Two federally funded organizations that assist manufacturers here say the tough economy is driving more such companies to seek their help because of diminishing sales.

The two organizations, Mukilteo, Wash.-based Washington Manufacturing Services, which has an office in Spokane, and Idaho TechHelp, a collaboration among Idaho state universities that has an office in Post Falls, both offer training and consulting to companies, with some of the costs defrayed by federal and state subsidies. That program, called the National Institute of Standards and Technology's Manufacturing Extension Partners program, is intended to increase the vitality of manufacturing in the U.S.

Demand for such services, they say, is brisk.

Patric Sazama, regional project director for Washington Manufacturing Services, says the nonprofit organization's activity jumps when times are really good—and when times are really bad. Companies need help both when they are growing or are enduring a downturn, Sazama says.

The phone has been ringing off the hook at Washington Manufacturing Services for the last four months, with companies seeking ways to cut costs and position themselves to survive the difficult economy, he says.

That scenario is echoed by Gary Alvarado, a manufacturing specialist in TechHelp's Post Falls office.

"I'm finding myself in the role of first responder right now," Alvarado says.

In this region, "2009 started off bad for us," Sazama says. He says he's seeing more companies that are having cash-flow problems, though he adds companies that are ready to bid for contracts and use this time of slower activity to position themselves for the future will have opportunities.

"Those (companies) will pull ahead," he says.

Both organizations strive to help companies find efficiencies, or "get lean," and brainstorm how to ease the cash-flow pinch. They help companies analyze their processes and their supply chain, and make changes so they can emerge from the recession stronger.

Sazama says several needs are emerging now for manufacturers here. Among them are the need to improve the executive effectiveness, create a strategic plan, and streamline supply chains.

Also, many companies are seeking new product lines, Alvarado says.

"They are looking to diversify their efforts, perhaps jump-start another revenue stream," he says.

Others are looking to manage their supply chains to cut lead times for supplies and to reduce the amount of inventory they have to keep on hand, freeing up cash for operating expenses while sales are down, he says.

Alvarado says he's working with a company that has five business units, and has a lot of assets but little available cash. "I can't do anything for the market, but I can do things to help them weather the downturn," by helping the company cut costs without cutting jobs, he says.

"One company I've worked with has realized $150,000 in hard savings and not lost any jobs," he says, adding companies that have government contracts seem to be in a good position, while those involved with the construction or restaurant industries have struggled more.

Some companies are using the slow times as an opportunity to cross-train core employees, Alvarado says.

Sazama says he's been pleased to see that a lot of Washington Manufacturing Services' clients aren't battening down the hatches.

"I'm seeing such strength," he says, adding that companies are taking advantage of the opportunity to position themselves to execute contracts swiftly and well.

Sazama says some of his clients are growing despite the general economic malaise, and that there's some hope the federal match for programs offered through Idaho TechHelp and Washington Manufacturing Services (WMS) will double under the Obama administration.

Sazama says he spends a lot of time building relationships with business owners so they will be open with him about what's going on in their businesses, and he can then be frank with them about what they need to do to get on the right track.

Once it's clear what a company's needs are, Sazama points it to education or services offered by other organizations and professionals, in somewhat of a broker model. WMS often also provides executive coaching directly.

It charges its clients a fee for all services, and most of the money goes to the individual service providers. A portion of the fee negotiated in the contract with the providers goes to WMS for project management.

The organization's federal match is used for operational expenses, Sazama says. WMS also gets a small amount of state funding, he says.

WMS can find specialists skilled in "just about anything" a business needs, then manage the project and follow up to ensure the client gets a good return on its investment, Sazama says.

Here, the WMS team consists of Sazama and Mike Schneider, both of whom see a lot of windshield time covering Eastern Washington, he says.

The nonprofit works with a wide variety of clients—well beyond manufacturing—including universities, medical facilities, and other businesses, but only gets federal matching funds for the work it does with manufacturing companies. WMS currently is looking at rebranding itself to reflect that it works with a broader base than just manufacturing.

At any given time, WMS's local operation has about 15 to 20 projects under contract, though Sazama says he has a client base of about 200 companies he keeps in contact with. The nonprofit also works with economic development councils and colleges to provide services, and offers classes, such as the basics of "lean" processes, usually in coordination with TechHelp.

Both WMS and Idaho TechHelp get a one-third federal match for work they do with manufacturers. In such cases, both must demonstrate results in the reduced costs and sales growth of their clients, Alvarado says. TechHelp receives a small amount of state funding as well, he says.

Like WMS, TechHelp charges fees for most of its services, though it uses its own funds to be able to offer some free services to business, Alvarado says. TechHelp has stringent cost-to-benefit accountability that goes along with the federal match it receives. Its clients are polled confidentially one year after TechHelp has helped them about whether their profit margin has improved, their sales have increased, they've added or retained jobs, and they've cut labor or overhead expenses, among other measurements, Alvarado says.

"We are mandated to help save costs by 20 percent" and to improve clients' bottom lines by 20 percent, he says.

TechHelp is part of the extension and outreach programs of Idaho's higher-education system. Rather than acting as a broker of services, however, TechHelp provides services directly to clients.

Alvarado says that last year he worked on about 10 enterprise-wide transformations and 100 or so one- or two-day projects with companies. The organization's primary client base includes about 750 manufacturing companies located between Riggins, Idaho, and the Canadian border.

Because of its relationship to the university system, TechHelp has access to specialized resources, such as a product-development laboratory. If TechHelp can't provide a service directly, it brings in an outside expert, Alvarado says.

For example, one company needed a very specialized process to be engineered quickly. With its contacts, TechHelp was able within a couple of days to connect that company with someone in the region that could provide the service.

TechHelp also offers group training sessions. Those include lean manufacturing training, as well as export training.

Currently, TechHelp is offering a 60-question confidential manufacturing survey to businesses online, which helps companies rate themselves in their competitiveness and effectiveness compared with other companies in their industry nationally.

At one time, TechHelp and WMS shared an office at the University of Idaho's Research Park in Post Falls. Now in separate locations they continue to coordinate on some projects, and provide training sessions jointly, Sazama says.