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Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 1 Providence Neighborhood Market Analysis ICIC City Advisory Practice Phase One.

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Presentation on theme: "Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 1 Providence Neighborhood Market Analysis ICIC City Advisory Practice Phase One."— Presentation transcript:

1 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 1 Providence Neighborhood Market Analysis ICIC City Advisory Practice Phase One Findings

2 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 2 Project Sponsors: Rhode Island Economic Policy Council Urban Ventures Rhode Island Housing & Mortgage Finance Corporation

3 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 3 Table of Contents I. Project Overview and Timeline III. Metal Manufacturing II. Demographic and Economic Profile IV. Education & Knowledge Creation

4 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 4 Providence Neighborhood Market Analysis Project Objectives Provide useful analytics for identifying market- based opportunities in select Providence neighborhoods Identify potential links between neighborhood markets and regional/city cluster strategies Collaboratively determine strategic direction

5 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 5 Providence Neighborhood Market Analysis Scope of Work Cluster Profiles Neighborhood Asset Mapping Strategic expert interviews Value Chain Analysis (2 clusters) Site-specific real estate analysis Business Surveys Strategy development Implementation Scope of work includesScope of work does not includes Inform strategic direction for economic revitalization in and near low-income neighborhoods that benefit local residents and businesses

6 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 6 Project Timeline Oct.Nov.Dec..Jan. = Working Group Meeting November Introduction to ICIC & project Study area definition Demographic and business base analysis Discussion of ongoing efforts December City cluster profile Detailed cluster analysis for top 10 clusters Initial neighborhood business segmentation February Value chain analysis –Education & Knowledge Creation –Metal Manufacturing Discussion of strategy going forward Feb.

7 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 7 Table of Contents I. Project Overview and Timeline III. Metal Manufacturing II. Demographic and Economic Profile IV. Education & Knowledge Creation

8 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 8 The Providence Neighborhood Market Analysis Downcity The Jewelry District West End Upper South Providence Lower South Providence Elmwood Resevoir South Elmwood Washington Park Study Area will include the following neighborhoods: Study Area

9 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 9 The Study Area Lags Behind the City and the Regional Economy in a Number of Dimensions 1 Poverty (1) The Providence MSA includes Bristol, Kent, Providence, and Washington counties in Rhode Island. Notes: MHI estimated based on weighted average of census tracts MHI. Poverty estimated as percentage of households with less than $15K income. Educational attainment accounts for people above the age of 25. Source: Spatial Insights, 2001 Population by Race Study Area Prov. MSA $39K $50K Median Household Income Educational Attainment $41KCity $62K Boston MSA Study Area Prov. MSA City Boston MSA 21% 19% 14% 12%

10 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 10 Providence Business Base Notes:(1) The Providence MSA includes Bristol, Kent, Providence, and Washington counties in Rhode Island. Sources: 2000 State Unemployment Compensation data (ES202); 2000 Dun & Bradstreet; ICIC analysis Profile Providence Metro Area 1 City of Providence Study Area Establishments Share of MSA (%) Share of City(%) Employment 2 (K) Share of MSA (%) Share of City (%) Est. revenues ($B) Share of MSA (%) Share of City (%) 28, ,618 19% % 34 30% 2,627 9% 46% 63 15% 52% 26 23% 75% Central Business District 1,613 5% 28% 36 10% 36% 23 20% 68% Employment Share The study area in Providence represents 46% of the Citys and 13% of the regions employment City of Providence (27%) Study Area (46% of City) MSA Remainder (75%)

11 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org) ,000 EMP (*1) The Providence Region includes four Rhode Island Counties: Bristol, Kent, Providence and Washington (*2) CAGR -- Compounded Annual Growth Rate Note(s): The Local Community and Civic Organizations Cluster is not included in this picture. Publishing and Printing is included in this picture due to its relation to Creative hub not because the employment is in the top 15 Source: Cluster Mapping Project, Institute for Competitiveness and Strategy; 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); ICIC analysis Growth: MSA Employment CAGR* 2 (95-00) Share: City Jobs / MSA Jobs (2000) Traded Clusters The Region* 1 is Growing in Almost Every Cluster Education & Knowledge Creation Local Health Services Local Retail Hospitality & Tourism Local Hospitality Local Food & Beverage Processing Jewelry & Precious Metals Financial Services Business Services Info Technology Local Ent & Media Publishing & Printing Distribution Services Local Commercial Services Local Construction & Development Local Housing & Household Goods Analytical Instruments Communications Equipment Metal Mfg Medical Devices Local Personal Transport

12 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 12 While Employment in Providence Has Increased in Retail and Tourism, It Has Decreased or Remained Flat in Most Traded* 1 and High-Concentration Clusters 10,000 EMP (* 1 ) Traded Clusters are clusters that produce goods and services locally and distribute them across the nation or globe. Conversely local clusters produce goods and services which are needed by the local population. (* 2 ) CAGR -- Compounded Annual Growth Rate (* 3 ) Location Quotients are measures of hoe the cluster employment concentration compares with the employment concentration nationwide Note(s): The Local Community and Civic Organizations Cluster is not included in this picture. Publishing and Printing is included in this picture due to its relation to Creative hub not because the employment is in the top 15 Source: Cluster Mapping Project, Institute for Competitiveness and Strategy; 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); ICIC analysis City Employment CAGR* 2 (95-00) City Location Quotient* 3 Traded Clusters Jewelry & Precious Metals Local Health Services Medical Devices Education & Knowledge Creation Local Commercial Services Local Retail Hospitality & Tourism Local Hospitality Local Food & Beverage Processing Distribution Services Local Ent & Media Local Construction & Devt Local Housing & Household Goods Financial Services Business Services Metal Mfg Info Technology Publishing & Printing Analytical Instruments Communications Equipment Local Personal Transport

13 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 13 (*) CAGR -- Compounded Annual Growth Rate Note(s): The Local Community and Civic Organizations Cluster is not included in this picture. Publishing and Printing is included in this picture due to its relation to Creative hub not because the employment is in the top 15 Source: Cluster Mapping Project, Institute for Competitiveness and Strategy; 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); ICIC analysis In Many Traded Clusters, Where Wages Are On Average Higher, Providence is Losing Jobs While the Region is Gaining 25% Education & Knowledge Creation Local Health Services Local Retail Hospitality & Tourism Local Hospitality Local Food & Beverage Processing Jewelry & Precious Metals Financial Services Business Services Info Technology Local Ent & Media Publishing & Printing Distribution Services Local Commercial Services Local Construction & Development Local Housing & Household Goods MSA Emp CAGR* (95-00) City Emp CAGR* (95-00) Local Utilities Analytical Instruments Communications Equipment Metal Mfg Medical Devices Local Personal Transport 10,000 EMP Traded Clusters

14 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 14 Cluster City Employment CAGR City Employment (K) City Share of MSA Cluster Employment (%) MSA Employment CAGR Average City Business Size (Employees) Source: Cluster Mapping Project, Competitiveness Institute; 1995, 2000 Rhode Island Labor Market Information; 1995, 2000 National Covered Employment and Wages Program (ES202); ICIC Analysis 21. There are Opportunities to Strengthen Clusters Where Providence is Losing Jobs While the Region is Gaining

15 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 15 Industry Competitiveness = Industry MSA Employment CAGR/ MSA Employment CAGR IC measures whether the industrys area employment is growing faster or slower than the areas employment in general. Bringing Cluster Strategy to the Neighborhood Level Builds on the Business Base in the Neighborhoods Assessing the competitiveness of these companies and their links to regional clusters helps shape strategy. The Neighborhood Business Inventory Matrix, a comprehensive database of all enterprises operating in the neighborhood, is a valuable tool for this analysis. Operational Efficiency = Company Sales Per Employee/ National Industry Sales Per Employee A ratio greater than one indicates that the company is more efficient than its industry average Neighborhood Business Inventory Matrix Ideal quadrant for a Company: High Industry Competitiveness and High Operational Efficiency Operational Efficiency Industry Competitiveness 1 1 Company X Size of bubble reflects an equally weighted composite of sales, employment and wages of the firm relative to other firms in the neighborhood.

16 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 16 Major Anchors in the South Elmwood Neighborhood Source: American Business Info Data, Federal ES 202 Data (1995, 2000), Bureau of Labor Statistics Data (1995, 2000), ICIC Analysis Size of bubble reflects an equally weighted composite of sales, employment and wages of the firm relative to other firms in the neighborhood. Note: In order to accurately represent the private sector business base, many public sector and non-profit businesses were not included in this analysis

17 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 17 Major Anchors in the West End Neighborhood Source: American Business Info Data, Federal ES 202 Data (1995, 2000), Bureau of Labor Statistics Data (1995, 2000), ICIC Analysis Size of bubble reflects an equally weighted composite of sales, employment and wages of the firm relative to other firms in the neighborhood. Note: In order to accurately represent the private sector business base, many public sector and non-profit businesses were not included in this analysis Metal Manufacturing

18 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 18 The Working Group Chose Two Clusters with the Potential to Broaden the Citys Economic Development Which clusters derive competitive advantages or disadvantages from their location? Which clusters offer job opportunities and foster career paths with desirable wages? Which clusters provide broad economic impact? Which clusters have future growth potential Which clusters are the major economic engines of the region and of the inner city? Which hold potential for entrepreneurship and business formation? Economic Performance Inner City Opportunity Metal Manufacturing: Retain a small but critical job base Strong presence in study area Relatively low barrier to entry Related to the jewelry and precious metals cluster that has dominated Providence historically Competitive wages and accessible jobs Education: Build on one of the citys greatest strengths Dominant cluster in terms of employment Strong links to commercial services cluster Not a strong presence in the study area, but significant impact and potential impact through business and workforce development Related to creative economy that is a key component of Providence Which clusters offer the most opportunity for inner-city business development and growth? ICIC Cluster Selection Criteria

19 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 19 Goals of Cluster Value Chain Analysis Understand the clusters core industries, customers and competitive challenges Quantify cluster presence in study area, city, and region Understand the relationships and trends within the cluster both locally and nationally Identify links and gaps to regional economy AND Tap into the thinking, aspirations and concerns of Providence business owners This information will inform neighborhood and regional strategy development

20 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 20 Table of Contents I. Project Overview and Timeline III. Metal Manufacturing II. Demographic and Economic Profile IV. Education & Knowledge Creation

21 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 21 Source: 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202) 63 study area companies employ 7% of the regions 12,800 metal manufacturing workers Employment CAGR ( ) Establishments 2000 Employment Providence MSA -3.8%2.2% 12, Providence Study Area Average Business Size (Emp.) 1798 City of Providence -7.6% Metal Manufacturing Overview 89% of Providence Metal Manufacturers Have Less Than 50 Employees

22 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 22 West End Company # of Emp Pilgrim Screw LM Hovey Kraemer Findings Surface Coatings Richards Polishing Austin hard Spencer Plating International Etching Cut-Rite Steel BDY Hun&Die 1-4 RayDaigle 1-4 Peacock Tool 1-4 Elmwood Company# of Emp Mario Glueing 1-4 Lower South Providence Company # of Emp Improved L NAB Metal 5-9 RE Sturdy 5-9 Scotts Plating 1-4 Atlantic Co Reservoir Company # of Emp Quality S&S AFG Enterprises J & M Spra 1-4 Metal Coating & Engraving Non-Automotive Metal Stamping Metal & Die Castings Screw Machine Products Plating & Polishing Wire & Related Products Rolling & Heat Treating Display Cases, Safes & Vaults Metal Working Equipment Furnaces, Mills & Refineries Washington Park Company # of Emp Carroll Coatings 1-4 Refining One Soluble Metals Metal Solutions RI Heat Treating 5-9 Moody Machine Wellington Mftg 5-9 Narragansett Screw Technodic Monarch M.Finishing National Plating Rib Co. Ind Fewrguson Wire Hanscom Frank Morrow 1-4 Anjil International 1-4 AZ Tool 1-4 Oar Moldworks Applitek Tech Metal Manufacturing Companies Are Spread Throughout the Study Area and City Downtown Company # of Emp Valley Brass 1-5 Upper South Providence Company #of Emp PN Patrick 5-9 Aluminum & Copper 5-9 RN Durrell 1-4 John Olson 1-4 Providence Elctroplating 1-4 Regal Plating Ideal Plating Franks Plating 5-9 E&S Tool 1-4 Star Enameling 1-4 McGough&Kilguss 5-9 Poly-tech Diamond Industry Source: 2001 ABI; ICIC Interviews Providence Study Area

23 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 23 Cluster Core* Inputs/Suppliers* Customers Critical Support Cluster Transportation & Logistics Jewelry, Silverware and Plateware Electronics Telecommunications Aerospace and Defense Specialized Institutions Technical Assistance/ Incubation Training Trade Orgs / Industry Networks Rhode Island Export Assistance Center RIMA Mnfg Jewelers and Suppliers of America Natl Tooling & Machining Ass. Manufacturers Partnership CCRI Davies Vo-Tech Providence Companies Represent a Range of Industries in the Cluster (*) The company lists for each industry are not exhaustive. Metal Coating & Engraving Plating & Polishing Rolling and Heat Treating Plastics Medical Instruments Non-Automotive Metal Stamping Metal & Die Castings Wire and Related Products Display Cases, Safes & Vaults Supporting Industries* Frank Morrow Co The Elliot Group Hansome Inc Mahr Federal Victory Finishing Monarch Metal AFG Enterprise JMT Epoxy Frys Metals Mutual Metals Kraemer Findings Ira Green Inc. Fielding Mnfg Stevells Casting Screw Machine Products Machine Tool,Dies, and Fixtures Furnaces, Mills and Refineries Gilmore-Kramer Armbrust Intrnl Pilgrim Screw Wellington Mnfg Meckandil Tool Precision Industries RIMES RIEDC Slater Center Agility Alliance

24 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 24 Metal and Jewelry Manufacturing are Related But Distinct in Providence Providences historical dominance of the jewelry industry has influenced the type of metal manufacturing now present there –Many precision manufacturers –Plating and polishing is the most prominent industry Most jewelry manufacturers have diversified into fields such as electronics and telecommunications Some metal manufacturing companies that do not primarily focus on jewelry still maintain jewelry manufacturing as some component of their business

25 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 25 (* 1 ) CAGR -- Compounded Annual Growth Rate (* 2 ) Location Quotient -- Location Quotients are measures of hoe the cluster employment concentration compares with the employment concentration nationwide Source: Cluster Mapping Project, Institute for Competitiveness and Strategy; 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); 2000 National Covered Employment & Wages Program (ES202); ICIC analysis Note: 1% of Providence employment in Metal Manufacturing is not captured in this graph0 City Location Quotient* 2 (2000) City CAGR* 1 (95-00) Screw Machine Products Furnaces, Mills & Refineries Metal working Machinery & Equipment Wire & Related Products Plating & Polishing Metal Coating & Engraving Rolling & Heat Treating # Size of employment Number of Establishments 200 EMP 27 5 Non-Automotive Metal Stamping Metal & Die Casting 23 Display Cases, Safes & Vaults Top 10 Metal Manufacturing Employers in Jewelry Manufacturing Rapid Job Loss Threatens Providences Historic Position in Key Industries MSA Emp CAGR >3%

26 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org) In These Key Industries, Providence is Losing Job Share Relative to the Region and the Nation Source: 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); 1995 and 2000 National Covered Employment & Wages Program (ES202); ICIC analysis Employment CAGR Furnaces, Mills & Refineries Wire & Related Products Screw Machine Products Rolling & Heat Treating Non-Automotive Metal Stamping Metal Coating & Engraving Metalworking Machinery Metal & Die Casting Plating & Polishing Display Cases, Safes & Vaults Jewelry Manufacturing CityMSANat'l K K

27 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 27 Providence is Losing Jobs in Industries Where the Wage Rate is Up to Four Times Greater than Minimum Wage Occupation Wage ($/H) Metallurgists/ical, Ceramic & Materials Engineers $23.05 Machine Tool Cutting Operators, Metal $16.22 Machine Forming Setters, Operators, Metal $11.97 Punching Machine Setters, Operators, Metal $11.49 Metal Molding, Coremaking & Casting Machine Setters $11.41 Occupation Wage ($/H) Patternmaker; Metal$16.96 Heating/Annealing/Tempering Machine Operators$11.27 Welders & Cutters$12.86 Painting, Coating & Decorating Workers, Hand $8.23 Grinding & Polishing Workers, Hand $9.61 Electrolytic Plating & Coating Machine Operators $11.56 *Rank of Highest Employment out of the eight Metal Manufacturing Cluster Industries Source: 1997, 2000 Bureau of Labor Statistics Industry Share of City Cluster Emp 00 (Rank*) Total City Industry Jobs 2000 Total Change Industry Jobs Plating and Polishing 35%(1) % Industry Industry Avg Wage CAGR Industry Share of City Cluster Emp 00 (Rank*) Total City Industry Jobs 2000 Total Change Industry Jobs Non-Automotive Stamping 11%(3) % Industry Industry Avg Wage CAGR 95-00

28 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 28 Metal Manufacturing Performance is Affected by Economic Context, Firm Competitiveness, and Business Environment ECONOMIC CONTEXT FIRM COMPETITIVENESS BUSINESS ENVIRONMENT Many Providence companies are diversifying, moving, or going under. Geographical diversification Industrial diversification September 11 exaggerated the effects of an already declining economy. The jewelry industry, once a major customer of Providence metal manufacturers, has shrunk by 65% The region is experiencing growth in metal stamping, metalworking machinery, and display cases. Many Providence manufacturers have not adopted sophisticated technologies and practices. Jewelry-related manufacturers are left with antiquated equipment. Many firms are expanding markets to compensate for market share lost to overseas competition Development of new customers Development of new product line Collaboration between firms has increased as a result of the economic downturn A significant number of manufacturers have left Providence Some have moved out of Rhode Island to escape high taxes and energy costs Some have moved out of Providence because of expansion challenges in the city While finding workers is less of a challenge than it was during the economic boom, skilled workers are still in short supply. Potential to tap immigrant workforce. The vocational system in Providence needs improvement.

29 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 29 Metal Manufacturers are Hard-Hit by Economic Downturn ECONOMIC CONTEXT Manufacturers After-Tax Profits Nationally, manufacturing profits have seriously declined since October % of Providence metal manufacturers are small or micro, making them particularly vulnerable to recession. Billions of dollars In 2001, we switched into short-term planning -- managing for survival. - Providence metal manufacturer 4Q 2001 not yet available Sources: US Census Bureau; 2002 Dun & Bradstreet; ICIC interviews Sources: National Association for Manufacturers

30 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 30 Uncertain Prospects in Major Markets Make Long Term Planning a Challenge Growth Prospects TELECOM ELECTRONICS AEROSPACE AND DEFENSE Telecommunications is where we see opportunity for future growth In Their Own Words... MEDICAL DEVICES AND EQUIPMENT Outlook for aerospace is good in the long term, but slow now. The shrinking defense industry is tough to break into as a new supplier AUTOMOTIVE EQUIPMENT Computers and semi-conductors look like theyll start to recover toward the end of the first and second quarter 2002 An aging population and increased lifetime expectancy bodes well for demand* The industry is still adjusting to the managed care system.* The amount of electronics in cars increases each year The auto industry has not gotten hit as hard because theyve avoided over-inventory. They learned that lesson. *Quotes from industry research Source: US Business Reporter; Plunkett Research; Hoovers Online, ICIC interviews ECONOMIC CONTEXT JEWELRY Companies that arent diversifying away from Jewelry are going out of business The domestic jewelry market has shrunk 50 to 60 percent in the past 10 to 15 years. Fair Uncertain Fair to Good Fair Low

31 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 31 Lean Manufacturing and Other Cutting-edge Practices Are Critical to Maintaining Competitiveness Improves labor utilization Decreases inventories Reduces manufacturing cycle times Increases capacity without additional capital expenditure Improves direct labor utilization by 10% or more Improves indirect labor utilization by up to 50% Reduces inventories by 50% or more Decreases manufacturing cycle times by 70% or more Increases current facility capacity by 50% or more Lean manufacturing is an approach that eliminates waste by reducing costs in the overall production process, in operations within that process, and in the utilization of production labor. Manufacturers implementing lean manufacturing have achieved impressive results: Most lean conversions pay for themselves within six months. Source: 2000 Manufacturing Engineering Some Providence manufacturers are vulnerable to the efficiency of their competitors. - Providence Manufacturing Expert FIRM COMPETITIVENESS There are 8 Providence Metal Manufacturers ISO-9000 Certified

32 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 32 City and State Taxes Were Cited by Most Companies as a Competitive Disadvantage BUSINESS ENVIRONMENT Source: Rhode Island Public Expenditure Council, ICIC interviews We are tremendously disadvantaged compared to companies in other states. Property taxes in the city are a real problem. -- Providence manufacturers Providence property taxes are sited as a burden by many manufacturers. Providence has the highest motor vehicle tax rate of any city in Rhode Island - impacting manufacturers with truck fleets. Differing tax rates and schedules can be difficult for companies with multiple sites. Taxes/Regs. Threatening City Competitiveness The combined State and local tax burden on electric utilities in Rhode Island is estimated to be approximately three times the State and local tax burden on such utilities in Massachusetts Rhode Islands corporate tax apportionment structure can discourage companies to locate in, stay in, and/or expand in Rhode Island. While wholesale and retail inventory taxes are being phased out over 10 years, they remain a burden. Rhode Islands limited health care market drives up the cost of health care. Unlike Massachusetts, Rhode Island has no centralized property tax administration Taxes/Regs. Threatening State Competitiveness

33 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 33 A Range of Services Are Available to Providence Manufacturers BUSINESS ENVIRONMENT Metal Manufacturers CCRI Customized company training Incumbent worker training Manufacturers Partnership Reduced-rate training for members Slater Center for Design & Innovation Supports cycle of design and enterprise Agility Alliance of New England Alliances & Partnerships Rhode Island Economic Development Corporation Retention Expansion Rhode Island Export Assistance Center Market Entry Strategies Export Logistics Rhode Island Manufacturers Extension Services (RIMES) Business strategies Technology adoption Lean manufacturing ISO/Quality systems Marketing & sales Rhode Island Manufacturers Association (RIMA) Training Incubation International Trade Assistance Government Relations TA Legislative Representation Source: ICIC interviews and research

34 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 34 Opportunities Exist to Strengthen the Metal Manufacturing Cluster Ensure that metal manufacturers are utilizing existing technical assistance Ensure that existing specialized institutions have an inner-city strategy Take advantage of the collaborative environment that has resulted from the economic downturn to increase firm competitiveness Better link training for job opportunities in the future Pursue a competitive tax and regulatory environment Focus on niche of precision operations and machine shops Advocate equipment updates and technology adoption Focus on high-end or specialized operations to avoid competing with labor costs US has the most developed Telecommunications market. Telecommunications and high tech are a Northeast specialty and many manufacturers are diversifying into this field Strengthening the City Relative to Region Strengthening the City Relative to the Nation Strengthening the City Relative to the World

35 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 35 Bridgeport, CTs Metal Manufacturing Cluster Was Not Performing Up to National Standards Potential to retain existing companies and jobs and build on this strong manufacturing base. KEY CHALLENGE: How can Bridgeports metal manufacturers become more competitive and share in national growth? Opportunity Threat Despite national growth in metal manufacturing, Bridgeports metal manufacturing cluster remained stagnant from Bridgeport will lose an essential part of its economic base if metal manufacturers do not adapt to the new market CASE STUDYFIRM COMPETITIVENESS

36 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 36 Bridgeport Formed the Metal Manufacturing Education & Training Association to Increase Firm Competitiveness Workforce Development Lean Manufacturing PurchasingMarketing Joint Business Opportunities Shared Marketing Costs Utilities Benefits & Insurance Cutting Supplies Waste Transportation Cluster-Specific Skills Training Job Placement Apprenticeships Expert-Led Workshops Shared Learning Technology/ Automation META CASE STUDYFIRM COMPETITIVENESS Manufacturers Partnership CCRI RIMES Providence has existing service providers in some of these areas

37 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 37 Bostons Back Streets Initiative is a Potential Model Back Streets are Bostons manufacturing, support, wholesale, construction, and processing businesses –They complement yet stand in contrast to Main Streets retail businesses, as Back Streets businesses are often unknown and undervalued Back Streets are integral to the life flow of the City and help form the Citys economic backbone –Over 4,000 businesses –Over 100,000 jobs Manufacturing Metal/chemical/high tech Printing and publishing Zoom Telephonics Spire CategoryDescriptionExamples Wholesale Food Processing and Importing Building and Contractors Logistics Commercial Services Distribution of goods Receiving and reselling Srvcs. for other businesses Data/security/maintenance Moving/transportation Warehousing/storage General contracting Subcontractors Fish/meat processing Production Winston Flowers Slade Gorton & Company Jet-A-Way New World Security Casey & Hayes Boston Freight Company Suffolk Construction City Lights & Electrical Aqua-Nor Marketing, Inc. Dutch Maid Bakery CASE STUDY

38 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 38 Four Objectives Drive the Back Streets Program Support the Growth of Bostons Back Streets Businesses Make Boston an Attractive Business Location Develop and Support the Back Streets Workforce Bring New Resources to Bostons Back Streets Land & Space: No net loss of industrial space Navigation & Access: A better place to do business Workforce: More high-pay, career building jobs Capital & Partnerships: Invest in Boston Mission: To retain and grow Bostons viable industrial and commercial businesses and their diverse job base through the strategic use of land, workforce and financial resources CASE STUDY

39 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 39 Key Discussion Points There is debate as to whether to pursue a metal manufacturing strategy, given the clusters size and declining performance. Many of the supported services manufacturers need are offered in Providence. It remains unclear whether metal manufacturers are aware of and taking advantage of these services. Increasing manufacturing productivity is on the States agenda. Is there a need for a comprehensive strategy around metal manufacturing that will benefit the neighborhoods?

40 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 40 Further Research Needed Conduct deeper analysis of the relationship between metal manufacturing and jewelry manufacturing Provide more detailed comparative tax research, focusing specifically on metal manufacturers, in order to develop policy recommendations Explore potential leadership for a cluster strategy

41 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 41 Table of Contents I. Project Overview and Timeline IV. Metal Manufacturing II. Demographic and Economic Profile V. Education & Knowledge Creation

42 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 42 Providence Education & Knowledge Creation (E&KC) Cluster Overview (* 1 ): 2000 Revenues were not available from Dunn & Bradstreet Data was used instead (* 2 ): $772 million of Providence E&KC Revenues are from Colleges and Universities, representing 60% of the MSAs revenues from Colleges and Universities (* 3 ): $4,2 billion (77%) of MSA E&KC Revenues come from establishments other than Colleges & Universities Source: 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); 2002 Dun & Bradstreet Employment CAGR ( ) 2000* 1 Revenues (M) 2000 Establishments 2000 Employment Providence MSA 2.6% ,827 City of Providence -1% ,265* 2 5,549* 3 Colleges and universities account for 78 percent of the clusters employment

43 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 43 SUPPORTING CLUSTERS WITH E&KC RELATED INDUSTRIES Commercial Services * Business Services Retail*Entertainment SPECIALIZED INSTITUTIONS Industry Organizations HELP RI Consortium for Educators Rhode Island Independent Higher Education Association Scientific Instruments IT Products & Services Commercial Art Printing & Publishing RI Board of Governors RI Office of Higher Education Libraries & Research Organizations Hospitality*Construction Industrial Design Architects Public Relations Lawyers Consultants Government Agencies Slater Centers Unions Advertising Agents & Brokers Copyright Services Theater Companies Movie production & Services Musicians Coffee shops Restaurants Bars Music Stores Book Stores Craft Stores Novelty Shops Arts & Culture Museums, Galleries, Zoos & Botanical Gardens Software and Computer Products, Computer and Info Services CLUSTER CORE *Denotes Local Clusters. Local Clusters produce goods and services which are needed by the local population. Conversely, Traded Clusters are goods and services produced locally and distributed across the nation or globe. E&KC Includes a Range of Industries and Supporting Clusters Colleges & Universities

44 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 44 Opportunities in E&KC Cluster Go Beyond the Educational Institutions 80% of employment in the E&KC cluster is in colleges and universities, whose growth trajectory is fundamentally different than other clusters or industries. Growth in E&KC will come primarily from commercialization of intellectual property, creating linkages with supporting industries in the cluster (IT, Arts and Culture), and creating linkages with supporting clusters (Commercial Services, Construction, Entertainment). Opportunities for neighborhood business growth lie primarily in the linkages with the supporting industries and clusters. Providence has created some specialized institutions that foster greater innovation and collaboration (i.e. Slater Institutes, HELP). An economic development agenda could be enhanced by these institutions and others like them. All parts of the E&KC cluster are represented in Providence, at varying degrees of scale. In some areas, such as IT, the city has lost jobs while the region has gained, suggesting an opportunity for growth in the city. Unlike other clusters, E&KC has a variety of positive spillover effects that go beyond creating jobs and wealth -- from enhancing the business environment and culture of the city and neighborhoods to creating human capital in the form of graduates. With a comprehensive strategy, these spillover effects can provide wide benefits for the residents of the neighborhoods and for the region as a whole.

45 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 45 Colleges and Universities Are a Strong and Stable Force in the Providence Economy (* 1 ) CAGR -- Compounded Annual Growth Rate (* 2 ) Location Quotient -- Location Quotients are measures of hoe the cluster employment concentration compares with the employment concentration nationwide Source: Cluster Mapping Project, Institute for Competitiveness and Strategy; 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); 2000 National Covered Employment & Wages Program (ES202); ICIC analysis Note: 1% of Providence employment in Education % Knowledge Creation is not captured in this graph City CAGR* 1 (95-00) City Location Quotient* 2 (2000) 82% Scientific Instruments IT Products & Services Schools & Educational Services Printing & Publishing Public Relations Services Libraries & Research Organizations Commercial Art and Graphic Design Colleges & Universities Museums, Galleries & Zoos 500 EMP # Size of employment Number of Establishments

46 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 46 The City has Lost Share in Several E&KC Industries Colleges & Universities Schools & Educational Services Commercial Art & Graphic Design Public Relations Services Museums, Galleries, and Zoos Libraries & Research Organizations Printing & Publishing IT Products & Services Scientific Instruments CityMSANat'l * Number of jobs lost or gained. Source: 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); 1995 and 2000 National Covered Employment & Wages Program (ES202); ICIC Analysis Employment CAGR * K K K K K K K K K The MSA and especially the City are performing below the national average in these industries

47 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 47 Source: 2001 ABI; ICIC Interviews IT, Libraries, and Research Organizations are the E&KC Industries with the Greatest Representation Downtown IT Products & Services Colleges & Universities Public Relations Services Commercial Art & Graphic Design Libraries & Research Organizations Printing & Publishing Museums, Galleries & Zoos Industry Log On America RIEDC Research Library RISD RISD Library Museum of Art Wind River Systems Black Fish Design Travmar Dest. Directory College Hill Smith Hill Federal Hill Upper S. Providence Associated Press Media Press Inc. Clinical Studies Ltd. TM Morris Productions Regan Communications Medica Press Inc. Johnson & Wales Library FH/GPC Fleischman Hilliard Co. Quench Design Group Johnson & Wales University Caster Communications Media City Providence RI State Archives RI Committee for Humanities URI Library Art With Mark Roger Williams University PC Troubleshooters URI - Downtown Campus City/State Computer Services Amerzine Providence Public Library Diocesan Resource Center

48 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 48 Source: 2001 ABI; ICIC Interviews Upper South Providence is Home to Many Commercial Art and Graphic Design Firms 150 Chestnut Street Alexis Design Design Plus Elizabeth Trostli Zu Design Hotwire, Inc Kendrick Design Mad Creative John Clark Studio Matt Castiglielo Des. Malcolm Grear Designers Uniform Digital Mapping National Institute - Sports Science Heritage Harbor Museum Alexis Design Malcolm Greer Dsnrs NECR Cornerstone Comm. Thndr&Ltng. Research Gregory & Cooney Printing Equip. Guide Pvd Childrens Museum Peters Health Sciences Library Ocean State Bindery Online Enterprises Apeiron Foundation CCRI Providence City Arts for Youth S. Providence Library Maxie Graphics ER Pickett Co. Slocum Pantograph Engraving IT Products & Services Colleges & Universities Public Relations Services Printing & Publishing Museums, Galleries & Zoos Industry Commercial Art & Graphic Design Libraries & Research Organizations U.S.Prov. L.S..Prov.

49 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 49 Lawrence and Brown Dominican Communications Washington Park Library Clean Harbors SRG Resources Inc. Culinary Archives NE Marine Supply Lane Design Bungo.com Source: 2001 ABI; ICIC Interviews Museums and Libraries & Research Organizations Have the Strongest Presence in the Remaining Southside Neighborhoods Computer Solutions International Gallery - Heritage Fuente De Vida International Institute of RI Verichem Lab A to Zebra Gift Shop Museum of Natural History RI Zoological Society Museum of Natural History Library Bay Computer Association Inc Information Design Wash Park West End Elmwood S. Elmwood Reservoir IT Products & Services Scientific Instruments Public Relations Services Commercial Art & Graphic Design Libraries & Research Organizations Printing & Publishing Museums, Galleries & Zoos Industry

50 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 50 E&KC Represents a Range of Mid-High Wage Jobs as Well as Entry-Level Positions (I) *Rank of Highest Employment out of the eight Education & Knowledge Creation Cluster Industries Source: 1997, 2000 Bureau of Labor Statistics Industry Share of City ClusterEmp00 (Rank*) Total City Jobs 2000 Total Change Jobs Colleges & Universities 78%(1) % Industry Avg Wage CAGR Occupation Wage($/H) Professional/Paraprofessional & Tech. $21.01 Loan Officers & Counselors $13.90 Computer Programmer Aides $15.67 Librarians, Professional $17.17 Residential Counselors $12.37 Instructors, Non-vocational Education $13.03 Instructors and Coaches, Sports and Physical Training $ 9.53 Technical Assistants, Library $10.49 Audio-Visual Specialists $17.33 Teacher Aides, Paraprofessional $ 7.65 Switchboard Operators $ 9.52 Mail Clerks, Except Mail Machine Operators and Postal Service $ 9.82 Clerical and Administrative Support Workers $10.84 Cooks, Institution or Cafeteria $11.34 Janitors and Cleaners $ 9.16 Cleaning and Building Service Workers $ 9.18 Shuttle Bus Drivers $ 8.19

51 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org) Occupation Wage ($/H) Computer Engineers $27.62 Computer Programmers $26.24 Computer Programmer Aides $16.89 Designers, Except Interior $24.25 Mechanics/Install/Repair $18.40 Photographic Processing Machine Operators $11.17 Data Entry Keyers, Except Composing $10.32 Data Keyers, Composing $12.24 *Rank of Highest Employment out of the eight Education & Knowledge Creation Cluster Industries Source: 1997, 2000 Bureau of Labor Statistics Industry Share of City Cluster Emp00 (Rank*) Total City Jobs 2000 Total Change Jobs Printing & Publishing 1.6%(5) % Industry Avg Wage CAGR Industry Share of City Cluster Emp00 (Rank*) Total City Industry Jobs 2000 Total Change Industry Jobs IT Products & Services 10%(2) % Industry Avg Wage CAGR Occupation Wage($/H) Platemakers$13.22 Lithography & Photo$16.05 Bookbinders $10.77 Printing, Binding & Related$13.19 Letterpress Setters$14.49 Cutting & Slicing Machine Setters $10.67 E&KC Represents a Range of Mid-High Wage Jobs as Well as Entry-Level Positions (II)

52 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 52 Providence is Losing Jobs to the Region in IT Products & Services Types of companies in these industries include: –Computer Consultants –Database Developers –Data Processing Consultants –Disk and Diskette services –Computer software, prepackaged –Operating systems, applications, prepackaged –Games, prepackaged Job loss could be due to: Companies moving out of Providence Daly.commerce b/w jobs Companies cutting jobs Y2K - After January 1, 2000 companies no longer needed the consultants they had used to be Y2K ready Companies going out of business EBusiness Technologies (EBT) b/w jobs Most jobs have been lost in the computer services and prepackaged software industries. Between 1995 and 2000 Providence lost 973 jobs in these two industries The number of establishments increased from 42 to 58 The average size of establishment decreased from 34 employees to 8 Source: 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); Dunn & Bradstreet Historical Data; ICIC Analysis

53 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 53 Providence Colleges & Universities Have an Opportunity to Play an Even Greater Role in Economic Development Incubator Offering services to support start-up companies and expedite research commercialization Real Estate Developer Using university real-estate development to anchor local economic growth Workforce Developer Partnering to meet local and regional workforce needs Purchaser Redirecting institutional purchasing toward local business Training Operating Investing Channeling university expertise to increase local business capacity or improve local business environment Advisor/ Network Builder Employer Offering employment opportunities for local residents Tech. & Commercializ ation ÔSome efforts have been made around joint purchasing, but the size disparity among the institutions makes this challenging. ÔMajor university expansion plans are underway in the city and region - creating opportunities in support clusters such as construction and commercial services. ÔBecause of the diverse nature of Providences colleges & universities, research commercialization opportunities span a broad range of industries. ÔThere is an opportunity for greater collaboration among colleges & universities. ÔColleges and universities have a number of workforce training efforts, but few have an inner- city component.

54 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 54 Colleges and Universities Contribute to Local Economy Through Purchasing In 1998 Brown University spent $65.8 million in Rhode Island representing 46 percent of total purchasing RISD estimates percent of purchasing is in Providence Purchasing for CCRI, URI, and RIC is determined by state mandate Some universities, such as CCRI, do commercial services in-house while others outsource OPERATING Sources: Partners for the 21st Century: Brown Universitys Economic Contributions to Providence and Rhode Island; ICIC interviews Larger universities are not as open to joint purchasing, as the benefits are skewed toward smaller colleges and universities.

55 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 55 Colleges and Universities Account for Almost 10% of Nonresidential Land in Providence 60,000 square foot RISD Center is planned 175,000 square foot Life Sciences building being built at Brown J&W continuing to build a downtown campus with plans to build a new student center downtown 24,000 square foot expansion planned for CCRIs Providence campus Major expansion plans are underway in the city and the region INVESTING Source: Providence Plan

56 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 56 Johnson & Wales Has Had a Significant Impact on Downtown and Waterfront Development INVESTING Working in partnership with the City, J&W bought 100 acres of old shipyard property for "Harborside" campus J&W bought a brownfield site (former site of The Outlet which had burnt down) and constructed a park and dorms.

57 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 57 BDC-RI. Brown joined with 14 RI financial institutions and corporations to create a non-bank lender that does subordinated debt lending. Brown Venture Forum. Led by local business representatives, the Brown Venture Forum promotes the creation & expansion of high-growth businesses. Slater Centers provide seed money and technical assistance –63 start-ups funded to date RISDs Center for Integrative Technologies provides space for businesses started by RISD grads RISDs Center for Design and Business offers technical assistance to design-oriented firms Twelve firms in Rhode Island have started as a direct result of Brown University research, mostly related to medical technology –Cyberkinetics (Medical Devices) –Nemogen (Pharmaceuticals) Universities Contribute to the Providence Economy Through Business Incubation and Research Commercialization Spin-offs reach many Providence clusters and industries Formal incubation and VC efforts exist as well BrownRISD J&WURI Health Services & Research Medical Technology Hospitalit y & Tourism Graphic & Industrial Design TECHNOLOGY / COMMERCIALIZATION Environmental & Marine Science Sources: Partners for the 21st Century: Brown Universitys Economic Contributions to Providence and Rhode Island; ICIC interviews College of Business Administration

58 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 58 Providence Colleges Have a Number of Training Services Available for Businesses TRAINING

59 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 59 Providence has a number of workforce training initiatives but few have an inner-city component TRAINING

60 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 60 Investing Use institutional expansion to stimulate further development Training Target inner city in workforce development and business development efforts Operating Increase opportunities for local suppliers to participate in universities supply chains Assess outsourcing opportunities Create greater collaboration among universities around specific economic development agendas Link expertise of colleges and universities to related clusters Strengthen links with related industries to understand capacity in Providence and needs of colleges and universities being met elsewhere Opportunities Exist to Strengthen the Cluster and Promote Inner-City Economic Development Opportunities within Colleges & Universities Opportunities in the Greater Community Technology & Commercialization Further support specialized institutions and their relationships with colleges and universities Take advantage of institutional expertise to strengthen related clusters

61 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 61 Works with local community organizations to identify and access local businesses Leverages relationships with large national firms to contractually require joint ventures with local firms Incorporates local purchasing goals into staff performance evaluations Works with local community organizations to identify and access local businesses Leverages relationships with large national firms to contractually require joint ventures with local firms Incorporates local purchasing goals into staff performance evaluations Local spending increased from $2.1 million to over $55 million (or 8.5% of Penns total spending) between 1987 and 2000 One local vendors sales to Penn increased from $250,000 to $1.7 million through a joint venture with a national vendor Local spending increased from $2.1 million to over $55 million (or 8.5% of Penns total spending) between 1987 and 2000 One local vendors sales to Penn increased from $250,000 to $1.7 million through a joint venture with a national vendor Buy West Philadelphia University of Pennsylvania CASE STUDY

62 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 62 Howard University Howard invested in revitalizing 45 university-owned buildings in the economically distressed, crime-ridden LeDroit Park neighborhood The University invested $7 million into the project, leveraging an additional $25 million from Fannie Mae, Verizon and others Howard invested in revitalizing 45 university-owned buildings in the economically distressed, crime-ridden LeDroit Park neighborhood The University invested $7 million into the project, leveraging an additional $25 million from Fannie Mae, Verizon and others Created over 300 new housing units in an area that has since seen a marked improvement in property values $65 million in new commercial development, including a new bookstore, restaurants, 33,000 square feet of retail space and a modern Emergency Trauma Center at Howard Hospital Owners of the remaining 130 properties in the neighborhood are beginning to make investments Created over 300 new housing units in an area that has since seen a marked improvement in property values $65 million in new commercial development, including a new bookstore, restaurants, 33,000 square feet of retail space and a modern Emergency Trauma Center at Howard Hospital Owners of the remaining 130 properties in the neighborhood are beginning to make investments CASE STUDY

63 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 63 Workforce Developer: Manufacturing Technology Bridge Program Chicago area manufacturers are facing a serious labor shortage. Since 1997, Manufacturing Technology Bridge Program has prepared Chicagos inner-city workers to meet this shortage Program brings together unique expertise of each partner UIC provides labor market research, expertise in program design and securing funding; Daley College offers specialized training; Illinois Institute of Technology provides curriculum advice Chicago area manufacturers are facing a serious labor shortage. Since 1997, Manufacturing Technology Bridge Program has prepared Chicagos inner-city workers to meet this shortage Program brings together unique expertise of each partner UIC provides labor market research, expertise in program design and securing funding; Daley College offers specialized training; Illinois Institute of Technology provides curriculum advice Over 260 graduates An 80 percent placement rate, 72 percent were unemployed upon entry into the program Median starting wage of $10.13 per hour compared with $8.12 per hour upon entry into program 73 students placed in college courses Over 260 graduates An 80 percent placement rate, 72 percent were unemployed upon entry into the program Median starting wage of $10.13 per hour compared with $8.12 per hour upon entry into program 73 students placed in college courses University of Illinois at Chicago Insituto del Progres o Latino Richard Daley College Chicago Mfg Center Illinois Institute of Tech Mayors office CASE STUDY

64 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 64 èSlater Centers focus on technology commercialization èEach center offers business development resources to individuals and seed/start up companies Four Slater Centers Slater Center for Biomedical Technology Slater Center for Design and Manufacturing Slater Center for Interactive Technologie Slater Center for Marine and Environmental Technologies èHealth and Education Leadership for Providence (HELP) is a coalition headed by the presidents of four private universities and six voluntary hospitals. èHELP focuses on advancing the health and education of children in Providence. HELP Members: Brown University, Rhode Island School of Design Butler Hospital, Johnson & Wales University The Miriam Hospital Roger Williams Medical Center Providence College Rhode Island Hospital St. Joseph Hospital Women & Infants Hospital HELP and RIs Four Slater Centers Illustrate a Collaborative Approach With the Potential to Impact the City of Providence and Strengthen the E&KC Cluster HELP Slater Centers

65 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 65 Key Discussion Points There is a need to encourage involvement from the Education & Knowledge Creation cluster from both a top down and bottom up approach. An organization similar to HELP, with an economic/community development focus, could be identified or created to engage key stakeholders in the E&KC cluster in development efforts. The South Side must be a part of these efforts In order for these efforts to succeed & truly impact the inner city there must be support from the Colleges and Universities highest level of leadership.

66 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 66 Further Research Needed Analysis of purchasing geography for Providence colleges and universities Deeper analysis of non-college/university industries in Education & Knowledge Creation cluster Analysis of the presence of supporting clusters in the study area neighborhoods, and those companies links to colleges and universities Further understand dynamics in the IT component of E&KC Explore potential leadership for a cluster strategy

67 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 67 APPENDIX

68 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 68 Top 21 Providence Clusters by 2000 Employment: Wage Growth vs. Employment Growth 10,000 EMP (*) CAGR -- Compounded Annual Growth Rate Note(s): The Local Community and Civic Organizations Cluster is not included in this picture. Publishing and Printing is included in this picture due to its relation to Creative hub not because the employment is in the top 15 Source: Cluster Mapping Project, Institute for Competitiveness and Strategy; Rhode Island xxxx ES202 data; ICIC analysis Education & Knowledge Creation Local Health Services Hospitality & Tourism Local Hospitality Local Food & Beverage Processing Jewelry & Precious Metals Financial Services Business Services Info Technology Local Ent & Media Publishing & Printing Distribution Services Local Commercial Services Local Construction & Development Local Housing & Household Goods City Average Wage/Emp CAGR* (95-00) City Employment CAGR* (95-00) Local Utilities Analytical Instruments Communications Equipment Metal Mfg Medical Devices Local Personal Transport Traded Clusters Local Retail 25%

69 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org) ,000 EMP Note(s): Local Utilities Cluster is not represented in this chart. However, 54 percent of the Local Utilities Cluster is in the City of Providence while it comprises 2% of the City employment. Source: Cluster Mapping Project, Institute for Competitiveness and Strategy; 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); ICIC analysis Education & Knowledge Creation Local Health Service City Share of MSA Employment in the Cluster (%) Cluster Share of Total City Employment (%) Local Commercial Services Jewelry & Precious Metals Financial Services Medical Devices Business Services Distribution Services Hospitality & Tourism Local Hospitality Info Technology Local Housing... Publishing & Printing Local Ent & Media Local Food & Bev Processing Local Retail Analytical Instruments Local Construction & Development Local Personal Transport Metal Mfg Communications Equipment Traded Clusters Top 21 Providence Clusters by 2000 Employment: Employment Share Comparison

70 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org) ,000 EMP Education & Knowledge Creation Local Health Service City Average Wage CAGR, City Average Wage ($) Local Commercial Services Jewelry & Precious Metals Financial Services Medical Devices Business Services Distribution Services Hospitality & Tourism Local Hospitality Info Technology Local Housing Publishing & Printing Local Ent & Media Local Food & Bev Processing Local Retail Analytical Instruments Local Construction & Development Local Personal Transport Metal Mfg Communications Equipment Traded Clusters Top 21 Providence Clusters by 2000 Employment: City Average Wage and Growth Local Utilities (*) CAGR -- Compounded Annual Growth Rate Note(s): The Local Community and Civic Organizations Cluster is not included in this picture. Publishing and Printing is included in this picture due to its relation to Creative hub not because the employment is in the top 15 Source: Cluster Mapping Project, Institute for Competitiveness and Strategy; 1995 and 2000 Rhode Island Covered Employment & Wages Program (ES202); ICIC analysis

71 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 71 Cluster Occupational Profile Source: Bureau of Labor Statistics, US Department of Labor

72 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 72 Cluster Occupational Profile Source: Bureau of Labor Statistics, US Department of Labor

73 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 73 Business Cycles and Annual National Employment Change in Ten Top Clusters ( ) Local Health ServicesLocal Commercial ServicesEducation & Knowledge Creation Jewelry & Precious MetalsLocal HospitalityFinancial Services Source: National Bureau of Economic Research; Bureau of Labor Statistics, US Department of Labor; Cluster Mapping Project, The Competitiveness Institute at Harvard Business School; ICIC analysis Shaded areas cover periods of recession as defined by the National Bureau of Economic Research

74 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 74 Business Cycles and Annual National Employment Change in Ten Top Clusters ( ) Business Services Local Food and Beverage Processing Local Construction Hospitality and TourismMetal Manufacturing Source: National Bureau of Economic Research; Bureau of Labor Statistics, US Department of Labor; Cluster Mapping Project, The Competitiveness Institute at Harvard Business School; ICIC analysis Shaded areas cover periods of recession as defined by the National Bureau of Economic Research

75 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 75 Printing & Publishing Museums, Galleries, & Zoos Commercial Art & Graphic Design Colleges & Universities IT Products & Services Libraries & Research Organizations Scientific Instruments Schools & Educational Services Providence City Clusters: Education & Knowledge Creation Industry Employment Change* ( ) Industry Employment (2000) *Note: Public Relation Services had a net change of +7 jobs from , too small to appear on the graph Sources: Cluster Mapping Project, The Competitiveness Institute at Harvard Business School; 1995, 2000 US Bureau of Labor Statistics Covered Employment and Wages Program; State of RI Labor Market Information Total Employment: Net Change in Employment: -354

76 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 76 Total Employment: 1798 Net Change in Employment: -868 Furnaces, Mills & Refineries Plating & Polishing Metal Coating and Engraving Wire & Related Products Rolling & Heat Treating Screw Machine Products Metal & Die Casting Display Cases, Sages & Vaults Non-Automotive Metal Stamping Metal Working Machinery & Equipment Providence City Clusters: Metal Manufacturing Industry Employment Change ( ) Industry Employment (2000) Sources: Cluster Mapping Project, The Competitiveness Institute at Harvard Business School; 1995, 2000 US Bureau of Labor Statistics Covered Employment and Wages Program; State of RI Labor Market Information

77 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 77 Neighborhood: Downtown Industry Competitiveness/ Operational Efficiency Matrix Size of bubble reflects an equally weighted composite of sales, employment and wages of the firm relative to other firms in the neighborhood. Note: In order to accurately represent the private sector business base, many public sector and non-profit businesses were not included in this analysis Source: American Business Info Data, Federal ES 202 Data (1995, 2000), Bureau of Labor Statistics Data (1995, 2000), ICIC Analysis Corporate Headquarters: Textron, Inc Nortek Citizens Bank Rhode Island Bancorp Edwards & Angell Colleges / Universities and Other Non Profit: Johnson & Wales Downtown Campus URI Feinstein College of Continuing Education Roger Williams University Providence Performing Arts Center Rhode IslandHousing Fleet Bank Prudential Securities Blue Cross Blue Shield of RI

78 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 78 Neighborhood: Upper South Providence Industry Competitiveness/ Operational Efficiency Matrix Source: American Business Info Data, Federal ES 202 Data (1995, 2000), Bureau of Labor Statistics Data (1995, 2000), ICIC Analysis Size of bubble reflects an equally weighted composite of sales, employment and wages of the firm relative to other firms in the neighborhood. Note: In order to accurately represent the private sector business base, many public sector and non-profit businesses were not included in this analysis Colleges / Universities: Community College of Rhode Island

79 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 79 Neighborhood: Lower South Providence Industry Competitiveness/ Operational Efficiency Matrix Source: American Business Info Data, Federal ES 202 Data (1995, 2000), Bureau of Labor Statistics Data (1995, 2000), ICIC Analysis Size of bubble reflects an equally weighted composite of sales, employment and wages of the firm relative to other firms in the neighborhood. Note: In order to accurately represent the private sector business base, many public sector and non-profit businesses were not included in this analysis Metal Manufacturing

80 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 80 Neighborhood: Elmwood Industry Competitiveness/ Operational Efficiency Matrix Size of bubble reflects an equally weighted composite of sales, employment and wages of the firm relative to other firms in the neighborhood. Source: American Business Info Data, Federal ES 202 Data (1995, 2000), Bureau of Labor Statistics Data (1995, 2000), ICIC Analysis Note: In order to accurately represent the private sector business base, many public sector and non-profit businesses were not included in this analysis

81 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 81 Neighborhood: Washington Park Industry Competitiveness/ Operational Efficiency Matrix Source: American Business Info Data, Federal ES 202 Data (1995, 2000), Bureau of Labor Statistics Data (1995, 2000), ICIC Analysis Size of bubble reflects an equally weighted composite of sales, employment and wages of the firm relative to other firms in the neighborhood. Note: In order to accurately represent the private sector business base, many public sector and non-profit businesses were not included in this analysis

82 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 82 TELECOM ELECTRONICS Bundling of services - offering several services for one price, such as long distance, cable and internet access Highly competitive, particularly since Telecommunications act of 1996, regional companies collaborating to compete with Sprint and AT&T to avoid infrastructure costs of establishing new territories Sale of wireless phones down since summer 2000 Some experts expect industry-wide restructuring due to weak long distance revenues, falling market share and reduced profits since telecommunications act of 96 blew open competition Signs of economic downturn as early as 1999 when Overbuilt DSL capacity estimated 4.7 million ports with only 3.5 million users Shift from analogue to digital as well as copper to fiber optic transmission Fallout of circuit switch hardware as it was used to converts conversations into digital and then from digital to analogue Key Points about Select Metal Manufacturing Markets (I) Increasing dependence on electronics in the auto industry Desktop PC market considered saturated, semiconductor market now considered a slow-growth model Inventory congestion of all electronic component distribution channels, indicating industry weakness inaccurate forecasting demand and monitoring of inventory levels contributed to industry downturn Trend is to invest 30% of revenue into future Source: US Business Reporter; Plunkett Research; Hoovers Online

83 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 83 AEROSPACE AND DEFENSE Industry trend had been severe cutbacks for military procurement programs but outlook uncertain now that Bush has pledged increase in military spending Commercial airline segment appears to be suffering substantially, Airbus Industrie and Boeing are projecting cancellations up to 20 to 30 percent Used to be an American monopoly on world wide market but recent acquisitions and mergers have increased foreign market share (particularly the European Aeronautic Defense and Space Company (EADS) merger) Aircraft demand was already down 44 percent from 1998 to 1999 and 33 percent in 1999 to Expected to drop at least 25 percent in Boeing is cutting its commercial aircraft workforce by 30 percent. Prior to Sept. 11th China looked to be an emerging market but fragile state of Chinas economy and US-China foreign relations makes this market high risk. Industry had been trending toward developing commercial markets to decrease dependence on government contracts. Markets most easily accessible are high-tech gear such as solid state electronics Source: US Business Reporter; Hoovers Online Key Points about Select Metal Manufacturing Markets (II)

84 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 84 AUTOMOTIVE EQUIPMENT MEDICAL DEVICES AND EQUIPMENT Auto-makers are consolidating their supply chain in order to cut costs and increase productivity Growth in high tech parts as manufacturers seek to improve fuel economy, reduce emissions and improve driver safety and comfort, along with growth in memory and navigation systems Auto industry did not get hit as hard with inventory congestion due to industry adjustments made in prior recessions Mergers and acquisitions prevalent in market as companies try to reduce costs and enhance their market position Managed care changes play a major factor with industry sales and earnings performance Baby boomer population continues to age and life expectancy is increasing, both of which bode well for continued usage/dependence on medical devices International sales have been growing despite slowdown in Asian markets Source: US Business Reporter; Hoovers Online Key Points about Select Metal Manufacturing Markets (III)

85 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 85

86 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 86

87 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 87 Colleges & Universities in the Providence Region

88 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 88 ICICs Work Builds on Recent Studies, and Helps Inform Ongoing Efforts FACT BASE ISSUE IDENTIFICATION STRATEGY FORMULATION ACTION PLAN IMPLEMENT- ATION EMPOWERMENT ZONE APPLICATION CHARTING RHODE ISLANDS COURSE TO THE NEW ECONOMY PROVIDENCE - NEW CITIES, ECONOMIC COMPETITIVENESS STUDY The Neighborhood Market Analysis provides a needed fact base at the neighborhood level. 10 WAYS TO SUCCEED WITHOUT LOSING OUR SOUL URBAN STRATEGY PROJECT 1998 CITIES COUNT 2001 Representative List RIPEC & Rhode Island Foundation RI Economic Policy Council City of Providence & RIPEC RI Economic Policy Council Providence Plan RIPEC Conducted by

89 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 89 Current Efforts Related to Economic Development Research / Strategic Planning Region/State City Industry/Cluster-Specific Advocacy and Support Entrepreneurship Training & Support Small Business Advisory Services Small Business Finance Business AttractionBusiness Retention Workforce Development Minority Business Development Business Environment Nbrhd Region/State City Nbrhd Verizon Foundation RIEDC National Grid USA grants RITEC RI Manufacturing Partnerhsip Rhode Island EDC Greater Prov. Chamber Rhode Island EDC RISBA Greater Prov Chamber Rhode Island Small Business Loan Fund Corporation RIEDC - Procurement Assistance Center Mill Building Revitalization Act RIEDC Smart Building Initiative RIPEC Rhode Island EDC mass-exodus.com Greater Prov. Chamber RIEDC - Minority Business Enterprise Program Rhode Island Coalition for Minority Investment Charles Newton - state office of Minority Bus. Dev. RI Urban Enterprise Equity Fund First Stop Business Information Center Slater Centers netWORKri HRIC Workforce Partnership of Greater Rhode Island Providence/Cranston Workforce Development Office Workforce Partnership of Greater Rhode Island Rhode Island Economic Policy Council Grow Smart RI Greater Elmwood Neighborhood Services - Micro Business Peer Group Lending Program Greater Elmwood Neighborhood Services - Micro Business Peer Group Lending Program The Algonquin House S. Prov. Development Corp. Department of Planning and Development Providence Plan PEDC Revolving Loan fund Prov. Planning & Devt City PR Storefront Program City PR Business Liaison Program City PR Business Liaison Program Urban Ventures Neighborhood Improvement Program Southside Investment Partnership Main Streets RIEDC - Urban Ventures NetWORKri SWAP mentoring program for neighborhood contractors Jewelry District Association Center to Advance Minority Participation in the Building Trades DownCity Partnership Enterprise Community Urban Revitalization Fund

90 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 90 Current Efforts Related to Economic Development (II) Strategic Planning Region/State City Industry/Cluster-Specific Advocacy and Support Entrepreneurship Training & Support Small Business Advisory Services Small Business Finance Business AttractionBusiness Retention Workforce Development Minority Business Development Business Environment Nbrhd Region/State City Nbrhd Manufacturing Jewelers and Suppliers of America Rhode Island Printing Industry Coalition Prov. Warwick Convn & Visitors Bureau Greater Prov. Chamber South Providence Development Corporation LISC OSHEAN RI Foundation&Clean Land Fund

91 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 91 Providence Working Group Champions: Donna Cupelo, President and CEO, Verizon John Palmieri, Department of Planning and Developing Lawrence Reilly, National Grid USA Lisa Churchville, General Manager, WJAR TV Pat McLaughlin, Director of Administration, City of Providence George Vecchione, President and CEO, Lifespan Implementation Group: Kip Bergstrom, Director, Rhode Island Economic Policy Council Director Robert Leaver, Project Manager, Organizational Futures Justin Aina, Urban Ventures Peter Armato, President, Downcity Partnership Thomas Avila, Center for Hispanic Policy and Advocacy Victor Barros, RI Economic Development Corp. Dan Baudoui, Providence Foundation Jay Coogan, Dean of Fine Arts, Rhode Island School of Design Thomas Deller, RI Housing Corporation Michael Hogue, Jewelry District Corp. Edward Mazze, PhD, Dean of Business Administration, University of RI Pat McGuigan, The Providence Plan Sharon Conard Wells, West Elmwood Housing Development Roseanne Cronan, Community Revitalization Coordinator, Rhode Island Housing Armeather Gibbs, Fleet Bank Barbara Fields Karlin, Local Initiative Support Coalition David Knowles, Greater Elmwood Neighborhood Services Kari Lang, West Broadway Neighborhood Association Peter Marino, Rhode Island Public Expenditure Council Joseph Newsome, South Providence Development Corporation Ken Orenstein, Heritage Harbor

92 Copyright © 2002 Initiative for a Competitive Inner City (www.icic.org). 92 Bibliography Reports The Impact on RI Companies of the Events of September 11, 2001 (2001) A Rhode Island Economic Strategy: 10 Ways to Succeed Without Loosing Our Soul (2001) Providence New Cities: Economic Competitiveness Study (2000) Cranston Street Revitalization Project (1999) Strengthening Cities: A Report of the Urban Strategy Project (1998) Making Connections and Designing Our Future (1998) Rhode Island Higher Education and the New Economy: Proceedings of Conference on March 11, (also put out in 1998) Rhode Island Higher Education and the New Economy: A White Paper Opportunity Knocking in the West End of Providence (1997) West End Resident Needs Assessment Study (1997) The Providence Enterprise Community Assessment (Providence Plan ) Interviews: Marisa Quinn, Brown University Ed Mazze, URI Tom Sepe & Jack White, CCRI Gerry Inman, RISD Dennis Stark, URI Jay Coogan, RISD Gerard Bertrand, Rhode Island Economic Development Corporation Al Lubrano, Technical Materials Scott Young, Precision Industries Jeff Grove, Pilgrim Screw Clinton Whitman, Kraemer Findings Robert Goodwin, Goodwin, Bradley, Pattern Company Steve Fielding, CEO, Fielding Manufacturing Dana Salvadore, Atlantic Company Gregg Morrow, Frank Morrow Co Joanne Gadwah, JMT Epoxy John Cronin, RIMES Peter Marino, RIPEC Ken Duffin, Jr., Rhode Island Economic Development Corporation Lisa Medeiros, Manufacturers Partnership


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