POLICIES, PLANNING, AND PARTNERSHIPS FOR QUALITY JOBS · UCLA Urban Planning Final Report...

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ROADMAP TO GREEN

MANUFACTURING IN

LOS ANGELES: POLICIES, PLANNING, AND

PARTNERSHIPS FOR QUALITY JOBS

UCLA Urban Planning Final Report

John-Edwards Guevarra

Madeline Wander

Steven Guerry

Seth Boots

Jason Hyde

Lys Mendez

G.H. Ian Elder

Antonio Sanchez

Craig Raphael

Authors

Brenda Pérez

Doug Smith

William Hamilton

Instructor: Goetz Wolff

Prepared for: USC PERE,

LAANE, and Green For All

with funding from the

Surdna Foundation

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Presentation Overview

1. High‐Road Industrial Policy: A Framework & Lessons Learned

2. Manufacturing Trends

3. Green Manufacturing

4. Manufacturing and Land Use in Los Angeles

5. Organizations and Intermediaries

6. Employment Training System in Los Angeles

7. Unions in Green Manufacturing: Trends and Opportunities

8. Geographic Preferences in Public Procurement

9. Rail Standardization

John-Edward Guevarra & Madeline Wander

High-Road Industrial Policy

Photo source: The Milwaukee Daily Reporter Photo source: The Chicago Tribune

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Defining a high-road industrial policy…

A package of interconnected policies that improve

the growth of domestic manufacturing sectors,

provide high quality jobs and career ladders

for those that need it the most, and that

minimize adverse environmental impacts.

Why Industrial Policy Matters in LA

1. Government can help promote research and

development.

2. No single firm can coordinate, let alone

manage, a regional or national project.

3. Collaboration can achieve mutual interests

between firms, workforce, and government.

4. Firms can rely on government coordination to

organize against unfair trade and tariff

barriers and to achieve regional and national

interests.

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Case studies of High-Road Policy

Chicago Advanced manufacturing and targeted

workforce development.

Case Study: Chicago

Policy Mechanisms Planned Manufacturing Districts

(PMDs)

Sector‐specific Task Forces (steel)

Key strategies:

1. Strategic research/information gathering

2. Dissemination of ideas in the media and within communities

3. Coalition building

4. Direct worker and community participation

Early Warning Efforts

Photo source: Charpentier, Elaine. “Early Warnings in

Chicago.” Labor Research Review 1, no. 9 (1986): 90-97.

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Case Study: Chicago

Efforts to address “skills gap”

Chicago Renaissance Manufacturing Council

Austin Polytechnic Academy

Power of unlikely partnerships: unions and ind. associations

ManufacturingWorks

Industry-specific

Customer = Employer

Today: Investing in Workers & Communities




New York Micromanufacturers and industrial

retention strategies.

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Case Study: New York

Ind. Policy efforts led by non-profit research and advocacy

Land use mechanisms

IBZ met with mixed success

Lack of political champion

The New York Industrial Retention Network (NYIRN)

Broker between firms and government

Fill info/service gap

Retaining Local Manufacturers




New York

Sustainable manufacturing and partnerships

with the federal government. Milwaukee

Micromanufacturers and industrial

retention strategies.

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Case Study: Milwaukee

Two main city-led initiatives:

ME3 Program

Milwaukee Shines

Unique federal-state partnership

Partnerships with colleges, worker training centers, industry, and community and environmental groups

Advancing Sustainable Manufacturing

Photo source: http://city.milwaukee.gov/sustainability

Lessons Learned and Recommendations

1. Develop a manufacturing constituency.

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Lesson #1:

Develop a manufacturing constituency

Partnerships with firms and industry associations

Surveying small- and medium-sized businesses

Building political power for manufacturing as a

whole



2. Focus on small- to mid-size firms.

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Lesson #2:

Focus on small- to mid-size firms

Small and medium-sized firms are the core of

the LA and U.S. manufacturing base (and

usually in niche sectors)

Outsourcing poses a big risk

Worker training is more successful by targeting

certain niche sectors




3. Create strategic on-the-ground research.

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4. Strengthen existing manufacturing assets.





4. Strengthen existing manufacturing assets.

5. Target multiple levels of government assistance.

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Lesson #5:

Target multiple levels of government assistance

The need for multiple levels of government

assistance because supply chains extend past

city boundaries

In Milwaukee, it was necessary for

intermediaries to partner with local and federal

government to generate creative policy solutions

Seth Boots

Steven Guerry

Manufacturing Trends

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Introduction

Action is only as effective as the data that guides it.

Data trends inform high-road policies with respect to:

State of Los Angeles manufacturing

strengths and weaknesses of Los Angeles manufacturing

Los Angeles manufacturing workers’ needs

Los Angeles manufacturing establishments’ needs

With emphasis on people (employment) and

good jobs (wages)

L.A. County Manufacturing is Big

Los Angeles

County is the

biggest

manufacturing

county in

California

0%

5%

10%

15%

20%

25%

30%

35%

40%

Los Angeles Orange Santa Clara San Diego Alameda San Bernardino Riverside

(California total)

Employees (1,448,485) Establishments (44,296) Payroll ($20.5 bn) Sales and Shipments ($491 bn)

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0%

2%

4%

6%

8%

10%

12%

14%

16%

(United States Total)

Employees (13.4 mn) Establishments (660,596) Payroll ($613.8 bn) Sales, etc ($5.34 tn)

Los Angeles County Compared to States

If Los Angeles County was a state, it would rank anywhere from 7th to 12th in several measurements of industry size.

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Computer andelectronic

Transportationequipment

Fabricated metal Food Apparel

(Los Angeles Manufacturing Total)

Employees (451,656) Establishments (15,158) Payroll ($20.5 bn) Value added ($74.7 bn)

Los Angeles County Manufacturing

Subsectors

Computer and

Electronic

payroll and

value added

Transportation

payroll and

value added

Apparel

establishments

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Year-to-year Percentage Change, California Employees 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 All Sizes -1% -1% -4% -5% -2% -4% -3% -1% -5% -2%

< 5 7% 3% -4% -9% -2% -7% -2% 9% -5% -3%

5 - 9 -4% -1% -3% -4% -1% -3% -3% -4% -4% -2%

10 -19 -1% -4% -4% -2% -5% -1% -3% -6% -4% -2%

20 -49 -8% -4% -3% -3% 0% -2% -4% -8% -4% -1% 50 -99 -8% -4% -3% -3% -2% -1% -1% -12% -7% 4%

100 - 249 -12% -6% -5% 1% -1% -2% -4% -10% -5% -1%

250 - 499 -11% -10% -4% -1% 5% -6% -4% -13% -9% 2%

500 - 999 -19% -12% 8% 0% 7% -7% 0% -16% -10% 0%

1000 + -11% -8% 1% 6% -6% -4% 1% -2% -3% -1%

Source: Bureau of Labor Statistics

California Manufacturing Establishments

The number of

smallest firms

actually increased

during downturns.

Largest firms

have more drastic

increases and

decreases

Number of Small establishments declines slower or increases

Number of Large establishments decrease more

During upturns,

large firms

increase

Los Angeles Durable Subsectors as

Proportions of All Manufacturing

97

99

101

103

105

107

109

111

113

115

2005 2006 2007 2008 2009 2010 2011

Pro

du

ctiv

ity

and

Co

mp

ensa

tio

n (i

nd

exed

to

200

5)

Productivity and Compensation of Manufacturing Employees (USA)

MFG Labor Productivity

Durable Labor Productivity

Non-Durable Labor Productivity

Mfg Hourly compensation

Durable hourly comp

Non-Durable hourly comp

Even among

durable

manufacturing,

Computer and

electronic and

Transportation

equipment

have high

Payroll and

Shipments 0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

(Los Angeles All Manufacturing Total)

Employees (451,656) Establishments (27,734) Payroll ($20.5 mn) Shipments ($154 bn)

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Manufacturing Employment

Manufacturing

employment

approximately

mirrors all

employment

Continuously

decreasing

manufacturing

employment

300

350

400

450

500

550

-11%

-9%

-7%

-5%

-3%

-1%

1%

3%

2002 2003 2004 2005 2006 2007 2008 2009 2010

Man

ufa

ctu

rin

g Em

plo

yees

Th

ou

san

ds

% E

mp

loym

ent

Ch

ange

Source: Bureau of Labor Statistics—Quarterly Census of Employment and Wages

L.A. County Manufacturing Employment

All Employment % Change Mfg % Change

Los Angeles Durable Manufacturing

Employment

1991 -7.4% -10.9% -14.6% -8.0% -13.0% -11.1% -17.5% -8.8% -8.5%

1992 -7.1% -10.5% -5.9% -9.4% -12.6% -12.0% -19.3% -8.8% -10.1%

1993 -6.7% -10.2% -5.5% -8.9% -9.1% -14.0% -9.6% -17.3% -18.6%

1994 -3.7% -6.5% -2.5% -1.6% -9.7% -14.7% -2.6% -13.2% -15.4%

1995 0.1% -1.9% 0.0% 2.3% -0.1% -0.7% 0.0% -8.8% -11.9%

1996 0.7% 0.6% 4.3% 3.8% 2.3% 4.5% -5.4% -1.9% -3.1%

1997 1.0% 1.9% 6.6% 5.3% 1.1% 2.8% 0.0% -2.1% -2.2%

1998 0.8% 2.0% 1.5% 2.9% -3.9% -3.1% 4.3% 4.8% 6.0%

1999 -2.8% -3.2% -3.0% -4.3% -5.8% -5.8% -2.1% -5.9% -9.0%

2000 -2.0% -2.9% 0.8% -1.1% -4.6% -6.7% -0.7% -8.2% -11.6%

2001 -5.7% -5.1% -3.9% -4.2% -2.1% -0.2% 2.1% -7.6% -10.1%

2002 -7.4% -8.0% -8.9% -9.0% -6.9% -1.0% -8.3% -9.1% -7.0%

2003 -6.5% -7.7% -8.8% -7.3% -6.5% -3.2% -8.3% -9.9% -8.9%

2004 -3.2% -3.0% -3.9% -2.6% -0.7% 0.0% -5.8% -1.4% -0.3%

2005 -2.5% -1.6% -2.0% 0.0% 1.5% 3.1% -2.6% -1.8% -2.0%

2006 -2.1% -2.3% -2.1% 1.2% -2.1% -2.5% 0.0% -2.4% -0.8%

2007 -3.2% -3.3% -3.2% 0.4% -6.2% -7.2% 3.6% -3.4% -1.6%

2008 -3.3% -3.1% -2.2% 0.0% -2.3% -2.2% -3.5% -1.9% 0.5%

2009 -10.4% -10.5% -17.8% -12.8% -6.3% -4.5% -12.6% -6.3% -1.8%

2010 -4.1% -4.9% -6.8% -6.1% -3.1% -2.1% -2.1% -5.3% -2.9%

2011 -2.1% -2.0% 1.4% 0.5% -1.2% -0.9% -2.1% -5.8% -3.0%

AerospaceMfg. Durable

Source: BLS

Primary

Metal

Fabricated

Metal

Computer/

Electronic Nav.

Electrical

Equipment Transpo.

Drastic declines in

advanced

transportation-

related sectors in

the early 90s in

response to post-

Cold War defense

cuts

Most severe declines

may be over

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L.A. County Durable Manufacturing:

Weekly Wages

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Source: Bureau of Labor Statistics

Pay very different

among subsectors

Higher pay

associated with

more precise

manufacturing

Conclusion and Policy Suggestion

Create an entity dedicated to Los Angeles

manufacturing tasked with the following:

Compile and distribute Los Angeles manufacturing data

Update and distribute new data when available

Produce regular reports regarding the needs of

manufacturing in Los Angeles.

Identify data relevant to Los Angeles manufacturing

that is not already available and advocate for more

frequent updating of existing data.

High-road strategy strongly connected to

technologically-driven precision manufacturing

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Seth Boots

Steven Guerry

Defining Green Manufacturing

Introduction

Why focus on green manufacturing in Los Angeles?

California is a national leader in environmental

innovation

Los Angeles has leadership in place to promote green

manufacturing

New technologically advanced industry = high value

added potential

Availability of skilled workforce

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Governmental and Popular

Conceptions of Sustainability

“…Creation of manufactured products that use processes that minimize negative environmental impacts, conserve energy and natural resources, are safe for employees, communities, and consumers and are economically sound.”

“All about minimising [sic]

the diverse business risks

inherent in any

manufacturing operation

while maximising [sic] the

new opportunities that

arise from improving your

processes and products…”

Department of Commerce Organization for Economic Co-Operation and Development (OECD)

Defining Sustainability

“Meeting the needs of the present generation

without comprising the ability of future generations

to meet their own needs.” World Commission on Environment and Development (1987)

Sustainable manufacturing is different from green

manufacturing

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Implications of Sustainability

Would require a

complete

overhaul of our

energy supply

Manufacturing

Consumption

in 2006:

49.5% fossil

13.5%

renewable

0%

20%

40%

60%

80%

100%

1949

1951

1953

1955

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Source: U.S. Energy Information Administration (EIA)

National Energy Consumption by Source

Fossil Renewable Nuclear

Towards Sustainability: Technology

Wedges

Concept from Pro. David Dornfeld at U.C. Berkeley

Pacala and Socolow “Stablilization Wedges: Solving the Climate Problem for the Next 50 years with Current Technologies” Science 13 August 2004: Vol. 305. no. 5686, pp. 968-972.

Ra

te o

f C

on

sum

ptio

n o

r Im

pact

Sustainability Frame of Reference

Future

Sustainable rate

How do we

achieve this?

Today

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Triple Bottom Line

Coined in 1994 by a founder of a British consultancy

Elkington, J. Cannibals with Forks: The Triple Bottom Line of 21st Century Business; New Society Publishers: Stony Creek, CT, USA, 1998.

The definition

Green manufacturing is a continually evolving set of

manufacturing techniques, through which three

levers—technology, material, and energy—are

improved upon in order to move toward the ultimate

goal of full sustainability

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Jason Hyde

Lys Mendez

Manufacturing and Land Use

Mapping Industrial Land in Los Angeles

We mapped industrial

parcels in LA County,

focusing specifically on

manufacturing land in the

city of LA

The map files will be

publicly available for use

by advocates of industrial

retention in Los Angeles

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2009 SCAG Data

Parcels classified

according to zoning

code, square footage,

and access to rail

Visually identify

vacant parcels

Shows assessor #,

square footage for

each parcel

Mac and PC accessible

Methodology Usefulness

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Challenges

88 municipalities in Los Angeles County

Availability of geospatial data

Recommendations

Collaborate with local agencies to pursue additional data, and make it centrally and publicly available

Pursue geospatial data from city/county assessors

Case Studies: New York, Portland, and Chicago

New York

Making It in New York report recommended:

Permitting non-noxious manufacturing activities in commercial zones provided they meet environmental performance standards.

Restrictions on variances in manufacturing zones.

Establishment of transitional and non-transitional zones.

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Portland

Has established three zoning districts classified as “Industrial Sanctuary”

Small retail or office operations (<3k sq ft) permitted in these areas

Planned retreat

“Creative service” businesses such as software/design production and video production allowed in areas deemed obsolete for manufacturing

Chicago Since the 90s, the city has established 24 Industrial

Corridors—comprising 12% of its land—that provide protection and incentives for industrial firms.

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Within these corridors, proposals for zoning changes are reviewed by the Chicago Plan Commission, which can reject proposals that weaken the stability of industry within the corridor.

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In 12 of these corridors, Planned Manufacturing Districts (PMDs) have been established, specifically prohibiting residential and large-scale retail development.





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In 12 of these corridors, Planned Manufacturing Districts (PMDs) have been established, specifically prohibiting residential and large-scale retail development.

These land use protections are supplemented by favorable tax policies, bonds, and loans offered by the Department of Housing and Economic Development.


Challenges to Los Angeles Industry

Issue Challenges

Land use attrition Economic recession stalled industrial

land use conversions.

Permissive Permitting Tighter zoning controls have not been

implemented.

Lack of economic

development strategy

City has a vision, but not a strategy.

Infrastructure issues Outdated buildings and inadequate

infrastructure still a concern.

Understanding the value of

manufacturing

Industry needs a champion.

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Industrial Land in LA

• In 2007, the city had

19,000 acres of industrial

land.

• Almost 30 percent of land

was used for non-industrial

purposes.

• Industry hubs: downtown,

near the port, Hollywood

and San Fernando Valley.

• Even during the Great

Recession, Los Angeles

County has lowest

industrial vacancy rates in

nation.


Issue Challenges




implemented.

Lack of economic






manufacturing


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Planning for Industry

• A 2008 city report

recommended zoning

designations to protect

industrial land.

• Permissive permitting

process still in place.

• Cornfield Arroyo Seco

Plan is one of the first

efforts to implement

zoning protections.


Issue Challenges




implemented.

Lack of economic






manufacturing


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Cleantech Corridor

• Cleantech Corridor is a

four-mile stretch on

industrially zoned land in

downtown.

• Includes: Cleantech

Incubator and Cleantech

Manufacturing Center.

• CRA demise threatened

project, but funding was

recently retained.


Issue Challenges




implemented.

Lack of economic






manufacturing

Industry needs a champion

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Building Stock and Infrastructure

• Property owners do not have incentives to upgrade their buildings.

• Roads cannot handle manufacturing’s transportation needs in the

downtown area.

• Emerging industries

are interested in the

downtown market,

but need modern

facilities.


Issue Challenges




implemented.

Lack of economic






manufacturing

Industry needs a champion

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Findings: Industrial Retention in Los Angeles

Lax land use controls continue to imperil the availability of manufacturing space in the City of Los Angeles.

The region still lacks a clear economic development strategy that uses land-based incentives to galvanize a new green manufacturing industry.

Los Angeles County faces regional competition from the Inland Empire, but has several location advantages that position it to capitalize on new manufacturing trends.

The economic recession has slowed down the loss of industrial land and presents an opportunity to do smart industrial planning.

A coalition of key players needs to act as a political champion for industrial land use.







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Recommendations: Taking the high road

Designate Protected Manufacturing Zones/Manufacturing Development Zones

Create a Targeted Industrial Retention Policy for Protected/Development Zones

A Manufacturing Economic Development Strategy That Utilizes Land Use Tools

Build a Manufacturing Constituency

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Ian Elder

Organizations that Improve Regional

Manufacturing Competitiveness

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What roles can supportive

organizations play?

Coordination: Manufacturing processes are

Complex

Often divided among a large number of firms

Policy development: Promoting public policy and

planning beneficial to manufacturing

Shared resources: Providing shared resources to

small and medium sized firms

Industry involvement: Acting as a liaison between

labor, government, industry, and nonprofits

Major Supportive Organizations

Government Organizations

Training programs

Research and upgrading programs

Manufacturing Extension Partnership

Small Business Administration

Trade Adjustment Assistance for Firms

Industry - represented by trade associations

Labor Unions

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Manufacturing Extension Partnerships (MEP)

Over 60 non-profits awarded federal funding to help technology transfer and improve productivity

Work with small and medium sized companies to make business and production improvements

Kinds of consulting

Assessment

Technology

Business assistance

What are they and what do they do?

California Manufacturing Technology Consulting (CMTC)

MEP for Southern California

Located in Torrance, with regional teams throughout the region

Nimble non-profit which has taken on other sectors: healthcare and defense

Participates in Next Generation Rail Supply Chain

Helped organize Sacramento forum

Recommended specific local manufacturers to attend

Deep linkages: Partners with several regional

Trade associations

Community colleges

Workforce Investment Boards (WIBs)

Economic Development Agencies

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Next Generation Rail Supply Chain

Collaboration between MEP and U.S. Department of Transportation

Purpose: to connect OEMs with potential suppliers

Form:

Webinar in December 2011

Two forums for OEMs and potential suppliers, in Sacramento and Chicago February 2012

Information on OEMs, specifications

Bolstered by Buy America. BA’s goals:

Re-establish the rail industry

Revitalize the domestic supply chain

Raise the level of U.S. content in all rail equipment

Small Business Administration

Lending programs

Guarantees business loans to improve terms

Business owner training / entrepreneurial

development

SCORE offices (23 in LA County)

Women’s Business Centers (4 in LA District)

Small Business Development Centers (10 in LA District)

Coordinates Small Business Innovation Research

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Trade Adjustment Assistance for Firms

Provides matching funds for import-impacted manufacturers to upgrade

Up to $75,000

Operates as 11 regional nonprofits

Western TAAC is located here at USC

Like MEP, works with businesses to develop customized strategy to improve competitiveness

Projects focus on assessment and technology, but cannot be used for capital investment

Trade Associations: Pros and Cons

Manufacturers know their

needs best

Funded privately

Strongest political voice

advocating for

manufacturing concerns

Likely to select businesses

most amenable to

collaboration

Often vehemently anti-union e.g.: California Association

of Manufacturers

Generally oppose regulation Esp. environmental

May be too limited in scope for many supply relationships

Benefits Liabilities

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Example: Los Angeles – National

Tooling and Machining Association

NTMA’s largest chapter (over 140 precision manufacturers)

Full service trade association, members have access to all national level services plus

Chapter services

Networking and supplier matching events and services

Two training centers

Health insurance

Takeaways

CMTC is doing major work in directly helping

manufacturers to become more productive

They should more explicitly incorporate regional sectoral

growth as a goal

California or Los Angeles County could provide funding as an

incentive

CMTC has deep ties to industry and government, and should

be a partner in implementing regional industrial policy

Trade associations have a deep knowledge of their

sectors and should be partners in policy development

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Future research

Deeper survey of trade associations

Relevance of business service programs to manufacturing

Qualitative data from small and medium sized manufacturers

to determine

Relevance of program

Gaps in services

Barriers to participation, including awareness

Antonio Sanchez

Employment Training in L.A.

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Do we need employment training in

manufacturing sectors?

Yes!

Employment Training

Soft skills vs. hard skills

On-the-job vs. off-the-job

Subsidized vs. unsubsidized

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Benefits of Employment Training

Trainee

Business Owner

Connection to a career ladder

Gained skills/knowledge

Capable, knowledgeable, productive employees

Increase in profit

Increase of wage & benefits

Predictability

History of Federal Funding for

Employment Training

1962 – The Manpower Development & Training Act

Focused on adult workers displaced by technology and

economic challenges

1973 – The Comprehensive Employment & Training Act

1983 – The Job Training Partnership Act

1998 – The Workforce Investment Act

Creation of Workforce Investment Board

More local control

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7 Local Workforce Investment Boards

- Funding soft-

skill programs

- Little

coordination

with each

other

-- Hard to

access

information South LA County WIB

Verdugo Jobs Center

California Employment Training Panel

Manufacturing

Green Tech

Healthcare

Construction

Logistics

Information

Biotech

2009-2010 Budget

$45 million total

$30 Million allocated to manufacturing

30,000 manufacturing trainees

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Further Research

Conclusion

Education system

Sector specific training programs

Key actors need to be involved

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Craig Raphael

June 14, 2012

Urban Planning Comprehensive Project

Professor Goetz Wolff

Unions in Green Manufacturing

Why unions in green manufacturing?

Wages (10-20%)

Health insurance

coverage (63%)

Pension and retirement

plan inclusion (300%)

Source: Schmitt, “Union Advantage for Low Wage

Workers;” AFL-CIO, “Unions good for productivity,

economy and environment

• Voice on the job

• Strength in numbers

• Job security

• Protection against

discrimination

Monetary Benefits: Social benefits:

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Unions and the high road

Enhance productivity

Improve efficiency

Provide training/apprenticeships

Support political campaigns

Unions can be key partners to:

Private sector unionization is on the

decline

Source: Unionstats.com and Bureau of Labor Statistics

0

5

10

15

20

25

1986 1991 1996 2001 2006 2011

Union Membership in Private Manufacturing (US, CA and LA)1983-2011

United States

California

Los Angeles Region

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Private unionization in Los Angeles

Source: Unionstats.com and Bureau of Labor Statistics

0

5

10

15

20

25

1986 1991 1996 2001 2006 2011

Percent Union Membership in Los Angeles Metropolitan Area, 1986-2011

All Sectors

Private Sector (Total)

Private Manufacturing

The union advantage remains strong

Source: UCLA Institute on Labor and Employment, “State

of the Unions, 2011”

& Earnings Differentials for Union Members and Nonunion Workers: Los Angeles, California and the United States, 2011

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Are unions job killers?

State Manufacturing jobs in 2001

Manufacturing jobs in 2011

Percent Change

Percent Union

Membership RTW?

District of Columbia

3,100 1,100 -64.50% 9% N

Rhode Island 64,500 40,600 -37.10% 17% N

North Carolina 666,800 434,000 -34.90% 3% Y

Michigan 781,800 510,800 -34.70% 17% N

New Jersey 381,600 251,100 -34.20% 17% N

Delaware 38,200 25,400 -33.50% 11% N

New York 672,500 454,700 -32.40% 24% N

Maryland 162,100 110,800 -31.60% 12% N

Virginia 328,400 227,000 -30.90% 5% Y

Mississippi 191,600 133,800 -30.20% 5% Y

Massachusetts 366,100 255,800 -30.10% 15% N

Vermont 43,500 30,600 -29.70% 12% N

West Virginia 70,300 49,400 -29.70% 15% N

Tennessee 435,000 306,800 -29.50% 5% Y

Maine 70,300 49,700 -29.30% 12% N

Ohio 908,700 645,300 -29.00% 14% N

Florida 439,600 313,300 -28.70% 6% Y

Arkansas 218,100 156,000 -28.50% 4% Y

Pennsylvania 784,400 564,100 -28.10% 15% N

Georgia 482,800 353,100 -26.90% 4% Y

Top 20 States with highest job losses, 2001-2011

Are unions job killers?

Right to Work States

State Manufacturing jobs in 2001

Manufacturing jobs in 2011

Percent Change

Percent Union

Membership

Rank in Job Losses

North Carolina 666,800 434,000 -34.90% 3% 3

Virginia 328,400 227,000 -30.90% 5% 9

Mississippi 191,600 133,800 -30.20% 5% 10

Tennessee 435,000 306,800 -29.50% 5% 14

Florida 439,600 313,300 -28.70% 6% 17

Arkansas 218,100 156,000 -28.50% 4% 18

Georgia 482,800 353,100 -26.90% 4% 20

South Carolina 297,900 221,300 -25.70% 5% 23

Alabama 314,890 238,970 -24.10% 10% 28

Arizona 191,200 149,100 -22.00% 6% 31

Indiana 592,100 472,500 -20.20% 11% 33

Oklahoma 163,400 132,200 -19.10% 6% 35

Wisconsin 538,600 442,300 -17.90% 14% 37

Idaho 65,900 55,800 -15.30% 7% 39

Louisiana 164,400 139,800 -15.00% 4% 40

Kansas 190,900 162,800 -14.70% 7% 41

Texas 981,100 844,600 -13.90% 5% 42

Nebraska 107,900 93,400 -13.40% 9% 43

Nevada 42,900 37,800 -11.90% 15% 44

Iowa 231,100 211,400 -8.50% 11% 45

Washington 301,400 276,900 -8.10% 19% 46

Wyoming 9,500 9,100 -4.20% 7% 47

Utah 116,800 115,800 -0.90% 7% 49

South Dakota 39,100 38,900 -0.50% 6% 50

North Dakota 23,800 24,400 2.50% 7% 51

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Key challenges to organizing

Unions are fighting for their political lives.

Most campaigns have not been strategic.

Responses:

• Draw upon middle-wage

companies

• Include industry, sectoral and

corporate analyses

• Backed by significant union

resources

• Support from worker pressure

Unions and the high road: IBEW 11

Unions can be key partners to:

Enhance productivity

Improve efficiency

Provide training/apprenticeships

Support political campaigns

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Will they rise to the challenge?

IBEW (Locals 11,

18, 889, 946,

1710, 2139, 2295)

IAM (Locals 1186,

1932, 102, 201,

620)

UAW (Local 887)

ILWU Teamsters

UE

Brenda Perez

Doug Smith

Government Procurement

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Geographic Preferences in Public

Procurement

Demand-side drivers of policy and procurement as

a strategy for developing and sustaining a green

manufacturing economy in the LA region.

Part I: Local preferences

Part II: FTA Buy America Law

Overview—Preference Types

Public Procurement

Policies

Standards and

regulations that govern

the way public

agencies procure

goods and services

Geographic

Preferences

Agencies requirement

for goods or services

that are sourced

locally or domestically

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Context

Conditions to be considered:

Market, Legal, Political, and Socioeconomic Environment

Public procurement as a vehicle for various

socioeconomic preferences

Government’s purchasing power as a tool to achieve

social and political purposes

Legal Challenges

Case Study: Arizona

Wist Office Products and Office Max Labor: Wist spent a larger

percentage of revenue on labor, greater wages and benefits.

Profit: Stayed in the Phoenix area. The money is recirculated as it is spent or invested.

Procurement: Wist contracted a greater portion of its supply and operations from Phoenix-based firms.

Charity: Wist had a greater involvement and contributions to the local community.

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Take-aways

Public investment’s role in local and regional

development

Purchasing power as a policy tool

Need better understanding of the economic effects

of procurement policies

Insufficient research into the economic effects of local

procurement even as national firms have continued to

enter every market in America.

Buy America: Legal Overview

Buy America(n): The many faces of domestic content requirements

FTA Buy America (49 U.S.C. 5323(j))

100% domestic content for iron, steel, and manufactured products

60% domestic content (by cost) for rolling stock, with final assembly in the U.S.

Waivers

Non-availability

Cost prohibitive

Public Interest

Prohibits local (sub-national) preferences

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Buy America, As Applied

Complaints and

Investigations

Waivers: three

lessons

Loopholes

Competitive Tool

FTA will stop short of killing projects;

won’t punish the public

Houston Metro


Waivers:

Three Lessons

“Prototype Vehicles” and the Continued

Offshoring of R&D

Obama Administration “Raising the

Bar,” Higher Scrutiny for Waivers

Enforcement Relies on Public Oversight

and Coordinated Information Sharing

Complaints and

Investigations

Waivers: three

lessons

Loopholes

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Severed Projects

Final Assembly &

Prototype Vehicles

(Kinkisharyo Contract)

60% Threshold for Rolling Stock

Complaints and

Investigations

Waivers: three

lessons

Loopholes

Current Political Discourse

Obama Administration

Manufacturing

Initiatives

Transportation

Reauthorization

Opposition to

“protectionist policies”

AB 1097

BART Procurement

Policy

federal

state

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Next Steps:

Opportunities for Advocacy

How Can Buy America Weaknesses be Strengthened? Close loopholes that allow high value research, design and engineering to remain

overseas

Increase Rolling Stock Content Requirements

Stop the segmentation of projects

How Can Buy America Strengths be Maximized? Supply Side: domestic content requirements only as good as domestic supply

Demand Side: federal investment in transit/green manufacturing

Oversight: MEP and coordinated efforts to connect suppliers to purchasers

Domestic Content, Local Gain? Statutory changes to allow local hire

Improved Metro procurement policy

Local procurement at City/County level

A Manufacturing Opportunity for Los Angeles

Will Hamilton

Rail Standardization

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The Opportunity

Photo Courtesy of Empirestatefuture.org

How Can Standardization Benefit Los

Angeles?

Standardization can open the doors

Nationwide growth provides for opportunity

Can prove to be a profitable and enduring

endeavor

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Standardization

All About Rail

Gauge?

It Is About Components and Systems

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What is Rail Standardization?

The establishment of a common foundation

and baseline for both suppliers and buyers

Chassis

Powertrains

Auxiliary Systems

Pros and Cons

Reduced Inventory of

Parts

Simplified Training for

Maintenance Personnel

Costs

Costs/Low Bid contract

Technology changes

over time

LRT is not at Mass

Production Levels

Pros:

Cons:

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Standardization Factors

Historical Districts

Right of Way

Operational Environment

Mechanical and Electrical

Service Life

Goals of the Transit Agency

Historical Disctricts

Photo Courtesy of laist.com

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Right of Way



Service Life


Right of Way

Blue Line- Downtown Long Beach

Green Line – Norwalk/I 105

Photo courtesy of Urbanrail.net

Photo courtesy of transitchat.com

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Right of Way



Service Life



RTD Denver Light Rail. Photo courtesy of Jeffrey Beall

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Right of Way



Service Life



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Right of Way



Service Life


Service Life

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Right of Way



Service Life



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Resistance to Standardization

There are

several

points of

resistance:

Legacy Systems

Politics

Supplier’s Fears

Differences Between Cities

Standardization: Past

http://farm5.static.flickr.com/4087/4989418488_f6d036176f.jpg

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Standardization in the Past

The PCC (Presidents Conference Committee) Street Car

First used in 1936

Used internationally

Canada

Former Soviet Bloc Nations

Low Countries

Remained in wide use until 1956,

but is still used today

Philadelphia

Boston

Brussels

Antwerp

Warsaw

This basic platform was modified to suit particular needs.

Standardization: Present

http://www.northeast.railfan.net/images/pacer53.jpg

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Standardization: Present

Intermodal Freight has pushed the freight rail

industry to unofficial standardization doe to the

common shipping container sizes.

Standardization: Future

http://www.aecom.com/deployedfiles/Internet/Purpose/Innovation

/Images/high-speed-rail-amtrak-main.jpg

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Standardization: Future

Amtrak has issued an RFP

Worth $551 million

131 new Bi-level cars

Falls under Buy America Guidelines

Amtrak’s Current Fleet

Antiquated fleet acquired in 1970’s

Hand overs from Freight Rail operators

Some pieces in excess of 60 years old

Standardization in Regards to the Los

Angeles LRT Systems

Blue Line vs Green Line

vs Gold Line vs Expo

Line


Operational

Environments

Right of Way

Intended Use

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Rail Standardization Abroad

A European discussion regarding standardization of urban transit rail.

European Committee for Standardization (CEN)

European Committee for Electrotechnical Standardization (CENELEC)

European Telecommunications Standards Institute (ETSI) have

How Can Los Angeles Jump on the

Train

Manufacturers Need to:

Take Advantage of the Growing Global and

National Market.

Cities are growing along with energy costs

Policy Makers Need to Understand:

If standardization cannot be established

nationally then it should at least be established

regionally or locally.

There is enough similarities between the large

urban areas in California to make this feasible.

POLICIES, PLANNING, AND PARTNERSHIPS FOR QUALITY JOBS · UCLA Urban Planning Final Report...

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