Purdue’s TAP gives Indiana companies a helping hand

By Vern Detlef, president, Thomas & Skinner, Inc.

Everyone needs a helping hand sometimes.

In the private sector, business consultants sell more than $200 billion worth of services every year on this simple premise. Every organization, at some point, requires an outside perspective, expert advice, or technical knowledge that doesn’t reside within its walls.

Here in Indiana, however, companies have a unique competitive advantage — the ability to access top-notch consulting services from an organization that employs internationally known experts in a variety of fields, spends nearly $350 million a year on research and is lauded across the nation for its prowess in engineering, technology and business management — for free.

It may sound too good to be true, but free help is just a phone call away for Indiana businesses, thanks to Purdue University’s Technical Assistance Program (TAP). Through TAP, Hoosier companies can bring all of Purdue’s intellectual resources to bear on their business issues through a team of university faculty, staff and graduate students. TAP provides 40 hours of free assistance per company, provided its project or inquiry has the potential to strengthen an existing Indiana firm or help a new venture get started in the state.

TAP provides assistance in areas including advanced manufacturing and logistics, information technology, business management, product development and human resources issues. According to its annual report, TAP has undertaken more than 5,300 projects since its inception; in 2003-04 alone, the program helped more than 458 companies, including mine.

Thomas & Skinner manufactures permanent magnets and transformer laminations. We asked for TAP’s assistance in improving our operating systems and in making them more efficient. TAP also has helped us develop a new product.

Thanks to TAP, our company can continue to remain competitive in an increasingly intense global marketplace. Several other U.S. magnet manufacturers have moved to the Far East. Our employee-owned company, which was founded in 1901 by an electrical engineering professor at Purdue, is committed to keeping our jobs in Indiana. TAP will play a significant role in helping us keep our commitment.

Thomas & Skinner is only one example of TAP’s statewide economic development impact. According to company surveys, TAP assistance has led to nearly $50 million in capital investment while identifying efficiencies that helped save Indiana businesses nearly $25 million. Companies also reported increased sales of almost $300 million, retention of more than 2,500 jobs and 1,500 new positions added since TAP was established in 1986.

TAP’s value even goes beyond its consulting services. The program places more than 1,000 interns with Indiana companies each year and hosts the only High-Tech Job Fair open solely to in-state firms. This provides businesses a vital link to new talent and supports workforce development efforts.

Purdue’s TAP is an important economic development asset for Indiana. And it’s especially important now, as traditional economic development efforts are giving way to a new approach.

In the past, the economic development process was often characterized as smokestack chasing — state and local governments competing for corporate expansions and relocations with increasingly generous incentive packages. Over the years, however, public officials have recognized the limits to this approach, and states are unable to bear the expense. Thirty or more states (including Indiana) face significant budget deficits, with cumulative state revenue shortfalls estimated at $200 billion nationwide. The cupboard is nearly bare, and states are looking for alternatives to costly tax incentives and relocation packages.

Economic development officials are searching for new ways of promoting Indiana and new incentives that add value to economic development prospects while not draining the state’s coffers. While TAP supports existing Indiana companies, it can also be marketed to businesses considering Indiana as a place to relocate or grow as a competitive advantage.

In short, Purdue's Technical Assistance Program is an all-around winning proposition for Indiana, as I have discovered firsthand. During this legislative session, Purdue is requesting state funds for the expansion of TAP as part of its Advancing Indiana Manufacturing initiative, a collection of proposals designed to put Indiana on the offensive in rebuilding our manufacturing base.

It’s rare that we're presented with a program that offers such a significant and proven return on investment for Indiana's economy in exchange for a relatively minor budget request of $5 million. An expansion of TAP deserves a legislative resurrection and endorsement, so the program can do even more for Indiana businesses.

To the News Service home page