Transcript Enhancing competitiveness
TACOMA INDUSTRIAL DISTRICTS’ ROLE IN THE LOCAL ECONOMY
Ellen Walkowiak and Robert Levin Community & Economic Development Department November 2012
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INDUSTRIAL DISTRICT LOCATIONS
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INDUSTRY PROFILE
I NDUSTRIAL C LASSIFICATION NAICS 23
Construction
NAICS 31-33
Manufacturing
NAICS 42
Wholesale Trade
NAICS 48-49
Transportation & Warehousing
TOTAL
Source: WA-ESD
# E STABLISHMENTS
58 202 104 70
434 # W ORKERS AND % OF T ACOMA ’ S W ORKFORCE
1,110 (1.2%) 6,287 (6.7%) 2,205 (2.3%) 2,620 (2.8%)
12,222 (13%)
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WHY INDUSTRIAL
Manufacturing workers earn $11,325 annually more on average (including pay and benefits) than non-manufacturing employees
Generates considerable economic multiplier
Supports sustainable use of existing assets
Contributes to diversified economy
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MAJOR EMPLOYERS
(≥50 EMPLOYEES)
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MAJOR EMPLOYERS
50 – 150 Employees (Total of 43 firms)
Carlson Formetec
Globe Machine Manufacturing
151 – 250 Employees (Total of 11 firms)
Concrete Technology Corporation
General Plastics Manufacturing
251 – 500 Employees (Total of 3 firms)
Bradken Foundry
Manke Lumber Company
>500 Employees (1 firm)
Simpson Investment Company
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PRODUCT INNOVATION
Nanomaterials (GR Silicates)
Ultra-high molecular weight polyethylene (Polymer Industries – world’s 3 rd largest producer)
Ion-charged water to treat inflammatory diseases (Revalesio)
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INDUSTRIAL STATISTICS
$13 million paid annually to City in B&O taxes
Schnitzer Steel Industries Inc. and U.S. Oil Refining among City’s top 10 B&O tax contributors
$3.6 million paid annually to City in property taxes
12,200+ jobs
$68,806 ($33.08/hour) - annual average manufacturing wage
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RECENT EXPANSIONS
C OMPANY P RODUCT Bradken Foundry
3021 S. Wilkeson
Targa
2628 Marine View Drive
U.S. Oil Refining
3001 Marshall Avenue
Fred Tebb & Sons
1906 Marc Street (Port)
General Plastics Mfg. Co.
4910 Burlington Way
Globe Machine Mfg.
701 E. D Street
Precision Machine Works
1952 Milwaukee Way
Tucci & Sons
3601 Taylor Way
TOTAL
Steel and iron castings Total Jobs: 393 Petroleum products Total Jobs: 45 Petroleum products Total Jobs: 180 Sawmill Total Jobs: 76 Flexible and rigid foam Total Jobs: 165 Machinery and systems; materials handling Total Jobs: 122 Metal structural components Total Jobs: 184 Asphalt Total Jobs: 150 Total Jobs: 1,315
2011-2012 E XPANSION
$7 million building/equipment 2012 – 44 new jobs (13% growth) In 2013 – 26 new jobs (7% growth) $35 million 2012 – 5 new jobs (11% growth) $15 million rail unload facility 2012 – 16 new jobs (27% growth) 2012 – 11 new jobs (7% growth) 2012 – 30 new jobs (33% growth) 2012 – 19 new jobs (12% growth) 2012 – 20 new jobs (15% growth)
145 NEW JOBS IN 2012
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SITE-SPECIFIC ANALYSIS OF INDUSTRIAL SITES IN TACOMA
A REA
Port: Wheeler Osgood Port: Commencement Bay Port: 12 th Street
South Tacoma:
Pinnacle Foods (Nalley’s) South Tacoma: BNSF South Tacoma: Super Cell
TOTAL N ET U SABLE A CRES
17 6 35 22 75 6
161
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SITE LOCATIONS
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SITE-SPECIFIC ANALYSIS
All sites have good transportation access and can accommodate minimum 50,000 sf buildings
Most sites have minimal environmental liability risk
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SITE-SPECIFIC ANALYSIS
Sites are not development-ready
Substantial infrastructure investment required in 4 sites
Additional site preparation work on 3 sites
Other site challenges include easements, existing rail or future roadway that would bisect property
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REGIONAL ANALYSIS OF INDUSTRIAL BUILDINGS/SITES
C RITERIA T ACOMA Land Area Building Size (For Sale/ Lease)
50.1 sq. mi.
Existing
1,012 sf – 162,650 sf
Proposed
0 sf
F REDERICK SON
11.6 sq. mi.
Existing
1,200 sf – 181,066 sf
Proposed:
1,478,000 sf
D U P ONT
5.9 sq. mi.
Existing
23,150 sf – 630,115 sf
Proposed
1,838,386 sf
P UYALLUP
13.9 sq. mi.
Existing
905 sf – 580,180 sf
Proposed
544,683 sf
F IFE
5.7 sq. mi.
Existing
1,200 sf – 501,250 sf
Proposed
1,343,528 sf
S UMNER K ENT V ALLEY
28.6 sq. mi.
7.5 sq. mi.
Existing
1,064 sf – 521,674 sf
Proposed
1,477,489 sf
Existing
1,040 sf – 1,600,000
Proposed
371,417 sf
Vacancy Rate Building Age (For Sale) Industrial Land (For Sale) Building Lease
8.1% 15/76 – post 1969 4/15 – post 1999 11.6% 7 – post 1969 4/7 – post 2000 24 acres $1.32/sf $27.00/sf 620 acres $4.80/sf $9.30/sf 0.7% 1/1 post 2008 352 acres $6.60/sf $7.26/sf 9% 45/63 – post 1969 2/45 – post 1999 239 acres $3.00/sf $30.00/sf 10% 36/37 – post 1969 1/36 – post 1999 15.8% 26/30 – post 1969 22/26 – post 1999 9.2% 112/128 – post 1969 6/112 – post 1999 126 acres $3.00/sf $27.12/sf 27 acres $3.84/sf $7.80/sf 142 acres $2.40/sf $19.44/sf
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REGIONAL ANALYSIS
Tacoma is the largest, most urbanized area, but has least industrial land product currently available
Many of Tacoma’s industrial structures are obsolete
80% (61) of Tacoma’s available industrial buildings constructed pre-1969 Nearly 85% (22) of Sumner’s available industrial buildings constructed post-1999
No building developments are proposed in Tacoma
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REGIONAL ANALYSIS
South Puget Sound Industrial Acres Listed for Sale
Frederickson DuPont Puyallup Kent Valley Fife Sumner Tacoma Acres 0 100 200 300 400 500 600 700
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REGIONAL ANALYSIS
Buildings Constructed Pre-1969 Listed for Sale
Tacoma Puyallup Kent Valley Sumner Fife DuPont Frederickson 0 10 20 30 40 50 60 70 Number
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REGIONAL ANALYSIS
DuPont Frederickson Sumner Fife Puyallup Kent Valley Tacoma
New Industrial Building Inventory Proposed
Square Feet 0 500 000 1 000 000 1 500 000 2 000 000
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TACOMA’S OPPORTUNITIES TO ATTRACT INDUSTRIAL INVESTMENT
Proximate to growing markets in Puget Sound, Pacific NW, California, China and other areas
Local industrial sites that can be made available for development have excellent transportation access
I-5, SR-509 and SR-7
BNSF, UP and Tacoma Rail lines
Adequate backbone utility infrastructure in place
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TACOMA’S OPPORTUNITIES TO ATTRACT INDUSTRIAL INVESTMENT
Qualified local labor pool
Very competitive electric rates and high reliability
Extraordinary quality and quantity of water available
Supportive business climate and incentives
Job tax credits Financing and energy efficiency rebates
Business-friendly development process
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TACOMA’S CHALLENGES TO ATTRACT INDUSTRIAL INVESTMENT
Lack of suitable, development-ready sites
Antiquated buildings that require modernization
Investment needed in site infrastructure
Few resources and incentives to compete globally
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RECOMMENDATIONS
Proactively enable existing companies to expand and support those in jeopardy of relocating in cooperation with EDB and Chamber
Partner with Port to sustain growth of Tacoma companies
Establish Industrial Business Association to retain, expand and attract companies
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RECOMMENDATIONS
Solve development challenges collaboratively
North access road to BNSF site Redevelopment of former Nalley’s site
Work with TPU to identify best industrial buildings for energy efficiency upgrades
Market development sites, competitive utility rates, system reliability and business incentives
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DISCUSSION
Questions?
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