| SB Electronics Secures NETAAC Grant Funding |
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Product: Capacitors and Electronic Components SituationSB Electronics (SBE) experienced a downturn in their business due to increased competition from Asian manufacturers importing large volumes of low-cost products. SBE knew they needed to diversify their product offerings and expand their market share to remain competitive. However, this would require a significant capital investment at a time when business was slow. SBE turned to the VMEC, a NIST MEP network affiliate, for assistance locating additional capital. SolutionSBE's business had clearly been negatively impacted by imports. The loss of revenue resulted in a reduction of manpower. VMEC recognized that these two factors would potentially qualify SBE for a grant through the New England Trade Adjustment Assistance Center (NETAAC). A VMEC Manufacturing Business Advisor provided project management assistance to lead SBE through the qualification process. This included demonstrating past and projected losses of revenue utilizing data analysis techniques and customer testimonials. SBE also participated in a detailed business review that demonstrated core strengths, as well as identifying projects to improve its business. Projects included engineering support for a new line of metalized capacitors, a strategic market research project, synchronous flow manufacturing, set-up reduction, and updates to the business infrastructure. SBE was awarded a NETAAC grant in November of 1998. The grant provided SBE with a 50% cost share for qualified projects up to $150,000 over the next 2 years. Working with VMEC, SBE immediately began applying NETAAC grant money to several key improvement projects. Results
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