BROOKLYN MADECertification Program

May 2014

NYU Wagner Capstone Team Scilla AlbaneseEmmett MehanJaleesa MurrellYusuf SiddiqueePatrick Yacco

Executive Summary

Introduction

Background ResearchEconomic Trends Other Certification Programs

Brooklyn Manufacturing Sector Research: Methods and FindingsIn-Depth InterviewsSurvey of Brooklyn BusinessesIndustrial & Manufacturing Coalition Presentation

Proposed Brooklyn Made Certification FrameworkBaseline Certification CriteriaThe Brooklyn Made Assessment ToolThe Development of the BMATCertification Results from the SurveyExpanding the BMAT

Recommendations on Implementation and ManagementManagement of the Certification ProgramIncentivizing Business to Apply for CertificationPromoting the Brooklyn Made Certificaiton

AppendicesCertification Programs SummaryInterview GuideSurvey of Brooklyn BusinessSurvey ResultsBrooklyn Made Assessment Tool Percent of Surveyed Businesses That Fit Each Certification Criteria

Works Cited

Table of Contents2

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Photo Credit: Piotr Redlinski for The New York Times / Blog

The term “Brooklyn” has become a valued brand commonly associated with things that are trendy, and artisanal. Numerous

businesses use either the borough name (e.g. Brooklyn Salsa, Brooklyn Winery, Brooklyn Industries, Brooklyn Cured) or a specific Brooklyn neighborhood (e.g. Red Hook Winery, Bed|Stu) in the name of their company or their products. In light of the success of Brooklyn’s manufacturing sector and influence as a culture hub, makers outside of the borough have attempted to benefit from it as well, some going as far as to include “Brooklyn” in the name of their product even with little or no affiliation with the borough. The Brooklyn Made certification is an opportunity for businesses that manufacture products within Brooklyn to market their authenticity, differentiating themselves from those that use the borough exclusively for branding purposes.

The Brooklyn Chamber of Commerce engaged the NYU Capstone team to develop a framework for the Brooklyn Made certification, and to make recommendations on the ongoing management and strategy of the program. Drawing from research conducted on other certification programs – including regional certifications like Portland Made and SFMade as well as non-regional certifications like LEED and B-Corporation – the Capstone team developed the Brooklyn Made Assessment Tool (BMAT). The BMAT was further refined using data collected from a survey of 117 Brooklyn manufacturers, which painted a picture of the industrial landscape in Brooklyn and allowed us to test the implications of using certain components of production to determine eligibility (for example, product assembly and the processing of raw materials). This dual approach to the development of the BMAT was critical to ensure that the Brooklyn Made certification is both competitive – in that the expectation of authenticity required for

eligibility is high relative to other programs – but also viable within the Brooklyn market in that it is not disproportionately difficult for products to become certified. The BMAT uses a points-based system to determine whether individual products are eligible for Brooklyn Made certification. The points-based scale was inspired by the B-Corporation model and allows for the greatest flexibility in determining how stringent the requirements for eligibility are. In other words, the Chamber can easily raise and lower the threshold to adjust the number of products that qualify for certification without changing the process by which points are measured and allocated. This flexible framework allows the Chamber to adjust the eligibility requirements from year to year based on the size of the applicant pool and changes in the market without the need for an entirely new foundation.

Finally, the Capstone team developed a series of recommendations on how to manage and grow the Brooklyn Made program. These recommendations are broken into three categories. The first focuses on the effective management of the application and certification process and the allocation of resources in support of the program. The second lays out strategies to incentivize Brooklyn businesses to apply for certification. The third suggests methods to promote the certification in a way that communicates the authenticity of Brooklyn Made products both within Brooklyn and to new markets.

The Brooklyn Made Assessment Tool allows the certification to be more sophisticated and complex than comparable programs. Given the nascent growth in the Brooklyn manufacturing sector, we believe that there is an opportunity to leverage this sophistication to reward and encourage businesses whose production processes are located in Brooklyn, and potentially spark additional growth in the sector.

Executive Summary

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Photo Credit: Adventure Student Travel / Reuters

I. Introduction

The name “Brooklyn” has become a valued brand associated with things that are trendy, and artisanal. Numerous businesses use

either the borough (e.g. Brooklyn Salsa, Brooklyn Winery, Brooklyn Industries, Brooklyn Cured) or a specific Brooklyn neighborhood (e.g. Red Hook Winery, Bed|Stu) in naming their business or products. In light of the success of Brooklyn’s manufacturing sector and influence as a culture hub, makers outside of the borough have attempted to benefit from it as well, going as far as to include “Brooklyn” in the name of their product with little to no production occurring within the borough. Absolut Brooklyn vodka is an example. Although Absolut Brooklyn’s “locally inspired” flavors and bottle design was done by Brooklyn resident Spike Lee and inspired by “Brooklyn stoop life,” some have argued that the multinational liquor company is taking advantage of the Brooklyn trend. Clearly identifying products that are actually manufactured locally would help shift the benefits of this trend to Brooklyn-based businesses. This is where a data-driven urban manufacturing certification program based in Brooklyn can help interested local businesses differentiate themselves from other firms who use the borough simply as a branding tool. In addition, a program like this can be used as a marketing and promotional tool for local businesses domestically and internationally.

To this end, the Brooklyn Chamber of Commerce sought to develop a standard that allows customers to differentiate which products are actually made in Brooklyn because unassociated products are using the borough name or claiming to support the local economy. The Brooklyn Chamber of Commerce started with the launch of its “Made in Brooklyn” awards this year and used three criteria for this recognition: the percentage of production, the amount of product development, and amount

of product assembly in Brooklyn. The Chamber recognizes, however, that these measures may be imperfect in some cases. For example, a retailer rejected at least one Brooklyn product because most of it was manufactured outside Brooklyn. Establishing a clear definition of what it means for a product to be made in Brooklyn will ensure clear expectations for customers and retailers.

The objectives of this report are to provide the Chamber with recommendations on how to differentiate Brooklyn products through a framework of defining characteristics under a voluntary, market-driven, and independent certification structure entitled “Brooklyn Made,” and to recommend an organizational structure by which this certification program can be executed and grown over time.

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II. Background Research

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Economic Trends

Brooklyn, NY is the most populous borough of New York City, with 2.5 million residents as of June 20131. Even with a growing population

and a 16% increase in the number of jobs between 2000 and 2011, Brooklyn’s manufacturing sector experienced a loss of 24,000 jobs in that time period2. In New York City, the total number of manufacturing jobs halved from 150,000 in 2001 to just over 75,000 in 2012. This downward turn in manufacturing jobs was experienced nationwide: from 2002 to 2012, the U.S. experienced a 21.7% decrease in manufacturing jobs. There has been a downward trend in manufacturing jobs since the 1960s. However, from 2010 to 2013, there was an upswing in the manufacturing sector in Brooklyn. From 2010 to 2012, Brooklyn was the only borough that experienced any increase in the number of manufacturing jobs3 (a net gain of 39 jobs), while the other four boroughs experienced a decrease during the same time period. Between July and August 2013, there has been an increase in manufacturing jobs in New York City by 1,400, mostly in Brooklyn4.

Historically, manufacturing thrived in New York City because of its close proximity to ports and railroad infrastructure, and a steady flow of immigrant labor force. Now, instead of mass-producing one or two products, manufacturers are paying attention to consumption patterns and producing goods that are locally sourced to satisfy recent consumer appetite for regional, specialty products (e.g. Made in New York, influx of food markets). This reveals that there is a demand for some type of branding or certification for Brooklyn-made products on the consumers’ end to accommodate the changing face of manufacturing.

A large portion of the manufacturing sector is employed in Brooklyn. The number of people employed in the manufacturing sector in Brooklyn is 19,900, about 27% of the total employed in the manufacturing sector citywide. In 2012, the average annual salary for the 1,740 manufacturing establishments in Brooklyn’s manufacturing sector was $37,000, the lowest in the manufacturing sector citywide. According to the federal standard measurement, North American Industry Classification System (NAICS), a manufacturing establishment is one “engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products”. Although establishments in the manufacturing sector are often described as “plants, factories, or mills and characteristically use power-drive machines and materials-handling equipment”,any establishment that “transforms materials or substances into new products by hand or in the worker’s home and those engaged in selling to the general public products made on the same premises from which they are sold,

such as bakeries, candy stores, and custom tailors” may also be included in this sector. Manufacturing establishments may also “process materials or may contract with other establishments to process their materials for them”. With the rise in the cost of rent and of conducting business in New York City, many large manufacturing firms have left, but small firms remain. According to results from the NYC Economic Development Corporation’s 1,000 Business Survey, the average manufacturing firm in New York City is now smallsize (majority has less than 10 workers), well-

Brooklyn was the only borough in New York City to experience a percent increase in the number of manufacturing jobs.

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established (60% have operated for more than 20 years), renter (60% lease their space), and family-owned (about 75% of firms are family-owned). The manufacturing subsectors are: Food & Beverage (which is highly concentrated in Brooklyn), Textile, Apparel & Leather; Wood, Paper & Printing, Petroleum, Chemical, Plastic & Mineral, Metals & Machinery, Computers & Electronics, Transportation Equipment, Furniture & Related Products (which is historically concentrated in Brooklyn), and Miscellaneous. Although these subsectors are experiencing a downward trend in jobs, Food & Beverage is the only subsector in New York City that is growing. From 2011 to 2012, Food & Beverage added 1,041 jobs to the manufacturing sector5.

Recent efforts to stimulate more growth in Brooklyn’s manufacturing community include initiatives such as the New Lab, a public and private collaboration that brings community-manufacturing space to the Brooklyn Navy Yard in order to share laser cutters and 3D printers that are too expensive for individual businesses to purchase on their own. Another initiative to help stimulate growth in the manufacturing sector was the establishment of Industrial Business Zones (IBZ). In 2005, the Bloomberg administration established Industrial Business Zones to stabilize industry areas in the Bronx, Brooklyn, and Queens. One main purpose for IBZs is to foster industrial growth by establishing real estate certainty. IBZs have lower rents ($13.50/sq. ft. per month compared to the New York City average of $14.03/sq. ft. per month) and lower vacancy rates. As of 2013, there are 20,000 acres of manufacturing districts in New York City, about 15% of total New York City land. Industrial rent rates in New York City are the highest in Manhattan at $30.00/ sq. ft. per month, while in Brooklyn, the industrial rent rate is $15.64/ sq. ft. per month, the second highest in New York City. With IBZs lower rents of $13.50/ sq.ft. per month, this initiative has helped foster industrial growth in Brooklyn.

Other Certification Programs

The Capstone team researched an array of comparable local and regional programs, including SFMade (San Francisco), Portland Made, Made in NY, Made in NYC, and Made in USA. In addition, we researched a number of non-regional certification programs, including USDA Organic, Leadership in Energy & Environmental Design (LEED) and B Corporation to understand the mechanics of a larger certification program. From this research, we observed that a certification program usually has a definition, a verification process, an application fee associated with being certified, benefits associated with being certified, and an administrative body.

Certain programs stood out for their unique, value-adding components. SFMade operates as a nonprofit organization. It excels in identifying incentives for businesses to certify their products, including strong brand recognition and strategic business consulting. SFMade defines their certification using the business rather than the product as the unit of analysis. Eligible businesses are headquartered in San Francisco and/or have a registered business license in San Francisco; primarily design and manufacture at least one product (versus a digital product or a service) within San Francisco; have a San Francisco-based work force with the desire to grow over time; have one full-time employee; and for manufacturers of consumer products, have one or more products for sale at a retail store or online.

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Benefits associated with the SFMade certification include access to a suite of tools to help local manufacturers connect more powerfully with their customer base, including exclusive use of the trademarked SFMade logo and brand collateral; listing in the SFMade directory and other Shop Local directories and search engines; and exclusive selling opportunities at SFMade hosted events and other local events. There is no application fee or required documentation to be certified, with verification done by the SFMade staff.

Portland Made, another regional certification program, has developed a strong member-sustained collective, where members share resources, advocate for one another and educate the public on benefits of buying local. It also has an operational side that connects consumers to local designers, retailers and manufacturers. The only criterion for the free membership is that the business has to be “based in Portland” (i.e. they do not specifically define what this means). The benefits associated with membership include access to media and physical platforms and partnerships to help grow the local manufacturing community and educate the public about manufacturing, connecting manufacturers and designers to build skills and foster job creation, marketing of local goods through promotion, and rewarding shoppers for buying locally through their partnership with Supportland.

B Corporation and LEED, two examples of non-regional certification programs, have by far the most sophisticated certification criteria. They are both points-based, which allows for the greatest flexibility and adaptability for a diverse market. In a points-based system, businesses that wish to become

certified must submit substantial documentation in order to verify their qualifications in certain areas. Points are then awarded for each successful verification. B Corporation is a certification program for sustainable businesses, where a business is defined by a “B Impact Assessment” and must earn a verified score of at least 80 points out of 200. The benefits associated with a B Corporation certification include differentiation from “pretenders,” access to services, attracting and engaging talent, helping to lead a movement towards businesses taking accountability for their impact on the world, generating press, participating in the "B the Change" campaign, partnering with peers, and helping to protect the business's mission.

Points-based certification allows for the greatest flexibility and adaptability in a diverse market.

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LEED, which is administered by the U.S. Green Building Council (USGBC), certifies green buildings through a ratings system of 100 base points. Each credit is allocated based on the environmental impacts and human benefits of the building-related impacts that it addresses. The rating system is: certified (40 - 49 points), silver (50 - 59 points), gold (60 - 79 points), and platinum (80+ points). Because LEED’s verification process is so extensive, the certification and registration fee is high compared to the other certification programs (on average $2,000 per project). There is a flat registration fee that is paid up front at the time of registration. The certification fee is based on the size of the project and the rating system that the project was registered under. Certification fees are paid at the time a project team submits their application for review.

In addition to these four certification programs - which were most influential in creating the Brooklyn Made certification program - we also looked at the following programs (a more detailed description of each can be found in Appendix A):

• Made in New York City: certifies website companies made in New York City• Made in NY: an initiative from the NYC Mayor’s Office mainly geared at Film & TV productions and

technology companies• Made in NYC: Pratt Center’s initiative that certifies manufacturers• Made in USA: a federal law that requires “all or most” of a product to be made in the USA before being

labeled as such• Made in Portland: certifies Portland-based beer, bikes, coffee, and websites• Minority- or Women-Owned Business Enterprise (M/WBE): ensures that a small business is actually

owned, controlled, or operated by minorities or women• USDA Organic: labeling that indicates a food or other agricultural product has been produced through

approved methods

Many of the programs examined certified the business rather than products. The certification programs varied greatly in their sophistication, with B Corporation and LEED being the most sophisticated programs we researched. Most of the regional certification programs did not clearly define important terms, such as “manufacturing” or were vague in regards to how much of a product’s manufacturing should take place in the region in order to get certified. A majority of the regional certification programs verified based on an honor system, while non-regional certification programs like MWBE, B Corporation and LEED verified eligibility via tax documents, site visits, and a thorough verification process. The certification programs are mostly owned or run by nonprofit organizations. Among the certification programs looked at, a business’s certification either requires annual reviews (e.g. LEED) or is permanent (e.g. Portland Made).

Based on the team's findings, it was decided that the Brooklyn Made certification program would be points-based, with the components of the eligibility criteria derived from our survey of Brooklyn businesses.

III. Brooklyn Manufacturing Sector Research:Methods and Findings

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In-Depth Interviews

The Chamber prepared a list of businesses that could represent specific industries and discuss both the qualities of Brooklyn’s diverse

manufacturing sector and offer input into the certification program. The Capstone team interviewed five different businesses throughout November 2013, and conducted an additional interview with one retailer in February 2014. This information was then used to shape a survey distributed to a wider pool of manufacturers. Interviewees were asked approximately 20 questions during a one-hour session regarding the demographics of their business (number of employees, years in business, number of products manufactured), why and how Brooklyn was important to their business (what

aspects of production were essential to being located in Brooklyn, if/how being located in Brooklyn influenced marketing), and opportunities and challenges faced due to operating in Brooklyn. (The Interview Guide can be found in Appendix B).

Key takeaways were relatively consistent across these conversations. Interviewees believed that the certification program must exclude products with no true connection to the borough. For example, one interviewee mentioned that they source ingredients locally to the extent that they are available, and all labor and equipment takes place within Brooklyn. In contrast, one of their competitors actually uses “Brooklyn” as part of their branding, though the only local ingredient is water. Thus, the certification program must somehow

recognize businesses with a large portion of their manufacturing conducted in Brooklyn, while eliminating those who are “Brooklyn in name only.”Several interviewees recognized the challenge of capturing the “craftsmanship” that takes place in Brooklyn. One individual stated that Brooklyn manufacturers were beginning to develop a reputation for unprofessional working conditions and selling wares at venues with a low threshold for entry. More specifically, these types of products were identified as “being made in a bathtub and sold at farmers’ markets.” Therefore, there must be some sort of criteria that separates those businesses that are serious about their trade from makers that treat their craft as a hobby.

Nearly all interviewees expressed concern about the value added by a certification program. For example, interviewees wondered about what type of extra visibility the certification would provide. They believed that the organization managing the program should offer benefits such as advertising. Furthermore, while the certification could be designed in order to benefit smaller businesses, larger firms need to join the program to add credibility to the certification itself. Additionally, a number of interviewees highlighted the need to provide networking opportunities among businesses themselves, as well as develop some type of lobbying mechanism to advocate for better benefits for Brooklyn manufacturers in general.

There must be some sort of criteria that separates those businesses that are serious about their trade from makers that treat their craft as a hobby.

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Some interviewees went so far as to suggest specific criteria by which to measure a business's stake in Brooklyn. These included where ingredients were sourced from, how much, if any, production (i.e. transforming raw materials into useable parts) took place in Brooklyn, how much product assembly tookplace in Brooklyn, share of employees located in Brooklyn, and whether or not the firm was headquartered in Brooklyn. Additionally, some makers believed that it was important for manufacturers to give back to the Brooklyn community, either by hiring workers from Brooklyn or donating a portion of their profits to local organizations.

Overall, it was clear that a certification program should recognize products that were created primarily in Brooklyn, as well as firms that implemented processes and procedures that showed a seriousness towards owning and operating a business. In order to encompass these requirements and based on additional feedback from our interviews, our survey asked a mix of questions about where a firm was located and how much production, design, and assembly took place in Brooklyn, as well as the size of the company’s Brooklyn-based staff. Additionally, those surveyed would be asked what resources they would need to further their business interests, which could then be possible incentives to pursue Brooklyn Made certification.

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Survey of Brooklyn Businesses

MethodologyDrawing on insights gained from the interviews, the team used the research software Qualtrics to build an online survey that gauged how much product manufacturing and business operations occur in Brooklyn, as well as capture business demographics and trends. We worked in consultation with Judy Polyne, an NYU expert on survey methods, and submitted the survey for review to a small pilot group that included Chamber staff members and the initial group of interviewees. After a final revision, a link to the survey was emailed in mid-January 2014 to over 1,000 businesses and related contacts through the Chamber’s network of both members and non-members. The team ended the 4-week period with 117 responses.

Survey questions were similar to those asked of businesses in the in-depth interviews and included inquiries into labor demographics, location of each step in the production process, and ideas to improve the manufacturing sector in Brooklyn. Most importantly, the survey split production into six components: Marketing, Senior Management, Processing of Raw Materials, Research, Design, and Development, Product Assembly, and Product Finishing (the full survey can be found in Appendix C).

ResultsBecause of our emphasis on product manufacturing, the Capstone team analyzed survey results looking at the entire survey sample as well as a smaller subset of companies we could identify as manufacturers (in our sample, non-manufacturing meant service industry, restaurants, or software companies). However, the results were almost identical so the full survey results (N=117) are reported here. Below we have summarized the findings and called out the most relevant survey results (see Appendix D for additional graphs of survey questions not shown below).

Respondent Profile: 74% of respondents identified as Founder/CEO, co-founder, or founding partner of their organization while everyone else held a senior management or ownership role. Respondents clustered around a few industries: 50% worked in Food and Beverage, 15% worked in Textiles, Apparel and Leather, 14% were Furniture and Related Product, and 5% worked in Wood, Paper, and Printing. Petroleum, Chemical, Plastic and Mineral; Metals and Machinery; and Computers and Electronics each represented 1% (see Table 1). A majority were small businesses (less than ten employees) operating for less than five years, although a significant portion (23%) have been operating for more than ten years.

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Table 1: IndusTrIes represenTed In survey

Business Sales: 44% of respondents earned less than $100,000 in 2012 gross revenues, 30% earned between $100,000 and $999,999, and 10% earned $1,000,000 or more (15% preferred not to answer). 78% of companies market their products outside of New York City and 75% of respondents’ sales happen in the Northeast region (in order of highest sales: New York, New Jersey, Connecticut, Massachusetts, Pennsylvania, Rhode Island, Vermont, Maine, New Hampshire). 40% of companies reported that they export outside of the United States, mostly to Europe (67%) and Asia (42%).

Details of Production Process: Slightly less than half of respondents (46%) used Brooklyn in the name of their company or their product(s) while the vast majority were headquartered and incorporated in Brooklyn (93% and 75%, respectively). 72% of respondents said that at least 76% of their products are made or manufactured in Brooklyn (see Appendix D) and an overwhelming majority said that most or all of the six components of production activities took place in Brooklyn (see Figure 1).

FIgure 1: How mucH oF eacH oF THe FollowIng acTIvITIes Take place In brooklyn?

The most prevalent reported challenges to manufacturing in Brooklyn were high facility costs (66%), condition and size of available facilities (41%) and high labor costs (42%) (see Figure 2). Respondents also indicated that raw materials for their products are difficult to source within Brooklyn, mostly because the specific materials or ingredients are unavailable or are too expensive; 24% of those surveyed said their business does not use any Brooklyn-based materials, while 39% indicated that at most 25% of their materials are sourced from Brooklyn.

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13%

68%

15%

10%

80%

5%

3%

15%

56%

9%

10%

10%

13%

77%

7%

3%

14%

72%

6%

4%

4%

11%

74%

5%

4%

5%3%

SeniorManagement

ResearchDesign, and

Development

Product Finishing

ProductAssembly

Processing ofRaw

Materials

Marketing

FIgure 2: wHaT do you see as major cHallenges To manuFacTurIng In brooklyn?

Community Engagement: 65% of businesses give back to the community either through in-kind (57%) or cash donations (23%) (see Figure 3). 69% also employ Brooklyn residents, 27% employ low-skilled or low-income workers, and 23% provide healthcare for employees. We also found that less than 30% of respondents are using other organizations to further their business interests (see Figure 4) and an even smaller percentage of companies currently participate in certification programs (see Figure 5).

FIgure 3: How does your busIness gIve back To THe brooklyn communITy, IF aT all?

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FIgure 4: wHaT organIzaTIons do you uTIlIze To FurTHer your busIness InTeresTs?

FIgure 5: wHIcH oF THe FollowIng cerTIFIcaTIon programs does your busIness parTIcIpaTe In?

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FIgure 6: do you THInk THere Is enougH supporT To Help brooklyn manuFacTurers In THe FollowIng ways?

FIgure 7: wHaT servIces would you FInd beneFIcIal For a THIrd-parTy To oFFer In supporT oF your busIness?

The survey also asked about the kinds of business support services that currently exist (see Figure 6) and what services respondents would like to see in the future (see Figure 7).

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Analysis With the exception of Processing of Raw Materials, 68-80% of respondents indicated that “All” production components take place in Brooklyn (for raw materials processing it was 56%). While our survey sample may not be a representative sample of all businesses in Brooklyn, we do believe that it demonstrates strong interest in a Brooklyn Made certification program or at the very least more support from the Chamber and beyond. The data also allows us to extrapolate that a certification structured around the six components we named would be viable since a strong subset of businesses and products would be able to fulfill much of the criteria. We also learned that these particular respondents used a variety of organizations to further business interests (including NYC Economic Development Corporation, Brooklyn Borough President’s Office, and BID), but no one organization stood out, indicating additional market potential for Brooklyn Made. Our sample of businesses also participates overwhelmingly in charitable donations, which suggests a strong sense of community among these respondents, a characteristic that we believe will help support Brooklyn Made.

Furthermore, most respondents indicated that they would benefit from a variety of business services such as better access to financing options, customer databases, trade-show support, marketing, or business advising, further highlighting the need for small to medium business support services. While the Chamber already provides some of these benefits, these results suggest an outstanding need for more. We also learned that many businesses market and export their product(s) outside of New York City and outside of the United States, which is relevant when considering the impact of an official certification beyond New York City, where it is much harder for consumers to distinguish the details of a product’s manufacturing. For example, at the Chamber’s Industrial and Manufacturing Coalition meeting in February (described next), it was confirmed that there is significant demand for Brooklyn made or Brooklyn-labeled products in Japan and China – a Brooklyn Made certification could allow businesses to capitalize on this demand.

LimitationsWhile the survey covered many of the challenges Brooklyn makers face, it failed to capture a very large number of businesses and products, notably those not in the food and beverage sector and those operating for longer periods of time in less central, perhaps less developed neighborhoods. The survey also excluded restaurants and software companies for the most part, which are responsible for a lot of economic activity in Brooklyn but are not well suited for this certification. The survey sample is also biased towards those businesses that have relationships or membership with the Brooklyn Chamber of Commerce. Even though many respondents were not Chamber members, all of our initial interviewees were members recommended to us by the Chamber because of their interest in the idea of a certification.

In terms of measuring the production criteria, we asked respondents to indicate whether “All,” “Most,” or “Some” of the production components occurred in Brooklyn, which left some room for error or misinterpretation. It is also true that this framework may not apply as evenly to a beverage distributor as it would to an apparel maker, so some adjustments may need to be made when establishing a scoring system (see certification criteria discussion below). The results also showed some inconsistencies within the data, such as a business reporting more Brooklyn employees than its total employees or indicating they have zero employees—presumably because many CEOs or founders do not consider themselves as “employees” of the company.

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Finally, the Capstone team acknowledges that we may not have imagined every possible criterion that is relevant in identifying a Brooklyn Made product, especially so early in our research process. Some questions that might have clarified the viability and perceived benefit of the program are:

• Do you participate in Brooklyn Eats or Brooklyn Designs?• Would you be willing to pay for a certification program? If so, how much?• How many Brooklyn residents do you employ?• How much of your sales stay in Brooklyn?

Industrial & Manufacturing Coalition Presentation

After compiling and analyzing the data, the Capstone team presented its survey findings to the Chamber’s Industrial and Manufacturing Coalition on February 12, 2014. Approximately forty business owners (mostly Food and Beverage) and three Chamber staff members were in attendance. After the presentation, attendees asked questions about the Brooklyn Made certification and were also asked to write down their response to the question “What does Made in Brooklyn mean to you?” The team received a total of 11 responses.

In both verbal feedback and written responses, meeting attendees highlighted the need to certify

products and businesses that conducted as much of their processes within the borough. They emphasized the need for certified businesses to employ Brooklyn residents as well as build up Brooklyn as a bustling manufacturing hub. Attendees also expressed concern over the transparency of the certification program and how it would continually evaluate products to ensure that certified products maintained their Brooklyn Made status. Overall, the business representatives that attended this meeting seemed proud of their work in Brooklyn, interested in the team’s results, and eager to see how the program would continue to develop.

IV. Proposed Brooklyn Made Certification Framework

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To make the Brooklyn Made certification program market-driven, the Capstone team used the survey of Brooklyn businesses

to determine the viability of each certification criteria. Since different products within a business can vary significantly in terms of how and where they are manufactured, the Brooklyn Made certification program is product-specific, allowing businesses to certify some of their products that meet manufacturing requirements, without being penalized for products that do not meet the criteria.

As described in an earlier chapter, most regional certification programs like Portland Made and SFMade lack sophistication. As a result, the Capstone team used the B Corporation certification program as the inspiration for Brooklyn Made. At the heart of the certification program is the Brooklyn Made Assessment Tool (BMAT) developed from the manufacturing-specific questions of the survey and informed by the results.

To get the Brooklyn Made certification for products, businesses must meet minimum baseline requirements and complete the Brooklyn Made Assessment Tool. The BMAT is points-based and includes several criteria weighted by importance that will give a product a composite score, referred to as the Brooklyn Made Score (BMS). Several of the criteria in the BMAT relate to overall business

activities, for example, a business’s location of senior management. However, many of the criteria are product-specific, for example, where the product is assembled or finished, allowing for certification at the product level.

The Brooklyn Made Score is what determines a product’s eligibility for certification. By setting a threshold for certification, any product that meets the threshold score becomes certified as Brooklyn Made. The Capstone team decided on the mean BMS as the threshold score, consistent with the B Corporation model. The qualifying score for the B Corporation certification turned out to be the average score from their assessment. This is not to say that the B Corporation specifically chose the average score as their qualifying bar. As they indicate on their website, their threshold is “a work in progress” and other factors went into making the designation. However, the Capstone team felt comfortable making the mean score the

cut-off because it allowed for impartiality in the certification process, and it was consistent with the goal of having the Brooklyn Made certification program be data and market driven.

At the heart of the certification program is the Brooklyn Made Assessment Tool (BMAT) developed from the manufacturing-specific questions of the survey and informed by the results.

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Baseline Certification Criteria

As baseline criteria, all businesses wishing to have their products certified as Brooklyn Made must be a legal business entity headquartered in Brooklyn, and make or manufacture one or more physical products. Businesses seeking certification would have to provide legal or tax documents indicating they fit into one of the following business structures: an incorporated business, sole proprietorship, limited liability company (LLC), cooperative, or partnership. For the purpose of Brooklyn Made, headquarters is “the chief administrative office of an organization” as defined by Merriam-Webster.

The Capstone team chose these baseline criteria because they are not too stringent that it would deter Brooklyn businesses from applying for the certification, but it would still set a minimum

standard for certification. Since our survey of Brooklyn businesses did not ask respondents about their legal business structure, we did not exclude any survey respondents based on this criterion and worked with the assumption that all businesses in our survey were registered legal entities. 75% of survey respondents indicated they were incorporated in Brooklyn specifically so we thought it would be fair to assume registered Brooklyn businesses made up our survey sample. A strong majority of survey respondents (93%) indicated they were headquartered in Brooklyn, and based on survey responses and additional research, the Capstone team determined that 84% of surveyed businesses make or manufacture a physical product, which resulted in 89 businesses meeting our baseline certification criteria.

• Business must be a legal business entity registered as: an incorporated business, a sole proprietorship, a limited liability company, cooperative, or partnership

• Businesses must be headquartered in Brooklyn

• Businesses must make or manufacture one or more physical products.

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The Brooklyn Made Assessment Tool

If businesses meet these minimum baseline requirements they can then fill out the Brooklyn Made Assessment Tool (BMAT) for each product they wish to certify as Brooklyn Made. The BMAT integrates the business and manufacturing specific questions from our survey of Brooklyn businesses into a weighted points-based system leading to certification.

The BMAT asks businesses about various business and product-manufacturing activities. It is scored out of 40 possible points, with businesses receiving points for the extent to which the various activities take place in Brooklyn. Possible points range from 1, 3, or 5, with the criteria perceived to be of the highest importance weighted most heavily and given a maximum score of 5. Criteria considered to be important but not highly important were given a maximum score of 3 points, and criteria that should be considered in the certification, but of lowest importance were given a maximum score of 1 point.

Within the heavy-weight criteria, the maximum points for each criteria is 5, but products could still get 1 or 3 points if some level or amount of the criteria takes place in Brooklyn. For example, having Brooklyn employees is a heavy-weight criteria because the Capstone team agreed it was important for a business with Brooklyn Made certified products to have a share of their employees

located in Brooklyn. As a result, the Capstone team broke down the share of employees in Brooklyn into three tiers: 1% to 50%, 51% to 75%, and more than 75%, to give Brooklyn businesses 1, 3, or 5 points, respectively for the tier they fall into. One exception to the tier approach for the heavy-weight criteria is the requirement that businesses employ Brooklyn residents. Ideally this question would have a 3-tier point distribution, but this question was only asked on an overall basis in our survey of Brooklyn businesses so we could not break responses out by tier. The points-based criteria for the Brooklyn Made certification program are:

The BMAT asks businesses about various business and product-manufacturing activities. It is scored out of 40 possible points.

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Heavy-Weight Criteria (maximum 5 points each)

Product ingredients/ raw materials sourced from Brooklyn (or New York state)• 5 Points: 51% to 100% sourced from Brooklyn• 3 Points: 1% to 50% sourced from Brooklyn• 1 Point: At least 51% sourced from New York state

Research, design and development of product takes place in Brooklyn• 5 Points: All of the activity takes place in Brooklyn• 3 Points: Most of the activity takes place in Brooklyn• 1 Point: Some of the activity takes place in Brooklyn

Product assembly takes place in Brooklyn• 5 Points: All of the activity takes place in Brooklyn• 3 Points: Most of the activity takes place in Brooklyn• 1 Point: Some of the activity takes place in Brooklyn

Product finishing takes place in Brooklyn• 5 Points: All of the activity takes place in Brooklyn• 3 Points: Most of the activity takes place in Brooklyn• 1 Point: Some of the activity takes place in Brooklyn

Share of total employees located in Brooklyn• 5 Points: More than 75% of employees• 3 Points: 51% to 75% of employees• 1 Point: 1% to 50% of employees

Business employs Brooklyn residents

Mid-Weight Criteria (maximum 3 points each)

At least some of the processing of raw materials that go into product takes place in BrooklynBusiness participates in charitable activities in Brooklyn community

Low-Weight Criteria (maximum 1 point each)

All or most of product marketing takes place in BrooklynAt least some senior management is located in BrooklynBusiness is incorporated in BrooklynBusiness has been continuously operating in Brooklyn for 10 years or more

Each criterion within the BMAT will include clear definitions so that businesses taking the assessment will know exactly what is meant by each activity, and businesses can answer questions with the same context. The definitions for each criterion are as follows:

• Ingredients/raw materials: the components used in the making of a product• Research, design and development: defining the product concept, conducting market research, and

testing product concepts• Assembly: the process of putting different inputs together to make your product• Finishing: packaging, quality control, and final stage product touch-ups• Employee: an individual hired by a company and given compensation in exchange for providing services

to a company; for the purpose of this certification, a business owner, proprietor, etc. can be included as an employee

• Brooklyn resident: an individual that lives in Brooklyn• Share of total employs located in Brooklyn: the number of employees located in Brooklyn divided by the

total number of employees• Processing of raw materials: the transforming, cleaning, or modifying of materials into usable inputs• Charitable activities: cash or in-kind donations to Brooklyn organizations• Marketing: any product promotion or advertising• Senior management: CEO, CFO, CTO, CMO, etc.• Incorporated in Brooklyn: registered as a legal business corporation with a Brooklyn address

A mock-up of the Brooklyn Made Assessment Tool can be found in Appendix E.

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The Development of the BMAT

The Capstone team used information gathered from the in-depth interviews of Brooklyn businesses and Chamber employees to decide on the importance of each of the business and manufacturing activities and whether they should be weighted as a heavy, mid-, or low certification criteria. Once we decided on the importance of each criterion, we turned to the survey data to make sure none of the individual criteria were too stringent. Most of the criteria had at least 67% of surveyed businesses participating in the activity in Brooklyn to some extent, which the Capstone team viewed as a good starting point for each criterion (see Appendix F). The exception was the criteria that a business continuously operates in Brooklyn for ten years. Since this is a low-weight criterion, changing this criteria or removing it from the assessment had little impact on the number of businesses that got certified, so the team felt comfortable keeping this in the certification assessment. Since the Brooklyn Made certification program at its core is about properly identifying products that are made in Brooklyn, the Capstone team decided to weight the manufacturing activities of product assembly and product finishing heavily in the certification assessment. The Capstone team recognized the processing of raw materials as important, but of all the manufacturing activities in our survey, this particular activity received the most “not applicable,” (10%) and “none” (10%) responses indicating it was a difficult activity for businesses to do in Brooklyn. As a result, the processing of raw materials was given a mid-weight score to avoid unnecessary difficulty for businesses to get the Brooklyn Made certification for their products.

Having employees in Brooklyn and specifically employing local Brooklyn residents are important social and political goals for the Chamber and helps to boost the local economy, so both were weighted

heavily in the assessment. Sourcing ingredients and raw materials from Brooklyn was also given a heavy-weight in the assessment because the Capstone team thought it was important to promote the use of local ingredients. Some businesses are not able to source their ingredients or raw materials from Brooklyn, so an alternative to sourcing materials from Brooklyn is sourcing them from New York State in general. The final criteria given a heavy-weight in the assessment is the extent to which the research, design and development of a product takes place in Brooklyn. The Capstone team gave this activity a heavy-weight because it promotes thought leadership in Brooklyn where it can have an inspirational effect on new and future Brooklyn businesses as new products are developed.

Most of the business-level criteria were given mid- or low- weights. The Capstone team gave a mid-weight to charitable giving in Brooklyn to signal the importance of a Brooklyn business giving back to the local community in some way. The assessment currently defines charitable giving as giving in-kind or cash donations to local organizations, but that definition could be expanded in the final assessment.

Other business activities that the Capstone team thought should be included in the assessment, but were less important than the other activities were given a low-weight. Many of these activities were included to incentivize businesses to do the activity in Brooklyn. For example, giving businesses one point if they were incorporated in Brooklyn would incentivize start-ups in Brooklyn. And giving a business a point for operating in Brooklyn for 10 or more continuous years incentivizes a business to stay in Brooklyn for an extended period of time.

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Certification Results from the Survey

The Capstone team used the BMAT on the survey of Brooklyn businesses to determine what the mean Brooklyn Made Score would be and see how many businesses in the sample would get certified under the criteria we developed. It

is worth mentioning that even though the final certification program developed here will be product specific, the survey data the Capstone team used to create the certification criteria was not – most questions were asked about business activities overall, or products in general. As a result, the certification results from the survey of Brooklyn businesses will have to be viewed on the business level. Additionally, the survey data that informed the certification program was self-reported, and businesses might have answered some questions

differently than they would a formal applicationfor certification. Despite these limitations, the Capstone team has developed a framework for the certification that will easily transition to the product level when the Chamber administers it.

When the Capstone team administered the BMAT on the survey of Brooklyn business, 89 Brooklyn businesses met the minimum baseline requirements for certification and went on to receive a Brooklyn Made Score. The mean Brooklyn Made Score turned out to be 31. The minimum Brooklyn Made Score was 10, and the maximum was 40. Using the mean score of 31 as the cut-off for getting certified, 60 of the 89 Brooklyn businesses (67%) in our sample would get certified as Brooklyn Made. See Figure 8 for full distribution.

FIgure 8: Full dIsTrIbuTIon oF THe bms among surveyed busInesses (n=89)

Using the mean score of 31 as the cut-off for certification, 60 of the 89 Brooklyn businesses (67%) in this sample would get certified as Brooklyn Made.

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The Capstone team took a deep-dive look at Brooklyn businesses that received a Brooklyn Made Score between 26 and 30 to see if these businesses struggled with any single certification criteria. Eighteen businesses fell between 5-points of the mean Brooklyn Made Score. A strong majority of these businesses received the highest possible score on most certification criteria including: product R&D, processing of raw materials, product assembly, product finishing, and product marketing. A majority of these businesses also had a share of their workforce in Brooklyn and used ingredients and/ or raw materials sourced from Brooklyn or New York State. The businesses were roughly evenly split, and had a difficult time meeting the criteria of charitable giving within the Brooklyn community, and employing local Brooklyn residents. Only 50% of these 18 businesses said they gave back to the community, while 44% indicated they employed a local Brooklyn resident.

The Capstone team also looked at whether getting certified varied based on business characteristics such as size or industry. Very small businesses (1 to 5 employees) received a mean Brooklyn Made Score of 30.4, while the mean score for businesses with over 5 employees was 33.8. The two BMSs were statistically different from each other at a 95% confidence level, and the mean score for a small business was just slightly below the cut-off (six-tenths of a point) for certification indicating that size could affect whether a business gets its

products certified. While a strong majority of small businesses received the highest possible points for all the product-specific manufacturing criteria of the BMAT, a smaller majority of these businesses (about 60%) participated in charitable activities in Brooklyn and employed Brooklyn residents. Small businesses also tended to be newer, with only 6% indicating they’ve been operating in Brooklyn for 10 or more years. To ensure that the final BMAT does not penalize small businesses, the Chamber can make revisions to the current BMAT framework (see Expanding the Brooklyn Made Assessment Tool). Additionally, as will be discussed in the next section, the Advisory Board that will be established for the management of the Brooklyn Made certification program can make judgment calls on product certification for small businesses that fall just short of getting certified.

The mean BMS also varied by industry, but since some industries were only represented by a few businesses, statistical significance could not be determined. As Table 2 shows, some businesses such as those classified as Textile, Apparel and Leather might have a more difficult time getting certified. Interestingly, businesses that used “Brooklyn” in the name of their business or one of their products had a higher BMS than businesses that did not incorporate “Brooklyn” in their company or product names (33 vs. 30, respectively). This difference was statistically significant at a 95% confidence level.

Table 2: mean brooklyn made score by IndusTry (n = 89)

Expanding The BMAT

The current version of the BMAT was developed using only questions asked of Brooklyn businesses during the initial survey so that we could create a mean score for the sample of Brooklyn businesses and study the distribution of the Brooklyn Made Score within the sample. The Chamber does not have to adhere to these individual criteria, and could even add or remove criteria with the final BMAT. As the Capstone team was developing the current tool, we thought of several additional criteria that may be important to include in the future assessments. For example, the Chamber might want to consider making the criteria of employing Brooklyn residents into a tier-distribution to reward different levels. Other potential criteria include:

• Percent of sales occurring in Brooklyn (mid-weight)• Participation in Brooklyn business activities such as Smorgasburg, Brooklyn Flea Market, Brooklyn Eats,

or others (low-weight)• Working out of a Brooklyn manufacturing facility (low-weight)

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The Chamber might want to expand the certification as the program matures and there are more applicants to collect data from. If the Chamber chooses to expand the assessment tool, the current framework for the certification program can still be used. Rather than using the current mean score of 31 from our survey sample, the Chamber would simply have to calculate the mean Brooklyn Made Score from the applicant pool for the certification program. As Brooklyn Made expands, it would also be possible for the certification criteria to have different levels of certification, similar to the LEED certification program, which has four levels of certification (certified, silver, gold, and platinum) determined by the points earned for the project.

Similarly, if the Chamber would like to change the weighting of any of the current criteria in the assessment tool, they have the flexibility to do so and create a new maximum and mean Brooklyn Made Score. Finally, since we saw that small businesses and businesses in certain industries might have a more difficult time getting their products certified with the current framework, the Chamber might want to create a different frameworks or calculate various BMS thresholds depending on business size or industry. The B Corporation certification program actually has different versions of its assessment tool tailored to five different industries and six different business sizes.

As Brooklyn Made expands, The flexibility of the BMAT allows for the certification criteria to have different levels of certification, or different thresholds for businesses based on size or industry.

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Photo Credit: 4Images Gallery / Tom Fruin’s Mosaic Sculpture ‘Watertower’ overlooks the Manhattan Bridge, Robert Banat

In contrast to comparable regional certification programs researched as part of this report, Brooklyn Made has a more robust framework, with detailed criteria that allows for the greatest degree of adaptability in terms of the production components that the Chamber chooses to encourage. Additionally, our research

indicates that there is a viable market for this program: production is already happening in Brooklyn, all that is missing is the recognition.

While we believe the opportunities outweigh the risks, the risks are still present. The greatest threats to long-term success of the Brooklyn Made certification program involve participation in the program (i.e. the volume of applications), as well as the Chamber’s ability to leverage the certification program as an effective branding platform. Even a sophisticated certification that effectively recognizes locally manufactured products is only useful if its value is clear enough to drive demand for certified products.We believe that strategically addressing three key priority areas upon launching Brooklyn Made will help to mitigate these risks and set the Chamber up for success as they take the program to the next level. These areas of focus include:

• The effective management and oversight of the certification program• Incentivizing businesses to apply for certification• Promotion of the certification both within the Brooklyn business community as well as to external

audiences

The recommendations laid out in this section are based on the strategies of comparable certification programs, and tested against the needs and preferences of Brooklyn manufacturers as indicated in the survey. Those strategies that we perceive to be the most successful for other certifications, along with some new ones, have been adapted to fit within the context of the Brooklyn industrial community and to align with the Chamber’s priorities.

V. Recommendations on Implementation and Management

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I n contrast to comparable regional certification programs researched as part of this report, Brooklyn Made has a more robust framework,

with detailed criteria that allows for the greatest degree of adaptability in terms of the production components that the Chamber chooses to encourage. Additionally, research indicates that there is a viable market for this program: production is already happening in Brooklyn, all that is missing is the recognition.

While the Capstone team believes the opportunities outweigh the risks, the risks are still present. The greatest threats to long-term success of the

Brooklyn Made certification program involve participation in the program (i.e. the volume of applications), as well as the Chamber’s ability to leverage the certification program as an effective branding platform. Even a sophisticated certification that effectively recognizes locally manufactured products is only useful if its value is clear enough to drive demand for certified products.

We believe that strategically addressing three key priority areas upon launching Brooklyn Made will help to mitigate these risks and set the Chamber up for success as they take the program to the next level. These areas of focus include:

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Management of the Certification Program

Success depends on the effective allocation of time and resources to the Brooklyn Made certification program. Certification must be consistent and transparent yet flexible to ensure buy-in, and must incorporate strategies for long-term sustainability. The Capstone team recommends that the Chamber take the following steps:

Establish a nominal fee of $100 to apply for certification. This will filter out applicants that know they will not qualify, and keep limited resources focused on serious applications only.

Require applicants to submit:Documentation verifying that the applicant is a legal business entityDocumentation verifying the location of plant (i.e. a utility bill), to confirm that it is in BrooklynA statement disclosing the locations of all additional plants

Products are certified for periods of one year. They must resubmit an application along with necessary documentation and pay the application fee each year. Additionally, if the location of their headquarters or another significant event changes during the year, the business is required to notify the Chamber. Audit 5 applicants per year to verify that the information included in their application is true and faithfully meet the criteria for certification. It is not realistic to verify all information in the application, but knowing that this is a possibility will help to prevent applicants from falsifying their eligibility.

Applicants with additional plants located outside of Brooklyn are not disqualified from consideration. The purpose of this requirement is to inform the auditor (in the event that the applicant is selected for audit) of the existence of any additional plants from which products manufactured would not be eligible for Brooklyn Made certification. Applicants should be chosen for audit randomly from the pool of businesses with certified products. Certification should not depend on successful audit for randomly selected applications, but rather applications to audit should be randomly selected from existing pool of certified products, with certification to be revoked if the audit is failed. The complexity of the audit should be determined on a case-by-case basis and in many cases would be comprised of one site visit.

i.ii.

iii.

a.

b.

c.

d.

#1: Formalize the application process as follows:

#2: Employ one full-time employee or full-time equivalent (FTE) dedicated to Brooklyn Made program management, funded by a combination of application fees and corporate sponsorship. Primary responsibilities should include:

Overseeing the application submission process

Serving as staff representative on the Advisory Board (discussed in detail below), including voting power

Securing corporate sponsorship of the certification program

Reviewing and approving address verification documents from applicants

Conducting the annual audit of 5 applicants

Managing all marketing and communication activities of the program

#3: Establish an Advisory Board of 2 community leaders, 2 leaders of businesses with certified products, and 1 Chamber staff member.

While the criteria framework provides a strong starting point, there are nuances and gray areas. Success will require a human touch as a failsafe. The Advisory Board should review applications and allocate points as directed, but then should invoke their knowledge of the Brooklyn manufacturing context and circumstances of applicants to debate and ultimately vote on the approval of each application.

There is also an opportunity here to ensure buy-in and trust from the Brooklyn community by building credibility into the Advisory Board. Gaia DiLoreto of ByBrooklyn and Dan Kopf of Real Brooklyn, for example, lend both credibility and continuity to Brooklyn Made. And having two members with certified products will add a critical perspective to the debate. To this end, we recommend that the Chamber, with the mandate that board members will self-manage going forward, appoint the inaugural members. This self-management should include the creation of by-laws to establish term limits and a process by which new members are voted onto the Board.

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a.

b.

c.

d.

e.

f.

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Incentivizing Businesses to Apply for Certification

Brooklyn Made will only be as successful as the number of products it certifies. While the Chamber will have the ability to adjust the stringency of the criteria if they find a disproportionate number of applicants to be ineligible, providing value-adding business incentives as part of certification, in contrast, is about increasing the raw number of applicants.

We recommend that the Chamber explore the feasibility of the following:

#1: Apply the $100 Brooklyn Made application fee toward the Chamber membership fee.

This incentivizes Chamber membership as well, and uses all existing business incentives provided to member businesses to encourage certification of Brooklyn Made products. Similarly, the Chamber might waive the Brooklyn Made application fee for current members. Both of these position the Brooklyn Made certification and Chamber membership as complementary to one another.

#2: Offer select business incentives - currently offered to members only - to businesses with certified products.

There are a few examples of specialized services, currently offered to Chamber members only that may be of unique interest to businesses with certified products. The target group here is businesses that are manufacturing in Brooklyn but may not want to opt for full Chamber membership, either because they are not large or sophisticated enough to afford the membership dues or because they do not see the value in the full suite of incentives and services offered to members. For example, the Chamber offers to connect members with incubator and special purpose sites including the Brooklyn Army Terminal, Brooklyn Navy Yard and the Greenpoint Manufacturing and Design Center. Small, Brooklyn-based operations that are seeking to grow but would not be able to sustain their production within Brooklyn without assistance might be particularly interested in this and find it well worth the $100 application fee.

Additionally, of the businesses surveyed as part of this study, 56% indicated that the greatest barrier to relocating all or part of their production process to Brooklyn was access to loans and/or financing options to support the move and higher cost of production. The Chamber offers assistance to member businesses in connecting with city and state government savings programs targeted for Brooklyn’s commercial and industrial business community. Offering select services such as these to nonmembers will, if chosen correctly, be valuable enough to encourage certification without compromising the integrity of the benefits that come with full membership, and is worth considering.

#3: Offer exclusive promotion of Brooklyn Made products on trade missions to new markets.

When asked what types of support services would be most beneficial to receive from a third party, 69% of businesses surveyed said promotion or marketing. The Chamber is in the process of opening up trade discussions in new domestic and international markets. The Chamber has an opportunity to leverage the detailed framework, which differentiates products certified as Brooklyn Made, to sell the guarantee of authenticity. Meanwhile, access to these new markets will serve as an incentive for businesses to apply for certification. Just the promise of promotion offers such a unique value and high potential return that we expect it could even encourage the movement of manufacturing and production processes to Brooklyn as businesses seek new avenues for distribution – sparking not only interest in the certification but real growth of the Brooklyn industrial community.

The exclusivity of the promotion of certified products applies only to new trade missions, and should therefore not conflict with any promotional services already offered to Chamber members. The promise would be to promote the certification and certified products generally – not specific products or the individual businesses that make them.

#4: Create a community manufacturing plant for the production of certified products.

When asked to choose the greatest barrier to manufacturing in Brooklyn, 65% of businesses surveyed said high facility cost. This recommendation is likely a medium- to long-term strategy for the Chamber, as it will require a strong network of businesses with certified products that might be willing to pool resources. It is, however, a significant need and therefore worth considering.

A few examples exist that we can learn from, from Open Manufacturing – a nascent, member-run initiative in Portland utilizing donated legacy equipment – to an industrial launch pad in Arizona that incubates early stage manufacturing startups called Conscious Manufacturing. Given the average size and general predilections of much of the Brooklyn manufacturing community, we recommend that the Chamber explore NY Tech Meetup as a possible model. NYCEDC further offers community-oriented and affordable incubators, lab space and workspace, and could be a strong potential partner in this initiative.

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for Made in NYC certification, products would be dually certified and therefore benefit from any and all of Pratt’s efforts to promote Made in NYC.

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A partnership with a complementary certification program – such as Made in NYC – could be useful for Brooklyn Made. Made in NYC (which is a project of the Pratt Center for Community Development, of the Pratt Institute) could easily educate its members about the Brooklyn Made certification, unlocking new sources of applicants. Additionally, since all Brooklyn Made products should also be eligible

#3: Partner with other certifications to combine promotional efforts.

#2: Secure buy-in from at least one corporate vendor to carry and push Brooklyn Made products.

Promoting the Brooklyn Made Certification

Providing incentives to businesses with Brooklyn Made certified products encourages new applications through the promise of unique value. It is equally important, however, that the certification, the value it provides businesses, and the authenticity it guarantees to consumers is made clear inside and outside of the Brooklyn manufacturing community.

#1: Consult with a brand strategist to develop key messaging and a stronger visual identity for Brooklyn Made.

A compelling visual identity is critical to the success of the Brooklyn Made program. It will shape the way sponsors, trade partners, businesses and consumers perceive and evaluate the certification, and certified products by proxy. The Chamber and its stakeholders will need to speak about Brooklyn Made in a single, unified voice in order to maximize its value.

An effective brand strategy will require interviews with a range of Brooklyn Made stakeholders – from consumers to vendors to current and potential applicants. It will also require a competitive audit of the visual identity and positioning of other certification programs – particularly those mentioned in this report. A marketing consultant or team of consultants can conduct this discovery research, develop key messages for both general and specific audiences, provide recommendations to change or keep the existing Brooklyn Made logo and train Chamber staff and stakeholders on utilizing the brand strategy.

There are options to get this done pro bono. The Taproot Foundation is a good resource – they offer their own marketing projects with very tightly defined scopes that may meet this need. If not, they also have online tools to identify alternative pro bono providers, including organizations known for providing pro bono marketing and branding services, as well as individuals with the right skills within Chamber staff LinkedIn networks that can be approached directly.

The promise of a well-known vendor to carry Brooklyn Made products, or to provide an endorsement for the certification, could mean all the difference for Brooklyn Made. Whole Foods, with their new Brooklyn location, is an ideal target. Whole Foods places a high value on carrying local products – and their team includes a staff of “foragers” dedicated to seeking out locally-produced goods within all of their local markets. Alternative options include Fresh Direct and Fairway.

VI. Appendix A: Certification Programs Summary

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Certification Program Description of Certification Unit of

Certification Types/ Levels of

Certification

B Corporation

B Corps are certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency.

Businesses B Corporation Certification

LEED

Leadership in Energy & Environmental Design, LEED, is a green building tool that provides third-party verification of green buildings. Building projects satisfy prerequisites and earn points to achieve different levels of certification.

Buildings, homes, and communities

Certified (40-49 points) Silver (50 - 59) Gold (60 - 79) Platinum (80+)

Made in NYC

Made in NYC's mission is to support a vibrant manufacturing sector in NYC. Local manufacturing encourages entrepreneurship and innovation, creates employment opportunities for New York's extraordinary diverse workforce and gives the city much of its character and soul.

Businesses, Products Made in NYC

Made in New York City

Websites made in New York City. Website companies Made in New York City

Made in New York

Aims to support creators in the fields of film and television production, the digital and startup industry, and theatrical production.

TV, Film, Theater, Startups

Made in NY (used for Film & TV, also for digital

startup companies)

Made in USA

Standards created by the FTC for any business choosing to use the claim Made in USA on their products. Products Made in USA

MWBE

The MWBE certification process is designed to ensure that a small business is actually owned, controlled, and operated by minorities or women.

Businesses

Minority Owned Businesses (MBE)

Women Owned Business (WBE)

Made in Portland

Certification for Portland businesses. Many of Portland businesses export outside the region; The goal of this project is to help draw attention to the other amazing companies based in Portland.

Products Made in Portland

Portland Made

Portland Made is a self-sustaining community of manufacturers that advocates and supports its members by providing education, a shared resource hub, and a brand, which promotes manufacturers to expand their reach locally and globally.

Businesses, Products Portland Made

SF Made

Membership of SF businesses that make at least one physical (non-digital) product. SFMade is itself a 501(c) 3 nonprofit. Member businesses can then have products certified.

Businesses, Products

Certified Local Manufacturers Program for

products of member businesses

USDA Organic

Organic is a labeling term that indicates that the food or other agricultural product has been produced through approved methods. The program ensures the integrity of USDA organic products in the U.S. and throughout the world.

Farms or handling facilities (crops,

livestock)

100% Organic, Organic,

Made with Organic Ingredients

 

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Certification Program Certification Criteria and Definitions Official

Logo/ Seal Verification

B Corporation

A B Corporation is defined by a B Impact Assessment - company must earn a verified score of at least 80 points (out of 200). Yes

Attach documentation; 10% are randomly

selected each year for on-site review

LEED

LEED rating systems generally have 100 base points plus six Innovation in Design points and four Regional Priority points, for a total of 110 points. Each credit is allocated points based on the environmental impacts and human benefits of the building-related impacts that it addresses.

Yes Registration, application, and preliminary and final review by USGBC staff

Made in NYC

Businesses must occupy industrial or commercial space, employ 1 full-time employee or equivalent, manufacture or contract to a manufacturer that is engaged in essential product transformation within the five boroughs.

Yes Information submitted via website confirmed by the

Made in NYC staff

Made in New York City

Companies are mostly coded in NYC (question: was the majority of the codebase for your company made (coded) in NYC? - yes or no). They have 10K+ people use or visit their site monthly. They display "Made in NYC" as prominently as its copyright and links to this page.

No Honor system; violations made public

Made in New York

At least 75% of the overall production was made in New York City: (1) 75% of its total shooting days take place in New York City, or (2) 75% of its production costs are qualified production costs. Yes Online application Digital companies that base at least 75% of their development in New York City and have at least 10,000 users or monthly visitors.

Made in USA

“All or virtually all” the product has been made in America. That is, all significant parts, processing and labor that go into the product must be of U.S. origin. The claim can be expressed or implied.

No No upfront verification

MWBE

MWBE = business is at least 51% owned by such individuals or for a publicly-owned business, at least 51% of the stock is owned by one ore more such individuals; The management and daily operations are controlled by those minority group members.

No Provide documentation Minority group member = individual who is a U.S. citizen with at least 25% of a minority classification. WBE = 51% or more is women owned, managed, and controlled; Business must be open for at least 6 months; Business owner must be a U.S. citizen or legal resident alien.

Made in Portland

Beer, bikes and coffee = All based and brew/ built/ roasted in Portland

No Honor system

Web = All based in Portland, and at least 50% were built here. They also all draw or serve at least 10,000 people each month, or are early stage startups that were nominated by others on the list. Each also proudly states that they’re made in Portland and links to this page. More (bags, paper goods, some services, etc.) = All based in Portland. Each proudly states that they’re made in Portland and links to this page.

Portland Made

Products and businesses within Portland. Yes Products must be

registered but no other details are provided

SF Made

Headquartered in SF and/or has a registered business license in SF; Primarily design and manufacture a physical product (vs. digital product or service); Manufacture 1+ products in SF; Have a SF-based work force with desire to grow over time; Have 1 full time employee; For manufacturers of consumer products: must have 1+ products for sale at a retail store or online.

Yes

Application process but no documentation

requirements; likely honor system with

possibility that staff will fact check

USDA Organic

If product has a valid certificate from a certifying agent, the USDA Organic seal can be used. There is only one seal that says USDA Organic, but there are different tiers for classification.

Yes

Application and inspector conducts onsite

inspection of applicant's operations

100% Organic = All ingredients must be certified organic. Any processing aids must be organic; may include USDA Organic seal and/or 100% Organic claim. Organic = All agricultural ingredients must be certified organic, except where specified on National List. Only 5% of ingredients can be from non-organic National List; may include the USDA Organic seal. Made with Organic Ingredients = At least 70% of the product must be certified organic ingredients; cannot display the USDA Organic seal.

 

Companies are mostly coded in NYC. They have 10K+ people use or visit their site monthly. They display "Made in NYC" as prominently as its copy-right and links to this page.

Filmed Entertainment = At least 75% of the overall production was made in New York City: (1) 75% of its total shooting days take place in New York City, or (2) 75% of its production costs are qualified production costs.Digital Products = Companies that base at least 75% of their development in New York City and have at least 10,000 users or monthly visitors.

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Certification Program

Level of Administration Fee Requires

Renewal Benefits of Certification

B Corporation

B Lab, a nonprofit organization

Annual certification fees based on a tiered

structure

Company must complete Steps A-D

every 2 years and achieve at least 80 out of 200 points

Benefits listed on website. The purpose of the nonprofit itself is to help these businesses through building a community, passing legislation, and driving capital. There is also a promotional benefit to businesses.

LEED

US Green Building Council, USGBC

Flat registration fee to submit application;

certification fee varies per project (avg. = $2,000)

No

Certified buildings use resources more efficiently compared to conventional buildings, and often provide healthier work and living environments, which contributes to higher productivity and improved employee health and comfort. High initial costs can be effectively mitigated by the savings incurred over time due to the lower-than-industry-standard operational costs typical of a LEED certified building.

Made in NYC

Pratt Center for Community

Development N/A N/A

Manufacturers can use Made in NYC to: Expand their markets and reach more consumers; Find local suppliers and contractors; Extend into new supply chains; and Use the Made in NYC logo to educate consumers about their products.

Made in New York City

NY Tech Meetup, a nonprofit

organization No No Being listed on the website

Made in New York

NYC Mayor’s Office No N/A

“Made in NY” marketing credit; "Made in NY" discount card; New York state film tax credits; studios and stages; production office space

Made in USA

FTC, Bureau of Consumer Protection

No No Permission to use “Made in USA”

MWBE

Local or regional level

Non-refundable application fee: MWBE: $150 -

$175; WBE: $249 - $279

Certification and fee must be renewed

each year Benefits vary by region

Made in Portland

Two Portland people that got the idea from NY Tech

Meetup

No No Being listed on the website

Portland Made

Collective of manufacturers with

a Board

Free membership; monthly PMC payments for

additional benefits

N/A

Access to media and physical platforms and partnerships to connect, help grow the local manufacturing community and educate the public about urban manufacturing. Connect manufacturers and designers with all of Portland to help build skills and foster job creation, and market local goods by promoting those who make them.

SF Made

SFMade is the administrating organization

No N/A

Access to a suite of tools designed to help connect more powerfully with customer base, including exclusive use of the trademarked SFMade logo and brand collateral; listing in the SFMade Directory and other Shop Local directories and search engines; and exclusive selling opportunities at SFMade hosted and other local events.

USDA Organic

Certification occurs by a private,

foreign, or state entity that has been accredited by the

USDA

Certification costs range from a few hundred to several thousand dollars; There is an application

fee, annual renewal fee, and inspection fees

Annual recertification

process (assessment on annual

production or sales)

Required to have certification if a business uses any claim of being organic; some marking support

 

Part III: Challenges, Opportunities, Looking Ahead1. Do any social, economic environmental, legal, or political environments in Brooklyn impact your business?2. What challenges do you face being a Brooklyn business (i.e. in production, costs, distribution, etc.)?3. What are some advantages or what opportunities do you have (if any) by being a Brooklyn business?4. What would it take to bring your non-Brooklyn-based manufacturing activities into Brooklyn?5. If you had the ability to make your own certification program, what would you like to see in it?

Part II: Brooklyn Manufacturing Questions1. What elements of your product manufacturing take place in Brooklyn?2. How much of your products are manufactured in Brooklyn?

Less than or equal to: 25%, 50%, 75%, 100%3. Do your product ingredients originate in Brooklyn?4. What about the brand management aspects of your business - new product development, marketing/

advertising, etc. Do those activities take place in Brooklyn?5. Why are you based in Brooklyn?6. How does “Brooklyn” influence your business and your product?7. Did you originally imagine Brooklyn being a part of your product? Is it a part now/is it crucial to your

branding?8. What components are more important to your business?9. How do you differentiate your product from products that aren’t made in Brooklyn?10. Do you label your products as being Made in Brooklyn? (No need to ask if Brooklyn is in the name.)11. Have any stores or distributors of your products ever challenged your Brooklyn credentials?

Brooklyn Businesses Interview Guide

Part I: Business Background Questions(To establish rapport, instead of asking these questions directly we can obtain this information online and just ask them to confirm the information.)1. What year was your company established?2. How long have you been in Brooklyn?3. Can you provide me with a description of your business?4. How did you get started in this business?5. How many employees do you have?6. Where is your business registered (i.e. Is your company taxed out of Brooklyn)?7. Why did you choose to register your business (response from above)?8. How would you describe your products?9. How many products do you have?

VI. Appendix B: Interview Guide

38

Thank you for deciding to participate in our study! This 10 minute survey is part of ongoing research about businesses and products based in and around Brooklyn. This research project is being conducted by New York University’s Robert F. Wagner School of Public Service graduate students, in collaboration with the Brooklyn Chamber of Commerce.

You are invited to participate in this research project because you are a Brooklyn business. Your participation is voluntary, and if you decide to participate in the survey, you may withdraw at any time. Your responses will be confidential and we will keep any identifying information you provide separate from your survey responses.

If you wish to participate in our study, please click “Next” to continue.

NEW SCREEN

These first two questions will only be used to ensure we are reaching our desired target for this study. Your survey responses will not be directly linked to these questions in any way.

To begin, please tell us the name of your company. OPEN TEXT BOX

Please tell us what position you hold at your company. Please select one option.☐ Founder and/or CEO ☐ President ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO LAST POSITION

Brooklyn Manufacturing Questions GROUP THESE QUESTIONS ON ONE SCREEN

1. Which industry does your business represent? Please select one option.

RANDOMIZE GRID DOWN ☐ Food & Beverage ☐ Textile, Apparel & Leather ☐ Wood, Paper & Printing ☐ Petroleum, Chemical, Plastic & Mineral ☐ Metals & Machinery ☐ Computers & Electronics ☐ Transportation Equipment ☐ Furniture & Related Products ☐ Miscellaneous or Other, please specify: OPEN TEXT BOX; ANCHOR TO LAST POSITION

2. Please answer Yes or No to the following questions

VI. Appendix C: Survey of Brooklyn Businesses

39

QUESTIONS DOWN☐ Is your business headquartered in Brooklyn? ☐ Is your business incorporated in Brooklyn?

Select one.GRID ACROSS☐ Yes ☐ No

3. How many years have you been operating in Brooklyn?

NUMERIC DROP DOWN LIST☐ < 1☐ 1☐ 2☐ 3☐ 4☐ 5☐ 6☐ 7☐ 8☐ 9☐ 10+☐ Do not operate in Brooklyn

4. Please answer Yes or No to the following questions:

QUESTIONS DOWN ☐ Is “Brooklyn” or a neighborhood/location in Brooklyn included in your company’s name? For example, Cape Cod Potato Chips. ☐ Is “Brooklyn” or a neighborhood/location in Brooklyn included in the name of any of your products?

Select one.GRID ACROSS☐ Yes ☐ No

5. How many of your employees work in Brooklyn? Please provide a number. NUMERIC TEXT BOX

6. Approximately what percentage of your products is made or manufactured in Brooklyn? (By manufacturing we mean the physical production). Please select one option.

☐ 0% ☐ 1% to 25%

40

☐ 26% to 50% ☐ 51% to 75% ☐ 76% to 100% ☐ Don’t know ANCHOR TO LAST POSITION

7. What do you see as major challenges to manufacturing in Brooklyn? Please select all that apply.

RANDOMIZE GRID DOWN ☐ High labor costs ☐ High facility costs ☐ High shipping and/ or distribution costs ☐ Lack of local resources (e.g. qualified staff, relevant technology, etc.) ☐ Conditions and size of available facilities not suitable to needs ☐ Lack of support from the city ☐ Other, please specify: OPEN TEXT BOX; ANCHOR SECOND TO LAST POSITION ☐ I don’t see any challenges MAKE ANSWER EXCLUSIVE. ANCHOR TO LAST POSITION

8. Approximately what percentage of your ingredients/raw materials is sourced from Brooklyn? Please select one option.

☐ 0% ☐ 1% to 25% ☐ 26% to 50% ☐ 51% to 75% ☐ 76% to 100% ☐ Don’t know ANCHOR TO LAST POSITION

9. What do you see as major challenges to sourcing materials or ingredients made or manufactured in Brooklyn? Please select all that apply.

RANDOMIZE GRID DOWN ☐ Brooklyn materials/ingredients are more expensive ☐ The raw materials/ingredients I need are not made in Brooklyn ☐ Lack of information regarding other sources for materials in Brooklyn ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO SECOND TO LAST POSITION ☐ I don’t see any challenges MAKE ANSWER EXCLUSIVE. ANCHOR TO LAST POSITION

10. Approximately what percentage of your ingredients/ raw materials are sourced from New York State? Please select one option.

☐ 0% ☐ 1% to 25% ☐ 26% to 50% ☐ 51% to 75%

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☐ 76% to 100% ☐ Don’t know ANCHOR TO LAST POSITION

11. How much of each of the following activities take place in Brooklyn?

RANDOMIZE GRID DOWN ☐ Research, design and development (defining the concept, market research, testing, etc...)☐ Processing of raw materials (transforming, cleaning, or modifying materials into usable inputs) ☐ Product assembly (putting different components together to make your product) ☐ Product finishing (packaging, quality control, final stage touch ups) ☐ Marketing (any promotion or advertising of your products) ☐ Senior Management (CEO, CFO, etc...) ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO LAST POSITION

GRID ACROSS ☐ All ☐ Most ☐ Some ☐ None ☐ Not Applicable

12. How does your business give back to the Brooklyn community if at all? Please select all that apply.

RANDOMIZE GRID DOWN ☐ In kind donations to local organizations ☐ Giving employees time off to participate in community service activities ☐ Free classes to local residents ☐ Cash donations to local organizations ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO SECOND TO LAST POSITION☐ My company does not participate in giving activities MAKE ANSWER EXCLUSIVE. ANCHOR TO LAST POSITION 13. Does your business participate in any of the following programs or activities? Please select all that apply.

RANDOMIZE GRID DOWN ☐ Employ low income, low skilled workers ☐ Employ local Brooklyn residents ☐ Offer employees retirement packages ☐ Provide employees with health care ☐ Provide employees with paid sick leave ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO SECOND TO LAST POSITION

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☐ None of these MAKE ANSWER EXCLUSIVE. ANCHOR TO LAST POSITION

Insights Questions GROUP THESE QUESTIONS ON ONE SCREEN

14. What organizations do you utilize to further your business interests? Please select all that apply.

RANDOMIZE GRID DOWN☐ Brooklyn Borough President’s Office ☐ East Williamsburg Valley Industrial Development Corporation (EWVIDCO) ☐ Business Improvement District (BID) ☐ Industrial Business Zone (IBZ) ☐ Local NYC Council Member ☐ Made in NY ☐ Made in NYC/ Pratt Institute ☐ Mayor’s Office ☐ New York Business Development Corporation (NYBDC) ☐ NYC Economic Development Corporation ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO SECOND TO LAST POSITION ☐ None of these MAKE ANSWER EXCLUSIVE. ANCHOR TO LAST POSITION

15. Which of the following certification programs does your business participate in? Please select all that apply.

RANDOMIZE GRID DOWN ☐ B Corporation certification ☐ Fair trade certification ☐ LEED certification ☐ Made in NY certification ☐ Minority owned & women owned business (MWBE) certification ☐ USDA Organic certification ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO SECOND TO LAST POSITION ☐ None of these MAKE ANSWER EXCLUSIVE. ANCHOR TO LAST POSITION

16. Do you think there is enough support to help Brooklyn manufacturers in the following ways? Please select all that apply.

RANDOMIZE GRID DOWN ☐ Access to financing options (e.g. loans, investors, etc...) ☐ Business advising ☐ Customer databases ☐ Learn about business opportunities ☐ Lobbying support ☐ Network with local business

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☐ Online business directory ☐ Promotion or marketing ☐ Trade show support ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO LAST POSITION

GRID ACROSS☐ Yes ☐ No ☐ Don’t know

17. What services would you find beneficial for a third party to offer in support of your business? Please select all that apply.

SAME RANDOMIZATION AS Q16☐ Access to financing options (e.g. loans, investors, etc...) ☐ Business advising ☐ Customer databases ☐ Learn about business opportunities ☐ Lobbying support ☐ Network with local business ☐ Online business directory ☐ Promotion or marketing ☐ Trade show support ☐ Other, please specify: OPEN TEXT BOX; ANCHOR TO SECOND TO LAST POSITION ☐ None of these MAKE ANSWER EXCLUSIVE. ANCHOR TO LAST POSITION

Business Demographic Questions GROUP THESE QUESTIONS ON ONE SCREEN

18. How many years has your business been operating?

NUMERIC DROP DOWN LIST☐ < 1☐ 1☐ 2☐ 3☐ 4☐ 5☐ 6☐ 7☐ 8☐ 9☐ 10+

19. How many employees does your company have? Please provide a number. NUMERIC TEXT BOX

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20. How many different products do you manufacture? NUMERIC DROP DOWN LIST 0 TO 19 AND “20+”

21. What was your gross revenue for 2012? Please select one option.

☐ Under $50,000 ☐ $50,000 $99,999 ☐ $100,000 $299,999 ☐ $300,000 $499,999 ☐ $500,000 $699,999 ☐ $700,000 $999,999 ☐ $1,000,000 $4,999,999 ☐ $5,000,000 $9,999,999 ☐ $10,000,000 or more ☐ Prefer not to answer

Business Market Questions GROUP THESE QUESTIONS ON ONE SCREEN

22. Do you market your products outside of New York City?

☐ Yes☐ No

23. Approximately what percentage of your sales is done in each of the following regions? Total percentage should equal 100. TOTAL FROM ALL NUMERIC TEXT BOXES SHOULD EQUAL 100. WILL DISPLAY AS CONSTANT SUM QUESTION.

☐ Northeast NUMERIC TEXT BOX☐ Mideast NUMERIC TEXT BOX☐ South NUMERIC TEXT BOX☐ West NUMERIC TEXT BOX

ASK Q24 IF RESPONDENT PLACES A NUMBER GREATER THAN 0 NEXT TO NORTHEAST. 24. Please tell us more specifically what states in the Northeast are part of your selling region. Please select all that apply.

☐ Maine ☐ New Hampshire ☐ Vermont ☐ Massachusetts ☐ Rhode Island ☐ Connecticut ☐ New York ☐ New Jersey

45

☐ Pennsylvania ☐ Don’t know MAKE ANSWER EXCLUSIVE

25. Do you export any of your products outside of the United States?

☐ Yes☐ No

ASK Q26 IF RESPONDENT SAYS YES TO Q25.26. Please tell us what markets you export to. OPEN TEXT BOX

NEW SCREEN

Those are all the questions we have for you at this time. Thank you for taking the time to go through our survey!

Please enter your email address below. Including your contact information helps us guarantee the quality of the data. Contact information will be kept confidential.

Email address: OPEN TEXT BOX

Please click “Next” one last time to record your responses.

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VI. Appendix D: Survey Results

47

posITIon Held by respondenTs (re-coded)

Is your busIness HeadquarTered and/ or IncorporaTed In brooklyn?

48

How many years Has your busIness been operaTIng?How many years Have you been operaTIng In brooklyn?

How many employees does your company Have?How many oF your employees work In brooklyn?

8 years

49

wHaT was your gross revenue For 2012?

Is“brooklyn” or a neIgHborHood/ locaTIon In brooklyn Included In your company’s name, or In THe name oF any oF your producTs?

50

How many dIFFerenT producTs do you manuFacTure?

approxImaTely wHaT percenTage oF your producTs Is made or manuFacTured In brooklyn?

51

approxImaTely wHaT percenTage oF your IngredIenTs/ raw maTerIals are sourced From brooklyn?

wHaT do you see as major cHallenges To sourcIng maTerIals or IngredIenTs made or manuFacTured In brooklyn?

52

approxImaTely wHaT percenTage oF your IngredIenTs/ raw maTerIals are sourced From new york sTaTe

does your busIness parTIcIpaTe In any oF THe FollowIng programs or acTIvITIes?

53

do you markeT your producTs ouTsIde oF nyc?

approxImaTely wHaT percenTage oF your sales Is done In eacH oF THe FollowIng

54

wHaT sTaTes In THe norTHeasT are parT oF your sellIng regIon?

do you exporT any oF your producTs ouTsIde oF THe unITed sTaTes?

55

please Tell us wHaT markeTs you exporT To.

VI. Appendix E: Brooklyn Made Assessment Tool

56

High Middle Low

Ingredients/ raw materials are the components used in the making of your product5 Points: 51% to 100% are sourced from Brooklyn3 Points: 1% to 50% are sourced from Brooklyn1 Point: at least 51% are sourced from New York State

Defining the product concept, conducting market research, and testing product concepts5 Points: all of the activity takes place in Brooklyn3 Points: most of the activity takes place in Brooklyn1 Point: some of the activity takes place in Brooklyn

The transforming, cleaning, or modifying of materials into usable inputs3 Points: at least some of the activity takes place in Brooklyn

The process of putting different inputs together to make your product5 Points: all of the activity takes place in Brooklyn3 Points: most of the activity takes place in Brooklyn1 Point: some of the activity takes place in Brooklyn

Packaging, quality control, and final stage product touch-ups5 Points: all of the activity takes place in Brooklyn3 Points: most of the activity takes place in Brooklyn1 Point: some of the activity takes place in Brooklyn

Any product promotion or advertising1 Point: all or most of the activity takes place in Brooklyn

Community Criteria

The number of employees located in Brooklyn divided by the total number of employees; Employee: an individual hired by a company and given compensation in exchange for providing services to the company; A business owner, proprietor, etc. should be counted as an employee

5 Points: more than 75% of employees3 Points: 51% to 75% of employees1 Point: 1% to 50% of employees

See definition of employee above; Brooklyn resident: an individual that lives in Brooklyn 5 Points: if business employs at least 1 Brooklyn resident

Charitable activities in Brooklyn: cash or in-kind donations to Brooklyn organizations3 Points: if business participates in charitable activities in Brooklyn

Business Criteria

Senior management includes: CEO, CFO, CTO, CMO, etc.1 Point: at least some senior management is located in Brooklyn

Registered as a legal business corporation with a Brooklyn address1 Point: if business is incorporated in Brooklyn

Continuously operating as a business in Brooklyn for 10+ years1 Point: if business has been continuously operating in Brooklyn for 10+ years

Brooklyn Made Score (Max Score = 40) Total Earned Points =

Brooklyn Made Assessment Tool (BMAT)Potential Points Earned

PointsProduct CriteriaProduct Ingredients/ Raw Materials

135

Product Marketing

Product Finishing

Product Assembly

Processing of Raw Materials

Product Research, Design, and Development

135

- 3 -

5 3 1

5 3 1

- - 1

Share of Total Employees Located in Brooklyn

Charitable Activities in Brooklyn

Senior Management

Incorporated in Brooklyn

-3-

- - 1

--5

135

Business Employs Brooklyn Residents

- - 1

- - 1

Continuously Operating in Brooklyn for 10+ years

VI. Appendix F: Percent of Surveyed Businesses that Fit Each Certification Criteria

57

Among businesses that met the baseline criteria (N=89)

Heavy-weIgHT cerTIFIcaTIon crITerIa

Heavy-weIgHT cerTIFIcaTIon crITerIa: busIness employs brooklyn resIdenTs

58

mId-weIgHT cerTIFIcaTIon crITerIa

low-weIgHT cerTIFIcaTIon crITerIa

B Corporation. http://www.bcorporation.net

B Corporation. “B Impact Assessment | Preview the Assessment.” http://b-lab.force.com/bcorp/impactassessmentdemo

B Corporation. “The B Impact Score | B Impact Assessment.” http://bimpactassessment.net/how-it-works/frequently-asked-questions/the-b-impact-score

5Bureau of Labor and Statistics. “Manufacturing: NAICS 31-33.” http://www.bls.gov/iag/tgs/iag31-33.htm

2Center for an Urban Future. “Is Manufacturing Back in Brooklyn?” March 2013. http://nycfuture.org/data/info/is-manufacturing-back-in-brooklyn

Goodyear, Sarah. “The Trendification of Brooklyn and the Perils of a Successful Urban Brand.” The Atlantic Cities. http://www.theatlanticcities.com/neighborhoods/2012/08/trendification-brooklyn-and-perils-successful-urban-brand/2973/

LEED. “Overview.” http://www.usgbc.org/leed#certification

Made in New York City. http://nytm.org/made-in-nyc

Made in NY. “Made in New York – The Office of Film, Theatre, and Broadcasting.” http://www.nyc.gov/html/film/html/home/home.shtml

Made in NYC. http://madeinnyc.org

Made in Portland. http://madeinportland.org

Made in San Francisco. http://www.sfmade.org

Merriam-Webster. "headquarters." Merriam-Webster.com. http://www.merriam-webster.com/dictionary/headquarters

MWBE. http://www.mwbe.com/cert/certification.htm

1NYCEDC. “Borough Trends and Insights: Brooklyn Update June 2013.” http://www.nycedc.com/sites/default/files/filemanager/Resources/Economic_Data/borough_update/BrooklynBoroUpdate_June2013.pdf

4NYCEDC. “Labor Force and Payroll.” http://www.nycedc.com/economic-data/labor-force-and-payroll

VII. Works Cited

59

3NYCEDC. “State of Local Manufacturing: A NYCEDC Special Report October 2013.” NYCrafted. http://www.nycedc.com/sites/default/files/filemanager/State_of_Local_Manufacturing_Oct_2013.pdf

Portland Made. http://www.portlandmade.com

Risen, Clay. “How Spike Lee and Absolut Vodka Sold Out Brooklyn.” The Atlantic. http://www.theatlantic.com/health/archive/2010/11/how-spike-lee-and-absolut-vodka-sold-out-brooklyn/66328/

U.S. Small Business Administration. “Choose Your Business Structure.” http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/choose-your-business-stru

USDA Organic. “National Organic Program.” http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateA&navID=NationalOrganicProgram&leftNav=NationalOrganicProgram&page=NOPNationalOrganicProgramHome&acct=AMSPW.

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DESIGNED BY: Natalie Devinenatkat.devine@gmail.com