Good afternoon, Chair Farías and members of the committee and thank you for holding this
hearing today. I am here representing Brooklyn Borough President Antonio Reynoso, who represents
six of the city’s Industrial Business Zones (IBZs). Manufacturing retention in the borough and
citywide is one of the Borough President’s biggest priorities, and he thanks the Council for
initiating the NYC Industrial Plan, which is now underway.
While we look forward to that report providing comprehensive and updated data, there is a lot we
already know about why a thriving industrial sector is crucial for our city. Manufacturing
generally, provides living wages with low barriers to entry, creating quality job opportunities for
those who may not be able to find them otherwise. These jobs have allowed generations of New
Yorkers without advanced degrees, immigrants, the formerly incarcerated, and others to stay and
support their families in New York City.
But manufacturing isn’t just the city’s past, it can also be the city’s future. Our office’s
Comprehensive Plan for Brooklyn calls on us to leverage the borough’s waterfront, industrial areas,
and freight rail infrastructure to simultaneously shift the borough toward a future with more green
industrial jobs, fewer trucks on the road, and a forward-looking role in building the green
economy.
With a thriving manufacturing sector, we can, for example, create the components needed to support
the supply chain for offshore wind and distributed energy resources such as solar and battery
storage. We can help our local health care institutions source what they need locally and train the
next generation of New Yorkers to create those products. And we can incubate local
businesses that will become the ubiquitous brands of tomorrow.
Yet outside pressures continue to threaten our manufacturing zones. Rezoning changes have led to a 5% decrease in land zoned for manufacturing since 2010, equivalent to a loss of 1522 acres, or 1122 football fields. This has contributed to the manufacturing vacancy rate reaching levels as low as 4.6% this year, compared to 12% for retail and 23% for office space. Manufacturing businesses have unique needs; for example, unlike retail and office, many industrial businesses cannot locate outside of M zones. Yet in many of the IBZs, they are forced to compete for space with businesses that can, such as nightlife establishments, restaurants, galleries, and other non-industrial uses.
This is why the Industrial Business Solutions Providers (IBSPs) are so crucial. Many of these groups are here today, so you’re going to hear a lot more about what they do. But some of the most important services they provide include:
- Helping businesses find space locally, either for their initial location or when they need to expand;
- Connecting businesses to government incentives and helping them navigate complicated application processes.
- Assisting businesses with navigating day-to-day issues they might face, from permits, to utilities, to graffiti removal; and
- Connecting businesses to critical financing opportunities, such as grants and loans.
Borough President Reynoso supports the Industrial Jobs Coalitions’ budget ask for FY 2026, including: a 50% increase in IBSP funding, indexing this funding to inflation, and shifting the funding from a 1-year to a 3-year contract. This funding increase is a smart investment, especially because the IBSPs can leverage other public and private funding sources to make sure every dollar goes further. Moreover, a recent study found that for every $1 spent on manufacturing, there is a total impact of $2.68 to the overall economy, the highest of any economic sector. By investing in ISBPs, we are investing in our economy, and in turn in a diverse, green, and thriving future for our city.
Thank you again for your attention to this issue. Borough President Reynoso looks forward to partnering with you, with the Council’s M Zone Coalition, and with other City agencies to strengthen our industrial sector.
