5. Facts about manufacturing
Did You Know...
•The United States is the world's largest manufacturing economy, producing 21 percent
of global manufactured products. China is second at 15 percent and Japan is third at 12
percent. 1
•U.S. manufacturing produces $1.7 trillion of value each year, or 11.7 percent of U.S.
GDP. For every $1.00 spent in manufacturing, another $1.35 is added to the economy. 2
•Manufacturing supports an estimated 17 million jobs in the U.S.—about one in six
private sector jobs. 3 Nearly 12 million Americans (or 9 percent of the workforce) are
employed directly in manufacturing. 4
•In 2010, the average U.S. manufacturing worker earned $77,186 annually, including
pay and benefits. The average worker in all industries earned $56,436 annually. 5
•U.S. manufacturers are the most productive workers in the world—far surpassing the
worker productivity of any other major manufacturing economy, leading to higher
wages and living standards.
•U.S. manufacturers perform two-thirds of all private sector R&D in the nation, driving
more innovation than any other sector. 6
•Taken alone, U.S. Manufacturing would be the 9th largest economy in the world. 7
•1 United Nations, Statistics Division (2009).
•2 U.S. Bureau of Economic Analysis, Industry Economic Accounts (2009).
•3 The Facts About Modern Manufacturing(2009).
•4 U.S. Bureau of Labor Statistics.
•5 U.S. Bureau of Economic Analysis, Compensation of Employees by Industry and Full-Time Equivalent Employees by Industry.
•6 National Science Foundation (2008).
•7 U.S. Bureau of Economic Analysis, Industry Economic Accounts (2009) and nternational Monetary Fund (2009).
6. The death of manufacturing in the US is greatly overstated
Manufacturing has stopped shedding jobs…. And contributed more than 500k jobs to the recovery
Source: NP analysis of BLS data
8. The China Gap is closing (continued)
Advantage US
Advantage China
Source: PWC, Alix Partners, Hackett Group; NP graphics
9. Logistical advantage could become a key differentiator has factor cost
differentials shrink
• Time, not only freight costs, are an increasingly
important consideration
• Transit alone from China can take 4-6 weeks
– A client has a lead time of 7 months
– Drives carrying excess inventory
• Each day in transit equal to a .5% to 2.3% tax - NBER
working paper
• If a product is late to market by 6 months 33% of gross
margins are already lost – McKinsey
Source: Journal of Commerce; Logistics Performance Indicator, World Bank
10. So what might this mean
Most prognosticators believe movement
will become more noticeable beginning in
2015
Boston Consulting Group estimates that
another 600k-1 million direct
manufacturing jobs with another 1
million in support jobs could be created by
2020
However, most analysts believe that the
opportunities will principally be for the
industrial south and selected areas in the
midwest
Source: Boston Consulting Group; Hackett Group
12. A special note about “green” …
“Green/Clean Industries” is a warm,
fuzzy catch-phrase that is thrown
around with great frequency that
conjures up images of benign
industrial uses.
13. Clean-tech is a really large and diverse field
Source: Cleantech Group LLC
14. So if you are going to create a “greentech / cleantech zone” make sure you
understand what it means…
Because it may not be what you think….
Pelamis Wave Energy Ostara Nutrient Recovery
15. Moreover initiatives such as Product Lifecycle Management are challenging
the definition of “green” industries
• "PLM” or Product Life cycle
Management is a process to consider
the lifecycle of a product from its
conception through its manufacture, to
its retirement and disposal.
• It has emerged from a series of
interlocking initiatives and pressures
– Environmental disposal liability
– Green movement
– ISO 14001
Source: Toyota
16. By product synergy networks are an example of lifecycle management put
into practice
17. Advanced Manufacturing
• A recent survey of advanced
manufacturing definitions by the
White House states: “A concise
definition of advanced
manufacturing offered by some is
manufacturing that entails rapid
transfer of science and technology
(S&T) into manufacturing products
and processes.” (PCAST, April
2010.)
Source: New England Council
18. And then there is the future of manufacturing
Additive Molecular / Nano Personal / Bespoke
Manufacturing Manufacturing Production
Creating products by Creating products Creating small batch
layering materials through assembly at or custom products
rather than the molecular level Typically found in
subtracting materials Nano products jewelry, food
Technologies Carbon products, textiles,
3 D printing nanotubes clothing, furniture
Laser sintering Synthetic biology
Examples of current
products
High speed
gearboxes
Jet engine
ducts
Dental
implants
Future products
Biomaterials
Precision parts
19. Demonstrating Additive Manufacturing
• You Tube 3 D • You Tube DLMS
Printing Sintering
• http://www.youtube.com/watch?v=0zwy8mX1UQ
• http://
www.youtube.com/watc
20. Projected growth rates
Additive Molecular / Nano
Personal Production
Manufacturing Manufacturing
Equipment sales Consumer nano- Unknown but as
growing an average based products have examples
26.4% per year increased from 54 in Nike custom
Projected global sales 2005 to 1317 in 2010 shoe business
of $6.9 billion by Silver represents 25% is now $100
2019 of the involved million
For perspective material annually
Chinese Plastics Makerbot sold 10000
Injection Machine 3-D printers in 2011
market is $3.9 billion Zazzle, an online
mass custom retailer,
web traffic has
increased from 1
million per month to
4 million per month
Source: Wohlers Associates; Source: Project on Emerging
Research and Markets Nanotechnologies
21. Where Nanotech is Happening in the US
Source: Project on Emerging Nanotechnologies
23. Factors to consider to seize the opportunities
• Taking advantage of the reshoring and domestic expansion of manufacturing in the US is
more complicated than hanging out a shingle or sending a brochure
• Planners and development officials need to take into consideration a series of factors and
think not about just a site but about the ability to provide the full requirements of a
manufacturer
– Labor force (location and training)
– Suppliers (components, subassemblies, and waste stream management)
– Logistics
– Sites
• Successful communities will be able to mesh each of these factors into a compelling product
24. Planners may want to consider adding workforce information into their local
comprehensive plans economic development sections to elevate the issue
25. The big question for planners
Do you have the right type of product?
26. Throughout New England there is a high availability of industrial real estate
– but most of it won’t work for contemporary uses
Example of Assessment of Viability of Vintage
Industrial Building
Challenges
•Low ceiling heights place limits on its functionality for
companies that require air handling systems or seek to
maximize floor utilization by “cubing out” (stacking
pallets vertically) finished goods, work in progress (WIP)
or raw materials
•Narrow column structure (8 foot distances between
columns) essentially eliminates any type of facility that
uses wider flow thru capacity equipment or cellular
manufacturing techniques
•Narrow and small floor plates with limited ability to
maximize the length of the building due to the center
stem of the building
•The bulk of the square footage is vertical rather than
horizontal creating the need to add additional moves
between components of the manufacturing process
between floors and lengthening the cycle time of the
manufacturing process
29. Typical building requirements for life science companies
Note significant process development work is underway to reduce the amount of water consumed
through single use technologies
Single Floor Water Use Sewer Natural Gas
Footprint
Some pretreatment,
10-20ksft minimum
use of neutralization
Basic Research with expansion 8-20000 gpd Required
tanks
capacity
10 to 20ksft minimum
Process Development Typically able to 20000 gpd Same as above Required
expand to pilot plant
Adequate public sewer
capacity. Discharges
Higher volume than
Pilot Manufacturing 10 to 35ksft 2400 gph per 1000sft require kill systems and
process development
pH pretreatment
Varies by process but
planning model 1.5
million gpd per 100ksft Same as pilot with
Manufacturing At least 100ksft High volume
manufacturing larger scale
Also requires standby
water system
Much less than
Fill & Finish 20ksft minimum Required
manufacturing
Source: MassBio
30. Prime industrial means the land is well located and
viable for industry and is not easily replicable.
• Net, contiguous, developable acreage in large, flat and symmetrical
configurations;
• Minimal or no development constraints present;
• Access to an available workforce for a specific industry type;
• Sufficient capacity in the local transportation system;
• Proximity to interstate highways, rail, marine ports and/or airports;
• Convenient access to water, sewer, gas, electricity and
telecommunications;
• Special considerations such as being free from encroachment of
incompatible uses or needing high volumes of water and sewer or
needing significant local transportation infrastructure;
• Proximity to suppliers, customers, markets and related uses;
• Location within a functioning industrial district;
• The land is viable for the targeted industrial use.
31. Zoning by Use Categories
• The Standard Industrial Classification (abbreviated SIC) is a
United States government system for classifying industries by
a four-digit code. Established in 1937, it is being supplanted
by the six-digit North American Industry Classification System
(NAICS code), which was released in 1997; however certain
government departments and agencies, such as the U.S.
Securities and Exchange Commission (SEC), still use the SIC
codes.
32. Technology has made how to define manufacturing for purposes of
land use and zoning more interesting
33. New Industrialism
• Impractical to list every Examples of Emerging Concepts and
manufacturing use type Districts where Traditional Zoning May
• Manufacturing operations to be Be Limiting
multiple use clusters (Admin, Economic Strategies
warehouse, distribution,
laydown, inventory, research and Local food movement
development Product design and development
• One size fits all approach doesn’t Targeted Districts & Zones
work
Creative/arts districts
– Does not accommodate
technological changes Adaptive reuse districts
– Discourages creative development Meds & Eds
– Can hinder Economic Development
– Overlooks performance attributes
34. Industrial Activity Transect
• Traditional Heavy Industry that is
transportation dependant
• Warehouse , Distribution, and Fulfillment
Centers
• New and Emerging Manufacturing and R & D
Uses
• Vintage Industrial Areas
35. Industrial Performance Standards
• Air Quality
• Odor and Emissions (VOC’s, particulates)
• Electro Magnetic
• Lighting/Glare
• Noise and Vibration
• Water Usage available capacity
• Wastewater generation (quantity and quality) treatment
• Storm water Management
• Energy
• Carbon Generation
• Bio Waste
• Radiation
• Solid Waste
• Municipal special services
• Traffic roadway impacts
• Viewsheds
• Sensitive abutters (residential, watershed, protected natural resources,
acquifers/water supplies)
36. Green Buildings
• Up to 90% of GHG from non stationary sources
• Building Considerations
– Insulation - point of diminishing returns
– High Efficiency HVAC/Building Systems
– Fenestration
– Reflective Roofing
– Solar Photo Voltaics
– Roof water irrigation
– Water saving plumbing fixtures
– Motion activated lighting
37. Sustainable Site Planning Considerations
• Realistic Parking Requirements - maximums as
opposed to minimums
• Low Impact Development techniques
• Landscaping/Green space to break up “sea of
pavement”
• Waste Stream Management
• Building Orientation
• Transportation Demand Management
• LED lighting
• Native, drought tolerant landscaping materials
38. Workforce Challenges in Advanced Manufacturing
The workforce challenges are:
Challenge 1: Increasing firm/facility competitiveness and employee employment
security through incumbent workers’ skills upgrading:
.
Challenge 2: Responding to small and medium size firms’ and/or facilities’ (those
with less than 500 employees) recruitment and training needs:
Challenge 3: Meeting employer demand while minimizing the deleterious effects of
layoffs:
Challenge 4: Assuring a pipeline of specialty-skilled workers:
.
Challenge 5: Integrating workers with limited English proficiency:
Challenge 6: Maintaining the pipeline that channels young workers into
manufacturing:
39. Workforce Development and Training
•Workforce training programs should be consolidated and coordinated into a
comprehensive and adaptive system centered on the needs of regional
economic development and accountable for results. The workforce system
should be easily understandable, accessible and responsive to the needs of
both the business community and job seekers. Increased outreach and
involvement of local communities and governments should be encouraged
and supported.
•Partnerships between government agencies, business, training providers
and institutions of higher education should be strengthened and
administrative burdens and complexities reduced. In addition, the workforce
system should continue to be led by the business community.
•The expenditure of public funds supporting educational programs of study
and job training/workforce development for students in career and technical
education, unemployed workers, dislocated workers, trade-impacted
workers and separating military personnel should ensure such education and
job training result in attainment of nationally portable, industry-recognized
skills certifications as postsecondary credentials with value in the workplace.
Source: National Association of Manufacturers
40. Industrial Land Conversion
• Lack of suitable industrial land
• Often converted to retail, commercial or
multifamily residential
• Inclusive (pyramid) zoning schemes versus
exclusive zoning schemes
45. City of Portland, OR
Industrial Sanctuaries
• Industrial Sanctuaries limit uses to those that
support manufacturing function and workforce
– Use will not adversely affect industry or freight
movement
– Transportation system is capable of supporting
proposed use in addition to existing uses
– Proposed use will not alter the industrial character of
the area
– Proposed use needs to be located in an industrial area
or building or because industrial firms or employees
are primary market
