!!URBAN MANUFACTURING,I NFRASTRUCTURE … ·...

13
URBAN MANUFACTURING,INFRASTRUCTURE, AND ECONOMIC DEVELOPMENT Nisha Mistry Manufacturing Advisor, City of Newark Mayor’s Office Fellow, Brookings Institution April 10, 2012 Regional Planning Summit, Trenton, N.J.

Transcript of !!URBAN MANUFACTURING,I NFRASTRUCTURE … ·...

Page 1: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

   URBAN  MANUFACTURING,  INFRASTRUCTURE,  

   AND  ECONOMIC  DEVELOPMENT  

Nisha  Mistry  Manufacturing  Advisor,  City  of  Newark  Mayor’s  Office  Fellow,  Brookings  Institution  April  10,  2012  

Regional  Planning  Summit,  Trenton,  N.J.  

Page 2: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution
Page 3: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

Trenton  Makes...  

Portable  LED  Flashlights  Green  Building  Materials  Plastic  Tubing  &  Hosing  Adhesives  &  Glues  Fabricated  Metal  Products  Bottled  Fruit  Juice  Window  Blinds  Corrugated  Paper  Products  Electronic  Components  And  more…  

Page 4: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

New  Jersey  Manufacturers  Export  (2009)…  Canada  (20%)  South  Korea  (6%)  Mexico  (5%)  Japan  (5%)    Germany  (5%)    

Top  Sectors  (in  dollars,  2009)…  Chemicals  Food,  beverages,  tobacco  Computer  and  electronic  products  

Source:    National  Assoc.  of  Manufacturers  

 New  Jersey  Manufacturers...  Total  8,447  (2009)  

 New  Jersey  Manufacturers  Employ...  7%  (2010)  

Page 5: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

         Strong  multiplier  effect    and  linkages  to  other  sectors           Family-­‐wage  jobs  with  large  workforce           Technologically  innovative  research  communities           Centers  of  consumption           Nodes  of  high-­‐speed  communications  

   Urban  manufacturing  still  bestows  unique  advantages.  

         Concentrated  logistics  and  transit  networks           Value  and  wealth  creation  in  communities    

Page 6: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

II.        “Underperforming  Urban  Centers”

“Many  of  New  Jersey’s  urban  centers  are    under-­‐  performing  assets,  yet  these  are  the  locations  with  existing  human  and  infrastructure  assets.”  

I.   Goal:      “Targeted  Economic  Growth”    

The  cultivation  of  “industry  clusters.”  Manufacturing  is  a  priority  industry.  

                   Draft  NJ  State  Strategic  Plan  (2011)                      State  Planning  Commission  

Page 7: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

Credit:    CBS  Worldwide,  Inc.  &  Desilu  too,  L.L.C.  

Page 8: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

The  scale  and  characteristics  of  urban  manufacturing  in  the  U.S.  have  radically  transformed.  

         Smaller,  streamlined  firms             Decentralized,  fragmented  networks           Diverse  skills  of  production  workforce           Customized  goods  for  niche  markets           Global  competition,  cost  shocks           Pressure  to  be  nimble,  adaptable           Greener,  more  sophisticated  processes           Smaller  footprints,  evolving  land  and  space  needs           Access  to  suppliers,  workers,  services,  markets                drives  value  creation

Mistry,  N.  &  Byron,  J.  (Brookings  Institution,  2011)  

Page 9: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

Need  for  transit-­‐accessible,  skilled  workers  

Skills  gap  Aging  workforce  Shortage  of  production  workers  Succession  planning  crisis  Poor  public  image  of  sector  

Spatial  mismatch         6%  of  airport  and  port  jobs  are  held            by  Newark  residents         60%  of  Newark  residents  work              outside  of  the  city         44%  of  Newarkers  do  not  own  a  car         Shift-­‐based  work         Case  study:    Ironbound  

Page 10: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

Need  for  efficient    goods  movement  

Global  trends  Densification  of  freight  nodes    Added  value  Enhanced  efficiency  Control  of  supply  chain  Competition  for  port  performance  

This  is  a  metropolitan  phenomenon.            

Source:    Hesse  &  Rodrigue  (2004)  

Page 11: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

New  Jersey  Makes…  The  World  Takes.  

 Supply-­‐chain  state  with  dense,  multimodal  surface  transport.  

Supply  chain’s  ability  to  respond    to  unexpected  demand  

NJ    (2011)   National  (2011)  

Major  delays,  most  suppliers  struggle,  excessive  delivery  times  and/or  inventory  

5.6%   6.8%  

Minor  delays,  some  suppliers  struggle,  excessive  delivery  time  and/or  inventory  

39.4%   40%  

Most  suppliers  efficiently  satisfying  demand,  standard  delivery  times  nearly  met  

43.7%   44%  

Entire  supply  chain  flexible  to  demand  spikes,  standard  delivery  times  consistently  met  

11.3%   9.2%  

Source:        NJ  MEP  (2011)  

Page 12: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

Infrastructure  and  public  transit  policy  should  reflect  the  realities  and  needs  of  21st  century  urban  SMEs.  

       Just-­‐in-­‐time  (JIT)  production             Value-­‐driven  distribution         Competition  for  land  ,  space,              road  surface         Oil-­‐dependent  freight  trucking              and  shipping         Proximity  to  skilled  workers         Greener  processes  and  trucking  

Page 13: !!URBAN MANUFACTURING,I NFRASTRUCTURE … · !!URBAN!MANUFACTURING,INFRASTRUCTURE,!!AND!ECONOMIC!DEVELOPMENT NishaMistry Manufacturing!Advisor,!City!of!Newark! Mayor’s!Office!Fellow,!Brookings!Institution

   Moving  Forward  

       Understand  the  scale  and  dynamics  of  manufacturing  base         Identify  local  and  regional  barriers  to  urban  industrial  performance         Engagement  with  manufacturing  sector  to  determine  challenges         Revisit  policy  agenda  and  explore  potential  for  alignment           Local:    Master  planning,  land  use  ,  traffic  management         State/Regional:      PA-­‐NYNJ;  NJ  State  Rail  Plan  (Fall  2012)           Federal:    National  strategy  for  goods  movement;  federal  grants  

There  is  no  such  thing  as  a  foolproof  business  or  idea…    Just  remember,  losses  can  be  the  greatest  teaching  aides.  Thomas  Edison