How New York City Can Prepare for New Manufacturing by 2024
During the course of the W2NYC Global Industry Challenge program, international founders met with local and global business representatives to discuss the most urgent topics related to new manufacturing in NYC.In partnership with the New York City Economic Development Corporation (NYCEDC), New York International invited US and international ventures to NYC between May 12 and May 14 in order to engage the New York new manufacturing community and provide insightful input.One of the highlights during the action-packed three-day event came on day two, where more than 50 leaders converged to participate in a range of round table discussions. Members were divided into four groups where they addressed challenges and problem-solving approaches meant to boost discourse on new manufacturing opportunities.With the goal of creating policy recommendations via a thought paper as well as initiating a dialogue between big and small companies in the space, the discussions centered around four aspects of doing business in NYC as a manufacturer or manufacturer-enabler: Facilities, Location and Cost; Talent and Education; Networks and Community; Financing.New York City is already the global home of applied science, but it is important to always be looking ahead to see how the City can stay at the top of new manufacturing in 2024. Here are some highlights from the discussion on challenges, goals, and the future in new manufacturing in NYC:
Hardware startups struggle in finding appropriate spaces
Finding work space in New York City is a challenge, especially for international companies that are unfamiliar with the city’s various neighborhoods and communities. Although new manufacturing takes up less space than traditional manufacturing, it is still a space-intensive industry; there is lack of spaces in NYC that can accommodate the needs of these firms. Smaller locations are often not available for hardware companies while emerging new spaces such as the Liberty View Industrial Plaza in Brooklyn are too large for startup ventures. This makes it even more difficult for new manufacturing startups to erect their facilities.In addition, many landlords convert production spaces into non-industrial spaces and tenant improvement expenditures are high. Thus, local advice by the NYC government regarding neighborhoods and properties is desirable.As transportation goes hand in hand with location, there is need for an extended infrastructure regarding public transportation. This might, however, not only be a task for the City but also for the companies themselves, especially to those that want to operate 24/7. Examples like Quirky show that company organized bus transport can help get employees to work and back home safely and conveniently.Another recommendation is that the setup of more Business Improvement Districts may be a future goal. BDIs represent a public/private partnership in which property and business owners elect to make a collective contribution to the maintenance, development, and promotion of their commercial districts.
The biggest need: People with diverse skill sets
When it comes to talent acquisition, versatility is the new keyword; future leaders will need to have a plethora of skills to meet new manufacturing demands. Finding these types of employees is a big challenge, especially in New York City where funding can be hard to come by. In Silicon Valley many of the startups have larger investments and can afford to pay top talent higher salaries.However, despite not being able to compete with the Valley’s salary offerings, there is a shift toward people preferring to work for companies with collaborative and creative atmospheres - even if the salary is lower. If companies can focus on investing in employees, letting them grow within the company, and showing an interest in their further development will increase employee loyalty.Education will need to keep up with the fast-changing field as well; a curriculum change could be beneficial as a lot of the curriculum in computer science and engineering is outdated. As new manufacturing grows, material science and material thinking will increase in importance. The city which can embrace this quickly will become a source for the next generation of talent.Another way to connect talented people with the companies that need them is to get companies more involved with the schools. Hackathons, where students who are interested and passionate about programming - or in “making” - can congregate to use their skills and where companies can come see local talent and potential hires are strongly recommended.
Quality networks can bridge the gap between small and big companies
Startups in the NYC area often face the problem of how to get connected with potential partners or investors. As most startup founders are missing a clear contact point, digital platforms or networks with industrial associations seem a to be possible solution.One of the most popular ways for new manufacturing startups to meet is via organized Meetups in the city. However, in contrast to the many young entrepreneurs attending, representatives of big companies are rarely in attendance and thus most Meetups end without results or follow-ups. Quality networks and events like those put on by W2NYC could bridge this gap.
Another goal of having a strong network is to find the right employees. Currently, finding prospective employees is not easy, especially for international startups. This points back to the issues in education where much of today’s training is not detailed enough, so it is difficult to hire people straight out of university. This could be solved by a boost in collaboration between universities and companies; creating strategic partnerships and curriculum-based internships would help ensure the correctly trained people are available and accessible when startups are looking to hire.
Demand for crowd funding support
Financing an idea or a growing business can be a big challenge. Targeting the right investors in the first place and finding out who specializes in what area is crucial. Investment is a very small world that is largely relationship-driven, so it is important to contact potential VCs with a qualified introduction by someone they know.A future role for the government could be to act as a facilitator for public-private partnerships. Meanwhile, crowdfunding is becoming more and more popular as customers can help finance new manufacturers.But there is a demand for support. As companies take early crowd funding success to the city, it is important for them to get financial funds on reasonable terms to push out the first manufacturing run. This feeds back growth and jobs to the ecosystem.Possible future changes in funding may also take place due to AngelList (a platform for startups to meet investors, talent and incubators), content creation and pre-sell engagement.
This discussion was able to take place thanks to the participation of people from following institutions – we thank them for their support and contribution: 3D Heights, 3D Hubs, 3D Systems, Adhere Tech, Australian Trade Commission, B-Industrial, BMW, Cisco, CUNY, Cornell, Cornell-Technion, DreamIt Ventures, Google, Grand St,. IndieGogo, Intesis, Invest in Catalonia, KISI, Long Island City Partnership, MotionPortrait, NY Designs, NYC Media Lab, openPicus, O’Reilly, Plexi-craft, Pratt Center, Qualcomm, RepRapBCN, Seebo, SensingTex, Senvol, Shapeways, Siemens, Sols, Southwest Brooklyn Industrial Development Corporation, Taiwan Green Trade Project, TechShop , Texas Instruments, Think Eco, Time Warner Cable, Tomorrow Lab, Xerox