Increasingly, the manufacturing industry expects the engineering graduates to be productive as soon as they join the workforce. Consequently, future graduates are expected to be knowledgeable in manufacturing hardware and software as well as in worldwide advances in leading edge manufacturing technologies. In order to educate such graduates the Engineering Research Center for Net Shape Manufacturing of OSU started a new program where students work on industry contracts while they are completing the requirements for the degrees. This paper reviews the significant aspects of this educational program and presents examples of work conducted by the students including R&D in tube hydroforming, machining, precision forging and stamping.