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INNOVATE Hawai‘i, the Future of MEP:
What’s at Stake

Update: May 16, 2025

Mahalo to the support from our clients, community, and stakeholders for the INNOVATE Hawaii program. As there is currently much uncertainty and instability for the program and staff, INNOVATE Hawaii will only be accepting short-term projects, and based on staffing resources. In addition, projects and programs that will continue (such as the state funded MAP grant), are to be transitioned internally from INNOVATE Hawaii to additional HTDC teams for administration continuity.

Overview

On April 1, 2025, 10 of the 51 Manufacturing Extension Partnership (MEP) Centers across the U.S.—including INNOVATE Hawai‘i—were abruptly informed that their federal funding from the Department of Commerce (DOC) would be cut, despite congressional approval and appropriation of funds.

For Hawai‘i, this was more than just a budget issue. INNOVATE Hawai‘i, that has been housed within the Hawai‘i Technology Development Corporation (HTDC) for the last 20+ years, is the state’s only MEP Center and a crucial partner for our local manufacturing industry. It connects Hawai‘i’s small and medium-sized manufacturers to the resources, training, and innovation they need to compete and thrive.

Thanks to quick advocacy and public concern, DOC has temporarily restored funding through September 2025. While this offers short-term relief, the long-term future of MEP remains unclear.

What Happens Next?

Despite congressional support, the Department of Commerce and the National Institute of Standards and Technology (NIST) have stated they are still “evaluating plans for the program.” This has left the entire MEP network—including Innovate Hawai‘i—in a state of uncertainty.

By July 1, MEP awards are expected to expire in 11 other states due to a routine recompete process, yet no confirmation has been provided by NIST about whether new awards will be issued. Arizona and Maryland also face a July 1 funding deadline with no updates. The lack of transparency has raised concerns about a broader attempt to phase out or diminish the program.

** Why MEP Matters—Especially in Hawai‘i **

Our local MEP INNOVATE Hawaii program has delivered proven value:

  • For Hawai‘i, the benefits are especially tangible. INNOVATE Hawai‘i draws in more than $800,000 in federal funding annually to support local businesses. In 2024 alone:
  • 62 grants were deployed through HTDC’s Manufacturing Assistance Program (MAP).
    • These grants facilitated the identification of potential improvement areas for local manufacturing companies, which led to the development of targeted projects through INNOVATE Hawaii, aimed at tech enabling, streamlining, and enhancing company competitiveness.
  • $1.79M in matching grants helped leverage $16M in company investment
  • 466 full-time jobs and 429 part-time jobs were created

SERVICES: INNOVATE Hawaii has provided the following support to local manufacturing companies to become more competitive.

  • Food Safety Training: (FSMA, HACCP, GFSI, Allergens, Nutritional Labeling, Sensory & Quality Shelf life evaluation.
  • Process Optimization: Lean manufacturing, 5S, Six Sigma for continuous improvement. Including optimization of supply chain using technology.
  • Scaling Up of Manufacturing Equipment: Robotics automation, process and packaging equipment analysis
  • Audit Prep / Assessments: For distribution to wholesalers.
  • E-commerce Programs: Professional one-on-one consulting services to increase customer base and global competitiveness with an enhanced online presence – digital marketing, design, UX/UI, and data analytics use/application.
  • Commercialize Review: market validation insight and regulatory compliance information.

WORKFORCE DEVELOPMENT: Initiatives under INNOVATE Hawaii.

  • Textile and apparel manufacturing workforce, and smart manufacturing skills training on Moloka’i and Oahu. To support local economic growth and sustainability in various areas of need in Hawaii.
  • Smart Talent Program: Methodology system offered to help local businesses with a systematic approach to recruitment, hiring , on-boarding and early career development.
  • High School manufacturing certification cohort program
  • Apprenticeship program opportunities.

Nationally

  • In 2024, the MEP national network helped over 35,000 manufacturers, generating:
    • $15B in new sales
    • $5B in new investments
    • 108,000 jobs created or retained
  • Public support is clear:
    • 85% of Americans view manufacturing favorably
    • 72% support stronger government efforts to strengthen it

These numbers represent real people, real businesses, and real progress across Hawai‘i—from urban Honolulu to rural neighbor island communities.

Why We need Your Help

INNOVATE Hawai‘i plays an essential role in developing a more self-reliant, diversified local economy—especially as we work to strengthen local supply chains and reduce our dependence on imports. In addition to federally funded specialty service support, the MEP network helps our local INNOVATE Hawaii team tap into national resources that can provide our manufacturing companies with unique resources and services that may not be easily available locally.

To keep this vital program running, we need full funding for MEP in the FY2026 federal budget ($809,800). Continued support will ensure INNOVATE Hawai‘i can:

  • Help local manufacturers adopt new technologies
  • Improve productivity and sustainability
  • Train and grow a skilled local workforce

Take Action

We urge local business owners, community leaders, and residents to contact Hawai‘i’s congressional delegation and voice your support for the MEP program.

Together, we can protect and grow Hawai‘i’s manufacturing sector—and ensure that local businesses continue to receive the tools and support they need to succeed.

Questions?

If you have any questions, please email innovatehawaii@htdc.org