will be handled exclusively at the local level, with no funding or support from the federal or state program hosts.”

In a follow-up email dated Wednesday, Dec. 10, the state office reaffirmed its decision to suspend the initiative “due to stated claims by the Federal host at the Department of Commerce.”

The nature of these allegations remains unknown, while federal and state dollars for all six Ohio MEP centers were halted even as the Office of Inspector General (OIG) proceeds with its inquiry.

MAGNET’s vision is to transform Northeast Ohio into a global center for smart manufacturingThis lack of transparency has resulted in confusion and frustration in the halls of MAGNET’s Hough headquarters, as well as among regional entrepreneurs who support the partnership effort.

“They’ve suspended the entire program based on no available report, with no ability to respond, and no ability to remedy,” says MAGNET president and chief executive officer Ethan Karp. “Nobody knows what the audit findings are. How is it fair or transparent to suspend funding with no time (to respond), effective immediately?”

The move pulls $5.9 million in funding from MAGNET, putting 40 local of the organization’s jobs in jeopardy, as well as another 50 positions across Ohio’s five additional MEP locations. Several smaller MEPs in the state are expected to close as soon as today [Friday, Dec. 12], says Karp.

MAGNET officials add that MEP funding supports innovation, reshoring, and technology modernization at nearly 14,000 manufacturers statewide. Ohio MEP centers are embedded partners to manufacturers, working alongside the state development department “to modernize plants, strengthen supply chains, and build talent pipelines,” according to the advocacy group.

Call for action
If a full MEP restoration is not possible, MAGNET and regional sector leaders are urging policymakers to keep the program afloat through bridge funding.

Alloy Precision Technologies.At minimum, the centers should be allowed to review the OIG’s current findings, which would ensure informed funding decisions in the months ahead, notes Michael Canty, president and chief executive officer of Alloy Precision Technologies.

“There may be other pools of funds to use on a temporary basis, like Ohio’s ‘rainy day’ fund,” says Canty, whose Mentor-based precision metals firm serves aerospace, defense, and other high-powered industries. “This could be tapped in the short or longer term to protect this program until the report comes out. And if there’s any findings, we’ll fix them.”

With a complete federal audit not expected until May, Ohio could lose a vital program helping small and mid-sized manufacturers modernize, adopt new technology, and stay competitive in a rapidly shifting marketplace, supporters say.

“Ohio is one of the top states in the entire U.S. for general manufacturing,” says Jack Schron, president and chief executive officer of Cleveland tool and equipment producer Jergens Inc. “If you lose the sector that’s developing jobs and is involved with new product development, you put all that in jeopardy.”

MEPs have been a target of the Trump administration, which has discussed cutting the $212 million annual program in 2026. Both Karp and MEP proponents say all they seek today is equitable oversight for a key industry resource.

“This is about the thousands of companies we work with, and the thousands of jobs we create,” Karp says. “It’s crazy to throw all that away in one day and punish manufacturers first before asking questions. We need a creative bridge to help us serve clients until we get a report we can engage with and take action on.”