AEP: Making an Impact
Friday, April 15, 2016
Out of over 500 manufacturers in Oklahoma, approximately half are located in rural areas and provide vital support for their local economies. The loss or downsizing of even one of these wealth-generating small- or mid-sized companies can have devastating consequences for the host and surrounding communities.
“With agriculture and energy industries no longer requiring large labor forces, rural manufacturers supply much needed jobs in rural communities,” explains Dan Thomas, department head of biosystems and agricultural engineering at OSU. “These rural manufacturers face particular difficulty in getting relevant and usable information, and technical assistance, that will keep them abreast of the rapid changes in manufacturing technology.”
To address the difficulties faced by these manufacturers, the College of Engineering, Architecture and Technology (CEAT) and the Division of Agricultural Sciences and Natural Resources (DASNR) at OSU work in partnership to provide technical assistance through the Applications Engineering Program (AEP). Applications engineers have been working in collaboration with the Oklahoma Cooperative Extension Service and the Oklahoma Manufacturing Alliance (OMA) since 1997 to provide onsite engineering assistance to rural manufacturers in need.
In order to receive engineering assistance, the client must agree to a post-project impact assessment. Impact is then measured by the economic value of the service to the company as reported by the client, as well as the number of jobs created or retained.
In 2015, the AEP client projects had the following impacts:
|
Sales increase |
$30,797,500 |
|
Sales retained that would have otherwise been lost |
$63,930,000 |
|
Cost savings |
$6,029,789 |
|
Costs avoided |
$5,575,084 |
|
194 new jobs created at $75,511 per job |
$14,649,134 |
|
56 jobs retained at $75,511 per job |
$4,228,616 |
|
Investment in new plant facilities and equipment |
$11,787,215 |
|
Total impact |
$136,997,338 |
While the table above lists several numerical and monetary figures, Win Adams, applications
engineer, says that monetary impact is only part of the picture.
“You might think: the higher the number, the bigger the impact, but you have to factor in size and relation,” says Adams. “We work with some manufacturers where they have just 10 employees, so an impact of $20,000 may mean more to them than a company with 100 employees and $500,000 of impact.”
Adams also says that while measuring the impact from year-to-year is important, applications engineers also have to look at the big picture.
“We need to look at the longer term - three, four and five years out; we need to look at how the things we do now can help these manufacturers become sustainable on their own and help them grow to the point where they can hire their own engineers,” says Adams.
Even if the numbers are going down, Adams says that AEP can still be making a positive impact on its client.
“Our services are called upon in both up cycles and down cycles,” explains Adams. “In a down-turning economy, we may be contacted by a company that says their sales have decreased, but they’re limited in expenses, resources and employees, and they need to be able to produce the same amount with less people. We need to be able to show them how to make their business work with less people, or put those people in other jobs while maintaining workforce and production.”
Whether the economy is booming or busting, Adams says he has never failed to help a client
“From day one, the manufacturers are glad to see you, have your help and develop a relationship with you,” says Adams. “It’s really rewarding when you can work with such a small company and watch them grow to the point where they can increase in size, hire more people and become more productive and successful. It’s a competitive marketplace, and the services we provide not only help them survive, but thrive.”
If you know a local company that could utilize these services, contact the Applications Engineering Program:
525 South Main Street
Suite 210
Tulsa, Oklahoma 74103
p. 918.592.0722
f. 918.592.1417