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Native New Yorkers

September 2011
September 2011

The current state of manufacturing building products within the five boroughs.

By Rita Catinella Orrell

According to a recent report from the New York City–based think tank Center for an Urban Future, while there are more designers in New York City than ever before, fewer products are now actually made there. A recent announcement from the mayor’s office, however, may give hope to building product manufacturers who want to set up shop in the city.

Brooklyn Navy Yard
Photo © 2011 Google Earth
An aerial view of the Brooklyn Navy Yard, where 70 percent of the current tenants make building products.

Take a tour of bathroom fixture manufacturer Watermark's Brooklyn factory in this video created by the company.

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In June, New York City mayor Michael Bloomberg announced a $10 million fund to “activate, modernize, and preserve” out-of-date industrial space across the five boroughs, as well as 20 other initiatives to strengthen the city’s industrial sector and help small industrial businesses stay and grow in New York City. Areas to receive capital include the Brooklyn Navy Yard, a city-sponsored 300-acre industrial district supporting more than 275 businesses and 5,800 jobs. Nearly 70 percent of the tenants at the Yard produce building products, including surfacing maker IceStone, prefab-unit manufacturer Capsys, and metalworking firm Ferra Designs. The Navy Yard is in the midst of its largest expansion since World War II, adding 1.5 million square feet of new industrial space and over 2,000 jobs over the next two years.

According to the Brooklyn Chamber of Commerce’s Brooklyn Labor Market Review, pockets of manufacturing of furniture and home products are already on the rise. “This represents one of the types of niche manufacturing that has found a home in Brooklyn,” says Chamber of Commerce president Carl Hum, “and is probably attributable to the fact that many graduates of design meccas such as Pratt Institute stay in Brooklyn.”

Maintaining a factory in New York City is challenging, whether it’s the high real estate costs or lack of building stock appropriate for modern industrial uses. Labor shortages are part of a vicious cycle: the lack of industrial jobs means schools no longer offer machinery classes, which means local skilled labor is harder to find. “We need to make sure that we create jobs for people without advanced degrees,” says Brooklyn borough president Marty Markowitz. “The kind of stable, union-backed manufacturing jobs that were once the hallmark of this country.”

On the other hand, many companies feel the advantages of being near a wealthy customer base, wielding the New York brand, and maintaining deep historical ties outweigh the negatives. Add to that increasing offshoring costs, a large population of creative talent, and proximity to one of the nation’s busiest ports (based on import volume), and it’s easy to see why some refuse to move elsewhere.

The Bronx has been the home of sealing-systems manufacturer Zero International for almost nine decades. “New York’s high taxes and labor costs might favor other locations,” says the company’s president, Elias Wexler. “But we have an efficient organization and plant, and we continue to work in partnership with city development officials to further enhance our operations.” For Watermark, a manufacturer of high-end plumbing fixtures in Brooklyn, its location is central to its identity. “Ten years ago being from Brooklyn was a negative stereotype,” says Watermark president Avi Abel. ”Now there is a love affair with not just New York, but Brooklyn in particular.” If the mayor’s plans succeed, more companies may soon profit from that rekindled passion for products manufactured in the city.

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