BUSINESS MODEL > Market Challenge

While in demand, MSMEs constitute less than 1% of all U.S. based manufacturing, and, where 90% of suppliers at the top of the value chain have revenues that exceed $100 million, MSMEs constitute 95% or more of suppliers with revenues under $1 million.

The historic lack of MSMEs in supply chains is attributed to a combination of factors that include:

• dependency on socio-economic certification
• need to continually adapt to new and evolving technologies
• dual pressure of reducing cost while improving quality
• lack of production capacity necessary to lower transaction cost
• aging workforce in need of continuous training and adaptation to emerging technologies
• dependencies on single large contracts
• lack of understanding of Corporations’ Key Performance Indicators (KPIs)

Overcoming these common obstacles is key to NMMI’s MSME outreach, development, and support programs.