Enhancing competitiveness
TACOMA INDUSTRIAL DISTRICTS ROLE IN THE LOCAL ECONOMYEllen Walkowiak and Robert LevinCommunity & Economic Development Department
November 2012
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1INDUSTRIAL DISTRICT LOCATIONS2
2INDUSTRY PROFILEIndustrial Classification# Establishments# Workers and % of Tacomas WorkforceNAICS 23Construction581,110 (1.2%)NAICS 31-33Manufacturing2026,287 (6.7%)NAICS 42Wholesale Trade1042,205 (2.3%)NAICS 48-49Transportation & Warehousing702,620 (2.8%)TOTAL43412,222 (13%)Source: WA-ESD33WHY INDUSTRIALManufacturing 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
44MAJOR EMPLOYERS (50 EMPLOYEES)5
5MAJOR EMPLOYERS50 150 Employees (Total of 43 firms)Carlson FormetecGlobe Machine Manufacturing
151 250 Employees (Total of 11 firms)Concrete Technology CorporationGeneral Plastics Manufacturing
251 500 Employees (Total of 3 firms)Bradken FoundryManke Lumber Company
>500 Employees (1 firm)Simpson Investment Company
66PRODUCT INNOVATIONNanomaterials (GR Silicates)
Ultra-high molecular weight polyethylene (Polymer Industries worlds 3rd largest producer)
Ion-charged water to treat inflammatory diseases (Revalesio)77INDUSTRIAL STATISTICS$13 million paid annually to City in B&O taxes
Schnitzer Steel Industries Inc. and U.S. Oil Refining among Citys 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
88Recent ExpansionsCompanyProduct2011-2012 ExpansionBradken Foundry3021 S. WilkesonSteel and iron castingsTotal Jobs: 393$7 million building/equipment2012 44 new jobs (13% growth)In 2013 26 new jobs (7% growth)Targa2628 Marine View DrivePetroleum productsTotal Jobs: 45$35 million2012 5 new jobs (11% growth)U.S. Oil Refining3001 Marshall AvenuePetroleum productsTotal Jobs: 180$15 million rail unload facilityFred Tebb & Sons1906 Marc Street (Port)SawmillTotal Jobs: 762012 16 new jobs (27% growth)General Plastics Mfg. Co.4910 Burlington WayFlexible and rigid foamTotal Jobs: 165 2012 11 new jobs (7% growth)Globe Machine Mfg.701 E. D StreetMachinery and systems; materials handlingTotal Jobs: 122 2012 30 new jobs (33% growth)Precision Machine Works1952 Milwaukee WayMetal structural componentsTotal Jobs: 184 2012 19 new jobs (12% growth)Tucci & Sons3601 Taylor WayAsphaltTotal Jobs: 1502012 20 new jobs (15% growth)TOTALTotal Jobs: 1,315 145 NEW JOBS IN 201299Site-Specific Analysis of INDUSTRIAL Sites in TacomaAreaNet Usable AcresPort: Wheeler Osgood17Port: Commencement Bay6Port: 12th Street35South Tacoma: Pinnacle Foods (Nalleys)22South Tacoma: BNSF75South Tacoma: Super Cell6TOTAL1611010SITE LOCATIONS11
11Site-Specific AnalysisAll sites have good transportation access and can accommodate minimum 50,000 sf buildings
Most sites have minimal environmental liability risk
1212Site-Specific AnalysisSites 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 property1313Regional Analysis of INDUSTRIAL buildings/sitesCriteriaTacomaFrederick-sonDuPontPuyallupFifeSumnerKent ValleyLand Area50.1 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 sfExisting1,200 sf 181,066 sfProposed: 1,478,000 sfExisting 23,150 sf 630,115 sfProposed 1,838,386 sfExisting 905 sf 580,180 sfProposed 544,683 sfExisting 1,200 sf 501,250 sfProposed 1,343,528sfExisting 1,064 sf 521,674 sfProposed 1,477,489 sfExisting 1,040 sf 1,600,000 Proposed371,417 sfVacancy Rate8.1%11.6%0.7%9%10%15.8%9.2%Building Age (For Sale)15/76 post 19694/15 post 19997 post 1969
4/7 post 20001/1 post 200845/63 post 19692/45 post 199936/37 post 19691/36 post 199926/30 post 196922/26 post 1999112/128 post 19696/112 post 1999Industrial Land (For Sale)24 acres620 acres352 acres239 acres126 acres27 acres142 acresBuildingLease$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/sf1414Regional AnalysisTacoma is the largest, most urbanized area, but has least industrial land product currently available
Many of Tacomas industrial structures are obsolete80% (61) of Tacomas available industrial buildings constructed pre-1969Nearly 85% (22) of Sumners available industrial buildings constructed post-1999
No building developments are proposed in Tacoma
1515Regional Analysis1616Regional Analysis1717Regional Analysis1818Tacomas Opportunities to Attract INDUSTRIAL InvestmentProximate 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
1919Tacomas Opportunities to Attract INDUSTRIAL InvestmentQualified 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
2020Tacomas challenges to Attract industrial InvestmentLack of suitable, development-ready sites
Antiquated buildings that require modernization
Investment needed in site infrastructure
Few resources and incentives to compete globally
2121recommendationsProactively 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
2222recommendationsSolve development challenges collaborativelyNorth access road to BNSF siteRedevelopment of former Nalleys site
Work with TPU to identify best industrial buildings for energy efficiency upgrades
Market development sites, competitive utility rates, system reliability and business incentives
2323DISCUSSIONQuestions?2424