Is Grant Funding Available for Your Machine Shop? Here's How to Find Out.

Has your machine shop pursued grant funding for the purchase of capital equipment or to fund workforce training? If not, why not?

There are several reasons shops may not be interested in applying for grants. Lack of awareness about funding availability is likely a big one. The complexity of the grant application process can be intimidating. Then there’s the daily grind of near-term operations, or even concerns about bureaucracy or government involvement, including personal feelings about self-reliance and the stigma of “handouts.”

But make no mistake: There is money on the table — lots of it — waiting for the right shop to claim it. Maybe you just returned from IMTS with visions of machine tools dancing in your head. If you are looking to make that kind of investment and are open to funding it with the assistance of a grant, read on.

There aren’t many experts in the field of grant funding for manufacturers, but Micki Vandeloo is one of them. Vandeloo is the president of Lakeview Consulting, a company she founded in 2017 that today has helped secure more than $150 million in grant funding for U.S. manufacturers. Her experience runs deep, having worked as a sales engineer for the steel industry and a project engineer serving a Tier 1 automotive supplier before honing her skills in the field of grant writing. Vandeloo is the first to admit that there are no requirements that shops or any business hire a consulting firm like hers to apply for grants. (Full disclosure after researching this article: I would.) The expertise Vandeloo shared here was done with the full understanding that shop leaders will, as they are wont to do, decide that question for themselves.

TYPES OF GRANT FUNDING

The types of grants available to shops fall into two main buckets: federal and state. Larger shops with multiple facilities typically have more success acquiring federal grants due to the greater impact those grants can achieve, including significant job creation potential and large-scale investment (common goals for federal grants). The USDA’s Rural Energy for America Program (REAP) offers substantial grants for renewable energy projects in rural areas, such as the installation of solar or wind energy, currently covering up to 50% of project costs. Federal grants have also expanded under the Inflation Reduction Act and the Bipartisan Infrastructure Act, specifically supporting sectors like semiconductor, battery manufacturing and electric vehicle supply chains.

State grants are more readily available for small and mid-sized shops. These grants vary by state but often include programs like Manufacturing Readiness Grants that support advanced manufacturing technologies. For example, Indiana offers grants up to $200,000 for manufacturers investing in new equipment. Other states, like Michigan, have provided Industry 4.0 grants to help shops adopt cutting-edge technologies. Information on a state-by-state basis can typically be found on your state’s Department of Economic Development website. Vandeloo’s company also hosts a free list on its website, as well as a more detailed list available for a small subscription fee.

The Grant Funding Timeline

Whether writing the application yourself or hiring a consultant, the key is to identify the projects you have planned for your shop and match them to grants that fit those projects. The writing process for federal grant applications often takes eight weeks or longer depending on application complexity. Federal grant applications can be upwards of 50 pages of narrative responses, and that doesn’t include supporting documents. Once the application for a federal grant is successfully submitted, receiving a response can take anywhere from two months to a year.

On the other hand, state grants applications take much less time to complete — often just two or three weeks, Vandeloo says, and receiving a response can take from one week to a couple of months. All the same, the key with both federal and state grants is to begin the process early — well before you plan on submitting a purchase order on a new piece of equipment. If you are seeking grants to cover the cost and installation of new equipment, put your initial efforts into pre-installation activities — activities that fall outside the purchase, installation, facility modification or training costs you are trying to have funded. Shops can conduct these activities before submitting the grant application.

Common Mistakes in the Grant Application Process

Even if you hire a consultant, pay attention to the details of the funding opportunity. You, not your consultant, will likely need to complete a registration process through the grant funder’s online registration portal. Once you’ve started the application, do not stray from the requirements. If the funding opportunity stipulates no more than 10 pages of narrative explanation, don’t submit 11. Pay attention to rules about font size and other details that may seem trivial. And importantly, answer questions directly. “I see a lot of manufacturers that will look at a given question and say, ‘Well, maybe if we answer it this way, we’ll be more likely to get money.’ No, just answer the question,” Vandeloo says. “Don’t try to second guess what the funder might want to see.”

If you’re taking on the application process yourself, treat it like the sophisticated project it is. Review the grant language carefully and create checklists for the required information. Create timelines for the project the same way you might for a customer.

YOU WERE AWARDED THE GRANT. NOW WHAT?

If you receive grant funding, celebrate it with the team. In fact, celebrating this achievement with your team is critical, Vandeloo says. If you don't communicate the success to your team or if they’re left in the dark about why you were funded and what you stated on the application, you risk not executing the project to the funder’s satisfaction. This is why it’s also important to keep in close touch with your grant’s point of contact. Vandeloo says that the minute you see something that is not happening according to the proposed project plan, contact your point person and tell them about it. Often these changes will be accepted as long as they still meet the minimum requirements. “It’s not a sure bet, but 90% of funders will work with you,” Vandeloo says.

HAVE A LONG-TERM STRATEGY

If you want to become serious about grant funding, do yourself a favor and create a long-term strategic plan for your shop. “I love to see where a strategic plan flows into grant funding,” Vandeloo says. “If a shop takes strategic planning seriously, that can actually lead to some really great grant funding opportunities.” That’s because strategic plans often identify activities and projects needed to achieve them, including capital investments, energy efficiency projects or hiring and workforce training. In other words, the exact projects that often qualify for grant funding.