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| SPONSOR: | Lujan | DATE TYPED: | 2/15/99 | HB | 367 | ||
| SHORT TITLE: | Manufacturing Extension Services | SB | |||||
| ANALYST: | Hadwiger | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| $ 750.0 | Rec. | GF | |||
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
LFC Files
Economic Development Department (EDD)
SUMMARY
Synopsis of Bill
The bill would appropriate $750.0 general fund in FY99 and FY2000 to the economic development department (EDD) to contract for manufacturing extension services. Unexpended balances would revert at the end of FY2000. The bill contains an emergency clause.
Significant Issues
According to EDD, the most significant issue related to this bill is the potential positive impact on jobs in New Mexico. If a manufacturer has a technical or production-related problem, they are less efficient and, therefore, less competitive. A faulty product may cause a New Mexico manufacturer to lose market share and their customer base, leading to the potential for layoffs or even company closure. By providing and contracting for manufacturing extension services, EDD can help ensure the availability of technical assistance to fix production-related problems.
For example, Metro Scale, a Las Cruces manufacturer of bathroom and other weight scales, recently had a faulty metal part which would continually break after the product was shipped to the customer. With the help of New Mexico State University's Advanced Manufacturing Center, the problem was solved within two weeks. The center showed the company how to use a newly engineered design of the part, made of highly resilient plastic instead of metal. This assistance helped Metro Scale retain its customer base.
ADMINISTRATIVE IMPLICATIONS
EDD does not anticipate a need for additional funds or staff to administer the appropriation contained in this bill.
DH/gm