tacoma industrial districts’ role in the local economy ellen walkowiak and robert levin community...
TRANSCRIPT
1
TACOMA INDUSTRIAL DISTRICTS’ ROLE IN THE LOCAL ECONOMY
Ellen Walkowiak and Robert Levin
Community & Economic Development Department
November 2012
3
INDUSTRY PROFILE
INDUSTRIAL CLASSIFICATION
# ESTABLISHMENTS
# WORKERS AND % OF TACOMA’S
WORKFORCE
NAICS 23Construction 58 1,110 (1.2%)
NAICS 31-33Manufacturing 202 6,287 (6.7%)
NAICS 42Wholesale Trade 104 2,205 (2.3%)
NAICS 48-49Transportation & Warehousing 70 2,620 (2.8%)
TOTAL 434 12,222 (13%)
Source: WA-ESD
4
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
6
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
7
PRODUCT INNOVATION
Nanomaterials (GR Silicates)
Ultra-high molecular weight polyethylene (Polymer Industries – world’s 3rd largest producer)
Ion-charged water to treat inflammatory diseases (Revalesio)
8
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
9
RECENT EXPANSIONS
COMPANY PRODUCT 2011-2012 EXPANSION
Bradken Foundry3021 S. Wilkeson
Steel and iron castingsTotal Jobs: 393
$7 million building/equipment2012 – 44 new jobs (13% growth)In 2013 – 26 new jobs (7% growth)
Targa2628 Marine View Drive
Petroleum productsTotal Jobs: 45
$35 million2012 – 5 new jobs (11% growth)
U.S. Oil Refining3001 Marshall Avenue
Petroleum productsTotal Jobs: 180 $15 million rail unload facility
Fred Tebb & Sons1906 Marc Street (Port)
SawmillTotal Jobs: 76 2012 – 16 new jobs (27% growth)
General Plastics Mfg. Co.4910 Burlington Way
Flexible and rigid foamTotal Jobs: 165 2012 – 11 new jobs (7% growth)
Globe Machine Mfg.701 E. D Street
Machinery and systems; materials handlingTotal Jobs: 122
2012 – 30 new jobs (33% growth)
Precision Machine Works1952 Milwaukee Way
Metal structural componentsTotal Jobs: 184 2012 – 19 new jobs (12% growth)
Tucci & Sons3601 Taylor Way
AsphaltTotal Jobs: 150 2012 – 20 new jobs (15% growth)
TOTAL Total Jobs: 1,315 145 NEW JOBS IN 2012
10
SITE-SPECIFIC ANALYSIS OF INDUSTRIAL SITES IN TACOMA
AREA NET USABLE ACRES
Port: Wheeler Osgood 17
Port: Commencement Bay 6
Port: 12th Street 35
South Tacoma: Pinnacle Foods (Nalley’s) 22
South Tacoma: BNSF 75
South Tacoma: Super Cell 6
TOTAL 161
12
SITE-SPECIFIC ANALYSIS
All sites have good transportation access and can accommodate minimum 50,000 sf buildings
Most sites have minimal environmental liability risk
13
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
14
REGIONAL ANALYSIS OF INDUSTRIAL BUILDINGS/SITES
CRITERIA
TACOMA
FREDERICK-SON DUPONT PUYALLU
PFIFE SUMN
ER
KENT VALLE
Y
Land Area 50.1 sq. mi. 11.6 sq. mi. 5.9 sq. mi. 13.9 sq. mi. 5.7 sq. mi. 7.5 sq. mi.28.6 sq.
mi.
Building Size (For Sale/Lease)
Existing 1,012 sf – 162,650 sfProposed
0 sf
Existing1,200 sf – 181,066 sfProposed: 1,478,000 sf
Existing 23,150 sf – 630,115 sfProposed
1,838,386 sf
Existing 905 sf –
580,180 sfProposed 544,683 sf
Existing 1,200 sf – 501,250 sfProposed 1,343,528
sf
Existing 1,064 sf – 521,674 sfProposed 1,477,489
sf
Existing 1,040 sf – 1,600,000 Proposed371,417 sf
Vacancy Rate 8.1% 11.6% 0.7% 9% 10% 15.8% 9.2%
Building Age (For Sale)
15/76 – post 1969
4/15 – post 1999
7 – post 1969
4/7 – post 2000
1/1 post 2008
45/63 – post 1969
2/45 – post 1999
36/37 – post 1969
1/36 – post 1999
26/30 – post 196922/26 –
post 1999
112/128 – post 1969
6/112 – post 1999
Industrial Land (For Sale)
24 acres 620 acres 352 acres 239 acres 126 acres 27 acres 142 acres
BuildingLease
$1.32/sf - $27.00/sf
$4.80/sf - $9.30/sf
$6.60/sf - $7.26/sf
$3.00/sf - $30.00/sf
$3.00/sf - $27.12/sf
$3.84/sf - $7.80/sf
$2.40/sf - $19.44/sf
15
REGIONAL ANALYSIS
Tacoma is the largest, most urbanized area, but has least industrial land product currently available
Many of Tacoma’s industrial structures are obsolete80% (61) of Tacoma’s available industrial buildings
constructed pre-1969Nearly 85% (22) of Sumner’s available industrial buildings
constructed post-1999
No building developments are proposed in Tacoma
16
REGIONAL ANALYSIS
Tacoma
Sumner
Fife
Kent Valley
Puyallup
DuPont
Frederickson
0 100 200 300 400 500 600 700
South Puget Sound Industrial Acres Listed for Sale
Acres
17
REGIONAL ANALYSIS
Frederickson
DuPont
Fife
Sumner
Kent Valley
Puyallup
Tacoma
0 10 20 30 40 50 60 70
Buildings Constructed Pre-1969 Listed for Sale
Number
18
REGIONAL ANALYSIS
Tacoma
Kent Valley
Puyallup
Fife
Sumner
Frederickson
DuPont
0 500,000 1,000,000 1,500,000 2,000,000
New Industrial Building Inventory Proposed
Square Feet
19
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 accessI-5, SR-509 and SR-7BNSF, UP and Tacoma Rail lines
Adequate backbone utility infrastructure in place
20
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 incentivesJob tax creditsFinancing and energy efficiency rebatesBusiness-friendly development process
21
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
22
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
23
RECOMMENDATIONS
Solve development challenges collaborativelyNorth access road to BNSF siteRedevelopment 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