In late 2025, a sudden freeze on federal funding upended what many in Ohio’s manufacturing world thought was a stable support system. The Dayton-based Manufacturing Extension Partnership (MEP) office, known as Fastlane, a trusted resource for small and medium-sized manufacturers, now plans to close its doors after more than a decade of helping local shops grow, innovate, and compete.
For 13 years, FastLane has collaborated closely with manufacturers in the Dayton region, providing expertise in a range of areas, including process improvement, automation, workforce training, and business growth strategies. “We’ve been on this for 13 years, and we’ve never been as good as we are today,” said FastLane Director Philip Ratermann in mid-December, describing his shock after learning that federal support had been abruptly withdrawn.
The federal funding freeze stems from a years-long audit of Ohio’s MEP programs conducted by the U.S. Department of Commerce Office of Inspector General (OIG). Earlier this year, the Commerce Department, through its agency, the National Institute of Standards and Technology (NIST), informed Ohio officials that federal grants for MEP programs would be paused while the audit wraps up.
NIST, a federal science and standards agency that oversees the Hollings Manufacturing Extension Partnership program, did not publicly share detailed findings but said the decision was made “after careful consideration of serious issues that were brought to our attention.”
MEP centers have a long history. Originally funded in the late 1980s, the Hollings MEP network is an extramural program of NIST designed to provide technical and business assistance to help small and mid-sized manufacturers retain and create jobs, improve efficiency, and expand markets.
The freeze has hit Ohio hard. FastLane, with 12 staff members, will stop accepting new clients and aims to finish current projects before closing within weeks. Nearby MEP offices are also struggling; some have already laid off most of their employees, and several could soon close without restored funding.
The industry feels the pinch. MAGNET, a major MEP in Northeast Ohio that has supported manufacturers with technology adoption and workforce training, saw $5.9 million in funding pulled, threatening more than 90 jobs across the state.
Locally, manufacturers worry about the wider ripple effects. “MEPs play a critical role for Ohio’s small and mid-sized manufacturers, the lifeblood of the state’s economy,” said Ryan Augsburger, president of the Ohio Manufacturing Association. “Abrupt funding cuts put jobs, competitiveness, and local supply chains at risk.”
The Commerce Department’s OIG review reportedly identified errors in financial reporting and compliance at several Ohio MEP offices, though specifics have not been fully released. Local MEP leaders argue that not only does the freeze come without a completed audit report, but the review hasn’t even given them a chance to address any concerns before cutting funds.
Officials from one partner organization cited in the audit, the Center for Innovative Food Technology (CIFT) deny any misconduct, saying the discrepancies were administrative and due to unclear reporting rules rather than intentional wrongdoing.
The freeze has drawn fire from lawmakers and industry advocates beyond Ohio. A bipartisan group of U.S. senators, including Chris Coons and Maria Cantwell, sent letters demanding answers from NIST over what they called an “unauthorized dismantling” of the MEP network. They warned that up to 65,000 manufacturers nationwide could lose access to vital support services if current trends continue.
Connecticut’s Marcy Kaptur blasted the Commerce Department’s decision as “a direct blow to family-owned businesses and American entrepreneurs” and demanded the funds be released immediately.
MEP centers have traditionally operated on a mix of federal and state funding, often matching each other to support local manufacturing assistance. With federal funds frozen, many state dollars have also dried up, as states cannot release matching funds until federal money flows again.
Manufacturers themselves emphasize that MEP services are not luxuries but essential lifelines that help them adopt new technologies, improve operations, compete globally, and train workers. Removing that support abruptly, critics say, jeopardizes not just individual companies but regional economies.
As the audit continues and lawmakers push for clarity and restoration of funds, Ohio’s manufacturing community waits, unsure if a program that has helped thousands of businesses will survive into 2026.
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