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| Howard Lutnick |
Because Who Needs Modern Manufacturing When You Have AI, Right?
Ohio manufacturing faces 11,000–20,000 job losses as Lutnick pushes to defund MEP, threatening modernization and global competitiveness.
A recent IndustryWeek report confirms that the Trump Administration, under the direction of Commerce Secretary Howard Lutnick, intends to eliminate all federal funding for the Manufacturing Extension Partnership (MEP) in 2026. Even before the full cut takes effect, MEP centers supporting Ohio have already faced delayed federal payments, stalled hiring, and shrinking capacity to assist local manufacturers.
Ohio stands to lose the most. MEP delivers hands-on support for small and mid-sized manufacturers across the state, enabling companies to modernize operations, implement new technologies, meet regulatory requirements, and strengthen supply chains. Without that support network, many firms will shoulder higher costs, slower modernization cycles, and increased exposure to foreign competition. Smaller manufacturers in rural regions face the greatest risk of closure.
Howard Lutnick remains at the center of the policy shift. During public testimony, he stated:
“The new technology is AI-driven, automated. I think we need to re-examine and retool a whole variety of these programs so that we are able to provide the best technological assistance rather than just continuing a program that’s decades and decades old. So I’m very focused, and our department is very focused, on making sure we’re bringing our manufacturers the best tools and we’re examining them.”
Why Lutnick’s Argument Fails to Hold Up
MEP already delivers AI, automation, and advanced manufacturing support. Centers in Ohio routinely guide firms through robotics adoption, data-driven manufacturing, digital quality systems, and smart-factory upgrades. Eliminating the program under the claim that it is “outdated” ignores the documented evolution already underway.
Ohio’s small manufacturers cannot adopt high-tech tools without structured assistance. AI, automation, and advanced robotics carry steep costs. Cutting the only subsidized technical support program makes modernization harder, not easier.
A modernized industry requires a bridge, not a cliff. Lutnick frames AI as a replacement for traditional support programs, yet AI can only be deployed effectively when firms have strong processes, trained workers, and access to experts. MEP is the bridge that connects legacy operations to advanced technology.
A zero-budget proposal contradicts the goal of providing “the best tools.” Eliminating funding removes every tool MEP delivers, including the very AI-related assistance Lutnick claims to prioritize.
Ohio’s manufacturing sector continues to power regional economies, small towns, and supply chains that feed national industries. Removing MEP support undermines that foundation. The policy direction led by Lutnick risks weakening a core manufacturing state at the precise moment global competition intensifies.
Global Competition Makes Cuts Even More Dangerous
Foreign competitors invest aggressively in modernizing their industrial bases. China, Germany, Japan, and South Korea provide extensive state-backed support, ranging from automation grants to export assistance, enabling their manufacturers to scale rapidly and dominate global markets. Ohio’s manufacturers would be forced to compete against heavily subsidized overseas firms with fewer resources, less technical guidance, and slower modernization timelines. When domestic firms fall behind on productivity or quality standards, key contracts shift to foreign suppliers, eroding industrial capacity and weakening national economic security. Defunding MEP gives rival nations a strategic opening while leaving Ohio’s industrial backbone to absorb modernization challenges alone.
Estimated Job Loss from MEP Cuts
Evidence-based estimates suggest that Ohio could lose roughly 5,700–6,900 direct MEP-supported jobs if federal funding is eliminated. When including downstream effects on suppliers and related industries, total employment losses could reach 11,000–20,000 jobs statewide, threatening livelihoods, payrolls, and regional economic stability. These figures underscore the tangible human and economic consequences of eliminating MEP support for Ohio’s manufacturers.
Sources
- Ohio leaders anxious as Trump cuts manufacturing center funding in 10 other states: https://www.crainscleveland.com/politics-policy/trump-administration-cuts-manufacturing-extension-partnership-funding
- Ohio’s manufacturing future at risk amid funding cuts - https://capitalanalyticsassociates.com/ohios-manufacturing-future-at-risk-amid-funding-cuts
- “Support the MEP Program: Protect Ohio Manufacturing’s Future” — Statement by CIFT (a regional MEP partner in Ohio), 2025 - https://ciftinnovation.org/announcement/now-more-than-ever-cift-is-here-for-you-mep
“IndustryWeek — Trump Administration Plans to Defund MEPs Next Year, Ignoring Congress’ Allocation” (Nov. 19, 2025) — https://www.industryweek.com/the-economy/public-policy/article/55331183/trump-administration-plans-to-defund-meps-next-year-ignoring-congress-allocation Industry Week
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“National Institute of Standards and Technology (NIST) — MEP Economic Impacts Boost Business and Jobs” (Mar. 20, 2025) — https://www.nist.gov/news-events/news/2025/03/mep-economic-impacts-boost-business-and-jobs NIST
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NIST — Overview of the MEP National Network and its mission benefits — https://www.nist.gov/mep NIST
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“Manufacturing Extension Partnerships Face Uncertain Future as Trump Pulls Funding” (Apr. 7, 2025) — IndustryWeek article covering earlier funding cuts — https://www.industryweek.com/leadership/news/55280007/manufacturing-extension-partnerships-face-uncertain-future-as-trump-pulls-funding Industry Week
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Letter from U.S. Senators (2025) pressing Secretary Howard Lutnick for clarity on cuts — details the risks for small‑ and mid-sized manufacturers — https://www.baldwin.senate.gov/imo/media/doc/letter_to_secretary_lutnick_on_mep.pdf Tammy Baldwin
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Independent analysis on broader economic impact of MEP network — “The National-Level Economic Impact of the Manufacturing Extension Partnership (MEP): Estimates for Fiscal Year 2021” — https://robeyanalytics.com/wp-content/uploads/2022/05/NIST_MEP_Economic_ImpactFY21_Final.v3.pdf
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