Building Philadelphia's Modern Industrial Economy

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Objective: This case study analyzes how the Philadelphia Industrial Development Corporation (PIDC) worked with a consulting group that included ICIC to identify available industrial space throughout the city of Philadelphia and match that space to industries with the potential to successfully add or retain jobs in the city.

Main Topic: Building a modern industrial economy
Sub Topic: Cluster-based economic development
Sub-Sub Topic: Led by quasi-public agency

Geography: Philadelphia
Major Participants: Philadelphia Industrial Development Corp.; AECOM; Interface Studio; ICIC

Background: Philadelphia’s industrial sector, including warehouse, distribution, repair and advanced manufacturing operations, accounts for 20% of the city’s employment—or 104,300 jobs—but was increasingly being encroached upon by other uses, leading to re-zoning pressure on industrial land.

The challenge: With the help of ICIC, PIDC learned that by focusing on key industry clusters within advanced manufacturing, traditional manufacturing, and transportation, the city had the opportunity to create 22,000 industrial jobs over the next 20 years—so long as they were able to identify 2,400 acres of land suitable for industrial development.

How it happened: The Philadelphia Industrial Development Corporation worked with the project team to determine the avenues for expanding and retaining industry in the city. 89% of the city’s industrial land (15,804 acres) was surveyed to develop a competitive assessment and growth strategy for the industrial sector. Philadelphia was compared to six other peer cities in order to ascertain Philadelphia’s industrial competitive advantages and areas for improvement. Consultants identified 2,445 acres of land suitable for future development within Philadelphia’s 15 industrial districts.

Results for Philadelphia Economy: Philadelphia is evaluating and rewriting its industrial zoning categories as a first step in the city's updated comprehensive plan. As part of the project, the city is also identifying which industrial land to intensify and what areas to transition to alternative uses. In June 2010, PIDC acquired a 20-acre industrial site in the Lower Northeast which was, at the end of 2010, ready for industrial development.

Additionally, industrial firms have been relocating to the Philadelphia Navy Yard, an area the city has identified as ripe for industrial development. For instance, Liberty Property Trust and Synterra Partners are developing a 200,000 sq. ft. flex industrial complex next to TBC. This project broke ground in September 2011. Part of the facility will house GlaxoSmithKline, a pharmaceutical, biologics, vaccine and consumer healthcare company.

Lessons Learned: As is the case in other cities as well, Philadelphia’s industrial sector faced constant pressure from those seeking to use land for residential and non-commercial purposes.

Specifically in Philadelphia, it became clear that to truly promote an industrial strategy that aligns with the city’s assets, job retention was critical. Although traditional manufacturing has declined nationally, there are certain workforce assets in Philadelphia, including specialized cutters and sewers who serve the apparel industry, making this type of industrial work a niche for Philadelphia in the face of broader national decline.

Remaining Challenges: As manufacturing processes become more technical, workforce development initiatives are needed to help local residents transition from a traditional manufacturing economy to advanced manufacturing, especially if they hope to to capture jobs in biotechnology, pharmaceuticals and medical devices. This same challenge holds true in other industrial cities.

The city must also overcome the misconception that because today’s industrial economy has become so diversified that industry as a whole is less prevalent. In reality, industry is still vital to Philadelphia’s modern economy and must be supported as such.  

Last Updated on February 2nd, 2012

TAGS: industrial | economic development | manufacturing | land use | philadelphia | quasi-public | jobs | workforce development | cities | cluster