URBAN MANUFACTURING, INFRASTRUCTURE,
AND ECONOMIC DEVELOPMENT
Nisha Mistry Manufacturing Advisor, City of Newark Mayor’s Office Fellow, Brookings Institution April 10, 2012
Regional Planning Summit, Trenton, N.J.
Trenton Makes...
Portable LED Flashlights Green Building Materials Plastic Tubing & Hosing Adhesives & Glues Fabricated Metal Products Bottled Fruit Juice Window Blinds Corrugated Paper Products Electronic Components And more…
New Jersey Manufacturers Export (2009)… Canada (20%) South Korea (6%) Mexico (5%) Japan (5%) Germany (5%)
Top Sectors (in dollars, 2009)… Chemicals Food, beverages, tobacco Computer and electronic products
Source: National Assoc. of Manufacturers
New Jersey Manufacturers... Total 8,447 (2009)
New Jersey Manufacturers Employ... 7% (2010)
Strong multiplier effect and linkages to other sectors Family-‐wage jobs with large workforce Technologically innovative research communities Centers of consumption Nodes of high-‐speed communications
Urban manufacturing still bestows unique advantages.
Concentrated logistics and transit networks Value and wealth creation in communities
II. “Underperforming Urban Centers”
“Many of New Jersey’s urban centers are under-‐ performing assets, yet these are the locations with existing human and infrastructure assets.”
I. Goal: “Targeted Economic Growth”
The cultivation of “industry clusters.” Manufacturing is a priority industry.
Draft NJ State Strategic Plan (2011) State Planning Commission
Credit: CBS Worldwide, Inc. & Desilu too, L.L.C.
The scale and characteristics of urban manufacturing in the U.S. have radically transformed.
Smaller, streamlined firms Decentralized, fragmented networks Diverse skills of production workforce Customized goods for niche markets Global competition, cost shocks Pressure to be nimble, adaptable Greener, more sophisticated processes Smaller footprints, evolving land and space needs Access to suppliers, workers, services, markets drives value creation
Mistry, N. & Byron, J. (Brookings Institution, 2011)
Need for transit-‐accessible, skilled workers
Skills gap Aging workforce Shortage of production workers Succession planning crisis Poor public image of sector
Spatial mismatch 6% of airport and port jobs are held by Newark residents 60% of Newark residents work outside of the city 44% of Newarkers do not own a car Shift-‐based work Case study: Ironbound
Need for efficient goods movement
Global trends Densification of freight nodes Added value Enhanced efficiency Control of supply chain Competition for port performance
This is a metropolitan phenomenon.
Source: Hesse & Rodrigue (2004)
New Jersey Makes… The World Takes.
Supply-‐chain state with dense, multimodal surface transport.
Supply chain’s ability to respond to unexpected demand
NJ (2011) National (2011)
Major delays, most suppliers struggle, excessive delivery times and/or inventory
5.6% 6.8%
Minor delays, some suppliers struggle, excessive delivery time and/or inventory
39.4% 40%
Most suppliers efficiently satisfying demand, standard delivery times nearly met
43.7% 44%
Entire supply chain flexible to demand spikes, standard delivery times consistently met
11.3% 9.2%
Source: NJ MEP (2011)
Infrastructure and public transit policy should reflect the realities and needs of 21st century urban SMEs.
Just-‐in-‐time (JIT) production Value-‐driven distribution Competition for land , space, road surface Oil-‐dependent freight trucking and shipping Proximity to skilled workers Greener processes and trucking
Moving Forward
Understand the scale and dynamics of manufacturing base Identify local and regional barriers to urban industrial performance Engagement with manufacturing sector to determine challenges Revisit policy agenda and explore potential for alignment Local: Master planning, land use , traffic management State/Regional: PA-‐NYNJ; NJ State Rail Plan (Fall 2012) Federal: National strategy for goods movement; federal grants
There is no such thing as a foolproof business or idea… Just remember, losses can be the greatest teaching aides. Thomas Edison