ManufacturingManufacturingOur last best chance for Philadelphia’s neighborhoodsOur last best chance for Philadelphia’s neighborhoods

Manufacturing & Neighborhoods

The Origin of the UIIYears

2000 - 2003

10 sq. miles of the lower

northeast...

Created 627 new jobs

Stimulated $32.2 million

in new investment.

Original UII TerritoryOriginal UII Territory♦10 square miles of the lower north east.

♦ A concentration of over 400 manufacturing firms.

♦13,000 jobs13,000 jobs

♦ Producing over $3,000,000,000 in gross economic product annually

Survey Results of Philadelphia ManufacturersSurvey Results of Philadelphia Manufacturers

Firm s are ext rem ely isola ted .

Bu sinesses feel ignored by th e City.

Most com p an ies “m is t ru s t” governm en t agen cies , m akin g it d ifficu lt for them to engage th is sector .

Com p an y p rob lem s are com p lex -th ey are n ot am enable to a s im p le, s ingle fin an cial or con su lt in g so lu t ion .

Th e d eclin e in th e qu ality of the n eigh borh ood s is lead in g a n u m ber of firm s to consid er leaving the city with in the n ext five years .

Survey Continued...

Market in g skills a re weak or m iss in g.

Ability and willin gn ess to ch an ge is low.

Many com p an ies are in su rvival m od e; th ey h ave lit t le t im e an d few resou rces for com m u n ity p ar t icip a t ion .

Firm s are aware of p rob lem s, bu t they freq u en t ly can 't id en t ify th e cau se n or wh at act ion s to t ake.

Urban m an u factu rers are p erceived p r im a facie as in efficien t an d n on com p et it ive.

Managem en t an d en t rep ren eu ria l skills vary great ly (an d are m iss in g in m an y com p an ies).

UII Programs & ServicesUII Programs & Services

The UII TodayFunctional Structure

The State of Manufacturing in The State of Manufacturing in the City of Philadelphiathe City of Philadelphia

A project of the Urban Industry Initiative

Manuf act ur i nManuf act ur i ng Jobsg Jobs

Wholesale, Retail, Finance JobsWholesale, Retail, Finance JobsProducesProduces

Squeezes more out of the economy. Every $1.00 in manufactured goods generates an additional $1.43 worth of additional economic activity - More than any other economic sector.

and the Economy

Manufacturing’s Contributionto the City’s Economy

In employment terms, for every 15 manufacturing jobs, an additional 8 jobs in non-manufacturing sectors like retail, wholesale and finance are created.

How Much Do People Really Make?How Much Do People Really Make?

City Wage TaxCity Wage TaxContribution by Sector (Source: City Of Phila. Dept. of Revenue Calendar 2007

Manufacturing’s Contributionto the City’s Economy

Philadelphia Economic Sectors

Man

ufa

ctu

rin

g

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

1

City Wage Tax Collected

He

alth

& S

oc

ial

Serv

ice

s

Go

vern

me

nt

Pro

fess

iona

l Se

rvic

es

Education

&Manufacturing

$274,433,419

$215,088,865

$160,986,395

$118,208,139

$118,068,294

What Can 10 CompaniesContribute?

Manufacturing’s Contributionto the City’s Economy

2004

0

50,000

100,000

150,000

200,000

250,000

JOBS

197019801990

2000

Manufacturing Jobs Manufacturing Jobs In Philadelphia, 1970 - 1990In Philadelphia, 1970 - 1990

Source: US Bureau of Labor Statistics, 2000

60,9002005

What the loss of Manufacturing Jobs

means...

in lost tax dollars.

The Terrible Cost of Companies Leaving Philadelphia

Where Are They?

LaborLaborRecruitment &

TrainingBenefits/Worker’s

Compensation

Economic ProductivityEconomic Productivity

Physical LocationPhysical LocationCrime/ Security

Appearance, Cleanliness

Physical LocationPhysical LocationCrime/ Security

Appearance, Cleanliness

Physical LocationPhysical LocationCrime/ Security

Appearance, Cleanliness

Physical LocationPhysical LocationCrime/ Security

Appearance, Cleanliness

GovernmentGovernment Taxes

International Trade

Over regulation

Economic ProductivityEconomic Productivity

Poor Poor Retention Retention StrategiesStrategies

U.S. manufacturers are challenged as never before. They are on the front lines of the most intense global competition in history where it is virtually impossible to raise prices. Yet, costs do rise, often because of what government does or does not do.

Loss of Loss of Industrial LandIndustrial Land

NoNoVacancyVacancy