Since 2000 New York City has lost more than 100,000 manufacturing jobs, largely due to national outsourcing trends and the economic downturn. Once bustling industrial neighborhoods have now been out-paced and out-priced by residential complexes, rezoning and the general rise in the cost of everything. But times are changing. In 2011 the federal government initiated a $500 million investment scheme to support advanced manufacturing initiatives, spurring many local governments to take similar action. Low natural gas and energy prices in the US have also helped to bolster interest in the sector. Additive manufacturing and three-dimensional printing (3DP) are at the forefront of technologically enabled “new” manufacturing techniques that aid in bringing jobs back to cities. This promising industry is largely comprised of startups and small and medium sized enterprises (SMEs), which substantially benefit from being in close proximity to partner industries such as advertising, architecture, design, fashion and theater —all of which call New York City home.
Manufacturing Renaissance Boosting NYC’s Economy
Mayor Bill de Blasio has confirmed a strong commitment to creating modern industrial initiatives in New York City. His administration is creating “…A city economic strategy that grows whole sectors of small businesses in emerging industries – from technology, to green jobs, to food exports, to advanced manufacturing – companies that can generate good jobs at decent wages in all five boroughs,” he said during his first State of the City address earlier this month.The average annual wage for a manufacturing employee is over $53,000, compared to $36,000 for a retail worker and $24,500 for those in food service, according the New York State Department of Labor. Brooklyn especially has seen significant growth in this sector, with emerging companies building outposts throughout the borough. Additional programs in the outer boroughs include a nearly $1 billion investment in transforming Brooklyn’s decaying Navy Yard into a gleaming industrial park with nearly 4 million square feet of space across 300 acres along the East River. Much of the space is being fitted to support small businesses. The project is the third component of the Brooklyn Tech Triangle, which also includes Dumbo and Downtown Brooklyn.New spaces are also emerging in upper Manhattan “Empowerment Zones,” where the government has created incentive programs, including tax credits and a number of financing and work opportunity plans. The Manhattanville Factory District, a redevelopment project in West Harlem, is one such project that is set to revitalize the neighborhood. The city hopes the district will attract technology, manufacturing and other symbiotic industries.
NYC Companies at the Forefront
A number of companies are already leading the way in the NYC tech renaissance. MakerBot, a 3DP business (acquired last year by industry leader Stratasys for a reported $604 million), has a massive warehouse and factory in Sunset Park, Brooklyn. The 50,000-square-foot outfit already employees hundreds and is part of the economic revitalization of a neighborhood that once-upon-a-time was riddled with crime and poverty. The company also has a storefront on Mulberry Street, where they sell latest designs in 3D printers whist engaging with the public on new advancements in the field with weekly events. The company has received immense media attention for its community-centric business approach and consumer product offerings. It hopes to institutionalize 3DP with its MakerBot Academy, a mission to put a MakerBot Desktop 3D printer in every school in the US.KeyMe, a member of the NYDesigns Long Island City incubator on the campus of LaGuardia Community College, is creating a solution for the supposed three million annual lockouts that occur in New York City. The company creates replacement keys via 3D printers that scan a picture loaded from a cellphone app. Duplicate keys can be made instantly from its several 7-11 kiosks across Manhattan. If you’re in Manhattan, the company can send a representative to meet you with your new set of keys in under an hour.
Get Involved
There are many ways startups and SMEs can take part in incubator, accelerator, co-working spaces, and government aided opportunities which have assisted in the success of companies like MakerBot and KeyMe. For example, the New York City Economic Development Corporation (NYCEDC) provides detailed information on how and if companies qualify for financing and incentive programs. Governor Andrew Cuomo’s START-UP NY program also offers significant tax incentives for startups that open businesses on or near academic campuses.NYCEDC’s World to NYC program is a unique opportunity for international companies looking to get in on the action. The three-day event matches 15 of the world’s most innovative companies with the contacts they will need for success in New York City. The goal of the program is to enhance global economic synergies and keep NYC competitive in the modern world.With continued sector growth, New York City may in fact be the next Silicon Valley for applied science and technology. The variety of industries, educated “creative” class, and diversified economy that define New York City make it a place like nowhere else in the world. It will continue to present unique offerings to businesses leaders as it transitions technologically and industrially throughout the rest of the 21st century.