Jobs in the City & the Future of Industrial Districts
Dr. Nancey Green Leigh, FAICPProfessor of City and Regional Planning
Fall 2010 Innovation in Economic Development Forum
September 1, 2010
Presented by the program in Science, Technology and Innovation Policy (STIP), a joint initiative of Georgia Tech’s Enterprise Innovation Institute and the School of Public Policy.
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“A concerted effort must be made to preserve industrial land within the City.”
-Atlanta Strategic Action Plan, 2007-2032
Industry in Atlanta’s Future Is a Challenge…
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…And a Priority
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“It’s important to have smart, balanced development in the city of Atlanta…Industrial land is job-producing land.” -Mayor Kasim Reed
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• Current status of Atlanta’s industrial land & recommendations for expanding work of City & Regional Planning Studio:
– Leigh & Kale Driemeier, Nate Hoelzel, Rahul Jain, Jodi Mansbach, Edward Morrow, Shelley Stevens, Ermis Zayas
• Neglected industrial category – Manufacturing
• Emerging potential user of industrial land –Waste to Profit Activities
Focus of Talk
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Importance of U.S. Manufacturing Sector
• Vital role in national economy & critical for long-term economic growth
– 1 in 6 private-sector jobs depends on U.S. mfg
– Supports more economic activity per dollar production than other sectors (greatest multiplier effect)
– Pays more per hour than other sectors
– Largest contributor to nation’s rising productivity
• U.S. has world’s largest mfg sector– ~20% market share (last 30 years)
• Manufactured goods are over half of U.S. exports
– U.S. is 3rd largest mfg exporter
• Mfg jobs are disappearing– From 17 to -12 mln (past 8 yrs);
lowest level since 1941• 21st C Mfg is extremely competitive
– Technology & innovation– High-value & skilled jobs– Increasingly more sustainable
• New drivers of competitiveness– Availability of talent & innovation– Cost of materials & energy
• Public policy critical to manufacturing competitiveness
– Supportive environment– Investments in R&D– Trained & available workforce
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Public perception of manufacturing
• Critically important– Manufacturing is the most
important sector for a strong national economy & should be a priority
– U.S manufacturing is globally competitive
• Technology• Skilled workers• Energy availability
• We need…– Strategic approach for
more supportive environment
– Increase R&D & investments in innovation
• But, it is not for “me” or my kids…– Need better pay & brighter
future– Cleaner facilities & more
sustainable processes
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Challenges
National• Improve the image of 21st
century manufacturing• Develop supportive public
policy• Address challenges of
retiring skilled-labor and emerging– Encourage students & young
workers to consider mfg careers
– Support education & training for manufacturing
Local• How can Atlanta & other
cities protect existing industrial areas?
• How can they sustainably grow their industrial job base?
• What are the land use and economic development policies that will support these goals?
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Loss of Industrial Land – Selected CitiesCity Amount of Industrial
Land Lost (acres)Relative % of
LossLos Angeles 4,922 (?-2002) 26%Minneapolis 869 (1990-2000) 18%New York 1,797 (2002-2007) 14%Atlanta 800 (2004-2009) 12%San Jose 1,400 (1990-2008) 9%
U.S. City Loss of Industrial Land
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Overview of Atlanta’s Industrial Trends & Pressures• Industrial land being lost
to general development pressures
• Balanced approach to development along the BeltLine
• Public operating departments’ growing need for new space
-12%Loss of industrial acres 2004-2009
-19.7%Loss of industrial
occupations, 1999-2008
Sources: GIS data from City of Atlanta, Bureau of Planning, Existing Land Use. Occupational data from American Community Survey, 2008, U.S. Census Bureau and Decennial Census, 2000, U.S. Census Bureau.
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Value of Industrial Sector to City of Atlanta
Employment by Industry SectorIndustry Employment Wages per Month
Construction 10,038 $5,392
Manufacturing 16,259 $6,396
Wholesale Trade 18,788 $6,741
Transportation & Warehousing
12,242 $3,587
Total Industrial Sector
57,327 $5,733(weighted average)
Total Employment All Sectors
393,367 $5,109
Percent Industrial 14.57%Sources: Cost of Community Services: American Farmland Trust, 2001; Tax: 2007 Fulton County Tax Digest.
$6 MCounty tax
revenue
$.027 vs. $1.15
Cost to provide service(per dollar of revenue collected) to industrial vs. residential land use
Source: Quarterly Workforce Indicators for the City of Atlanta, WIB, Q408. Retrieved from//lehd.did.census.gov/led/datatools/qwiapp.html
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Policy RecommendationsPlanned Manufacturing Employment Districts
Current Heavy Industrial Zoning Includes:
• Adult businesses as defined in section.
• Churches, synagogues, temples, mosques and similar worship facilities.
• Retail establishments, including those with sales or display lots or storage lots.
Zoning for PMEDs includes:• Grandfathered pre-existing
businesses.• Limited number of new
commercial, office and eating establishments.
• Buffered areas to minimize encroachment.
• Transitional mixed-industrial zoning surrounding district.
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Planned Manufacturing Employment Districts
• Atlanta Industrial Park– Council District: 9– NPU: G & H
• Southside Industrial Park– Council District: 12– NPU: Z
• Metropolitan Parkway Industrial Corridor– Council District: 12– NPU: X & Y
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Metropolitan Parkway Corridor
• Salvage Yards
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• Available Properties
Metropolitan Parkway Corridor
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• Code Enforcement
Metropolitan Parkway Corridor
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• Public Priority– New Residential
Development – LCI Studies– BeltLine
Metropolitan Parkway Corridor
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Policy RecommendationsAtlanta Industrial CouncilAIC will provide:• Site specific counselors for each PMED• Purchase, trade, or exchange unused, tax delinquent,
and vacant land to create an industrial land bank• Provide assistance to current and future manufacturers• Partner with local institutions to provide a better
trained workforce
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Atlanta Industrial Council
Atlanta Development Authority Atlanta Industrial Council
Members
Neighborhood Planning Units. In particular V, G and Z. Labor Groups
Industrial Developers, Businesses,
Manufacturers, Universities
Atlanta Housing Authorities,
Members PMEDs
Partners
Corporate Citizens, Utilities
Ex: Georgia Power
Chamber of Commerce,
Manufacturing Extension
Partnership
State ED Dept., Atlanta Regional
Commission
Bureau of Planning
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Next Steps
• Launch educational campaign – change the perception• Apply evaluation framework• Amend Atlanta Strategic Action Plan
• Amend zoning regulations to include range of industrial use• Require Community Benefits for any potential land uses changes
• Adopt urban design standards specific to industrial• Tie existing economic development tools to industrial needs• Target growth industries, expand clusters• Monitor key data indicators
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TED• Fixated on creating wealth,
jobs, and taxes• Exploits local resources• Deemphasizes local capacity• Results in inequality and
environmental problems
SLED• Enhances the value of
people and places• Maximizes local resources• Embraces local relationships
and capacity• Promotes equity and
sustainability
Promote Sustainable Local Economic Development (SLED) over Traditional Economic Development (TED)?
Industrial Policy & Local Economic Development
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National Interest in Sustainable Manufacturing
• National support for greening manufacturing and connecting communities to potential jobs– U.S. Department of Commerce “Sustainable Manufacturing
Initiative”– National legislation: H.R. 4692: National Manufacturing
Strategy Act of 2010 (passed House & read in Senate subcte) National strategy & Presidential task force called for. U.S. govt should promote manufacturing sector policies (1) create
sustainable economic growth & increased employment; (2) recruit, improve, educate workforce; (3) increase productivity, exports, & global competitiveness; and (4) maintain/improve national and homeland security.
– U.S. BLS Measuring Green Jobs (75 Fed. Reg. 50 (16 March 2010), pp. 12571-12573)
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Waste-to-Profit Networks: Overview
• Promising strategy for sustainable local economic development
• Connects production & consumption for more sustainable industrial systems & urban regions
• Concept based on the idea that wastes from one can be the raw materials for another (Frosch & Gallopoulos, 1989)
• Outcome is valuing waste as a resource for production• Targets manufacturers but benefits are to many
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Businesses• Reduce disposal costs &
risks• Minimize use of non-
renewable resources• Reduce costs & risks of
using substitute materials• Create new economic
opportunities & “greening” business
Communities• Reduce local costs & risks of
waste management• Enhance economic
competitiveness• Promote equity• Reduce impact to human
health & the environment
The economic development potential to businesses & communities when waste is valued as a resource…
Waste-to-Profit Networks: Benefits
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Waste-to-Profit Networks: Planning & Sustainable Development
Source: Saha, D. & Paterson, R. G. (2008). Local Government Efforts to Promote the “Three Es” of Sustainable Development: Survey in Medium to Large Cities in the United States. Journal of Planning Education and Research, 28(1), 21-37.
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Environment Economy
Equity Sustainable Development
EconomyEnvironment
Equity
Three E’s of Sustainable Development in Balance
Three E’s in Practice
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Waste-to-Profit Networks: Relationship to Sustainable Development & SLED
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Sustainable Development’s
“Three E’s”
Guiding Principles for SLED*
Objectives for WTP Networks
Ideal State for Sustainable Cities
& Regions**
Economy
Equity
Environment
Set minimum living standard for all that
increases
Decrease inequality
Promote sustainable resource use &
production
Support industrial & consumer activities that value waste as economic
resources
Promote neighborhood revitalization, EJ, &
resource conservation for future generations
Reduce waste disposal, climate-changing
emissions, & reliance on non-renewable resources
Profitable
Fair
Green
* Blakely, E. J. & Leigh, N.G. (2010). Planning Local Economic Development. (4th ed. ). Thousand Oaks, CA: SAGE Publications, Inc.** Campbell, S. (1996). Green Cities, Growing Cities, Just Cities?: Urban Planning and the Contradictions of Sustainable Development. Journal of the American Planning Association, 62(3), 296 – 312.
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1. Large, diverse, & increasing concentration of materials 2. Demand & options3. Agglomeration economy benefits
• Prerequisite industrial location factors• Options to build upon existing & potential relationships• Flexibility in forming linkages along supply chains & in
smaller areas such as industrial districts4. Proximity influences costs & coordination5. Capacity & support6. Promising strategy for ATL that is dependent upon
industrial land
Waste-to-Profit Networks: Urban Regions Are the Right Scale
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• It’s about Land and Infrastructure• It’s about good jobs and a workforce able to fill
those jobs• It’s about turning waste into profit• It’s about seeing future Industrial Atlanta as more
than a Logistics Center• We should do more than move things, we should
make them – it’s Economic Base(ic) Sense!
Making the Case for an Industrial Policy
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Thank You - Questions?
Contact:Nancey Green Leigh, PhD, FAICP PhD Director and ProfessorSchool of City and Regional Planning Georgia Institute of Technology Atlanta, GA 30332-0155
Email: [email protected]: 404 894-2350 Fax: 404 894-1628
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