ford site green manufacturing reuse study january 11, 2010 presented by: jay demma bonestroo, inc
TRANSCRIPT
FORD SITEGREEN
MANUFACTURING REUSE STUDY
January 11, 2010Presented by:
Jay DemmaBonestroo, Inc.
PRESENTATION TOPICS
Project History/Background Market Interviews Workforce Analysis Site Assessment Conclusions
SITUATION/CONTEXT
Closing of Ford plant in 2011; 800 employees
Declining manufacturing base Emerging green economy Green attributes of the Ford site
PREVIOUS STUDIES
2007: Redevelopment of the Ford Motor Company Site Five land use scenarios
2008: Green Cities Green Jobs Minneapolis Saint Paul HVAC Controls Sensors & Monitoring Systems Bio-fuel Systems
RFP SCOPE
1. “Feasibility study and cost assessment for redeveloping or reusing the existing Ford site, and perhaps the buildings, for a new manufacturer.”
2. “Identify the specific site characteristics and building needs, and employee qualities and skills, sought by manufacturers in each of the identified green industry sectors.”
3. “Identify the job skills needed in the identified green industry sectors.”
“Analyze the findings from the above work tasks to determine if the Ford site is appropriate for reuse by any of the identified industries.”
CONSULTANT TEAM
OVERVIEW OF RESEARCH PROCESS
MARKETINTERVIEWS
WORKFORCEANALYSIS
SITEASSESSMENT
OVERVIEW OF RESEARCH PROCESS
MARKETINTERVIEWS
WORKFORCEANALYSIS
SITEASSESSMENT
OPTIMALOUTCOME
NATIONAL TRENDS IN MANUFACTURING
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
1939 1949 1959 1969 1979 1989 1999 2009
Em
plo
ym
ent
(in t
housa
nds)
All Non-Farm JobsManufacturing Jobs
Source: US Bureau of Labor Statistics, CES database
US Non-Farm Employment, 1939-20091944
Mfg is 38%of jobs
1979 Mfg peaks at19.4 mil jobs
2009 Mfg is 9.3%
of jobs(12.4 mil jobs)
TRENDS IN GREEN INDUSTRIAL PARKS
Highly competitive environment “Green” has caught on among
economic developers Estimate of 100+ green parks
actively marketing nationwide All industrial properties, though, are
potential competition Many local governments
subsidize cost of clean-up, land, and sometimes rent
MARKET INTERVIEWS
In-depth interviews with green manufacturers (45-50 min)
Company decision makers Challenging environment
2,500 firms profiled 74 firms contacted (59 refusals) 13 completed interviews Several interviews with firms
outside of target industries (e.g. solar companies)
MARKET INTERVIEWS
Subsidies are essential Access to highways is important Green sites are desirable but not
essential Companies that sell direct to
consumers need to be perceived as green
Companies on a supply chain are not motivated by a need to be perceived as green
WORKFORCE ANALYSIS
Alignment of workforce skills at Ford plant with skills/staffing patterns in 5 green industries Electric vehicle manufacturing HVAC controls manufacturing Wind component manufacturing Sensors and monitoring equipment
mfgr. Bio-fuels component manufacturing
Evaluation of training center
WORKFORCE ANALYSIS
Industries with strongest overlap with Ford workforce are: Electric Vehicle Manufacturing HVAC Controls
Occupations with strong overlap & retraining potential Team assemblers Painters Inspectors Electronic & electromechanical equipment
assemblers Welders, cutters, solderers, and brazers
WORKFORCE ANALYSIS
Manufacturers are increasingly integrating production with design & engineering
Ford facility and workforce is almost exclusively production-based
Most interviewed maintain a more diverse staffing pattern (production, engineering, sales, etc.)
Location of site will draw interest from firms looking for young engineers, technical & professional workers as well as production workers
WORKFORCE ANALYSIS
Built in 1997 Classrooms, media center, auditorium,
robotics lab Could be valuable for retraining workers Most desirable among emerging industries
with new technologies and skills (e.g. solar and wind)
Location of training facility may seriously limit effective reuse of site Could be interim use in other redevelopment
scenarios
Training Center40,000 square feet
SITE AND BUILDING ASSESSMENT
Tour of site to identify issues and assets
Estimate costs associated with four development scenarios
Scenario 1: Demolish All Buildings
COSTSDemo: $8.2 mil
Construction : TBD
Manufacturing Sq Ft: TBD
Scenario 2: Reuse All Buildings
COSTSDemo: $0.7 mil
Const : $17.6 mil
Manufacturing Sq Ft: 2 Million SF
Scenario 3: Reuse Paint Building Only
COSTSDemo: $5.4 milConst: $5.8 mil
Manufacturing Sq Ft: 550,000
Scenario 4: Reuse Warehouse Building Only
COSTSDemo: $5.9 milConst: $2.7 mil
Manufacturing Sq Ft: 250,000
CONCLUSIONS
Development Scenario
Investment RiskMarket Potential
Among Green Manufacturers
Potential to Tap Existing Ford Workforce
Alignment with 2007
Planning VisionDemolish All Buildings and Rebuild
Most Flexibility for Market Absorption
Most FlexibleTiming of Job
CreationStrong
Reuse All BuildingsRequires Heavy
SubsidiesNominal
Strong For Electric Vehicles
Doesn't Allow For New Uses
Reuse Paint Building
Property Would Have Competitive
Lease RatesModerate
Opportunity for Immediate
Replacement
Allows for Mix of Uses
Reuse "Newer" Warehouse Building
Property Would Have Competitive
Lease RatesModerate
Opportunity for Immediate
Replacement
Loss of Valuable Land Along River
Road
Subjective Decision Chart
CONCLUSIONS
Expect Heavy Subsidies Focus the Marketing Effort
HVAC Controls Sensors & Monitoring Systems Solar Panels
Strategically Reuse Portions of the Site
Track the Economy and Time Any Investment
Consider Creating a Park or District with Strict Green Standards
QUESTIONS