This has been a tough year for Michigan, and the end of the difficulties is not in sight.

University of Michigan economist George Fulton, director of the Center for Labor Market Research, has predicted that the job decline which started in mid-2000 will bottom out in the summer quarter of 2011, with an aggregate job loss of 937,000 over that 11-year period. That number represents one in every five jobs that existed at the beginning of the period.

But as American businessman and politician Joseph P. Kennedy was fond of saying, “When the going gets tough, the tough get going.”

That’s sound advice for Michigan businesses as well. To regain their footing, a number of small manufacturing companies are turning to the University’s Institute for Research on Labor, Employment and the Economy (IRLEE) for help.

IRLEE offers two business-assistance programs for struggling companies with great needs and limited internal resources. The Great Lakes Trade Adjustment Assistance Center (GLTAAC) helps small manufacturers that have been directly hurt by foreign competition to become more competitive. GLTAAC assists “import injured” firms in Michigan, Ohio and Indiana by identifying, prioritizing, developing and financing business-improvement projects that boost their competitiveness and enable them to stay in business. Private-sector consultants are used to implement the projects. The program provides up to $75,000 in federal matching funds for projects.

The second program, Michigan Business: Surviving to Thriving (MB: S2T), is a layoff-aversion effort focused exclusively on at-risk Michigan companies in a variety of industries.

The program’s goal is to prevent additional layoffs and to stabilize the state’s employment levels. Experienced project managers analyze companies’ strengths and weaknesses, identify areas for improvement, and help them find the right professional talent to make necessary changes in their marketing, operations, and other strategic areas. Up to $35,000 in state matching funds are available.

Rick Kincaid, the owner and president of K&F Electronics in Fraser, has participated in both IRLEE programs. His father started the family owned printed circuit board manufacturing business 37 years ago. However, foreign competition from India and China has decimated the industry, reducing the number of U.S. manufacturers from 2,000 to fewer than 240.

“We were hit 10 years ago with the off-shoring problem,” Mr. Kincaid explains. “Although we started diversifying eight years ago from automotive into medical, instrumentation, road signage and sensors, we continued to struggle. Every time we landed a new account, we lost another existing customer to off-shore competitors.”

Six years ago, K&F Electronics got a new lease on life with 50-50 cost-sharing assistance from GLTAAC. With the GLTAAC funding, the company undertook several marketing and sales initiatives, including a redesign of its Web site and ISO 9000 certification. Through MB: S2T, K&F received a SWOT analysis and suggestions for projects that would improve the firm’s performance. Based on those recommendations, and using funding assistance through the program, they ramped up trade-show attendance and completed additional ISO certification.

The makeover has worked wonders for K&F Electronics. Since they began working with GLTAAC and MB: S2T, the company has grown, increasing its profitability, number of employees and manufacturing space. “When a business is in trouble, it needs to get all the help and advice it can,” Mr. Kincaid says. “The resources available through the U-M are tremendous.”

GLTAAC has a 92% five-year firm survival rate and is currently working with 80 companies across its three-state region. MB: S2T, now in its third year, has helped its manufacturing clients limit their employment contraction to 4% versus the 26% reduction recorded statewide during the 2008-2009 period.

For more information about these business assistance programs visit the website.

Daryl Weinert is the Executive Director of the University of Michigan’s Business Engagement Center.