EIP Final Lowres

Emerging Industries Project
Introduction
We are pleased to share with you the first three chapters of the Emerging Industries Project:
Sustainable Manufacturing, Construction & Demolition Waste Recycling, and Energy Efficiency and
Building Retrofits. Each industry was selected based both on its potential to provide quality employment
to people with barriers to employment and its potential for significant growth in our region.
Because these sectors are still relatively small, the Sustainable Business Network of Greater Philadelphia and
Green Economy Task Force struggled to find research on the needs of these companies in terms of workforce,
policy, and funding. Most studies to date had focused too broadly on all businesses within the clean energy
economy and had not given people on the ground enough tangible, industry-specific evidence to either
capitalize on opportunities or address remaining barriers to growth.
The Emerging Industries Project is our methodology for collecting data directly from local businesses, building
productive relationships between job trainers and employers, and informing our collective work to grow the green
economy. Like the Green Economy Task Force itself, the Emerging Industries Project is informed and driven by
four essential elements of a robust and equitable green economy: Policy, Funding, Job Training, and Employer
Commitment. The process for each chapter includes a public meeting or forum; targeted interviews; business/
employer roundtables; site visits; working groups; and a final policy paper or industry report. Each chapter aims
to give Stakeholders of the Green Economy Task Force a foundation from which to develop industry-focused
strategies for the road ahead.
Just as importantly as the process, this is a unique project in its deep commitment to the engagement of all players
in Philadelphia’s green economy. While businesses are our primary customer and the Sustainable Business Network
the primary engine, the Emerging Industries Project is built on the foundation of hundreds of invested citizens and
organizations. This foundation goes back well beyond the first meeting of the Green Economy Task Force in February
2008, but is held together today by the dedication and expertise of each individual Stakeholder and the agencies
and missions they represent.
We would like to give a special thanks to the businesses who contributed their expertise to our work, to the talented
Elliott Gold, author of the Sustainable Manufacturing and Construction & Demolition Waste Recycling papers, and to
Elizabeth Guman and Ingrid Boucher of Strategy Arts who conducted the Energy Efficiency and Retrofits Employer
Roundtables and dialogue with job trainers.
We hope the Emerging Industries Project will be an ongoing and valuable resource to you and a replicable
methodology for our partners across the country.
Yours in Prosperity & Equality,
Leanne Krueger-Braneky
Executive Director , Sustainable Business Network of Greater Philadelphia
Kate Houstoun
Green Jobs Coordinator, Sustainable Business Network of Greater Philadelphia
Green Economy Task Force building a green economy for all philadelphians • • • • • • • • 1
Redeveloping Local
Sustainable Manufacturing
Infrastructure in Philadelphia
e l l i o tt g o l d
EMERGING
Industries Project
Green Economy Task Force

building a green economy for all philadelphians
Emerging Industries Project | Redeveloping Local Sustainable Manufacturing Infrastructure in Philadelphia
Redeveloping Local Sustainable Manufacturing

t h i s r e p o r t w a s w r i tte n b y e l l i o tt g o l d , a n d h e w o u l d l i k e t o
a c k n o w l e d ge t h e f o l l o w i n g i n d i v i d u a l s w i t h o u t w h o m t h i s p a p e r
w o u l d n o t h a v e b ee n p o s s i b l e .
Working Group
Andrew Rachlin Office of the Deputy Mayor for Planning & Economic Development
Karen Randal Philadelphia Department of Commerce
Alice Cathcart Philadelphia Industrial Development Corporation
Ned Rauch-Mannino Urban Industry Initiative
Phil Hopkins Select Greater Philadelphia
Manufacturers
Andi Levin Penn Scale Manufacturing Co.
Jaime Salm MIO
Peter Windle Windle-Excel Machine Solutions, Inc.
Tim McDonald OnionFlats; Blox
James Keba Sandmeyer Steel
John Mullins Sun & Earth, Inc
Steve Wark Aerzen USA
Melissa Parker Tymel Style LLC
Matt Pappajohn Globe Dye Works; Pappajohn Woodworking
Interviews
Kevin Gallagher Pennsylvania Department of Environmental Protection
Linda Thomson Johnstown Area Regional Industries
Steve Jurash Urban Industry Initiative
Steve Herzenberg Keystone Research Center
Barbara Allen Philadelphia Workforce Development Corporation
Nick Frontino Philadelphia Industrial Development Corporation
David Wilson Philadelphia Managing Director’s Office
Mary Stitt Philadelphia Department of Procurement
Hugh Ortman Philadelphia Department of Procurement
Wendy Ardagna Community College of Philadelphia
Joe Welsh Collegiate Consortium
Joe Houldin Delaware Valley Industrial Resource Center
Tony Girafalco Delaware Valley Industrial Resource Center
Pat Eiding AFL-CIO
Natalia Olson-Urtecho Ecolibrium Group and Green Economy Task Force
T h i s r e p o r t w a s l a u n c h e d w i t h a p u b l i c f o r u m o n t h e p o te n t i a l o f
s u s ta i n a b l e m a n u f a c t u r i n g i n o u r r eg i o n . T h e a u t h o r w o u l d l i k e t o
t h a n k t h e P h i l a d e l p h i a M ate r i a l s P r o j e c t s p o n s o r s a n d p r e s e n te r s .
Philadelphia Materials Project Sponsors

Andrew Dahlgren Green Village Philadelphia
Lindsay Gilmour Green Village Philadelphia
Todd Baylson The Green Perspective
Innovation Philadelphia
Wharton Small Business Development Center Environmental Management Assistance Program
Philadelphia Materials Project Presenters

Andy Levin Penn Scale Manufacturing Co.
Jaime Salm MIO
Kevin Lyons Rutgers University
Ned Rauch-Mannino Urban Industry Initiative
Barry Miller Delaware Valley Industrial Resource Center
Mark deGrandpre Benjamin Franklin Technology Partners
Mike Cooper Philadelphia Industrial Development Corporation
Frank Baldassarre e3bank
To learn more about the Emerging Industries Project and this report:
contact the Sustainable Business Network of Greater Philadelphia
www.sbnphiladelphia.org
(215) 922-7400
3 • • • • • • • • building a green economy for all philadelphians Green Economy Task Force
Executive Summary
CON T E X T
• This is not 20th century manufacturing
° Manufacturing of raw goods and cheap commodities that can be mass produced inexpensively
have gone overseas – cost of labor so cheap in these markets that we cannot compete,
can’t competitively produce these kinds of goods anymore
° Much of the manufacturing that remains is now the high-value

added production of specialized goods, requiring sophisticated
equipment and employees
95% of all
° Provides good, living-wage jobs (average wage found
manufacturers
to be $49,000 in 2007 according to Department of Labor) in Philadelphia
° Higher value-added production results in higher margins, provides are small – 100
high economic output, serves as integral piece of local economy
employees or fewer
° 95% of all manufacturers in Philadelphia are small —
100 employees or fewer (Urban Industry Initiative)
• Manufacturing still present within and integral to the Philadelphia economy
° $33.6 million in business privilege taxes contributed

100
by the manufacturing sector in 2007 trails only the
$90.3
$90.3 million and $55.7 million contributed by the 80
professional services and real estate sectors, respectively
60 $55.7
(Philadelphia Revenue Department) professional services
manufacturing
40
° Manufacturing sector remains one of the top contributors $33.6
real estate
of wage taxes, accounting for nearly 8% of all wage tax 20
revenues in fiscal year 2009 0

(Philadelphia Revenue Department)
° Provides 28,000 jobs (Bureau of Labor Statistics) 2007 Business Privilege Taxes in millions
Philadelphia Department of Revenue
PO T E N T IAL
• Opportunities for redeveloping manufacturing sector through lens of local and sustainable
° What is it: two potentially overlapping categories of manufacturers
– Manufacturers producing new green products utilized in the reduction of others’ carbon footprints,
or in the creation of alternative energy generation
– Manufacturers greening their own operations and processes to achieve higher levels of energy efficiency
and conservation. Indirectly contribute to the creation of new green-collar jobs, including the consultants
hired to conduct energy assessments, laborers employed for the retrofits and weatherization projects,
and the manufacturers producing the new green products utilized
° Current & projected growth
– Between 1998 and 2007, clean energy economy jobs grew by Between 1998
9.1 percent compared to the 3.7 percent overall job-growth in
the United States (Pew Clean Energy Economy Report) and 2007, clean
– Pew Charitable Trust’s 2009 report on the Clean Energy Economy energy economy
revealed that the fastest growing category of the clean energy economy
jobs grew by 9.1 %
was Environmentally Friendly Production which grew by 67% from
1998 to 2007; the number of patents in wind, geothermal, and compared to
hydro technologies grew significantly in the past 10 years
the 3.7 % overall
– Increasing amount of private-sector capital: 15 percent of all global
venture capitalism was directed to clean energy investments in 2008,
job-growth in
an increase from the 9 percent invested just one year earlier (Pew) the United States.
Pew Clean Energy Economy Report
– American businesses in the clean economy received $5.9 billion
in venture capitalism in 2008, which represented a 48 percent increase
from the 2007 figures (Pew)
° Current alignment of political resources and attention will drive both the supply and demand sides of the market
– The rising cost of fuel combined with policies and subsidies for consumers to reduce their energy usage
increases demand for energy efficient equipment and eco-friendly products
– Policies creating financial incentives (ARRA $21B in tax incentives for renewable energy manufacturers;
$30B direct spending on clean energy programs) and establishing standards in renewable energy
portfolios, energy efficiency, and vehicle emissions will drive demand for energy efficient products
– Subsidies and tax incentives for businesses that reduce their carbon emissions reduce operational
costs for manufacturers
• Strengths — Philadelphia’s current assets and competitive advantages position us well to capitalize
on these developments
° Low cost of living: salaries, rent, storage, transportation
° Location: in the middle of northeastern corridor, direct access to one of the largest,
most concentrated regional economies in the world
° Transportation network: highway, rail, air, sea
° E xisting workforce: important asset from industrial past, provides institutional knowledge
° E xisting infrastructure: industrial properties and facilities for new manufacturers to acquire and grow into;
existing supply chains allow for development of new companies to serve new needs
° E xisting technical assistance orgs and resource providers: PIDC, UII, DVIRC, Commerce
° Power of local economy:
– Philly is the 9th richest city in the entire world in terms of GDP; in 2020 it’s projected to rise to 8th
– That market power translates into strong consumer and institutional demand. $46.8 billion worth of products
and services were procured city-wide, by all sectors and industries combined, in Philadelphia this past year
– Of that amount $10 billion was spent specifically on manufactured goods
– Size of the Philadelphia economy provides a compelling argument for attracting further manufacturing firms,
and offers a platform from which to align efforts and pro-actively develop the local manufacturing sector
Philly is the 9th richest city in the entire world in terms of GDP
Philadelphia as seen from below the Ben Franklin Bridge at sunset
G APS & BARRI E RS
• Sense that manufacturing is dead and no longer viable in Philadelphia – lack of interest and attention limits
needed resources and attention; biggest impact is on workforce
• Current workforce is a strong asset, but it is aging, which is a huge problem for manufacturers future prosperity
° Lack of any interest in manufacturing jobs. Sense that these are same old 20th century manufacturing jobs that
are gone. Affects views of students, parents, and educational institutions
° Two types of skills needed: 1) soft-skills, 2) highly specialized tech. skills to operate 21st century equipment.
Both are just as important, and rely on the presence of each other
• Disinterest in manufacturing also impacting other aspects of sectors infrastructure: historically industrial lands
increasingly becoming residential and commercial. Makes identifying and acquiring properties for manufacturers
harder and more expensive
• Ongoing misunderstandings regarding sustainability, pervading sense that it comes at expense of profitability
• Limited capacities of small manufacturers: small manufacturers are so consumed with day-to-day business
operations they have little time for long-term, strategic activities
° Limited capacities affect abilities to go after new markets, develop new products, research and implement
best practices, and even gather information on programs that could assist them in achieving all of the above
° Need support and convenience
° Also limits manufacturers’ abilities to talk to each other
• Limited capacities of support system: limited by funds and staff capacities, unable to serve all small manufacturers
• Developing through the lens of local & sustainable provides opportunity to grow the sector in a way that will
have the greatest impact economically and environmentally
° Sustainable = profitable
° Sustainability = elimination of waste
° Material waste = economic waste
sustainable = profitable
sustainability = elimination of waste
material waste = economic waste
SOLU T IONS
what do I what’s the what’s the

who am I?
need/want? challenge? solution?
Manufacturer Opportunity to contract Don’t know how; don’t Manufacturing

with major institutions have time to research Procurement Summit
Lack of emphasis on Contracting workshops
local procurement
City emphasis on local &
sustainable procurement
City-wide Procurement
Council
Technical Assistance Don’t know who to go to, Green Clearinghouse
don’t have time to research
Limited capacities TA coordination &
of TA providers targeted funding
Identify opportunities for Don’t know where Market Studies
new green products to opportunities are and
grow my revenues how to go after them
Market Development
Reliable workforce Lack of interest in Marketing program

manufacturing jobs on opportunities in
manufacturing
Lack of workers with Training programs
core-competencies providing soft-skills to
manufacturing workers
Green my operations Don’t know where all the Green Clearinghouse
resources are, don’t have
time to research
Technical Assistance Develop local & sustainable Lack of funding Marketing Program
Provider manufacturing on importance of
local/sustainable
Disconnected from other
manufacturing
resource providers
Design firm Utilize local & sustainable Lack of local Market Studies
manufacturers manufacturing firms
Market Development
Academic & Medical Purchase local & Don’t know who’s out Manufacturing
Institution sustainable products there, what capabilities are Procurement Summit
Contracting workshops
Local Procurement
Workshops
what do I what’s the what’s the
who am I?
need/want? challenge? solution?
City Government Lower city’s Encouraging businesses Marketing Program

environmental impact to green operations on importance of
local/sustainable
manufacturing
Green Clearinghouse
Increase Green Jobs Identifying and exploiting Market Studies

greatest opportunities
Market Development
Emerging Industries
Forums
Emphasis on
manufacturing jobs
Workforce Train workforce for Lack of workforce Aligned efforts to address
Development current industry needs interested in most pressing needs
Agency manufacturing sector
Training programs
providing soft-skills
to manufacturing workers
Lack of funding Cost sharing, collective
fund-raising
Business Attraction Attract manufacturing Sense that marketing is Marketing Program
& Development companies nonexistent in Philadelphia on importance of
Agencies local/sustainable
manufacturing
Develop local industry Need to identify growth Market Studies
supply chains industries and relevant
regional strengths
Market Development
Infrastructures in Philadelphia
Introduction
We have recently entered a new and exciting era of manufacturing in Philadelphia, but few
people have realized it. Gone are the days of the mass production of inexpensive commodities,
providing small margins and low-paying jobs. Many have witnessed the stampede of this work to
foreign countries that can better compete with lower labor costs. The oft-quoted loss of 400,000
of these manufacturing jobs over the last four decades remains a troubling reality, and has
negatively affected the image of manufacturing in Philadelphia. However, what is much more
important and much less acknowledged is the new form of manufacturing that has since begun
to flourish in its place.
Domestic manufacturers can no longer compete on price for mass-produced goods. Instead they’ve begun
to distinguish themselves in terms of the quality production of highly specialized goods, requiring sophisticated
equipment and processes, and well-trained employees. This advanced manufacturing provides greater margins,
higher wages, and much more substantial economic output as a result.
Furthermore, the confluence of current events and emerging technologies around sustainability measures
has opened a window multiplying the potential and profitability for advanced manufacturing. Public policies
and private markets have grown the demand for green products and the availability of green practices. New
components can be created for emerging industries in the renewable energy sector, new products can be
manufactured to improve energy conservation and reduce carbon footprints, and new sustainable
technologies can allow manufacturers to operate more efficiently and profitably overall.
Many cities, across the nation and throughout the world, are witnessing these same developments and
considering the same opportunities. Strategic forethought and follow through will be necessary; however,
thanks to current contexts, Philadelphia is poised particularly well to capitalize on this moment in time.
Much of the city’s infrastructure from its “workshop-of-the-world” past remains, including its workforce, supply
chains, and industrial properties and facilities. Philadelphia’s local economy, recently found to be the 9th richest
city in the world in terms of GDP, exists as an immense demand market to drive local production. Relatively low
cost-of-living makes all phases of business operations competitively affordable. Philadelphia’s location places
it in the center of the Northeastern metropolitan corridors, one of the densest and largest regional economies
in the world; and its existing transportation system provides inexpensive and convenient access to local
and global markets.
This advanced manufacturing already represents Philadelphia’s present and, more importantly, its future
as ongoing developments further situate Philadelphia to continue moving higher up the value-add chain,
providing greater profit margins and better paying jobs. Catching this wave of green manufacturing at the
forefront by intentionally developing local and sustainable manufacturing can allow Philadelphia to prosper
now and well into the future.
As energy costs continue to rise, Philadelphia will become increasingly attractive as a location for advanced
manufacturing. Raw materials and commodities can be inexpensively shipped to Philadelphia, where
specialized manufacturing operations can produce final goods for the surrounding regional market.
The opportunities are real, but so too are the existing barriers; addressing them will require dedicated efforts
from leaders throughout the Philadelphia community, including public officials, non-profit stakeholders, and
industry leaders themselves. The time has come for a fresh, invigorating, and equitable conversation
about local sustainable manufacturing in Philadelphia.
The lack of awareness of the manufacturing sector’s current strengths and future opportunities, and the
enduring misunderstandings around the profitability of sustainability must all be overcome in order to attract
the attention and resources necessary for the sector to thrive. While several organizations already exist to
support manufacturing in Philadelphia, limited funds and staff-capacities hinder their abilities to provide
services to all who would benefit. This is especially problematic considering the limited capacities of
manufacturers themselves.
Philadelphia’s successful small manufacturers are so caught up in day-to-day operations they have little
time to consider decisions for long-term profit. Many of these companies do not have the capacity to dedicate
staff to identifying the most promising new opportunities, researching best practices, weighing investments in
greening operations, and identifying assistance programs. Convenient and comprehensive assistance services
are needed to connect these companies with available programs and opportunities that will most assist their
individual developments and the overall Philadelphia economy as a result. While several organizations already
exist to support manufacturing in Philadelphia, limited funds and staff-capacities hinder their abilities to provide
services to all who would benefit.
The Philadelphia economy is large, but current gaps between the supply and demand markets are keeping it
from leveraging full potentials. Similarly, existing infrastructure presents substantial advantages, but pervasive
doubt about the sector’s revival deters investment. Further, industrial lands are being lost to commercial and
residential uses, and the workforce is aging as pipelines of talented, capable, and interested workers continue
to dwindle. Connecting existing markets will increase current capacities and investing in the sector’s
infrastructure will begin to reverse these trends.
The new developments and existing contexts have opened a window for reinvesting in this
important segment of the local economy. Though the problems to overcome are broad and
complex, they are solvable. Identifying and implementing the appropriate solutions will allow
Philadelphia to reinvest in its manufacturing sector in a targeted manner that will have the
greatest overall impact on the city’s economic and environmental performance.
A Re-emerging Sector
The manufacturing sector has historically been at the core of the Philadelphia economy. In fact,
the city’s economy has been its most vibrant during the times when its manufacturing sector was
at its strongest. Philadelphians acknowledge the city’s workshop-of-the-world past with a tone of
nostalgia while seemingly embracing its “post-industrial” future. Yet to this day the manufacturing
sector remains one of the most powerful and essential pieces of our city’s economy.
The $33.6 million in business privilege taxes contributed by the manufacturing sector in 2007 trails only the $90.3
million and $55.7 million contributed by the professional services and real estate sectors, respectively. Similarly, the
manufacturing sector is one of the top contributors of wage taxes, accounting for nearly 8% of all wage tax revenues
in fiscal year 2009. 1 Manufacturing not only provides over 28,000 jobs in Philadelphia, but as one of the top engines
of economic output in the city it also means that these jobs are high-quality, value-added occupations.
Other segments of the Philadelphia economy are not to be dismissed, as ensuring a diverse blend of independently
vibrant sectors is always critical in maintaining a strong economy. Today’s economic recession has only further dem-
onstrated this point. However, the support of other sectors need not come at the expense of manufacturing. Though
manufacturers and jobs have left over the past generations, many still remain and the opportunities for growing more
exist. Recognizing and capitalizing upon this opportunity can lead to growth in high-quality jobs, revenue streams,
and economic activity overall.
What if we do nothing to harness the potential that an evolving economy provides? Despite the rise of other sectors
and the loss of past manufacturing jobs, Americans remain a people who make and consume tangible products.
The stories, brands, and information that comprise the new economy are all built and dependent upon real physical
infrastructure. As Jaime Salm, creative director of MIO, notes, “without their servers, Google ceases to exist.”
Someone somewhere is going to continue making the goods the rest of the world utilizes. Money will be made
and quality jobs will be provided. If we don’t act quickly and strategically in Philadelphia we will never see the
economic potential this new economy presents.
1 Philadelphia Department of Revenue. Annual tax revenues reports available online at:
http://www.phila.gov/revenue/Reports_and_Publicat.html
Defining Local & Sustainable Manufacturing
This report defines local and sustainable manufacturing as comprising two primary categories:
manufacturers producing new green products and manufacturers that are greening their operations.
The first category includes manufacturers producing new green products utilized in the reduction of others’ carbon
footprints, or in the creation of alternative energy generation. This category can entail new companies developed
as commercial applications of newly emerging technologies or existing companies crafting new product-lines to fit
within an emerging industry’s supply chain. Capitalizing on emerging technologies and industries presents great
opportunities for realizing profitability and creating new green manufacturing jobs. This category can entail new
companies developed as commercial applications of newly emerging technologies or existing companies crafting new
product-lines to fit within an emerging industry’s supply chain. Capitalizing on emerging technologies and industries
presents great opportunities for realizing profitability and creating new green manufacturing jobs.
The second category includes manufacturers greening their own operations to achieve higher levels of energy
efficiency and conservation. These efforts effectively increase companies’ profitability while reducing their own
environmental impacts. Furthermore, they indirectly contribute to the creation of new green jobs, including the
consultants hired to conduct energy assessments, laborers employed for the retrofits and weatherization projects,
and the previously described manufacturers producing the new green products they need. These businesses may
also fit the first category and we expect to a see a rise in companies that both develop green products and improve
their operations, motivated by factors this report later describes.
The development of local manufacturing itself is a sustainability initiative. Local sourcing, production, and procure-
ment reduce carbon footprints through decreased shipping distances, while also growing the Philadelphia economy
by developing current manufacturers and introducing new operations. Increasing the profitability of local firms ensures
that more dollars are spent within the city, leading to continued indirect growths in businesses, jobs, and government
revenues for better public sector services.
While some continue to believe that profitability and sustainability are mutually exclusive, businesses are
increasingly acknowledging this misconception and actively seeking out opportunities to green operations.
As energy costs remain high, other businesses will eventually be forced to address the efficiencies in their facilities
and operations. Energy-efficient products requiring high up-front investments may no longer be cost-prohibitive as
utility bills climb, and manufacturing overseas may no longer be as cost-effective as shipping costs continue to rise.
Additionally, government policy, including Philadelphia’s storm-water runoff tax and the looming state-wide lifting
of utility rate caps, will further drive businesses to embrace sustainability as a bottom-line decision. Case studies
below demonstrate a few examples of the substantial impacts energy reductions and recycling programs can have
on companies’ bottom lines.
Job-Creation and Business Development
Among the many ambitious goals set in Philadelphia’s sustainability plan, Greenworks, is the creation
of 15,000 new green jobs by 2015. Current growth indicators and future projections demonstrate that
developing local and sustainable manufacturing should be among the top considerations in realizing
that goal. According to the Clean Energy Economy Report, published by the Pew Charitable Trusts
earlier this year, clean energy economy jobs grew by 9.1 percent compared to the 3.7 percent overall
job-growth in the United States between 1998 and 2007. 2 Among the five categories comprising Pew’s
definition of the clean energy economy, job growth was the greatest in the area of Environmentally
Friendly Production which increased at a rate of 67 percent from 1998 to 2007. 3
As noted in the Pew report, there are also compelling indicators suggesting continued growth into the future. The
number of patents filed in wind, geothermal and hydro technologies has all grown significantly over the past 10 years,
demonstrating a “burgeoning private-sector interest in a diverse energy renewable energy portfolio.” 4 Additionally,
the increasing amount of private-sector capital directed towards these areas also suggests likely future opportunities.
Fifteen percent of all global venture capitalism was directed to clean energy investments in 2008, an increase from the
9 percent invested just one year earlier. 5 American businesses in the clean economy received $5.9 billion in venture
capitalism in 2008, which represented a 48 percent increase from the 2007 figures. 6
Given the nature of advanced manufacturing, the occupations likely to be created would be high-value jobs. Entry-level
positions within manufacturing can range from $10 to $12 an hour, with median wages around $15 an hour. Advanced
manufacturers such as Windle Mechanical Solutions utilize complicated processes and sophisticated equipment
for the production of specialized goods. These companies require talented and capable employees, and offer
attractive wages, $20 to $22 an hour and beyond, and comprehensive benefit packages. Additionally, the work
itself is less labor-intensive than the manufacturing of the 19th and 20th centuries.
2P
ew Charitable Trusts. “The Clean Energy Economy.” P 15,
http://www.pewcenteronthestates.org/uploadedFiles/Clean_Economy_Report_Web.pdf
3 Pew. P 16
4 Pew 24
5 Pew 24
6 Pew 24
Strategic Objectives
The gaps and opportunities before us are broad and complex, ranging from personnel to
procurement and from technical assistance to taxes. Addressing these gaps and leveraging
these opportunities will require a range of specific initiatives. This report examines recommended
next steps through four overlapping strategic objectives:
1) Developing existing manufacturing;

2) Introducing additional manufacturing;
3) Greening all manufacturing; and
4) Connecting human capital needs with workforce development efforts.
Developing existing manufacturing entails retaining and growing the capacity of Philadelphia’s current manufacturing
operations. A number of experienced organizations already exist in Philadelphia to serve the needs and interests of the
city’s manufacturers. Businesses engaged in this report acknowledged the value and necessity of technical assistance
providers, non-profit organizations, quasi-governmental entities, and city agencies in their business’ success; these
programs must be continued and expanded. The introduction of additional programs to fill gaps in services would
further strengthen the sector’s support system. Developing existing manufacturing will also require pro-active
measures to grow and connect the sector’s local supply and demand markets and intermingling networks. The sheer
size of the Philadelphia local economy provides a powerful platform for doing so, but efforts will be needed to align
the impacts of the city’s major industries and institutions.
Introducing additional manufacturing includes attracting manufacturing operations to Philadelphia as well as

working with local businesses and organizations to develop new manufacturers locally. Emerging industries and
existing gaps in the local supply market provide significant opportunities to be exploited. The emergence of the
alternative energy sector is especially promising. Furthermore, examination of local production and consumption
figures demonstrates several opportunities for connecting the two markets and suggests the need for continued
work in identifying similar prospects.
Greening manufacturing in Philadelphia involves assisting manufacturers in making their operations more sustainable
and encouraging the development of new green product-lines. Both activities can increase the productivity,
profitability, and presence of manufacturing in Philadelphia. Necessary efforts to achieve these aims will include
educating manufacturers on the value of reducing environmental impacts and assisting them in doing so; identifying
and leveraging opportunities for the development of sustainable products; and perhaps most importantly increasing
local sourcing and procurement throughout the sustainable manufacturing supply chain.
Connecting human capital needs with workforce development seems an ironic challenge given the nation’s staggering
unemployment rates. It is frustrating that the identification of committed workers is so often cited as a primary difficulty
facing manufacturers today. Even in this economic downturn, the manufacturing sector continues to offer promising,
high-quality, living-wage jobs. Furthermore, given proper policies and action, there is strong potential for future growth.
There are several organizations seeking to develop the workforce for the manufacturing sector needs, and are taking
very important and worthwhile approaches. Much like assistance and resource programs in other areas, there is the
need to further expand and align workforce efforts, as well as develop new initiatives to fill remaining gaps. That said,
the businesses themselves are certainly also responsible for developing jobs to attract workers, both in terms of quality
and quantity, and they could do more collectively to drive qualified applicants toward careers in manufacturing.
Case Studies
Sun & Earth
• Limited capacities prevent ability

to go after institutional accounts
• Unsure of best practices for
contracting with institutions
• Need for ongoing R&D investments
Sun & Earth encapsulates both categories of sustainable manufacturing because they manufacture
environmentally safe, non-toxic cleaning products while also committing to the greening of their own
business operations. They use100% wind-powered electricity, they have taken efforts to improve their
recycling, and have completely eliminated wastewater. Many of these steps have been, at worst,
cost-neutral. Wind power is slightly more expensive, however represents for them an example in
which mission and philosophy must trump the bottom-line.
Most of their products are sold to consumers through traditional supermarkets, though they’ve identified a great
opportunity for expanding into institutional accounts. Their environmentally-safe products could be sold to local
universities, hospitals and the city government. Depending on demands, Sun & Earth could further develop new
products to better serve specific needs. Likewise, major institutions in the city – who may already be dedicated
to supporting local and sustainable companies – would likely be interested in working with a manufacturer such
as Sun & Earth, if only they knew of their existence and capabilities.
Sun & Earth has a solid brand, they make a quality product, and they know their business. However, severe
limitations in time and resources hinder their ability to explore opportunities, develop new marketing materials,
and present their products. Furthermore, having never gone after institutional accounts before, they lack the
knowledge of best practices in terms of competing for and winning contracts, even if they did have product
research and materials already prepared.
In manufacturing new products, Sun & Earth has found, like many other manufacturers of green products, that
technical production skills are very much similar to current requisite skill-sets. The need for new approaches and
skill-sets has more to do with research and development. Constant innovation to develop new products will allow
firms like Sun & Earth to separate themselves as the pioneers of the green movement by identifying new possibilities.
Mio
Opportunities for local

•
business development exist,

but there is a lack of local
manufacturers to serve www.mioculture.com
these needs
MIO FTP INSTRUCTIONS
Mio, a design company, is able to drive local manufacturers towards more sustainable practices
and products through their use of existing infrastructure and materials. For example, identifying
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for sustainably-certified ones. Local sourcing and production reduced transportation costs,
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Sandmeyer Steel
Limited capacities prevent them from

•
identifying worthwhile sustainability/

profitability initiatives on their own
Difficulty in attracting individuals
•
to their manufacturing occupations
Sandmeyer Steel has been manufacturing semi-finished stainless steel and nickel alloy
plate products in Northeast Philadelphia for over 57 years. Sandmeyer does not consider
itself a “green” manufacturer; they are a business, and their core-purpose is to be profitable.
Greening their operations, however, has improved their profitability and productivity.
Sandmeyer was already addressing low-hanging fruit through measures such as the installation of new
energy-efficient lighting, and were beginning to consider new energy efficient motors. Their introduction to
Delaware Valley Industrial Resource Center’s (DVIRC) new Sustainable Manufacturing pilot was truly transformative.
DVIRC brought consultants on a site visit to Sandmeyer for an energy assessment and returned two months later with
twelve specific recommendations for leaning the company, reducing the environmental impact, and improving overall
energy efficiency. Sandmeyer took the time to investigate the return-on-investment for some of the recommendations.
Installing new premium motors presents a high up-front cost that isn’t necessarily cost-effective in terms of replacing
functioning equipment; though they will be strongly considered when replacements are warranted. However, several
other recommendations have already been implemented. Diverting their process waste from landfills and instead
directing them to recycling facilities has saved Sandmeyer $30,000 to $40,000 a year.
Despite the evident value of this energy efficiency consultation, identifying services like this that are relevant to each
type of business operation remains an overwhelming maze for many companies. A single “green clearinghouse” to
catalogue all services for green business operations from consultations to financing would allow more businesses
to reap similar benefits. As Jim Keba of Sandmeyer states, “I don’t have time to research green resources on my
own. They’re all over the place, and it takes time, money and staff. We have none to spare.”
Maintaining a consistent and reliable workforce is a serious issue for Sandmeyer as well, in that attracting workers
has become increasingly difficult. As the residents’ awareness of the city’s manufacturing sector has declined the
general workforce has become increasingly ignorant, and even averse, to careers within the sector. Manufacturers like
Sandmeyer continue to prosper and offer high-paying jobs, but the potential for the industry to grow exponentially will
depend on the availability of a capable workforce.
Penn Scale Manufacturing Company
Limited capacities prevent ability to

•
research available programs and
best practices
Limited capacities prevent them from
•
identifying worthwhile sustainability/
profitability initiatives on their own
Andrea Levin’s direct involvement with Penn Scale Manufacturing, her family’s business for over
80 years, began in 1999 when she was tasked with closing the company after the death of her aunt
and uncle. The business had been dwindling and the facility decaying, and as a special-education
teacher she had no experience with owning or operating a company. Ms. Levin prepared to shutter
the shop, while simultaneously working weekends with employees to assemble the remaining parts for
customer’s seemingly endless requests. Although struggling, Levin realized that Penn Scale was still
a viable and established business operation and its customer base remained. She brought in her cousin,
Larry Biren, to buy out the rest of the family members, rolled up her sleeves, and began her second
career as a full-time manufacturer.
Ms. Levin found several organizations that were enthusiastic to help make Penn Scale a thriving operation again.
The Urban Industry Initiative (UII) assisted in obtaining financing for new equipment and directed Penn Scale to other
organizations offering complementary services. The Wharton Small Business Development Center Environmental
Management Assistance Program (EMAP) provided a free energy audit, which ultimately demonstrated the need for
renovating the building’s roof. Funding was awarded from the Department of Environmental Protection’s Advantage
Grant program to have the roof redone at no cost to Penn Scale. The Delaware Valley Industrial Resource Center
(DVIRC) helped in developing a business plan and the Philadelphia Industrial Development Corporation (PIDC)
provided low-interest financing for further physical improvements to the building’s integrity and security.
Though many of the assistance programs were directed at improving the physical and operational sustainability,
Ms. Levin does not consider Penn Scale a “green” manufacturer. Penn Scale is, first and foremost, a business;
every decision comes down to profitability and the bottom-line; environmental friendliness is an afterthought. For
example, DVIRC encouraged Penn Scale to switch from a liquid to powdered-based painting system due to the
former’s carcinogens and harmful impact on the environment. Penn Scale found that in addition to being safer,
powdered paint also looks better, is more efficient, and has directly lead to cost savings. Similarly, Penn Scale saw
their monthly heating bills drop from $2,400 in January 1999 to $300 in January 2000 when they replaced their
windows with energy efficient models.
Market demand remained and the business was functioning, but Penn Scale would not be where it is today without the
support services it received. In fact, it is possible that the company, its revenues, and jobs would not exist at all. This is
especially the case as Penn Scale is a small manufacturer, employing fewer than 100 employees. Manufacturers of this
size have limited capacity and resources to devote to anything other than day-to-day business operations. On her own,
Ms. Levin would not have had the time to find the available services that were so crucial in her company’s turnaround.
Windle Mechanical Solutions Inc., Excel Machine Division
Difficulties in identifying workers

•
with necessary skill-sets

windle mechanical
Limited capacities prevent them
• solutions, inc.
from identifying most promising ex c e l m a c h i n e d i v i s i o n
opportunities on their own
Windle Mechanical Solutions Inc, Excel Machine division is a machine shop in the Tacony section
of Philadelphia that has been manufacturing component parts since 1969. Pete Windle purchased
the company in 2006 and his first priorities were solidifying relationships with existing customers,
evaluating personnel, equipment, available technology, and implementing a certified quality
management system. Now they are looking to grow by developing new product lines and services
to meet the needs of customers in their targeted market segments, including emerging industries
in the alternative energy sector.
In the process, Windle-Excel confirmed that emerging industries are developing and will need machine parts and
manufactured goods. Furthermore, though the methods and outcomes of the alternative energy sector vary greatly
from those of its predecessors, these new operations are still dependent on physical infrastructure. The requisite
technical skills for their production are very similar to those necessary for any other form of component manufacturing.
Windle-Excel identified these opportunities through their own market research and they know their machinists have
the capabilities to manufacture the necessary components. What they don’t yet know are the specific products
required by each emerging sector. This knowledge gap makes it difficult to focus their development and to be
competitive in contracting decisions.
Windle-Excel is a small manufacturer and lacks the time and capacity to do the deeper research in-house. They
consider themselves a niche manufacturer, more service-oriented in providing quick, flexible components based on
the needs of their clients. Researching all the needs of emerging industries, gathering a sense of which opportunities
are likely to be most profitable, and then tailoring their sales-pitches to specific needs are all necessary tasks that are
beyond their current capacities.
As Windle-Excel continues their planned expansion into new markets, they will have difficulty addressing workforce
issues that have historically troubled the company. Identifying consistently reliable workers with core-competency skills
has been problematic in the past, and will need to be addressed as they take on new employees to develop new prod-
uct-lines. Workers with a basic background in technical skills can be trained on-site; however soft-skills like punctuality
and work-ethic are just as critical and increasing difficult to find in workers. Small manufacturers, such as Windle-Excel,
are often unaware of effective job preparation programs and have limited capacity to develop new referral relationships.
Current Contexts
Gaps & Barriers
As aforementioned research indicates, Philadelphia’s manufacturing sector remains viable and integral within the local
economy. Furthermore, local and sustainable manufacturing specifically presents promising opportunities for business,
revenue, and job growth. However, the largest hurdle facing the sector is the misguided sense that manufacturing is
no longer present in Philadelphia. Achieving the envisioned objectives will require addressing this cultural disinterest.
Any developments will be severely handicapped without committed engagement and targeted resources from both
the private and public sectors.
Ongoing misunderstandings of sustainability also present a barrier to be addressed. The movement has made
significant progress in recent years, but the impression still remains that sustainability is entirely about environmental
impacts, and will not improve a company’s bottom line. The case studies above present just a few examples of the
alignment of sustainability and profitability.
Gaps between the local supply and demand markets for manufactured goods are hindering potential connections
between producers and consumers. Other counties and institutions, such as Rutgers University, are leading the way
in demonstrating the importance of developing local suppliers, and the power that large procurement markets can
wield in achieving those ends. Some small, individual steps have been taken in Philadelphia, such as city government’s
procurement preference for local businesses, but the process continues to create more challenges than victories
for local manufacturers. Furthermore, city government itself represents just one small segment of the local economy.
The lack of a cohesive, multi-institution force to drive these connections and proactively assist local companies in
contracting has greatly limited the local sector’s potentials.
On the supply side, many manufacturers are not connecting with each other to discuss needs and capabilities, let
alone networking with major purchasing institutions to determine what roles they could play. As demonstrated in the
case studies, limited capacities affect abilities to go after new markets, develop new products, research and implement
best practices, and even gather information on programs that could assist them in achieving all of the above.
Resource providers, offering a range of important and impactful services to businesses, are limited in their own
capacities as well. The great programs in place can only do so much. The high percentage of small manufacturers
in Philadelphia introduces a large demand for dedicated support in both staff-time and financial assistance.
Limitations on both prevent the business resource providers from expanding their models to all who would benefit.
Gaps in infrastructure also present barriers and, as a result, will demand attention; perhaps none more important
than the workforce issues. The difficulty in identifying reliable workers with basic core-competencies is an issue
for many companies in Philadelphia. While these soft-skills are essential, they also represent the minimum that
manufacturers are willing to accept in order to operate, not what is truly needed in order for manufacturers to thrive.
The sophisticated processes and equipment of advanced manufacturing requires employees with advanced technical
skills. Manufacturing’s future in Philadelphia will be dependent upon developing a robust pipeline of workers trained
in these proficiencies.
The workforce’s general disinterest in manufacturing jobs also presents a fundamental problem, requiring creative
solutions. Relative wages for manufacturing jobs are lower than they were 30-50 years ago, the sector has
experienced more severe job losses than others over that time, and occupations offer limited portability in the event
of layoffs. The social status of manufacturing jobs and awareness of the sector in general have both declined,
which has created a substantial hurdle to attracting new, younger workers to these jobs.
Aspects of the city’s cost-competitiveness also factor in as barriers to the development of local and sustainable
manufacturing in Philadelphia. The city’s onerous tax-burden was mentioned in nearly every event and interview con-
ducted for the creation of this report. The high cost of commercial real-estate and lack of protection of industrial lands
likewise emerged as recurring themes. These issues are broad, affecting the entire Philadelphia market, and are being
addressed in a number of other studies. As such, they must be mentioned but are beyond the scope of this paper.
Strengths & Opportunities

Philadelphia offers a rich recipe of assets that make it a particularly competitive location for developing existing and
introducing new manufacturers.
Philadelphia’s relatively low cost-of-living makes nearly all phases of business operations affordable in comparison
to regional and even national competitors. Local manufacturers are able to spend less on overheard for rent, salaries,
storage and transportation, and can set competitive prices as a result. Meanwhile, the city’s location advantages and
transportation infrastructure allows manufacturers to easily and affordably ship their cost-competitive goods into other
markets, thereby bringing export profits and multipliers into the Philadelphia economy.
Philadelphia’s position within the Northeastern metropolitan corridor places it within a 2.5 hour drive of two other major
national markets in New York City and Washington, D.C. The region’s remarkably efficient highway system – in terms of
annual delays and wasted fuel per traveler in comparison to other major cities – directly connects Philadelphia to these
and other nearby population centers. The quality of the regional transportation network as a whole offers impressive
accessibility to other markets across the nation and around the world. The Philadelphia International Airport, which
provides non-stop flights to 128 domestic and international cities, is the 11th busiest airport in the entire world. The
Philadelphia Amtrak train station is the 3rd busiest in the Amtrak national network. Three class 1 railroads – Canadian
Pacific, CSX, and Norfolk Southern – provide direct service to the Port of Philadelphia. And the entire Delaware River
Port Complex, which also includes the nearby ports of Camden and Wilmington, is one of the largest freshwater ports
in the world. 7
7 Select Greater Philadelphia. http://www.selectgreaterphiladelphia.com/data/transportation.cfm
Beyond the city’s transportation infrastructure, other manufacturing infrastructure remains from the city’s
workshop-of-the-world past. Historically industrial properties and facilities remain as low-cost and highly attractive
potential sites for new manufacturers to acquire and grow into. The manufacturers that are continuing to thrive in
Philadelphia have developed strong supply chain components that can be incorporated to fit emerging companies’
needs. The workforce does present challenges, but nonetheless remains an asset for Philadelphia’s current and future
manufacturers. The manufacturing sector comprises nearly 28,000 workers already adept in relevant skill-sets. While
the aging workforce is a serious concern, it also represents a wealth of institutional knowledge that can be transferred
to the next generation.
As one of the largest American cities in terms of residents, businesses, jobs, and overall transactions, the Philadelphia
economy wields considerable strength. Nationally, the greater Philadelphia region boasts the 7th highest grossing
metro product, the 5th largest personal income, the 4th largest media market, and 5th largest population. 8 That market
power translates into strong consumer and institutional demand. $46.8 billion worth of products and services were
procured city-wide in Philadelphia this past year. Of that amount, $10 billion was spent specifically on manufactured
goods. 9 The size of the Philadelphia economy provides a compelling argument for attracting further manufacturing
firms, and offers a platform from which to align efforts and pro-actively develop the local manufacturing sector.
As mentioned, several business support organizations already exist in our city and region serving individual pieces
of the manufacturing sector’s needs. Many of the recommendations listed below will fit neatly into these existing
portfolios and programs. This report represents a short-term effort to collect the various pieces of this puzzle into
one cohesive examination, and present the many interweaving barriers, opportunities, issues, needs, and
recommendations within the context of each other and their broader picture.
Based on that effort, the remainder of this paper will address specific recommendations
for matching current barriers with potential opportunities within four thematic buckets:
(1) Information-Gathering;
(2) Policy;
(3) Funding;
(4) Events & Outreach.
8 Select Greater Philadelphia. http://www.selectgreaterphiladelphia.com/data/marketposition.cfm

9 Select Greater Philadelphia. Philadelphia Economic Data Tables. See Appendix B.
Information gathering
Green Clearinghouse
There are numerous resources available to manufacturers for sustainability initiatives, from federal and state grants to
local assistance programs. However, several of the case studies demonstrate that the mere existence of a program is
not enough to ensure it is utilized. The various programs are disjointed, overlapping, and are spread throughout sectors
and levels of government. Researching these opportunities takes time and money, and most small to medium sized
manufacturers have none to spare. Relevant resources and informative events can often fall through the cracks.
Several local organizations do provide this informational service to manufacturers. They have done the research to see
which programs fit within their portfolios, present them to manufacturers, and often assist in the application and imple-
mentations processes. However, these organizations too are limited in their capacities for outreach. Some only exist to
serve certain segments of the manufacturing sector, and those that seek to serve the small manufacturing community
– who are most in need of this service – lack the capacity to provide ongoing assistance to every small manufacturer
present in Philadelphia.
A single, comprehensive catalog gathering all aspects of the sustainable movement in one place would allow all
manufacturers to conveniently track what is out there and where they fit in. This “green clearinghouse” would need
to include available resources, programs, support organizations, and calendar of events to ensure all information for all
interested parties is provided. This recommendation applies to a broader world than strictly sustainable manufacturing:
a green clearinghouse with customizable features would fast-track the sustainability efforts of all businesses.
Identifying Growth Opportunities

Sustainable manufacturing offers many promising avenues for growth. Policies and resources will further the
development of new technologies and industries, while increasing awareness, assistance programs, and financial
incentives will grow their demand. Emerging industries will require components that can be developed as new
product-lines by existing manufacturers, and demand for new technologies will inevitably grow businesses, revenues,
and jobs. Additionally, gaps between Philadelphia’s supply and demand markets suggest opportunities for developing
local and sustainable manufacturing to meet the market’s current needs. Strong prospects for growth exist.
Capitalizing on them will require identifying those specific opportunities that suggest the greatest promise.
Existing Gaps
The sheer size of Philadelphia’s purchasing power is an asset to be employed in developing the local manufactur-
ing sector. The low percentage of overall purchases from local manufacturers is disappointing, but represents the
enormous potential for leveraging that market strength to its full potential. The use of input-output tables with Implan
modeling depicts the amounts of total expenditures that are captured within the Philadelphia economy. 10 Of the $10
billion that was spent throughout Philadelphia on manufactured products, only $1.5 billion, about 15%, was directed to
local Philadelphia companies. 11 That percentage is striking, and seems to suggest an across-the-board opportunity.
However, deeper examination of these numbers is required.
10 T
he Implan economic impact modeling system is a software package that allows for the in-depth and detailed
examination of local economies.
11 S elect Greater Philadelphia. Philadelphia Economic Data Tables. See Appendix B.
In certain cases there are valid reasons for purchasing materials from external markets. Many commodities and
raw materials are unavailable locally as their costs of production are drastically cheaper in other markets. Efforts to
develop local productions of these materials would create inefficiencies and would most likely, despite best efforts,
be ineffective.
However, viable opportunities do exist for either leveraging products already produced competitively in Philadelphia,
or identifying those that warrant local development. For instance, the Philadelphia market offers a competitive
advantage for the production of electric lighting equipment. That specific subsector has been growing faster in the
Philadelphia market than nation-wide. This subsector also demonstrates a high location quotient of 4.16, meaning that
this subsector’s percentage share of total employment in Philadelphia is four times that of the national standard. 12
Electric light equipment appears to be a strong subsector in Philadelphia that could be further leveraged through pro-
active local procurement practices. Even these numbers require further analysis, as high competitive advantages could
demonstrate a specialization that, while strong, offers no opportunities for expansion due to limited demand markets.
Identifying the most promising opportunities for manufacturing will entail a balancing act between targeting the goods
demonstrating potential for local production growth and the characteristics of the Philadelphia market that would
impact their viability. Despite the high-volume demand for raw materials, Philadelphia cannot reasonably compete in
this market due to the cost-of-labor in comparison to overseas markets. The same will hold true for mass-produced
commodities that demand low-skilled workers allowing for cheaper labor costs.
Several considerations can assist in identifying those products Philadelphia is better suited to competitively produce.
On the supply-side, products have a better chance of developing if a local market already exists to supply the neces-
sary inputs. The same holds true for demand. Products that have high demand markets locally, as well as regionally
and even throughout the Northeast corridor, are more likely to thrive in the Philadelphia market. This will especially hold
true as transportation costs continue to climb. Reexamining the cost-effectiveness of purchasing locally produced
goods will likely identify several specific markets that can be redeveloped in Philadelphia.
Return-on-investments must also be factored in, as the potential for viable production of a good on its own is not
necessarily enough to warrant its development. Investing time and resources to develop a new product may not make
sense if the product offers unattractive returns or demonstrates no promise of a continuing demand market.
High value-added, advanced manufacturing of durable goods requiring specialization presents an example of the types
of products the Philadelphia market is best suited to produce competitively while also offering the greatest economic
return in terms of profitability and job-quality. Such products require highly-skilled workers, which the Philadelphia
market can provide, and offer higher pay and value-added productivity as a result. Products requiring advanced
manufacturing processes that are currently purchased in large amounts in the regional market, with low local sales
present extremely promising growth opportunities.
12 Select Greater Philadelphia. Select Greater Philadelphia Shift-Share Analysis. See Appendix C
Emerging Industries
Capitalizing on the emergence of new industries and technologies will also require careful consideration and
targeted investments. Manufacturers like Windle-Excel recognize the developing trends and understand the general
opportunities they afford. However, they barely have time to make long-term decisions impacting their own profitability,
let alone to take a broader approach to consider which industries offer the greatest potential for the entire city and
regional economies. Research should be undertaken to identify those industries and technologies that not only offer
the greatest promise for future growth, but are most likely to thrive based on the contexts of the Philadelphia market.
Ongoing efforts in examining local data, questioning results, and weighing investments will be necessary to identify
the existing gaps and emerging industries that present the greatest potential for developing local and sustainable
manufacturing in Philadelphia. Questions to consider in identifying the most promising opportunities include: What
products do we already manufacture well and purchase in high-volume locally? What high-demand products are
purchased in unusually low amounts from local manufacturers? What are the proper considerations and criteria
for determining which types of goods could be competitively manufactured in Philadelphia?
Identifying Supply Chain Needs

Exploiting the opportunities presented by both emerging markets and existing gaps will require conducting
comprehensive reviews to determine what individual industries’ supply chains needs are today and what they will be
going forward. One agency or entity would need to assume responsibility for interfacing with the prime contractors and
procurement departments within the targeted industries to develop a thorough understanding of their entire supply
chain. Each component and process represents not only a necessity, but more importantly an opportunity for
developing a local provider. Step-by-step analyses of the supply chains will identify specific products required.
Background understanding of manufacturers will provide an awareness of the companies that could either
scale-up operations or develop new products to meet the identified needs.
Additionally, the production of certain goods may require developing new operations in the event that no capable
manufacturer already exists. Again, an informed understanding of the Philadelphia market’s characteristics and
capabilities will be needed to recognize what components could be developed locally. Certain cases may require
the development of additional infrastructure first; or may present situations in which local provision is either inefficient
or altogether impossible.
Policy
Procurement
Procurement with Philadelphia’s city government has been cited as a difficulty by many manufacturers attempting
to contract with the city. The process has been described as too difficult, time-consuming, and inaccessible for small
to medium sized companies. It is encouraging then that the Managing Director’s Office and Procurement Department
are already in the midst of overhauling the city’s overly-complicated procurement processes. The overhaul is being
conducted primarily to merge separate systems and streamline processes, but also presents the opportunity to place
renewed and heavier emphasis on local and sustainable procurement policies.
Understanding Local Procurement
Local Business Entities
Section 17-109 of the Philadelphia Code establishes

the parameters for local bidding preferences. The bid
preference is granted only to companies that the
Procurement Department has certified as Local Business
Entities (LBE). The certification process is outlined in the
code. Any LBE is entitled to a five percent preference on
its bid. The preference effectively allows an LBE to charge
5 percent more on a bid than an uncertified lowest
responsible bidder and still be awarded the contract.
The city’s local business preference, granting certified local business enterprises a 5% preference over the regular
“lowest-responsible-bidder” requirement, is a great start for encouraging local procurement. However, improvements
within the framework of this mechanism could increase local procurement figures before considering the introduction
of additional measures.
The Procurement Department is able to collect data on the total numbers of bids and gross amounts of dollars that are
awarded to certified local business enterprises. These raw totals alone are not very informative. The ability to ascertain
amounts of individual products purchased from local business enterprises in comparison to the city’s total purchases
of that product would generate much more useful percentage breakdowns.
Products with especially low local percentages could be identified for further analysis and action. Comparing these
products against the local manufacturing sector’s outputs could reveal openings for easily increasing local purchases
through targeted efforts. Such analysis could also identify products for which the local supply market does not yet
exist. Certain goods may not be available locally for good reason. Others, while currently unavailable locally, could
demonstrate opportunities for the city to create and sustain new local markets through its purchasing power.
Knowledge of the products that demonstrate high local purchase percentages could also suggest potentials for further
actions, including studying products’ local supply chains to identify prospects for further local market development.
Unfortunately, the full potential of these opportunities are not being realized due to limited capacities and the lack of
effective oversight.
Through the PhillyStat program, the Managing Director’s Office has created a reporting system to track the
performance of city departments and operations. Incorporating local procurement reporting into the Procurement
Department’s sessions would reveal how effective the preference is and establish a useful mechanism for expanding
its impacts. However, for the MDO to ask this of the Procurement Department, they would also have to provide the
necessary tools to deliver. Despite their interest, the Procurement Department has been unable to provide this
information due to capacity limitations.
The analysis necessary to produce these data is labor-intensive, and, given other priorities and workloads, the
department has no available staff-time to dedicate to this effort. Deeper analysis of the data is also hindered by
the limited technology infrastructure. Funding for a consultant and new software programs must first be secured
before the Procurement Department may begin recording and providing information to truly capitalize on the
local business procurement preference.
Sustainable Procurement
Additionally, there is also room for further leveraging the city government’s purchasing power to drive markets through
the implementation of new policies. As recommended in the Green Economy Task Force’s “Sustainable Procurement”
policy paper, released in August, 2008, instituting procurement preferences for environmentally friendly and socially
responsible businesses would “provide a foundation of support for local sustainable businesses by creating momen-
tum for the development of sustainable products and businesses.” 13 The sustainable preference could function with
the same percentage based structure as the local preference, while also prohibiting vendors from using or providing
environmentally harmful ingredients, products, and processes. Establishing these standards would allow the city to
establish a reliable demand market that could incentivize the development of local providers, while also setting an
example in sustainability for the entire region.
Like the local procurement preference, this recommendation would require City Council legislation to amend the
Charter. This need for charter change has slowed the process down, and there remains some questions to be
resolved. The local business enterprise preference was an easier idea to implement and regulate as there are definitive
methods of determining whether a business can be considered locally-owned. “Sustainable businesses” however is a
more nebulous concept, and certifying companies as such will require developing a standard to define what attributes
must be included and what qualities are to be considered.
Developing a list of prohibited, environmentally-harmful ingredients, products, and processes would not require a
charter change and represents a more achievable short-term step the city can take to improve its local and sustainable
procurement practices. Thorough research is necessary to determine which products merit inclusion on this prohibited
list. The existence of viable alternatives would have to first be ensured, and discussions with both contracting depart-
ments and vendors would need to take place to understand the full impacts of individual bans. However, the list could
be populated over time, beginning with obvious low-hanging fruit, and does offer an effective and practical first step.
13 “Sustainable Procurement for Philadelphia.” Green Economy Task Force. August, 2008.
Driving Markets
As the city implements and strengthens its own local and sustainable procurement practices, it may then use the
strength of its overall purchasing power to begin pro-actively driving markets to expand impacts on both the local
economy and environment. Rutgers University has developed an impressive model from which to learn. Through
targeted procurement efforts, Rutgers has utilized their annual $500 million procurement expenditures to create,
sustain, and grow local markets by increasing their purchasing power through the development of networks with other
institutions. They determine needs, identify or incubate local companies as suppliers, and then extend the networks
in both directions by incorporating other local companies to serve as suppliers and by developing their institutional
procurement network.
In one instance, Rutgers determined they were spending too much annually on waste. That conclusion lead to the
creation of a facility to drive recycling efforts and develop new patents. Commercial applications have resulted, which
Rutgers has been able to further assist through the growth of their own procurement network. Furthermore, Rutgers
has been able to multiply the overall impact of their model by incorporating social goals and green goals on top of the
initial local preferences. The program overall has reduced costs for the University and has substantial impacts on
growing their regional economy.
Leveraging City-Wide Purchasing Power

It is important that city government has taken these initial steps and continues to set examples in driving markets. The
Rutgers model demonstrates ways in which the city could be even more proactive in developing local markets through
their purchasing power. However, city government itself is not where the greatest opportunity lies. In fiscal year 2008,
the city of Philadelphia spent $90 million on materials, supplies, and equipment. 14 While still a large amount and worth
leveraging, that number pales in comparison to the $10 billion that is spent throughout the city – across all industries
and sectors – on manufactured products. Leveraging the entire city-wide purchasing power will require aligning the
other major sectors and industries comprising the Philadelphia economy around the importance of local procurement.
Philadelphia’s healthcare sector, for instance, spent over $1.3 billion on manufactured goods in 2008, accounting for
13% of the total local purchases of manufactured products. The transportation, professional and business services,
and leisure and hospitality sectors each spent between $700 and $800 million. Most striking however, is the expen-
ditures of the manufacturing sector itself, which spent over $3.8 billion on other companies’ manufactured goods,
accounting for 38% of the total manufacturing demand market. Manufacturers are, far and away, each other’s greatest
suppliers and consumers. 15
Many individual businesses within these sectors may have their own local procurement preferences, either formally
or informally. However, the overall size and diverse composition of the manufacturing demand market suggests a
great opportunity for aligning philosophies and resources. Rutgers developed their procurement network to grow
their purchasing strength while still serving as the primary focal point as the largest individual institution. A similar
procurement network in Philadelphia would not only grow the purchasing strength of city government, but would
much more substantially unlock the full power of the city-wide demand market.
14 City of Philadelphia Fiscal Year 2008 Operating Budget

15 Select Greater Philadelphia. Philadelphia Economic Data Tables. See Appendix B.
Convening a cross-sector procurement council, including representation from all of the city’s major institutions,
industries, and sectors could allow these different facets of the local economy to work together in developing local
and sustainable manufacturing in Philadelphia. Manufacturing itself does purchase the largest amount of manufactured
goods, which suggests substantial impacts to be had by driving connections within this sector. While this is undoubt-
edly a worthwhile effort, the conclusion that this measure by itself would have the greatest impact on overall local
procurement may not necessarily be accurate. As discussed, not all manufactured products can be produced locally.
Goods, such as raw materials, that are not manufactured locally could comprise a significant percentage of the
manufacturing sector’s procurement market.
Without the prior understanding of the specific inputs purchased and the local market’s characteristics, it is
impossible to determine how impactful any individual sector’s local procurement increases would be. Different
sectors could play vital roles for various reasons. The healthcare and educational sectors could be influential as
both sectors are composed of and can be driven by a small number of individual institutions. The transportation,
trade & utilities sector could achieve greater increases in local procurement figures if the types of products they
are purchasing in bulk can be competitively manufactured in Philadelphia.
The greatest impacts will come by engaging all segments of the local economy in ongoing conversations on
procurement needs, local producers, and potential opportunities. Industries, institutions, and the city government
could cohesively identify mutual needs and develop local manufacturers, through their combined resources, to provide
those needs. Extending targeted networks through the supply chain could develop an entire ecosystem of local and
sustainable manufacturing. As companies grow, the communities of suppliers would grow with them and specialize.
As businesses become increasingly specialized they would be able to further invest in technologies, and thrive as a
result. Such a council could be used to further other objectives as well. Emphases and reporting requirements on
social, racial and gender equity, environmental impacts, and workforce development could all be addressed,
along with any other relevant policy issues that might arise.
L o c a l m a n u f a c t u r i n g p r o c u r e m e n t m a r k et b y i n d u s t r y
600
37.99%
500
MFG. INPUTS PURCHASED WITHIN PHILLY (MILLIONS OF $)
manufacturing
transportation
other services
warehousing
construction
information
400
wholesale
education
fed gov
finance
utilities
SLGov
health
retail
NRM
300
PBS
LHS
200 13.38%
7.92% 7.73%
7.06% 6.67%
100
3.63% 3.07% 3.04% 2.99% 2.94%
1.43% 1.01%
0.54% 0.48% 0.11% 0.00%
0
Developing this council requires a thoughtful approach. All parties must realize the benefit in order to ensure the
necessary active and voluntary engagement throughout; and impactful, achievable goals should be set to make the
effort worthwhile. City government’s commitment to local procurement as a high-priority could be a logical approach
in allowing the administration to convene this body. However, other bodies or approaches could be deemed more
appropriate. A non-profit, aligned with either manufacturing or sustainability, might be the suitable convener. Or per-
haps other efforts to develop a natural audience for local and sustainable manufacturing combined with the introduc-
tion of new informational workshops and networking opportunities might allow such a council to develop organically.
Regardless of formation and structure, this initiative could yield considerable results in developing local and sustainable
manufacturing in Philadelphia. Furthermore, the existence of a cross-sector body wielding a $47 billion procurement
demand market overall could be a powerful business attraction tool for all industries.
Market Development
The identification of the most promising opportunities should produce a list of industries and specific products to be
targeted. Goods that enjoy competitive advantages in local production and strong demand markets can be leveraged
by driving connections with additional local suppliers and customers. Gaps between high-volume demand markets
with low local sales can be exploited, so long as the criteria for viable and cost-effective local production are met.
The same holds true for new components that can be developed to fit within emerging industries’ supply chains.
A comprehensive, industry-by-industry study of the growing green economy’s demand for products will help focus
investments. For example, demonstration projects that measure and codify the products needs of projects like the
weatherization of a home, will identify market gaps and more effectively gauge the region’s demand.
After these opportunities are identified and supply chains are researched, targeted market development efforts should
begin. The success of these efforts will be dependent, in part, upon the emergence and effectiveness of the organiza-
tion that assumes these responsibilities. Beyond the mere existence of an entity to play this role, specific characteris-
tics would allow for the most substantial results. The Johnstown Area Regional Industries’ (JARI) recent development
of a Defense supply chain in their region provides several examples to be considered. JARI is an economic develop-
ment agency with a comprehensive portfolio, a proven track record, and well-established credibility. Their ability to
provide financing and siting assistance was essential, as were existing relationships throughout both the private and
public sectors. Furthermore, these efforts take time, and could not have occurred without the capacity to dedicate
full-time staff members to these ends.
Developing supply chains begins by identifying and growing manufacturers one by one to fill provide each individual
component. The prior understanding of supply chain needs will provide knowledge of the components required, as
well as how they all relate to each other. This knowledge will greatly inform the market development efforts as every
manufacturer in the supply chain is dependent upon their suppliers. In order to develop companies to provide
needs in supply chains, it is also necessary to develop the capacities of their suppliers. This implies addressing all
considerations involved: if ensuring high-quality products is among the most important factors – as it often is –
then it is not enough to merely identify a supplier. Suppliers must be developed to ensure products meet the
necessary levels of quality and any other relevant customer considerations.
Manufacturers already making similar products or employing similar skill-sets can be connected to prime contractors.
Assistance through market analysis and financial products for acquisition, expansion, or new equipment could be
utilized in helping these manufacturers either scale-up operations or develop new product-lines. Job-training programs
can either train the current workforce or provide new workers to meet new needs. Having a prior familiarity with
Philadelphia’s manufacturers – their products and capabilities – would be beneficial for the market development
agency, however not necessarily critical.
Other products may require developing new manufacturing operations. In these instances, strong connections to
entities throughout the economy will be necessary as a range of players will be involved, including: research and
development centers, incubators, manufacturers, financial institutions, and government agencies. Siting will also play
an important role in the development of new manufacturers. The historic infrastructure of industrial properties is a
strength of the local market that has eroded perilously over recent generations as industrial land has given way to
commercial and residential uses. A forthcoming industrial land use study, jointly commissioned by Commerce,
Planning, and PIDC, will be an important resource in cataloging current properties and identifying future opportunities.
Recommendations for the identification and protection of industrial lands should continue to heard and implemented.
Developing strong, long-term connections with prime contractors will provide detailed understandings of product
specifications and contracting considerations, allowing components to be produced and presented in the best
manner possible. In certain circumstances, quality may be of much greater importance than cost. Knowledge of this
preference would impact production methods and results, and would ultimately determine the awarding of contracts.
Additionally, business certifications or quality standards may factor in to procurement processes and decisions.
The market development agency will need to recognize the production and procurement considerations of the
prime contractors, and assist manufacturers in addressing them.
Furthermore, strengthening connections with prime contractors and procurement departments through track-records
of success will bolster credibility and cultivate long-term relationships. When new product needs and opportunities
arise in the future, prime contractors will look to those organizations that were most effective in the past. In this way
the development agency becomes a marketing operation for their local companies and region overall. The agency can
fulfill this role by continually searching for new opportunities within supply chains and taking pro-active approaches to
connect contractor’s needs with manufacturer’s capabilities.
Manufacturers introduced into new supply chains may become key components or even a prime themselves.
Continuing to drive connections and expand networks locally can identify and exploit additional opportunities for
developing local and sustainable manufacturing. Eventually the strength of the local supply chain itself becomes a tool
for attracting further businesses. Additional opportunities for attracting and developing new manufacturers can arise
as a niche market is created.
Be s t P r a c t i c e – G r e at L a k e s W i n d Net w o r k
The Great Lakes Wind Network is a supply chain advisory

group and network of manufacturers established in 2007
to connect the emerging wind energy generation industry’s
original equipment manufacturers (OEMs) with the region’s
manufacturers. The strong and diverse manufacturing base
in the region provided a platform for cultivating a comprehen-
sive supply chain, and the emergence and future projections
of the wind industry presented the perfect application.
GLWN has been able to develop individual manufacturers to
provide necessary components by exhaustively researching
the supply chain’s needs, evaluating market opportunities,
and connecting manufacturers with potential customers.
As a result, participating manufacturers have enjoyed
substantial revenue and jobs growths, and a promising
new industry sector has developed in the region.
Funding
Assistance Programs and Services
As noted, many great resources already exist to support Philadelphia’s local and sustainable manufacturing,
including financial products, educational programs, and technical assistance services. However, individual services
and organizations serve specific objectives and constituencies and still leave unrealized potentials on the table.
The DVIRC sustainable manufacturing pilot program has been of extreme benefit to Sandmeyer Steel. The program
represents the first steps for developing strong local and sustainable manufacturers in Philadelphia. Manufacturers
need to be educated on why sustainability is relevant to them, and they need resources and opportunities to be
pro-actively presented. The DVIRC program is also indicative of the many great assistance programs in existence
that either don’t have the funding or capacities to serve all the manufacturers who need and would greatly benefit
these kinds of assistance.
Similarly, UII seeks to assist Philadelphia’s manufacturers, which, due to demographic realities, entails working with
many small to medium sized manufacturers. These manufacturers need convenient and accessible services, and while
UII does offer this service through on-site visits and dedicated staff-time, their limited capacities prevent them from
effectively reaching all companies that would benefit from their support.
Programs of relevance to smaller manufacturers need to be scaled up, in terms of funding pools and administrative
capacities for increased staff, to reach as many companies as possible. Programs best suited for larger companies
capable of spending their own funds and time need to be replicated so as to make these services accessible to smaller
companies as well. Manufacturers need to be educated and incentivized to take advantage of the programs they
already have access to.
New Programs
Additionally, some needs of local and sustainable manufacturing will require the introduction of new assistance
services. Increasing local sourcing and working with local suppliers to increase capabilities may entail creating new
training programs to instill necessary skills and processes. The development of new programs to link manufacturers
with emerging supply chain needs will benefit from efforts to assist companies in identifying new green product
opportunities and the methods necessary to begin developing and producing those products.
Several programs do already exist to assist companies in recognizing the need for sustainability improvements and
identifying where the greatest impacts lie. However, a thorough review of programs afforded through the creation
of the Green Clearinghouse could reveal glaring gaps to be filled. For instance, while the Wharton EMAP program
offers free energy audit for small businesses, and the DVIRC pilot program is assisting larger manufacturers in
identifying potential improvements, there appears to be no single program to incentivize energy assessments for
all manufacturers. Furthermore, without additional funding assistance, both programs will be limited in their
capacities to reach their intended audiences and produce the desired results.
Access to Global Markets

Efforts to connect local manufacturers to the existing regional demand market will grow capacities of current manufac-
turers and provide a compelling tool for developing further manufacturers. However, the ultimate goal is to increase the
overall production of local manufacturers, which will also require identifying global markets as well. Assistance pro-
grams providing information on and access to major global demand markets for advanced manufactured goods would
be of great benefit as would additional public sector resources to help manufacturers produce and sell globally.
Public Sector Commitment
City government must recognize the important role manufacturing plays within the local economy and further
acknowledge its importance. Given the demonstrated need for assistance services, considerations should be
given to providing further support, and increasing staff and funding capacities for any programs dedicated to
the development of the sector.
Additionally, the introduction of new city, state, and/or federal tax credits or breaks to make expensive energy-efficiency
projects more cost-effective could incentivize all manufacturers to undertake assessments, which are the first
necessary step in realizing sustainability improvement, and implement suggested initiatives.
For instance, DVIRC has been able to consistently find, at minimum, 10 percent energy savings in all the companies
they have worked with so far. One especially productive effort resulted in savings of over $134,516 for an 80 employee
company at an initial product development cost of about $50,000. Similar savings have been identified in many of the
companies they have assisted. The greatest hurdle has been implementation and remediation costs, which can pres-
ent high up-front costs with longer-term paybacks. The introduction of effective mechanisms to properly incentivize
these activities could lead to immediate efficiency and profitability improvements for individual manufacturers, and,
in the long-run, stronger overall economies as a result.
Workforce Development
Workforce development presents perhaps one of the greatest constraints to the future growth of local and sustainable
manufacturing. Manufacturers are currently facing difficulties in identifying any workers interested in the sector’s
occupations. Redeveloping manufacturing in Philadelphia will require growing general awareness of and interest in
these occupations, as well as providing the educational and training programs to instill the skill-sets necessary for
supporting 21st century manufacturing.
The belief that manufacturing is dead in Philadelphia has spread throughout the city’s organizations, educational
institutions, public offices, and general population. Job losses and relative wage decreases have negatively affected
the social status of occupations within this sector. Children are continually pushed in other directions away from these
viable, living-wage jobs, which do exist and offer the promise for expanding in the coming years. Fewer individuals are
interested in obtaining manufacturing jobs, and those that are often lack the skill-sets manufacturers need in order to
function and flourish.
As a result, the manufacturing sector’s workforce is aging. Manufacturing still exists, work still remains, and occupa-
tions are still available. The lack of younger, capable workers coming up through the systems is causing manufactur-
ers to pay older workers more to stay on past retirement as their services are still in demand. Bottom-lines are being
affected, while long-term prospects become increasingly dim as the institutional knowledge of the remaining workforce
is lost with every retirement every year. This is a problem facing manufacturers of all sizes as the absence of a critical
mass of capable employees is affecting all operations.
Soft-Skills
The lack of adequate workers with core-competencies– including punctuality, work-ethic, teamwork, conflict
resolution, and basic math and reading – is a significant barrier to the future success of manufacturing in
Philadelphia. Manufacturers fortunate enough to identify individuals interested in their occupations often are unable
to actually make good use of these willing employees. Turnover is high, productivity stagnates, and wasteful resources
are spent training employees for skills they should already have. These soft-skills are just as important, if not more so,
than the specific technical skills needed, as the inability to arrive on time and effectively communicate make the
presence of advanced trainings nearly inconsequential.
These core-competencies are universally applicable and essential skill-sets, and providing programs for the
development of these skills is a benefit to all individuals. Not everyone may be capable of attaining employment within
the higher-skill occupations within advanced manufacturing. However, soft-skill trainings are effective in making those
individuals facing barriers-to-employment more attractive job candidates for appropriate jobs, while also providing
necessary foundations allowing all workers to succeed.
The Job-Ready program, a partnership between the Community College of Philadelphia (CCP) and UII, is underway
to address this oft-cited workforce issue. The program includes diagnostics, remediation, and training components
to assess students’ initial conditions and develop requisite skill-sets from core-competency behaviors to basic math.
As the students are trained in the necessary skills, defined by manufacturers, they would then be directly connected
to entry-level manufacturing jobs. Job-Ready embodies the perfect marriage of individual strengths as the curriculum
development and skills-trainings strengths of CCP are combined with the direct industry experience, relationships, and
credibility of UII. In this way, the program serves workers interested in obtaining high-quality manufacturing jobs, and
manufacturers in need of dependable employees.
Job-Ready has been unable to gain traction for the same reason that other soft-skill programs have gone away: lack
of funding. However, the absence of necessary soft-skills is one of the most pressing and oft-cited issues facing manu-
facturers in Philadelphia. As such, programs to develop these skill-sets should be given serious consideration during
funding decisions. Additionally, considering the importance of these soft-skills, other programs and curricula develop-
ing employees for manufacturing work would be wise to incorporate and stress these skill-sets in their lessons as well.
Technical Skills
The call for improved soft-skills is a minimum level of need, a willingness to accept the least common denominator
as a signal of frustration and desperation. Instilling these skills will be essential in allowing manufacturers to continue
operating. However, ensuring optimum conditions for Philadelphia’s manufacturers will require developing a pipeline
of workers with knowledge and expertise in advanced manufacturing skills.
21st century manufacturing in Philadelphia entails interacting with sophisticated equipment and complex systems and
processes. This advanced manufacturing requires employees with expertise in programming automation robotics and
process control technologies, and technical understandings of hydraulics and electronics systems. Individuals capable
of this work will be existing trade-workers with a layer of academic training on top. Programs that house labs for these
processes and advanced equipment can provide more tangible understandings of advanced manufacturing, while
training individuals in their operations. Graduates of these programs will be in great demand for high-quality jobs.
Be s t P r a c t i c e – l e h i g h c a r b o n c o m m u n i t y c o l l ege
The Lehigh Carbon Community College has developed a

particularly effective job-training program for manufacturing
occupations based on the industries’ workforce needs. Small
manufacturing facilities are housed on-site allowing students
to gain first-hand experience in developing technical skills
along with the core-competencies trainings included in the
programs curriculum. Long-term occupational relationships
are established through internships and placement services
with local manufacturers.
The program connects with middle schools and high
schools to bring younger students in for tours of the facilities.
Awareness of the opportunities is instilled and relationships
with individual students are fomented. This initiative is a
central part of a cultural emphasis on the importance of
vocational education for manufacturing as a viable and
attractive career-path. Manufactures are visibly supported
as integral contributors to the local economy and providers of
desirable occupations. The workforce is effectively developed
in skills relevant to the industries’ needs, proving quality jobs
for individuals and reliable employees for manufacturers.
Developing Programs
As is the case with assistance services overall, many good programs have already been developed to address these
and other individual pieces of the manufacturing sector’s workforce needs. However, these programs remain disjointed
from one another and limited in their individual capacities.
The Pennsylvania CareerLink system, for instance, is a one-stop resource that develops qualified workers through
training programs to fit the requirements of interested businesses. The Philadelphia Workforce Development
Corporation’s Manufacturing Industry Partnership is a state recognized organization established to identify workforce
needs, and provide a framework for leveraging public funds and sharing costs among participating manufacturers
to address those needs. The STEM (Science, Technology, Engineering and Math) grant program provides trainings
specifically for the applied engineering skill-sets of advanced manufacturing.
These programs, while important and worthwhile, also offer opportunities for improvement. Most notably,
the general lack of awareness of already developed services appears to be one of the greatest barriers to their
effectiveness. Again, the limited capacities of the assistance organizations are preventing them from connecting
with more manufacturers in need, and the limited capacities of small manufacturers are preventing them from
researching and utilizing these services on their own.
Better outreach efforts are needed, which will likely require increased funding. The Manufacturing Industry
Partnership, for instance, does have a business development team to connect with manufacturers and develop
relationships, but the size of their available staff limits their ability to develop the personal relationships necessary.
Federal funding is provided through the Workforce Investment Act, but this funding stream is limited; other options,
including foundations and interested corporate funding, should be pursued.
Growing awareness of the occupations and the existing training programs will require specifically reaching out
to younger populations. Several organizations, including DVIRC and the Manufacturing Industry Partnership,
recognize this need and have developed programs to engage high school students, parents, and educators.
These are necessary efforts, but on their own may not be enough to achieve the necessary impacts. Sustained,
broad-based public relations campaigns will be needed.
Securing increased and consistent workforce development funding is a necessity to achieve these objectives.
Further, the absence of strength-based partnerships between existing education and training programs is stagnating
positive training and placement outcomes. Individual efforts must be examined and aligned so that all can work
together in developing Philadelphia’s manufacturing workforce. While additional funding will be needed, forging
stronger partnerships between programs and with businesses would put existing resources to more productive uses.
Educational Curricula
Creating and expanding individual job-training programs is based in the thought that specific programs can instill
specific skills to serve specific needs. Growing these programs to build the necessary pipelines entails a long-term
effort in revaluing the importance society places on trade-skills. While this may be a noble and worthwhile effort on
its own, it does little to provide the scale of workers that are needed for manufacturing to thrive today.
Programs need to be developed and expanded that serve specific needs while also remaining attractive to large
amounts of people. Developing a short-term pipeline of capable workers will require developing these programs in
the systems that individuals are currently most considering, and job-training programs do not have the cultural cache
as educational institutions. Training modules developed within existing educational institutions then are more likely to
generate the mass interest necessary.
DVIRC has been working with several local educational institutions to develop pipelines of capable employees for
advanced manufacturing. Their two-plus-two-plus-two model is based on creating overlapping curricula from high
schools to Associate degrees to Bachelors degrees to allow individuals to go as far as they want to go academically
in learning and honing these advanced technical and engineering skills. Delaware, Montgomery, and Camden Counties
Community Colleges, among several others, already have courses and programs in place to instill advanced
manufacturing proficiencies. 16
Existing programs should continue refining and developing curricula to provide advanced manufacturing training based
on industries’ needs. Additional institutions should consider incorporating similar trainings, either as new lessons placed
within existing curricula or entirely new programs, when appropriate. Thanks to President Obama’s American Gradua-
tion Initiative, which will be directing $12 billion to America’s community colleges over the next 10 years, several Phila-
delphia institutions have the opportunity to receive additional funding for the creation and expansion of these programs.
Expanding job-training and educational programs will develop

necessary skills, as identified by manufacturers, and connect
trainees to entry-level positions. Awareness of manufacturing Training individuals for
occupations will increase, workforces will develop, high-quality
jobs will be provided, and manufacturers will thrive as a result.
employment within the
Training individuals for employment within the manufacturing manufacturing sector is a
sector is a perfect application for demonstrating why
President Obama is making this investment, and how it will perfect application for
be of benefit to both individuals and overall economies. demonstrating why
Employer Commitments President Obama is
Developing these new programs and curricula represents making this investment,
long-term investments for educational institutions. Ensuring
the effectiveness of these efforts will require developing close and how it will be of benefit
relationships with industry representatives. Programs should
be informed and refined based on the practical needs
to both individuals and
for actual occupations. overall economies.
The resources and timelines for developing new programs
and matriculating graduates can be substantial. Manufacturers and representative associations must also take
responsibility for informing the local institutions of their needs and committing to hire eventual graduates. In the
absence of industry’s involvement and commitments, institutions on their own will have little incentive to invest
the time and resources to develop programs that may not necessarily lead to real employment.
Convening groups of manufacturers can identify the generalizable skill-sets that apply to multiple needs throughout
career ladders. Programs can be created to serve these needs and gain increased employer commitments, in order
to place individuals in real entry-level positions with an infrastructure in place for providing continual upward mobility.
Manufacturers interested in identifying and maintaining reliable employees should also consider improving their own
practices. Attracting high-quality employees requires the commitment to providing a high-quality work experience.
Better pay, long-term security, and better work conditions will assist in finding and keeping the class of workers that
manufacturers seek.
16 C
ollegiate Consortium’s Applied Engineering Technology Programs brochure available online at:
http://www.collegiateconsortium.org/IWCG_Catalog_v12_pressready.pdf
Financing Innovation, Commercialization, and Sustainability
Developing new, sustainable products requires constant innovation. Investments in research and development are
essential in pushing boundaries and identifying new opportunities and applications. Funding such investments and
connecting supply chains from research to design to manufacturing can allow the Philadelphia market to lead the way
in both innovation and commercial application.
Good Company Ventures has developed an exemplary program in Philadelphia’s Navy Yard demonstrating how
innovation can be encouraged by clever and committed individuals. The program selected ten start-ups from the
hundreds of international applicants to be part of their inaugural class of companies. Businesses were selected based
on their commitment to addressing critical social issues, ability to scale-up as feasible and effective models, and
demonstrated incorporation of the triple bottom line ideals of people, profit and planet. The program places selected
businesses in a summer-long course providing informational panels, seminars, and business strategy planning.
Additionally, the access to infrastructure and advisers, and connections to investors allow the start-ups to develop
into fully functioning businesses.
Other local incubators – including Benjamin Franklin Technology Partners, The Science Center, and The Enterprise
Center – are similarly providing resources to assist the commercialization of high-potential innovation. Given the
appetite for green products and processes, increased attention and assistance should be directed to start-ups
seeking to take advantage of these opportunities.
Additionally, it will also be necessary to work with traditional lenders and investors in unlocking the resources
for current manufacturers to capitalize on these opportunities. New sites and facilities may be necessary, new
product-lines may be developed, and new processes may be implemented. All of the above can offer significant
impacts in terms of sustainability and profitability, however all may also require financial assistance in achieving
those objectives.
Events & Outreach
Procurement & Contracting
As has been repeatedly stressed, the biggest difficulty facing small to medium sized manufacturers in Philadelphia is
a limited capacity to address anything beyond day-to-day business operations. Firms such as Sun & Earth know they
have good brands and know their own business operations. They have the ability to successfully sell products and
the capacity to develop new product-lines. However, limited time, people-power, and finances prevent them from
interfacing with institutions to identify opportunities and present customized products and materials. Sun & Earth’s
eco-friendly cleaning products could be extremely attractive to institutions seeking to emphasize local and sustainable
procurement; however, these potential connections never materialize due to a lack of awareness about the company
and its products.
Additionally, the same limitations prevent many manufacturers from networking with each other. The fact that the
manufacturing sector accounts for nearly 40% of the overall manufacturing demand market in Philadelphia suggests
that facilitating connections between these companies could yield productive results. Products already available locally
could be presented and capacities for developing new product lines based on needs could be discussed. Further-
more, joint ventures could be formed to address opportunities too large or complex for individual operations to tackle
on their own. Manufacturers might not have the time or incentives to speak to each other and institutions regarding
needs in the course of typical operations, but given a proper format these exchanges could clearly be beneficial to all
parties involved.
Contracting workshops for small to medium sized manufacturers would also be of benefit to companies that
simply don’t know what they don’t know. U.S. Representative Sestak hosted a Government and Defense procurement
summit for small businesses within his district in Delaware County on March 27th, 2009. The program included panel
discussions, networking sessions, and presentations on contracting, marketing, and joint ventures; and was well at-
tended and remarkably successful. A series of workshops like this, informing small to medium sized manufacturers
on best practices for contracting with major institutions, would be valuable and should include information on the
Procurement Department’s policies, steps manufacturers can take to improve their prospects, and available
business support programs.
The format, content, and logistics of the contracting workshops and procurement summits could be arranged by the
recommended cross-sector procurement council, if convened beforehand. As Representative Sestak demonstrated,
cross-sector councils are not necessary. A single organization or elected official with ties to and interest in
Philadelphia’s local and sustainable manufacturing could effectively pull together these resources and participants.
Industry leaders themselves could benefit from a series of educational programs on the importance of local
procurement and best practices to replicate. Local procurement strategy workshops for individual institutions
and cross-sector forums could be developed within the framework of the recommended procurement council
or serve as a natural starting point for developing the council organically.
Marketing
In many ways, the manufacturing sector is already doing well in Philadelphia. It remains one of the strongest
segments of the local economy, provides a significant percentage of jobs, and is one of the largest contributors
to the local government’s tax revenues. This story needs to be told. The city’s assets, the strength of the sector,
and its prospects for future growth can all be used in developing awareness of current operations and attracting
further manufacturers to Philadelphia.
Some argue that with informed marketing, Philadelphia has the ability to grow specific subsectors of manufacturing in
Philadelphia. As specific industries’ supply chains and components are targeted and developed, marketing materials
around their potential and the competitive advantages that Philadelphia offers should be produced as integral aspects
of the market development efforts. Networking events and forums held for manufacturers like Windle-Excel to present
information on targeted industries and the necessary components within their supply chains, arguments for why they
present growth markets, and initiatives manufacturers could take advantage of.
Workforce Outreach
Workforce development programs and trade schools should actively engage manufacturers in curriculum development
and troubleshooting to ensure that training stays ahead of the technological curve and productive relationships are
maintained. Further, this type of collaboration will raise awareness about training services and help leverage additional
funding. The limited capacities of small manufacturers should be considered in the development of programs to ensure
they are as convenient and accessible as possible.
Perhaps unconsciously, society has pushed younger generations away from occupations in manufacturing, despite the
fact that they provide viable career paths. Creative education programs should be integrated in the school system and
at community-based organizations to counteract negative perceptions about manufacturing. It is an exciting time to
develop products and youth should be exposed to the world of product design and production early on.
Growing the college graduation rate in Philadelphia is a noble goal that should continue to be prioritized. However,
it need not come at the expense of other professional development opportunities. The ultimate goal is to raise the
city’s median income levels and lower the unemployment rate. Increasing college graduation rates is one method for
achieving those objectives, but we must also identify job growth potential in sectors that suit our current workforce,
including adults with life-long barriers to employment.
Conclusion
Manufacturing is one of the strongest segments of the Philadelphia economy in terms of jobs provided, taxes
contributed, and total economic output. The emergence of the sustainability movement has created myriad
opportunities for further developing the sector. New industries are developing with new supply chain needs, and
new technologies and products are allowing manufacturers to reinvest in their companies in ways that are both
sustainable and profitable. The sector’s supply and demand markets are both expanding as resources are aligning
across all sectors to encourage the production of green goods and incentivize the implementation of green processes.
The opportunities before us are real and exciting. However, concerted efforts by leaders throughout the local
economy will be needed in order to capitalize on these opportunities. Government offices, private sector industries,
and non-profit organizations will all have a role to play in collecting the necessary information, shaping appropriate
policies, providing funding, and generating outreach. Assistance programs must be examined and expanded. Market
opportunities must be identified and exploited. Favorable procurement practices must be implemented and
strengthened. Training programs must be strengthened and recalibrated to serve changing workplace needs.
The return on these efforts will allow Philadelphia as a city to reinvigorate one of the top
engines of its local economy while also reducing its environmental impact. We cannot wait to act:
this historic opportunity will pass us by if we do not move swiftly and cohesively to improve
the working environment for these valuable businesses.
Appendix A
Cluster Analysis: Diversity of Philadelphia Manufacturing
2005 2009
p e r c e n ta g e p e r c e n ta g e
NAICS number o f t o ta l number o f t o ta l
code d e sc r ip t i o n * o f f i r ms f i r ms * * o f f i r ms f i r ms
316 luggage manufacturing – – 1 0.1%

421 wholesale trade (durable goods) – – 26 2.1%
424 merchant wholesalers (non-durable goods) 1 0.08% 4 0.3%
446 health & personal care products 1 0.08% – –
512 motions picture & sound industries 1 0.08% – –
722 food service & drinking products 2 0.15% 1 0.1%
541 professional, scientific & technical products 4 0.30% – –
561 administrative & support service products 4 0.30% – –
811 repair & maintenance service providers 4 0.30% 3 0.2%
445 retail trade (specialty food products) 5 0.38% – –
312 beverage & tobacco 6 0.46% 4 0.3%
423 merchant wholesalers (durable goods) 8 0.61% 6 0.5%
511 publishing industries 9 0.68% 53 4.4%
324 petroleum and coal 12 0.91% 12 1.0%
327 non-metallic minerals 18 1.37% 22 1.8%
336 transportation equipment 21 1.60% 17 1.4%
313 textile mills 26 1.98% 19 1.6%
331 primary metal 31 2.36% 29 2.4%
334 computer & electronics 32 2.44% 22 1.8%
335 electrical equipment, appliances & components 35 2.66% 27 2.2%
314 textile product mills 39 2.97% 36 3.0%
326 plastics & rubber 40 3.04% 43 3.5%
322 paper 48 3.65% 37 3.1%
315 apparel 54 4.11% 44 3.6%
325 chemical 56 4.26% 57 4.7%
333 machinery 68 5.18% 64 5.3%
337 furniture & related 74 5.63% 63 5.2%
311 food 121 9.21% 108 8.9%
339 miscellaneous 159 12.10% 141 11.6%
323 printing and related 215 16.36% 193 15.9%
332 fabricated metal 220 16.74% 180 14.9%
total 1314 1212
Source: Urban Industry Initiative
* NAICS as taken from Harris Directory 2005; includes all establishments that manufacture.
** Rounded to whole percentage point.
Appendix A
Cluster Analysis Continued
95.15%
1300 (1251)
650
325
160
80
2.08% 1.69% 0.54% 0.54%
(27) (22) (7) (7)
0
1-99 100-249 250-499 500-999 1000+
NUMBER OF EMPLOYEES
Source: Urban Industry Initiative
Select Greater Philadelphia’s Philadelphia Economic Data Tables
Gross Inputs Purchased Within Philadelphia by Commodity Type (Millions of $)
Appendix B
i n d u st r y
p u r c h a si n g
mfg .
h e a lt h
t r a n sp o r t a ti o n
pbs
LH S
C o n st r u cti o n
SL Gov
Ot h e r se r v ices
F i n a n ce
E d u c a ti o n
I n f o r m a ti o n
W h o l es a l e
Ret a i l
Uti l ities
F ed G o v
W a r e h o u si n g
nrm
b y c o mm o dit y
i n P h i l a de l p h i a
t o t a l p u r c h a ses
NRM 0.14 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.07 0.00 0.00 0.00 0.22
Utilities 189.00 109.90 19.31 94.11 126.15 11.17 49.71 34.56 142.04 229.03 25.29 21.76 46.93 1.59 12.20 5.45 0.06 1,118.26

Construction 29.78 24.84 31.39 41.44 20.23 1.70 88.55 8.76 253.81 7.86 25.42 4.54 10.36 31.06 6.85 0.97 0.06 587.62
Manufacturing 570.49 200.99 119.01 116.07 106.02 100.22 54.47 46.08 45.70 44.86 44.17 21.49 15.17 8.18 7.27 1.58 0.06 1,501.83
Wholesale 384.43 146.92 45.03 72.16 88.72 57.58 33.68 37.87 80.48 41.93 33.76 94.68 31.44 4.44 2.51 1.49 0.05 1,157.17
Retail 15.44 17.13 10.98 6.67 10.17 75.01 0.10 14.08 27.14 0.47 0.95 2.63 6.35 0.16 0.04 0.10 0.00 187.42
Transportation 142.58 54.10 231.49 152.79 34.27 26.01 31.01 26.31 62.42 25.51 38.79 46.31 31.10 95.98 14.44 2.71 0.03 1,015.85
Warehousing 16.80 9.16 22.53 14.44 4.63 0.00 0.89 5.80 5.63 1.13 8.06 32.57 36.20 0.00 0.00 10.10 0.00 167.94
Information 24.39 48.96 12.37 184.03 24.00 6.88 2.37 20.63 87.74 65.12 306.55 9.96 12.08 1.42 4.88 0.55 0.00 811.93
Finance 142.60 1,072.82 252.86 1,129.73 293.00 60.45 117.98 269.57 4,204.75 437.52 204.68 132.69 240.75 26.06 24.13 14.20 0.17 8,623.96
PBS 694.85 1,083.84 317.83 2,560.42 492.03 184.70 182.71 249.20 1,615.00 323.13 613.02 346.41 262.39 58.85 34.85 14.34 0.19 9,033.76
Education 0.14 1.72 0.63 2.45 2.23 0.10 0.30 10.69 0.50 25.13 2.15 2.19 8.64 0.58 0.20 0.00 0.00 57.65
Health 0.00 227.98 0.00 3.37 0.41 0.00 0.00 0.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 232.18

LHS 31.39 101.90 34.14 367.67 102.42 7.15 4.11 31.05 140.47 40.32 104.53 13.84 14.48 13.74 8.95 0.57 0.00 1,016.73
Other Services 45.12 108.51 28.56 189.16 54.29 32.01 11.27 35.24 225.90 49.62 41.96 25.70 22.50 2.61 7.86 2.23 0.01 882.55
Fed Gov 3.19 67.65 101.01 79.47 68.70 0.17 0.98 16.71 67.51 33.08 25.40 40.04 28.76 1.37 0.17 2.67 0.00 536.88
SL Gov 2.99 19.80 0.20 11.53 5.11 0.00 18.08 2.88 6.06 0.97 2.28 0.59 1.09 0.05 2.27 0.17 0.00 74.07
Total
Purchased 2,293.33 3,296.22 1,227.34 5,025.51 1,432.38 563.15 596.22 809.85 6,965.15 1,325.68 1,477.01 795.40 768.24 246.16 126.62 57.13 0.63 27,006.02
by Industry
• • • • • • • •
1
2
Gross Inputs Demanded Within Philadelphia by Commodity Type (Millions of $)
• • • • • • • •
Appendix B
i n d u st r y
p u r c h a si n g
mfg .
h e a lt h
t r a n sp o r t a ti o n
pbs
LH S
C o n st r u cti o n
Ret a i l
Uti l ities
SL Gov
Ot h e r se r v ices
F i n a n ce
E d u c a ti o n
I n f o r m a ti o n
W h o l es a l e
F ed G o v
W a r e h o u si n g
nrm
c o mm o dit y
t o ta l s b y
NRM 1,105.39 4.78 20.76 14.21 36.02 22.93 106.11 2.15 15.15 6.48 2.57 0.88 4.76 555.49 1.22 0.08 0.38 1,899.36
Utilities 215.40 125.26 22.00 107.25 143.78 12.74 56.66 39.39 161.88 261.03 28.83 24.80 53.49 1.82 13.91 6.21 0.07 1,274.52
Construction 42.18 35.17 44.45 58.69 28.66 2.41 125.41 12.40 359.45 11.14 36.00 6.43 14.67 43.99 9.71 1.37 0.08 832.21
Manufacturing 3,826.78 1,348.23 798.31 778.57 711.17 672.29 365.36 309.10 306.55 300.94 296.29 144.17 101.76 54.85 48.74 10.59 0.43 10,074.13
Wholesale 488.77 186.80 57.25 91.75 112.80 73.20 42.82 48.15 102.33 53.32 42.93 120.38 39.98 5.65 3.19 1.89 0.06 1,471.27
Retail 23.07 25.61 16.41 9.97 15.20 112.11 0.14 21.04 40.57 0.70 1.42 3.93 9.49 0.24 0.06 0.14 0.00 280.10
Transportation 238.37 90.46 387.02 255.45 57.29 43.48 51.85 43.99 104.36 42.66 64.85 77.42 52.00 160.46 24.15 4.53 0.05 1,698.39
Warehousing 17.24 9.40 23.12 14.82 4.75 0.00 0.91 5.95 5.78 1.16 8.28 33.42 37.14 0.00 0.00 10.36 0.00 172.33
Information 72.04 144.60 36.54 543.58 70.88 20.33 7.00 60.93 259.15 192.33 905.44 29.41 35.68 4.19 14.43 1.61 0.01 2,398.15
Finance 202.46 1,523.15 359.01 1,603.95 415.99 85.82 167.50 382.72 5,969.75 621.17 290.60 188.39 341.81 37.00 34.26 20.16 0.24 12,243.98
PBS 836.35 1,304.54 382.55 3,081.81 592.23 222.31 219.92 299.94 1,943.87 388.93 737.85 416.95 315.82 70.84 41.94 17.26 0.22 10,873.33
Education 0.17 2.15 0.78 3.06 2.78 0.13 0.37 13.36 0.63 31.41 2.69 2.74 10.80 0.72 0.25 0.00 0.00 72.04

Health 0.00 254.74 0.00 3.77 0.45 0.00 0.00 0.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 259.43
LHS 38.83 126.05 42.24 454.83 126.70 8.84 5.09 38.41 173.78 49.88 129.31 17.12 17.92 17.00 11.07 0.70 0.00 1,257.77
Other Services 53.48 128.61 33.85 224.20 64.34 37.94 13.36 41.77 267.75 58.82 49.73 30.46 26.67 3.09 9.32 2.64 0.01 1,046.04
Fed Gov 3.38 71.54 106.81 84.04 72.65 0.18 1.03 17.67 71.39 34.98 26.86 42.34 30.41 1.45 0.18 2.82 0.00 567.73
SL Gov 3.09 20.45 0.21 11.91 5.27 0.00 18.67 2.97 6.26 1.00 2.35 0.61 1.12 0.05 2.34 0.18 0.00 76.48
Not an Industry 45.43 0.05 64.20 38.78 1.19 0.24 0.00 0.18 99.15 0.27 24.66 13.73 0.75 0.84 5.79 0.06 0.00 295.32
Total
Purchased 7,212.43 5,401.59 2,395.51 7,380.64 2,462.15 1,314.95 1,182.20 1,340.59 9,887.80 2,056.22 2,650.66 1,153.18 1,094.27 957.68 220.56 80.6 1.55 46,792.58
by Industry

% From Mfg. 53.06% 24.96% 33.33% 10.55% 28.88% 51.13% 30.91% 23.06% 3.10% 14.64% 11.18% 12.50% 9.30% 5.73% 22.10% 13.14% 27.74% 21.53%
Appendix B
Philadelphia City-wide Procurement Market (Millions of $)
Gross Inputs Purchased $46,792.58

Gross Inputs Purchased Within Philadelphia $27,006.02 57.71%
Gross Mfg. Goods Purchased $10,074.13

Gross Mfg. Goods Purchased Within Philadelphia $1,501.83 14.91%
Gross Inputs Purchased in Philadelphia by Commodity Type (Millions of $)

mfg . i n p u ts
g r o ss i n p u ts mfg . i n p u ts p u r c h a sed wit h i n % of local
p u r c h a si n g i n d u st r y p u r c h a sed p u r c h a sed p h i l a de l p h i a mfg . m a r k et
Manufacturing 7,212.43 3,826.78 570.49 37.99%

Health 5,401.59 1,348.23 200.99 13.38%
Transportation 2,395.51 798.31 119.01 7.92%
PBS 7,380.64 778.57 116.07 7.73%
LHS 2,462.15 711.17 106.02 7.06%
Construction 1,314.95 672.29 100.22 6.67%
SLGov 1,182.20 365.36 54.47 3.63%
Other Services 1,340.59 309.10 46.08 3.07%
Finance 9,887.80 306.55 45.70 3.04%
Education 2,056.22 300.94 44.86 2.99%
Information 2,650.66 296.29 44.17 2.94%
Wholesale 1,153.18 144.17 21.49 1.43%
Retail 1,094.27 101.76 15.17 1.01%
Utilities 957.68 54.85 8.18 0.54%
Fed Gov 220.56 48.74 7.27 0.48%
Warehousing 80.60 10.59 1.58 0.11%
NRM 1.55 0.43 0.06 0.00%
T o t a l P u r c h a ses $46,792.58 $10,074.13 $1,501.83
i n P h i l a de l p h i a
b y C o mm o dit y
Appendix B
Local Manufacturing Procurement Market by Industry
600
37.99%
500
MFG. INPUTS PURCHASED WITHIN PHILLY (MILLIONS OF $)
manufacturing
transportation
other services
warehousing
construction
information
400
wholesale
education
fed gov
finance
utilities
SLGov
health
retail
NRM
300
PBS
LHS
200 13.38%
7.92% 7.73%
7.06% 6.67%
100
3.63% 3.07% 3.04% 2.99% 2.94%
1.43% 1.01%
0.54% 0.48% 0.11% 0.00%
0
Appendix C
Philadelphia Shift-Share Analysis by Select Greater Philadelphia’s
Shift-Share Effect
C h a n ge % Share
National Growth 42,314 -240%

Industry Mix 21,067 -119%
Competitive -278,644 1578%
Allocation Effect 197,605 -1119%
Total Employment Change -17,658 100%
Classification of 2008 Employment by Allocation Effect
A l l o cat i o n E ffects Code T o ta l Share
Competitive Disadvantage, Not Specialized A 129,009 23.1%

Competitive Disadvantage, Specialized B 199,437 35.7%
Competitive Advantage, Not Specialized C 69,253 12.4%
Competitive Advantage, Specialized D 160,324 28.7%
Total 2008 Employment 558,023 100.0%
Tradable
Code T o ta l
All or virtually all outputs is sold and consumed locally 1 213,106

Most output sold in region, but a sigificant share is sold externally 2 154,697
A majority of the output is exported and sold outside the region 3 38,621
Appendix C
A l l o cat i o n
Tradable
% Share
E m p l o y.
Growth
Annual
2008 LQ
19 9 8 - 0 8
in 2008
code
Rate
2008
NAICS
S ect o r Desc r i pt i o n
4811 Scheduled Air Transportation A 7,628 4.04 0.014 2.03% 3

3363 Motor Vehicle Parts Manufacturing A 3,511 1.16 0.630 -2.92% 3
3323 Architectural and Structural Metals Manufacturing A 2,163 1.17 0.004 4.06% 3
3254 Pharmaceutical and Medicine Manufacturing A 1,965 1.49 0.004 10.33% 3
3121 Beverage Manufacturing A 1,487 1.93 0.003 0.24% 3
3241 Petroleum and Coal Products Manufacturing A 1,451 2.80 0.003 0.16% 3
4883 Support Activities for Water Transportation A 1,209 2.84 0.002 5.00% 3
3351 Electric Lighting Equipment Manufacturing A 975 4.16 0.002 -0.46% 3
5411 Legal Services A 19,151 3.30 0.034 1.85% 2
5222 Nondepository Credit Intermediation A 5,996 1.75 0.011 18.21% 2
7121 Museums, Historical Sites, and Similar Institutions A 2,018 3.44 0.004 3.00% 2
5414 Specialized Design Services A 972 1.73 0.002 3.90% 2
5231 Securities and Commodity Contracts A 5,825 2.78 1.040 4.44% 2
Intermediation and Brokerage
3345 Navigational, Measuring, Electromedical, B 908 0.37 0.002 0.73% 3
and Control Instruments Manufacturing
4251 Wholesale Electronic Markets and Agents and Brokers B 699 0.45 0.001 2.98% 3
4541 Electronic Shopping and Mail-Order Houses B 626 0.53 0.001 4.50% 3
3366 Ship and Boat Building B 621 0.85 0.001 51.12% 3
5511 Management of Companies and Enterprises B 8,006 0.91 0.014 2.82% 2
5415 Computer Systems Design and Related Services B 3,856 0.75 0.007 9.06% 2
7139 Other Amusement and Recreation Industries B 3,188 0.61 0.006 4.10% 2
5419 Other Professional, Scientific, and Technical Services B 2,130 0.73 0.004 8.70% 2
4931 Warehousing and Storage B 1,942 0.72 0.003 23.36% 2
4231 Motor Vehicle and Motor Vehicle Parts B 722 0.40 0.001 3.48% 2
and Supplies Merchant Wholesalers
5324 Commercial and Industrial Machinery B 437 0.62 0.001 9.84% 2
and Equipment Rental and Leasing
5182 Data Processing, Hosting, and Related Services B 354 0.22 0.001 13.03% 2
4247 Petroleum and Petroleum Products Merchant Wholesalers B 344 0.69 0.001 0.79% 2
8114 Personal and Household Goods Repair and Maintenance B 200 0.41 0.000 -2.32% 2
5172 Wireless Telecommunications Carriers (except Satellite) B 193 0.17 0.000 4.61% 2
5161 Internet Publishing and Broadcasting B 122 0.78 0.000 1.81% 2
5122 Sound Recording Industries B 54 0.54 0.000 0.57% 2
5211 Monetary Authorities - Central Bank C 775 9.86 0.001 -4.32% NA
3159 Apparel Accessories and Other Apparel Manufacturing C 127 1.84 0.020 -12.15% 3
6113 Colleges, Universities, and Professional Schools C 53,578 7.15 0.096 2.45% 2
5241 Insurance Carriers C 11,892 1.96 0.021 -6.68% 2
Appendix C
A l l o cat i o n
Tradable
% Share
E m p l o y.
Growth
Annual
2008 LQ
19 9 8 - 0 8
in 2008
code
Rate
2008
NAICS
5413 Architectural, Engineering, and Related Services C 7,005 1.12 0.013 -8.24% 2
5416 Management, Scientific, and Technical Consulting Services C 4,701 1.01 0.008 1.33% 2
3118 Bakeries and Tortilla Manufacturing C 4,078 2.92 0.730 -2.29% 2
5239 Other Financial Investment Activities C 2,543 1.54 0.005 3.38% 2
5191 Other Information Services C 417 1.72 0.001 -6.12% 2
5232 Securities and Commodity Exchanges C 309 9.17 0.001 0.13% 2
4872 Scenic and Sightseeing Transportation, Water C 145 2.27 0.000 -3.73% 2
6221 General Medical and Surgical Hospitals C 37,714 1.69 0.068 -3.37% 1
6241 Individual and Family Services C 14,547 2.99 0.026 4.58% 1
6214 Outpatient Care Centers C 6,771 2.21 0.012 2.21% 1
4461 Health and Personal Care Stores C 6,501 1.26 0.012 0.14% 1
5412 Accounting, Tax Preparation, Bookkeeping, C 6,281 1.02 0.011 0.22% 1
and Payroll Services
4244 Grocery and Related Product Wholesalers C 4,404 1.21 0.008 -0.18% 1
6244 Child Day Care Services C 3,817 1.01 0.007 1.10% 1
5313 Activities Related to Real Estate C 3,764 1.30 0.007 1.63% 1
8129 Other Personal Services C 3,065 2.74 0.005 0.95% 1
6223 Specialty (except Psychiatric and C 2,986 3.12 0.005 -1.19% 1
Substance Abuse) Hospitals
6219 Other Ambulatory Health Care Services C 2,959 2.56 0.005 1.51% 1
3231 Printing and Related Support Activities C 2,943 1.03 0.530 -4.31% 1
7224 Drinking Places (Alcoholic Beverages) C 2,747 1.59 0.005 0.20% 1
6242 Community Food and Housing, and Emergency C 2,122 2.81 0.004 3.54% 1
and Other Relief Services
6116 Other Schools and Instruction C 1,838 1.34 0.003 4.94% 1
8134 Civic and Social Organizations C 1,754 1.13 0.003 -0.12% 1
6115 Technical and Trade Schools C 1,320 2.36 0.002 2.42% 1
8133 Social Advocacy Organizations C 1,249 2.05 0.002 -1.43% 1
4452 Specialty Food Stores C 1,132 1.48 0.002 1.02% 1
7113 Promoters of Performing Arts, Sports, and Similar Events C 1,125 2.29 0.002 -4.01% 1
8132 Grantmaking and Giving Services C 1,114 1.55 0.002 -2.08% 1
5615 Travel Arrangement and Reservation Services C 1,091 1.06 0.002 -4.34% 1
6239 Other Residential Care Facilities C 1,007 1.41 0.002 -1.81% 1
4232 Furniture and Home Furnishing Merchant Wholesalers C 984 1.36 0.002 -2.69% 1
6112 Junior Colleges C 450 1.08 0.001 0.62% 1
7213 Rooming and Boarding Houses C 93 1.54 0.000 -4.60% 1
4852 Interurban and Rural Bus Transportation C 89 1.18 0.000 -9.06% 1
Appendix C
A l l o cat i o n
Tradable
% Share
E m p l o y.
Growth
Annual
2008 LQ
19 9 8 - 0 8
in 2008
code
Rate
2008
NAICS
7211 Traveler Accommodation D 6,165 0.72 0.011 -1.49% 3

3222 Converted Paper Product Manufacturing D 1,333 0.91 0.240 -7.53% 3
3116 Animal Slaughtering and Processing D 1,071 0.45 0.190 -6.88% 3
3371 Household and Institutional Furniture D 668 0.42 0.001 -2.56% 3
and Kitchen Cabinet Manufacturing
3391 Medical Equipment and Supplies Manufacturing D 559 0.40 0.001 -3.53% 3
3119 Other Food Manufacturing D 512 0.65 0.090 -2.84% 3
3261 Plastics Product Manufacturing D 467 0.17 0.080 -7.16% 3
3372 Office Furniture (including Fixtures) Manufacturing D 448 0.72 0.001 -6.09% 3
3329 Other Fabricated Metal Product Manufacturing D 399 0.30 0.070 -5.60% 3
3353 Electrical Equipment Manufacturing D 355 0.55 0.001 -8.24% 3
3256 Soap, Cleaning Compound, and Toilet Preparation D 337 0.65 0.060 -3.58% 3
Manufacturing
3339 Other General Purpose Machinery Manufacturing D 327 0.23 0.001 -7.77% 3
3221 Pulp, Paper, and Paperboard Mills D 304 0.46 0.050 -5.88% 3
3334 Ventilation, Heating, Air-Conditioning, and Commercial D 267 0.36 0.050 -3.00% 3
Refrigeration Equipment Manufacturing
3252 Resin, Synthetic Rubber, and Artificial Synthetic D 220 0.49 0.040 -13.99% 3
Fibers and Filaments Manufacturing
3251 Basic Chemical Manufacturing D 211 0.28 0.040 -9.69% 3
3332 Industrial Machinery Manufacturing D 197 0.30 0.040 -6.93% 3
3259 Other Chemical Product and Preparation Manufacturing D 178 0.34 0.030 -5.52% 3
3379 Other Furniture Related Product Manufacturing D 164 0.80 0.000 -1.92% 3
3255 Paint, Coating, and Adhesive Manufacturing D 135 0.44 0.020 -8.58% 3
3141 Textile Furnishings Mills D 131 0.35 0.020 -11.21% 3
3335 Metalworking Machinery Manufacturing D 131 0.16 0.020 -9.59% 3
3219 Other Wood Product Manufacturing D 124 0.09 0.020 -3.39% 3
3132 Fabric Mills D 91 0.25 0.020 -13.89% 3
3133 Textile and Fabric Finishing and Fabric Coating Mills D 80 0.43 0.010 -16.33% 3
3262 Rubber Product Manufacturing D 79 0.19 0.010 -10.02% 3
3131 Fiber, Yarn, and Thread Mills D 72 0.38 0.010 -10.93% 3
3344 Semiconductor and Other Electronic D 63 0.03 0.000 -7.06% 3
Component Manufacturing
3315 Foundries D 40 0.05 0.010 -18.54% 3
3359 Other Electrical Equipment and Component Manufacturing D 27 0.04 0.000 -24.91% 3
1110 Crop Production D 19 0.00 0.000 -1.46% 3
3336 Engine, Turbine, and Power Transmission D 11 0.02 0.000 -25.21% 3
Equipment Manufacturing
3151 Apparel Knitting Mills D 9 0.08 0.000 -19.82% 3
Appendix C
A l l o cat i o n
Tradable
% Share
E m p l o y.
Growth
Annual
2008 LQ
19 9 8 - 0 8
in 2008
code
Rate
2008
NAICS
3326 Spring and Wire Product Manufacturing D 9 0.03 0.000 -12.18% 3

3271 Clay Product and Refractory Manufacturing D 8 0.03 0.000 -9.62% 3
3324 Boiler, Tank, and Shipping Container Manufacturing D 7 0.02 0.000 -19.20% 3
4831 Deep Sea, Coastal, and Great Lakes Water Transportation D 7 0.03 0.000 -36.91% 3
3272 Glass and Glass Product Manufacturing D 5 0.01 0.000 -10.40% 3
1152 Support Activities for Animal Production D 3 0.05 0.000 -2.84% 3
3169 Other Leather and Allied Product Manufacturing D 3 0.04 0.000 -24.67% 3
3274 Lime and Gypsum Product Manufacturing D 3 0.03 0.000 -14.87% 3
3342 Communications Equipment Manufacturing D 3 0.00 0.000 -34.58% 3
3364 Aerospace Product and Parts Manufacturing D 3 0.00 0.000 -8.12% 3
2111 Oil and Gas Extraction D 1 0.00 0.000 -20.57% 3
3111 Animal Food Manufacturing D 1 0.00 0.000 -10.40% 3
3117 Seafood Product Preparation and Packaging D 1 0.01 0.000 -6.70% 3
3311 Iron and Steel Mills and Ferroalloy Manufacturing D 1 0.00 0.000 -16.40% 3
3313 Alumina and Aluminum Production and Processing D 1 0.00 0.000 -29.29% 3
4869 Other Pipeline Transportation D 1 0.03 0.000 -40.30% 3
5417 Scientific Research and Development Services D 3,210 0.99 0.006 3.12% 2
5171 Wired Telecommunications Carriers D 1,945 0.74 0.003 -10.18% 2
4238 Machinery, Equipment, and Supplies Merchant Wholesalers D 1,677 0.51 0.003 -1.03% 2
4239 Miscellaneous Durable Goods Merchant Wholesalers D 1,438 0.92 0.003 -2.52% 2
4249 Miscellaneous Nondurable Goods Merchant Wholesalers D 1,116 0.61 0.002 1.07% 2
4841 General Freight Trucking D 1,110 0.24 0.002 -1.83% 2
4236 Electrical and Electronic Goods Merchant Wholesalers D 956 0.44 0.002 -0.89% 2
5223 Activities Related to Credit Intermediation D 678 0.42 0.001 0.44% 2
4842 Specialized Freight Trucking D 577 0.27 0.001 -2.19% 2
5121 Motion Picture and Video Industries D 531 0.40 0.001 -6.55% 2
4881 Support Activities for Air Transportation D 408 0.60 0.001 -3.99% 2
4235 Metal and Mineral (except Petroleum) Merchant Wholesalers D 298 0.42 0.001 -10.18% 2
4246 Chemical and Allied Products Merchant Wholesalers D 203 0.30 0.000 -15.77% 2
5112 Software Publishers D 108 0.08 0.000 -4.09% 2
5181 Internet Service Providers and Web Search Portals D 99 0.36 0.000 -5.91% 2
3321 Forging and Stamping D 88 0.15 0.020 -7.65% 2
5173 Telecommunications Resellers D 56 0.38 0.000 -18.21% 2
4882 Support Activities for Rail Transportation D 8 0.06 0.000 2.92% 2
4812 Nonscheduled Air Transportation D 6 0.03 0.000 -27.23% 2
4889 Other Support Activities for Transportation D 3 0.02 0.000 -17.28% 2
Appendix C
A l l o cat i o n
Tradable
% Share
E m p l o y.
Growth
Annual
2008 LQ
19 9 8 - 0 8
in 2008
code
Rate
2008
NAICS
2123 Nonmetallic Mineral Mining and Quarrying D 1 0.00 0.000 -22.00% 2

4832 Inland Water Transportation D 1 0.01 0.000 -32.77% 2
5174 Satellite Telecommunications D 1 0.02 0.000 -12.94% 2
5179 Other Telecommunications D 1 0.02 0.000 -6.70% 2
7222 Limited-Service Eating Places D 11,333 0.57 0.020 -0.07% 1
5613 Employment Services D 10,127 0.53 0.018 -3.11% 1
4451 Grocery Stores D 9,654 0.77 0.017 -1.31% 1
5221 Depository Credit Intermediation D 7,112 0.77 0.013 -2.29% 1
8131 Religious Organizations D 6,892 0.89 0.012 0.47% 1
2382 Building Equipment Contractors D 3,771 0.41 0.680 -1.58% 1
5111 Newspaper, Periodical, Book, and Directory Publishers D 2,761 0.90 0.005 -9.35% 1
6212 Offices of Dentists D 2,743 0.74 0.005 0.94% 1
5242 Agencies, Brokerages, and Other Insurance D 2,719 0.63 0.005 -3.79% 1
Related Activities
6233 Community Care Facilities for the Elderly D 2,672 0.91 0.005 -3.98% 1
5616 Investigation and Security Services D 2,614 0.75 0.005 -5.53% 1
5614 Business Support Services D 2,356 0.69 0.004 -3.72% 1
6213 Offices of Other Health Practitioners D 2,282 0.86 0.004 -1.98% 1
4441 Building Material and Supplies Dealers D 2,133 0.41 0.004 -0.54% 1
4411 Automobile Dealers D 1,962 0.31 0.004 -3.21% 1
5311 Lessors of Real Estate D 1,770 0.71 0.003 -5.60% 1
5418 Advertising and Related Services D 1,648 0.87 0.003 -1.94% 1
8123 Drycleaning and Laundry Services D 1,534 0.85 0.003 -1.42% 1
4529 Other General Merchandise Stores D 1,491 0.25 0.003 -1.92% 1
5312 Offices of Real Estate Agents and Brokers D 1,234 0.72 0.002 -1.69% 1
2381 Foundation, Structure, and Building Exterior Contractors D 1,221 0.23 0.220 -1.66% 1
4511 Sporting Goods, Hobby, and Musical Instrument Stores D 1,220 0.59 0.002 -0.03% 1
4921 Couriers D 1,203 0.57 0.002 -17.62% 1
4413 Automotive Parts, Accessories, and Tire Stores D 1,095 0.47 0.002 -5.04% 1
2383 Building Finishing Contractors D 1,089 0.24 0.200 -0.81% 1
5611 Office Administrative Services D 1,065 0.53 0.002 0.04% 1
2362 Nonresidential Building Construction D 1,006 0.30 0.180 -7.36% 1
5151 Radio and Television Broadcasting D 1,000 0.93 0.002 -6.04% 1
5322 Consumer Goods Rental D 875 0.71 0.002 -2.75% 1
4237 Hardware, and Plumbing and Heating Equipment D 836 0.78 0.001 0.44% 1
and Supplies Merchant Wholesalers
2211 Electric Power Generation, Transmission and Distribution D 814 0.39 0.150 -5.27% 1
Appendix C
A l l o cat i o n
Tradable
% Share
E m p l o y.
Growth
Annual
2008 LQ
19 9 8 - 0 8
in 2008
code
Rate
2008
NAICS
4885 Freight Transportation Arrangement D 762 0.91 0.001 -0.52% 1

4242 Drugs and Druggists' Sundries Merchant Wholesalers D 679 0.54 0.001 3.70% 1
6215 Medical and Diagnostic Laboratories D 665 0.63 0.001 4.51% 1
4421 Furniture Stores D 618 0.46 0.001 -4.77% 1
4483 Jewelry, Luggage, and Leather Goods Stores D 592 0.71 0.001 -3.11% 1
4453 Beer, Wine, and Liquor Stores D 566 0.86 0.001 -2.03% 1
5612 Facilities Support Services D 564 0.85 0.001 2.75% 1
4248 Beer, Wine, and Distilled Alcoholic Beverage D 543 0.64 0.001 -2.45% 1
Merchant Wholesalers
4422 Home Furnishings Stores D 525 0.36 0.001 -1.85% 1
3327 Machine Shops; Turned Product; and Screw, Nut, D 472 0.26 0.080 -2.34% 1
and Bolt Manufacturing
2373 Highway, Street, and Bridge Construction D 448 0.28 0.080 1.74% 1
4233 Lumber and Other Construction Materials D 374 0.28 0.001 3.01% 1
Merchant Wholesalers
4533 Used Merchandise Stores D 369 0.58 0.001 -4.10% 1
5621 Waste Collection D 344 0.42 0.001 -5.30% 1
4531 Florists D 259 0.58 0.000 -3.79% 1
8113 Commercial and Industrial Machinery D 258 0.30 0.000 -6.40% 1
Repair and Maintenance
3328 Coating, Engraving, Heat Treating, and Allied Activities D 220 0.34 0.040 -4.32% 1
4859 Other Transit and Ground Passenger Transportation D 209 0.78 0.000 -13.52% 1
4922 Local Messengers and Local Delivery D 166 0.84 0.000 -7.63% 1
4853 Taxi and Limousine Service D 115 0.37 0.000 -4.33% 1
7131 Amusement Parks and Arcades D 76 0.11 0.000 -6.51% 1
5323 General Rental Centers D 36 0.22 0.000 -10.65% 1
2213 Water, Sewage and Other Systems D 34 0.19 0.010 -10.05% 1
5622 Waste Treatment and Disposal D 30 0.12 0.000 -9.68% 1
4855 Charter Bus Industry D 28 0.24 0.000 -22.52% 1
4542 Vending Machine Operators D 20 0.08 0.000 -19.95% 1
7114 Agents and Managers for Artists, Athletes, D 18 0.21 0.000 -6.95% 1
Entertainers, and Other Public Figures
4851 Urban Transit Systems D 9 0.04 0.000 -17.00% 1
4442 Lawn and Garden Equipment and Supplies Stores D 7 0.01 0.000 -24.08% 1
2212 Natural Gas Distribution D 1 0.00 0.000 -18.77% 1
Developing Construction &
Demolition Waste Recovery
in Philadelphia
ellioTt gold
EMERGING
Industries Project

Emerging Industries Project | Developing Construction & Demolition Waste Recovery in Philadelphia
Developing Construction & Demolition

Waste Recovery in Philadelphia
T h i s r e p o r t w a s w r i tte n b y E l l i o t T G o l d , a n d h e w o u l d
like to give special acknowledgment to the following
s ta k e h o l d e r s w h o c o n t r i b u te d t o t h i s w o r k :
Working Group
Linda Knapp Institute for Local Self-Reliance
Christine Knapp PennFuture
Mike Cooper Sierra Club
Heather Blakeslee Delaware Valley Green Building Council
Natalia Olson-Urtecho Ecolibrium Group
Nathan Turner Ecolibrium Group
C&D Industry
Avi Golen Construction Waste Management
Kevin Brooks Kevin Brooks Salvage
Linda Mellish ReStore
Maurice Sampson Niche Recycling
Model Cities
Mark Fruits Woolwich Township, NJ
Kinley Deller King County
Otis Amanaza Chicago Department of Environment
Patrick Hayes Oakland Public Works Agency
Interviews & Meetings

Jon Edelstein Philadelphia Department of Commerce
Sarah Sachdev Councilman James Kenney’s Office
Mike Fink Philadelphia Department of Licenses & Inspections
Suzanne Biemiller Mayor’s Office of Sustainability
Mary Hunt Environmental Protection Agency
Dave Iacono Environmental Protection Agency
Mike Giuranna Environmental Protection Agency
Larry Holley PA Department of Environmental Protection
Hardik Savalia B Lab
Developing Construction & Demolition
Waste Recovery in Philadelphia
Executive Summary
Construction and demolition (C&D) projects are one of the largest sources of waste generation
in America. Despite the potential for reusing and recycling many of these materials,
large amounts continue to be directed to our landfills. Over 1.9 million tons of C&D waste
was directed to Pennsylvania landfills alone in 2008 — nearly 100 thousand tons of which
originated in the City of Philadelphia.1
When these materials are sent to landfills or incinerators, they contribute to the same negative externalities created
by all other types of waste, including: air and water pollution, the prevention of biodegradation, and the incurred costs
and energy to transport the materials. Furthermore, additional energy and virgin resources are wasted in replacing
these existing, valuable materials. Given proper forethought, much of this C&D waste – up to 90 percent by some
estimates – can instead be redirected to more productive and profitable uses.
C&D waste recovery entails both the reuse and recycling of debris generated
from construction and demolition projects. Individual elements, including Over 1.9 million
doors and cabinets, can be re-used; and other materials, including lumber,
brick and drywall, can be recycled. End markets for specific goods and tons of C&D waste
facilities for separating mixed-materials already exist in Philadelphia with
the capacities for scaling up their operations.
was directed to
There are varying levels of C&D recovery efforts, from full deconstructions
Pennsylvania landfills
to the soft-stripping of the most easily accessible and valuable commodities. alone in 2008 — nearly
Selecting the appropriate level should be made on a case-by-case basis to
justify the cost-effectiveness of time and resource investments. However,
100 thousand tons of
almost all projects afford recovery opportunities. Investing time at the which originated in the
front-end to consider types and amounts of resulting materials and identify
existing end markets can allow C&D projects to realize profitability through City of Philadelphia.
reduced tipping fees and material resale profits.
Thanks to the creation of Greenworks Philadelphia by the Nutter administration, Philadelphia now has a comprehensive
framework for becoming the greenest city in America by 2015. C&D waste recovery offers an attractive method for
achieving several of the plan’s objectives, most notably the diversion of 70 percent of solid waste from landfills and
the creation of 15,000 new jobs.
In addition to reducing harmful environmental impacts, recovering and reselling these commodities creates new
jobs while growing ancillary industries. Growing both the supply and demand sides of this burgeoning industry,
while intentionally retaining the commodities within the city of Philadelphia, allows multipliers of economic activity
to flow throughout our local economy.
While the C&D recovery industry is starting to develop, it is nowhere close to reaching its full potential in Philadelphia.
The presence of existing hurdles and the absence of effective policies are continuing to direct these materials to
1C
ounty Waste Destinations in 2008, PA Dept. of Environmental Protection, 2009.
Number only relevant to landfill waste and does not include tonnage directed to incinerators.
2a • • • • • • • • building a green economy for all philadelphians Green Economy Task Force
wasteful and harmful ends. Many municipalities have already recognized the impact and importance of addressing
their C&D recovery rates. From Woolwich, NJ to Chicago, IL to Oakland, CA, a number of cities have proactively
implemented processes and policies to reduce their waste streams and stimulate their local economies as a result.
By committing to C&D recovery for its own projects, the public sector can take the lead in fostering these markets in
Philadelphia, thus gaining the credibility necessary for encouraging city-wide recovery efforts. However, if significant
waste recovery impacts are the desired goal, the public sector effort by itself will not be sufficient; public sector
construction and demolition projects are entirely eclipsed by the volume of private sector activities. Further steps
towards incentivizing city-wide recovery practices will be necessary in order to truly capitalize on the opportunity
before us and realize Mayor Nutter’s dream of making Philadelphia the “greenest city in America.”
Summary of Recommendations
• Develop C&D recovery informational materials and marketing campaign that includes:
° Importance and impacts of C&D recovery
° Best practices
° Contact information for existing end-markets
° Educational workshops for contractors.
• Develop local major retail yard.
• Conduct a thorough examination of Philadelphia’s municipal waste stream through next

waste management study (due in 2010).
• Create school curricula on C&D recovery practices.
• Identify available and relevant funding programs to help distribute marketing literature,
create educational materials, implement job-training programs, and study waste streams.
• Mandate C&D diversion percentages for public sector projects:
° A minimum of 20 percent of the building materials, by weight and excluding asphalt,

brick and concrete, will be reused;
° A minimum of 50 percent of the building materials, by weight and excluding asphalt,

brick and concrete, will be reused, recycled or beneficially used;
° 100 percent of asphalt, brick and concrete will be reused, recycled or beneficially used.
• Issue an RFP for architectural salvager to be given access to all public sector demolitions.
• Commit to deconstruction for public sector demolitions when feasible,

and include workforce development programs.
• Incorporate use of reclaimed materials preferences in RFPs for public sector construction projects.
• Enact city-wide ordinance requiring recovery activities in all C&D projects:
° Mandate the submission of waste management plans for demolition and construction permits;
° Set similar C&D diversion percentages as those set for public sector projects
Green Economy Task Force building a green economy for all philadelphians • • • • • • • • 2b
Introduction
Construction and demolition (C&D) projects are one of the largest sources of waste generation in America.
Approximately 170 million tons of C&D debris was created in 2003 1, while in that same year the general waste
stream consisted of 236 million tons.2 Despite the potentials for re-using and recycling many of these materials,
large amounts continue to be directed to our landfills. Over 1.9 million tons of C&D waste was directed to
Pennsylvania landfills alone in 2008, nearly 100 thousand tons of which originated in the City of Philadelphia.3
When sent to landfills, these materials contribute to the same negative externalities created by all other waste;
air pollution, through the release of greenhouse gases and other toxins, and water pollution, by way of seepage
into water tables. Materials that would otherwise naturally biodegrade are often prevented from doing so due
to tight compaction and lack of oxygen. Energy is consumed in hauling and dumping existing materials, and virgin
natural resources are wasted to replace them. Incinerators have been touted as more environmentally-friendly
disposal options; however, they too contribute to air pollution, and represent the same inefficient uses of energy
and natural resources when reuse and recycle alternatives are available.
Given proper forethought, much of this C&D waste – up to 90 percent by some estimates – can instead be redirected
to more productive and profitable uses. Joists in historic buildings, which are currently scarce, can be re-milled.
Perfectly good windows can be re-installed for a fraction of the cost of purchasing new ones. One hundred percent
of asphalt, concrete, and brick, which comprise the majority of demolition waste, can be recycled.
What is C&D Recovery?

C&D waste recovery entails both the reuse and recycling of debris generated from construction and demolition
projects. Often, for the sake of saving time, debris is directed to catch-all dumpsters, thereby earning the distinction
of and treatment as municipal solid waste. Taking the time to separate out materials with marketable potential
immediately transforms waste into commodities.
Many of these C&D “waste” materials can be effectively reused with minimal processing. Elements such as molding,
lighting, plumbing, fixtures, doors and door frames, flooring, brick, and many others can either be reused on-site
or taken away for reprocessing and resale. In the Philadelphia region there are already a number of companies,
with huge potential for expansion, that provide this service.
Remaining materials can be repurposed for other productive uses. Concrete pavement can be ground and used as
structural fill, asphalt shingles can be melted for use as blacktop, and gypsum from drywall can be recycled for other uses
including soil amendment and cement production. Traditional recycling of materials, plastics, and paper waste generated
by construction and demolition is also included under this practice and is an important part of C&D waste recovery.
In the Philadelphia region, there are also several facilities that sort and process both source-separated (materials
separated at the work site) and mixed debris (dumpsters containing co-mingled wastes) materials from C&D projects.
These C&D recycling facilities can incentivize contractors to separate on-site by charging less per ton for already
separated materials, while also providing mixed-debris separation services for contractors who are unable or unwilling
to separate on-site. The fees for the processing of mixed debris are often nearly identical to fees for traditional waste
Sources
1 Estimating 2003 Building-Related Construction and Demolition Materials Amounts, EPA, 2009
2 MSW Characterization Report 2003, EPA Office of Solid Waste and Emergency Response, 2005
3 County Waste Destinations in 2008, PA Dept. of Environmental Protection, 2009. Numbers only represent tonnage to landfills,
and does not include tonnage directed to incinerators.
industry facilities right now. By charging similar fees, C&D recycling facilities are able to pay employees to separate
the materials for resale and reuse.
C&D waste recovery covers a full spectrum of approaches and methodologies. Several pilot projects, including
the 2003 Susquehanna Project undertaken in the Strawberry Mansion section of Philadelphia, have shown the
effectiveness of full deconstruction, which involves the complete dismantling and separation of a building’s materials.4
While complete disassembly is not always viable or cost-effective, almost all projects present opportunities for
realizing diversion and profitability. Individual assemblies, such as dimensional lumber in rafters or floor joists,
can be recovered; and “soft-stripping” can occur to salvage obviously desirable and easily recoverable elements,
such as plumbing and electrical fixtures or HVAC equipment.
The building
1
1 4 Deconstruction – complete disassembly
Soft-stripping – Removal of specific building

components or equipment prior to demolition of
structure (plumbing, electrical, HVAC equipment,
cabinets, doors, windows, hardwood, tile flooring)
2
Individual assemblies – Target particular building
2 3 assemblies for removal prior to demolition (rafters, floor
joists, wall framing members, architectural salvage)
Re-use – Molding, lighting, plumbing, doors and

frames, flooring, brick, architectural salvage
3
Recycle – Metal to scrap yards; re-mill lumber, drywall,
bricks, concrete, asphalt as onsite back-fill
Ancillary markets develop; Vendors grow including

marketing, transportation, creative/design, and retail
sales; Indirect jobs grow; Revenue grows
4
New construction built with recovered materials
and prepared for future deconstruction
Sources
4 “Susquehanna Deconstruction Pilot Project.”Institute for Local Self-Reliance and the Hamer Center for Community Design. 2003.
http://www.unbuild-rebuild.org/pdfs/SusqFINL.pdf
Cross- Sector Interest & Impacts
An entire industry, offering well-paying jobs and attractive revenue streams, is already developing around the
existing market for reused and recycled goods. Bottom-line implications are causing contractors to divert materials,
thereby saving money on tipping fees and earning profits through resale. C&D recycling facilities have emerged
for the purpose of separating mixed debris to be sold to individual end-markets. Architectural salvagers are
identifying and recovering specific elements of buildings that would otherwise be completely demolished,
and selling them for considerable profits.
Additionally, environmental considerations will increasingly influence traditional business decisions. These
developments have already been seen in the wide-spread acceptance of the U.S. Green Building Council’s Leadership
in Energy and Environmental Design (LEED) standards. Among the criteria of LEED certifications is the requirement
for reusing and/or recycling set percentages of the total waste stream produced during construction and demolition.
As the number of LEED certified buildings has increased, so too has the private sector’s intentional efforts to redirect
construction waste to more environmentally-friendly destinations.
Even with these developments, the C&D recovery industry is nowhere close to reaching its full potential in Philadelphia.
The presence of existing hurdles and the absence of effective policies are continuing to direct these materials to
wasteful and harmful ends. Many municipalities have already recognized the impact and importance of addressing
their construction and demolition recovery rates. From Woolwich, NJ to Chicago, IL to Oakland, CA a number of
cities have proactively implemented processes and policies to reduce their waste streams and stimulate their local
economies as a result.
Thanks to the creation of Greenworks Philadelphia by the Nutter administration, Philadelphia now has a comprehensive
framework for becoming the greenest city in America by 2015. One of the plan’s 15 major targets is to divert 70
percent of solid waste from landfills.5 C&D recovery presents a practical and attractive means for achieving this goal,
considering the volume of materials generated, the amounts continually sent to landfills, and the promising reuse and
recycling potentials. Recovery efforts in other cities demonstrate that 80 percent of C&D waste can be diverted given
dedicated efforts and effective policies.
Yet, ultimately, C&D recovery is not strictly an effort to keep materials out of landfills; it is a commitment to redirect
quality goods to the most productive and profitable uses possible.
Sources
5 Greenworks Philadelphia available online at http://www.phila.gov/green/greenworks/index.html
6 “A Guide to Deconstruction.”U.S. Department of Housing and Urban Development. 2000. http://www.huduser.org/Publications/PDF/decon.pdf
Case for C&D Recovery
Case Study – Philadelphia Civic Center

As preparation began for the razing of Philadelphia’s Civic Center in late 2004, deconstruction advocates
moved quickly to collect as many materials as possible before they were destroyed and directed to landfills.
Second Chance, Inc. and the University of Pennsylvania Health Systems formed a partnership in which each
put up $35,000 to pay for the salvage work. As is often the case for projects of this size, tight timelines were
set in order to bring structures down as soon as possible. Developing a plan for a complete deconstruction
wasn’t possible, and Avi Golen, who served as another partner in the venture and the project manager,
had only three days to put the salvage plan together.
Months were spent carefully removing historic ticket booths, plaques, chandeliers, terra cotta artwork,
windows, brass door hardware, and many other near priceless materials. By the end of the effort, the
partnership had generated over $600,000 from the resale of the salvaged elements. As Golen said at the
time, “I’m selling things even before we can get them out of the building.” Without this salvage work, tons
of materials would have been hauled away to take up space in landfills at the cost of thousands of dollars.
Instead, substantial profits resulted because they took the time to salvage these materials and direct them
to interested buyers.
Although the Civic Center case study is great example of the potentials of C&D recovery, it only included soft-stripping,
and captured merely the low-hanging fruit. In the end, further opportunities for both recovery and profitability were lost.
Assessing materials and markets beforehand can allow contractors to justify what level of recovery makes sense.
The U.S. Department of Housing and Urban Development has created a “Guide to Deconstruction” that provides
an overview of what the process entails, best practices, and potential benefits. Many of the considerations that
make deconstruction cost-competitive are found throughout Philadelphia’s historic building stock, including wood-
frames (with heavy timbers and beams or with unique woods), specialty materials (hardwood flooring, unique doors,
molding, fixtures), and high quality bricks.6 The community heritage throughout our city’s buildings and homes further
encourage initiatives to recover as much as possible. Since many of these goods are no longer commercially available,
and thus are in very high demand, C&D recovery presents opportunities for saving valuable, historic, and sometime
unique, commodities.
Environmental Impact
Proper planning is necessary to ensure economic profitability, however there is no denying the positive impact C&D
waste recovery has on the environment. Every material that is recovered and put to another productive use saves
space in landfills and preserves virgin materials.
Sources
6 “A Guide to Deconstruction.”U.S. Department of Housing and Urban Development. 2000. http://www.huduser.org/Publications/PDF/decon.pdf
In 2003, the Powell Center for Construction undertook the Wesley House Project – a study for the U.S. Environmental
Protection Agency (EPA) in which a building was fully deconstructed with the intent of incorporating as many of the
existing materials into the construction of the new facility taking its place. Forty-four percent of the original building’s
materials were reused or recycled. This diversion equated to the total avoidance of 2.7 metric tons of greenhouse gas
carbon equivalent (GHGCE), 10 metric tons of carbon dioxide equivalent (GHGCO2), and 42 million BTUs of energy
use. Every square foot of materials diverted equated to the avoidance of 4.29 lbs of GHGCE, 15.75 lbs GHGCO2,
and 33,470 BTUs.7
Job Creation
Salvaging elements, separating materials, and deconstructing buildings can all be labor and time-intensive efforts.
As a result, the development of the C&D recovery industry offers many exciting opportunities for growing sustainable
and valuable green collar jobs. These opportunities are especially relevant given the Greenworks plan objective
of creating 15,000 new green jobs in the next 6 years.
A study completed in 1997 by the Institute for Local Self-Reliance found that every job in the traditional waste industry
is equal to 10 recycling facilities jobs.8 Rough estimates suggest that a facility capable of processing up to 600 tons
per day could employ about 80 people, offering wages from $12-$20 per hour and $40,000-$65,000 per year for
salaried personnel. Increased C&D opportunities will also introduce additional salvage and deconstruction work,
both of which can similarly provide quality, sustainable jobs.
Deconstruction projects also provide significant workforce development opportunities, as the care and precision
involved in deconstruction make the skills needed very similar to construction, only in reverse. These projects can
serve as an ideal ground for providing valuable entry-level jobs with upward mobility into higher-skilled construction
trades.
Economic Impacts
In order for these practices to become widely accepted, the investment of time and resources must be justified for
developers and contractors. Anecdotes and research both prove that these investments can be, at the very least,
cost-neutral through reduced waste hauling fees and the re-sale of separated commodities. The Civic Center case
study demonstrates the profitability of merely soft-stripping; the full deconstruction effort of the Susquehanna project,
while not necessarily universally replicable, still presents a strong return-on-investment afforded by separating
and selling individual materials.
Several studies have shown deconstruction to be cost-competitive with average hand demolitions, but not necessarily
with mechanical demolitions due to the time involved. However, the two need not be mutually exclusive. By determining
beforehand the types and quantities of resulting materials and the demand markets for the specific commodities,
contractors can use any combination of demolition, deconstruction, or architectural salvage to recover as much
materials as makes sense economically.
Diverting materials as profitably as possible also involves considering the most productive reuse opportunities
for recovered commodities. Many contractors already grind bricks on-site to be reused for infill and foundations.
The separation of the bricks from other waste materials can be time-consuming and costly; grinding has become
Sources
7 “Design for Deconstruction and Reuse” Powell Center for Construction and Environment. 2003.
http://www.unbuild-rebuild.org/pdfs/DfR03-20.pdf
8 Institute for Local Self-Reliance, Washington, DC, 1997. http://www.ilsr.org/recycling/recyclingmeansbusiness.html
accepted because it makes sense economically. Contractors that grind and recycle bricks in this manner are not
paying to haul away their largest amount of waste material, and as a result are enjoying substantial waste disposal
savings. Infill, however, is not the most productive use of the commodity. Recovered bricks can be cleaned, resold,
and re-used as a high-quality building material. Projects seeking to incorporate historic bricks into their design can
purchase recovered bricks for less than the cost of new bricks. Rather than paying to have bricks hauled to landfills,
contractors can be paid for providing a valuable commodity, which can then be reprocessed and resold.
In this way, C&D recovery not only offers profitability for the projects at-hand, but also opens opportunities for ancillary
industries and indirect job growth. The growth of the ancillary industries, from the brick re-furbishers to the lumber
re-millers, will in turn develop their own vendors, including transportation, design/creative, marketing, and retail
sales. Keeping these materials local allows for the commodities, jobs, and multipliers to be captured within the
local economy.
Connections and Considerations
Marketing/Outreach
It takes time and effort to develop awareness of yield potentials and end-market demands; and some activities,
like on-site grinding, may not always be feasible. Encouraging the wide-spread implementation of C&D recovery will
require a mixture of incentives and education. Creating materials and marketing efforts to provide information on the
importance of C&D recovery, the value of individual materials, and the existing end-markets should be among the
first steps taken in developing the C&D industry in Philadelphia. Demonstrating the potential for profitability through
resale and reduced hauling fees can incentivize contractors to begin undertaking these efforts on their own.
Other cities, like Chicago and Oakland have created literature on best practices to assist contractors in achieving the
most effective and profitable results for converting commodities into cash. Dispersing this information has increased the
use of existing infrastructure and been integral in ensuring the success of their more proactive attempts at increasing
C&D waste recovery. Additionally, educational workshops for contractors would ease apprehensions caused by
uncertainties, instill knowledge on the value of C&D recovery, and provide best practices. Practitioners could easily
and quickly develop skill-sets to ensure profitability for individual projects and high recovery rates city-wide.
A private-public partnership may provide the best method for creating these promotional materials and workshops.
A city agency could take the lead in the program development. Non-profit advocacy groups could provide key support
roles to inform the production, assist in distribution, and assume specific tasks, such as the identification of model
environmentally-friendly businesses, which may be inappropriate for the public sector. Businesses already operating
within this industry should be willing partners and may even be the most appropriate entities for some promotional
activities given the benefits they stand to gain.
Connecting the Markets
Best Practice – Second Chance, Inc.

Second Chance, Inc. is a major retail yard in based in Baltimore, MD that collects, processes, and resells
materials collected from construction and demolition projects. Their compound includes four warehouses of
building materials (including wood, metal, plaster, and stone), architectural elements, doors, lighting, flooring,
and plumbing fixtures that have been salvaged from existing buildings for re-use in new constructions.
The scale of their operation has made them a steady and reliable connector to incentivize the recovery
of building materials and publicize less-expensive re-use alternatives to the purchase of new goods.
As a non-profit that has the capability to provide tax credits for materials donated, they are an especially
effective model.
Since developing in Baltimore, they have expanded their reach into other markets, including here in
Philadelphia, and have incorporated other services besides the resell of salvaged materials - most notably
a job-training program to provide low-income individuals with a variety of construction craft skills.
While informational programs are a necessary first step, C&D recovery will ultimately depend on establishing consistent
supply and demand markets, and ensuring reliable connections throughout. Waste separating facilities, recyclers,
retail yards, and other end markets already exist, and have the capacity to scale up. Specific commodities such as
scrap metals, dimensional lumber, masonry, and many other high-value commercially-unavailable goods are present
throughout Philadelphia’s historic building stock. However, growing these supply and demand markets will require that
they develop stronger relationships.
King County, Washington has created an impressive mechanism in their “online material exchange,” which serves the
dual purposes as a strong market connector, and a convenient and accessible C&D marketing device. 9 The website,
hosted by the county government, allows contractors and salvagers to post listings for materials, and allows anyone
to browse and purchase listed items. The site functions as a natural auction to incentivize recovery and resale efforts,
and determine cost-effective prices encouraging consumers to purchase recovered, rather than new, products.
In Philadelphia, recovered materials, such as brick and masonry, are already being incorporated into new construction
projects, and innovative manufacturers are beginning to utilize existing materials in the production of new goods. These
practices would undoubtedly increase as architects and manufacturers became certain that there would be steady
supplies from reliable sources. Likewise, contractors would also be more likely to recover, separate and sell these
materials if they knew there’d be consistent demand markets to ensure the economic worth of separation.
Several local operations already exist to serve this purpose. Restore and Provenance are two such facilities that collect
materials recovered from C&D projects and re-sell them in one location. However, no single major market-connector
exists in Philadelphia, as Second Chance, Inc. does in Baltimore. This absence presents a void between the C&D
industry’s supply and demand markets, which is hindering the development of both.
Sources
9 Available online at http://your.kingcounty.gov/solidwaste/exchange/
Furthermore, current capacity limitations are, in some cases, causing those materials that are recovered from local
projects to be directed to external facilities outside the region. The local market is surrendering opportunities to retain
these valuable commodities, resale profits, and the job creation opportunities.
Understanding Our Waste

Current Pennsylvania Department of Environmental Protection (PA DEP) reports demonstrate that C&D materials
comprise a significant percentage of Philadelphia’s waste stream, and that large amounts are continually directed to
landfills and incinerators. However, a deeper understanding is lacking due to the absence of a comprehensive study
of the city’s municipal waste stream.
Every county is required by the Commonwealth of Pennsylvania to conduct a waste management study every ten
years. As a compulsory requirement, these studies often address bare-minimum conditions and considerations.
This mandate affords the opportunity to conduct a more thorough examination of the Philadelphia waste stream
in order to fully understand specific materials and amounts, where they are currently directed, and alternative re-uses
and destinations. Act 101 Planning Grants from PA DEP can be used to fund this study. When preparations begin
for Philadelphia’s next study, due in 2010, this waste management study requirement should be viewed and treated
as an opportunity for economic development rather than a mere obligation.
Education
Incorporating C&D recovery into existing academic curricula and introducing new programs could raise awareness
of these practices and develop a new class of sustainability-minded architects, contractors, and developers in
Philadelphia. Construction management programs at local technical schools, colleges, and universities could begin
to address the importance of and best practices within C&D recovery. Architecture and Design schools could create
programs for deconstruction design, a school of design which focuses on making structures easier to maintain,
repurpose, and ultimately take down and reuse with minimal waste and effort. Deconstruction programs are already
in existence at other institutions, including Penn State University and the University of Florida, offering available
curricula to consider and replicate.
Environmental Justice
The growth of the sustainability movement in America has involved the development of new opportunities and
the inclusion of new ideas. In this process, different and even competing concerns have emerged, and ensuring
environmental justice for all communities has become an important issue. Naturally, while there is broad-based support
for recycling efforts and recognition of the need for facilities to separate materials, there are, justifiably, concerns about
noisy trucks hauling waste into residential communities.
Waste processing facilities are often placed in low-income or minority neighborhoods, as these communities are
unlikely to have the connections or resources to prevent these developments. Conversely, C&D recycling facilities
– while still introducing waste, trucks, and noise to neighborhoods – also offer sustainable, living wage green jobs
for residents that will grow over time. It is important to ensure these occupations are made available and accessible
to those currently facing barriers to employment. For instance, Blue Mountain Recycling, in the Grays Ferry section
of Philadelphia, demonstrates that it is possible to site and operate urban facilities that are environmentally sound,
minimize harm to neighborhoods, comply with OSHA standards, and provide good jobs.
Increased C&D activities in Philadelphia would inevitably lead to the growth of C&D recycling facilities. As such, the
capacities of current facilities and the locations of new operations should be a key component considered in the overall
growth of Philadelphia’s C&D industry. The Delaware Valley Regional Planning Commission’s current environmental-
justice map and the industrial land use study jointly commissioned by the Philadelphia Department of Commerce,
Planning Commission, and Philadelphia Industrial Development Corporation should serve as vital tools in identifying
appropriate locations. Communities should be included in these processes and given the option of first refusal when
jobs become available.
Additionally, particular emphasis should be given to identifying sites near rail lines and introducing new lines, where
feasible, to existing operations. Rail is the least expensive method of transportation, has the lowest environmental
impact, and eliminates the need for trucks, which often serve as a main point of contention for nearby communities.
Funding
Funding will be required to develop and distribute marketing literature, create educational materials, implement
job-training programs, and study waste streams; and programs are available for financing these activities. State
grants exist for waste studies, and federal grants exist for marketing and educational programs around sustainability.
Both levels of government also provide funding for workforce development activities.
Additionally, the American Recovery and Reinvestment Act (ARRA) has created one-time funding programs that can
be tapped. The City of Chicago, for instance, has identified a job training funding stream from ARRA for use in a public
works deconstruction program. As a result, the city has secured external funds allowing them to lead the way in public
sector commitments to deconstruction while also providing individuals with quality experience and training.
Identifying available programs and connecting them to specific initiatives will require intentional and dedicated
efforts. Certain funding applications may be lead by private sector organizations; others, most notably those affiliated
with ARRA programs, will require the city itself to be the lead in determining where it chooses to invest its time and
resources.
Social Costs
Encouraging C&D recovery activities will very much depend on the profitability of these practices. People will continue
sending materials to landfills and incinerators as long as it is less expensive. Directing re-usable and recyclable
materials to these unproductive ends represents a social cost that, if reflected in actual prices, would compel
beneficial reuses through natural private sector activities. Ensuring proper price points – either through tipping fee
taxes or limitations on traditional transfer stations – may be a longer-term consideration, but would be an effective
and appropriate method for incentivizing desirable activities.
Policy for Philadelphia
Public Sector Commitment

There are a few logical steps the City of Philadelphia can take to begin driving both the supply and demand sides
of the C&D recovery market, the first of which would be to incorporate waste recovery practices into its own projects.
In this scenario, all public sector projects would have mandated waste recovery percentage goals as part of their
initial request-for-proposals (RFP) to inform applicants of this commitment and select contractors on their ability
to demonstrate material recovery.
Reporting requirements in contracts would ensure recovery practices occur, and could be upheld through a system
of withholding payments, levying fines, or barring participation in future contracts with the city. Due diligence would
be necessary beforehand to ensure the absence of any environmental hazards and the soundness of the buildings’
structures to ensure safety.
Public Deconstruction
Committing to the practice of deconstruction for public demolitions could achieve several objectives. First,
deconstruction projects can help the city demonstrate the importance of recovery efforts. Secondly, these
efforts could also afford significant workforce development opportunities, given the job-training prospects within
deconstruction, which could introduce additional funding streams and produce a new class of laborers able
to obtain viable green collar jobs in the City of Philadelphia.
Public Works Architectural Salvage
Best Practice – Architectural Salvage RFPs

Regardless of deconstruction potentials, almost all projects present architectural salvage opportunities for
removing the most valuable and easily accessible elements. Through the selection of an official architectural
salvager, the City of Baltimore has developed a mechanism to ensure efforts are made to collect these
materials from all public sector demolitions.
Baltimore identified a capable firm by posting an RFP. Ultimately, the selection was made based upon
experience, capabilities, and demonstrated understandings of yield potentials and existing end markets.
Mandated time periods for salvage activities were thereafter included in all planned public demolitions
to allow the selected firm time to remove as many valuable commodities as possible.
The city could further drive waste recovery through the incorporation of phased demolition RFPs to allow for
architectural salvage in public sector projects, and to identify a vendor capable of providing this ongoing service.
Like many of the other recommendations laid out in this report, the fact that this program has already been examined
and implemented in other cities, including Baltimore, demonstrates its feasibility.
A contract that would allow for the sharing of profits earned between the vendor and the city could be arranged.
The primary benefit for the City of Philadelphia, however, would be the amount of material diverted from landfills.
The $65 tipping fees the city currently pays for every ton of waste hauled (which totals approximately $47 million
annually) makes waste recovery financially attractive.
Driving Demand
In addition to increasing the supply side of the waste recovery market through its own construction and demolition
projects, the city could also drive demand markets by incorporating the use of recovered goods into future public
works. For instance, offering preferences in RFPs for the use of reclaimed commodities, such as bricks, in new
construction would develop a steady demand market for these commodities.
Given proper outreach and awareness efforts, such a requirement would encourage contractors – on both private
and public projects – to not only divert recovered bricks from landfills, but to direct them towards more productive
and profitable purposes. The same example holds true for masonry, wood, and many other recovered commodities.
A City-wide Ordinance
Public sector projects represent a logical first step in both increasing these practices and providing the city with
credibility for encouraging city-wide C&D recovery. However, if significant waste diversion impacts are the desired goal,
the public sector effort by itself will not be sufficient. Further steps towards mandating city-wide recovery practices
in the private sector are necessary.
Mandating private sector C&D recovery opens up a new range of concerns. First and foremost, ensuring private
sector compliance would require oversight and enforcement. This presents valid apprehension for many, considering
the current limitations of the city to monitor and enforce regulations that are already on the books. However, the
effectiveness of enacted ordinances in regional neighbors and national comparative cities, demonstrates that city-wide
mandates to compel C&D recovery activities are both feasible and effective.
A city-wide ordinance could be structured with the same diversion percentages as the public sector mandates.
This structure of percentages could allow considerable leeway in the amount, timing, and types of material diversion
requirements. Brick, asphalt, and concrete materials tend to comprise a substantial percentage of project’s wastes,
and 100 percent of these materials can be reused. Failing to recognize this through a 100 percent diversion
requirement for these specific goods can greatly water down the impacts to be had by diverting other, less-obvious
materials. Additionally, mandated percentages could also be phased in over a number of years to allow the private
sector to learn effective practices and scale up activities.
Waste Management Plans

An ordinance could begin with the requirement of a completed waste management plan prior to the issuance of
demolition and construction permits. A waste management plan requirement would compel project managers to
identify expected waste materials at a project’s onset, and provide literature on existing end-markets. For these
reasons, waste management plan requirements enacted in a number of other cities have been essential elements
to the success of C&D recovery programs.
The development of a waste management plan need not be onerous task; several existing plans in other locations,
including Woolwich Township, NJ and Portland, OR, are no longer than one page. Connecting the submission of waste
management plans to the issuance of permits also presents possibilities for incentivizing recovery activities beyond
minimum percentages. Ambitious management plans can receive expedited demolition permits while construction
permits are still processed, or be offered write-downs on permit costs. The requirement for waste management plans
for LEED building certification further demonstrates the practice’s growing use and practicality.
A potential hurdle is presented, however, as contractors currently do not have to be named in order for the project’s
developer or owners to be issued permits. Developers will be accountable for promising to recover materials, but the
contractors will be ultimately responsible for ensuring recovery activities take place. This could potentially present
a situation in which no single entity can be ultimately held accountable for follow-through with C&D recycling.
Cities with similar circumstances have found ways to effectively incorporate waste management plan requirements
into their ordinances. The City of Oakland, CA has done so by holding the lead applicant accountable throughout the
process. Permits are withheld until a signed waste management plan, fulfilling recovery requirements, is received.
Oakland also provides literature on best practices, and offers technical assistance to support projects in developing
plans that work based on the project type and location. Contractors, once selected, are also afforded the opportunity
to submit an amended plan if they choose.
Ensuring Compliance
Final reporting requirements are necessary to ensure that recycling activities occur, careful records are kept, and
that promised recovery activities do in fact take place. Receipts from end-markets could be sufficient to document
materials separated on-site by contractors. Mixed-materials directed to recycling facilities would require contractors
to obtain documentation from these facilities demonstrating the amounts of materials that were separated and where
they were ultimately directed.
PA DEP permitting regulates facilities that are able to separate and beneficially re-use materials. While the PA DEP
permit recognizes this ability, it does not mandate recycling rates; effectiveness of individual facilities varies as a result.
However, all facilities are required to maintain precise records on the amounts of materials they process and the
locations to which they are ultimately directed.
These current record-keeping requirements would allow facilities to provide documentation for individual projects, and
could be used in identifying the most the most effective C&D recycling facilities. Participating facilities would likely be
willing and interested in showcasing their recycling rates to attract additional C&D business. As C&D recovery activities
increased, additional facilities would likely begin offering separation and recycling services and to achieve the highest
recycling rates possible.
Different cities have implemented various enforcement mechanisms to guarantee accountability. Several, like Oakland,
withhold certificates of occupancy until summary reports are submitted. This practice may appear unattractive in that
tenants are kept from populating already completed projects. However, this has not been an issue in Oakland, which
allows for occupants to move in while still motivating owners/contractors to complete the process. Requirements
specific to Philadelphia’s certificate of occupancy process and regulations could be examined and addressed
to make this enforcement mechanism both palatable and effective.
Chicago issues a series of scaled fines which they have found to be particularly effective in ensuring reports are
submitted and appropriate recycling rates are achieved. Reports that are either not submitted or demonstrate zero
recycling rates can be fined up to $50,000. A series of scaled fines are in place depending on both the size of the
discrepancies between expected and actual recycling rates, and the size of the project. Additionally, future permits
of applicants are held until past reports are submitted.
Cities that have implemented similar city-wide C&D recovery ordinances have enjoyed consistent success as a
result. In Chicago the ordinance has not driven up the cost of development for private projects, and bids for public
projects are not coming in any higher than before. Overall the city achieved an 85 percent C&D recycling rate in 2008.
Oakland’s recycling rate has been a bit higher, around 90 percent over the last few years. Woolwich Township’s
average has been slightly lower, closer to 60 percent, but has received highs of up to 95 percent. These programs
have worked because the right incentives are in place and ultimately because C&D makes sense both environmentally
and economically.
Next Steps
The execution of individual recommendations included in this report would achieve C&D waste recovery results and
pave the way for the continued growth of the industry. However, in order to achieve the most substantial results,
decision-makers should consider and prioritize the opportunities with the most impact. Public sector projects
represent a small percentage of the C&D activities in Philadelphia - private sector recovery must be addressed.
The city-wide ordinance, though necessary and technically feasible, may still face political hurdles. A phased-in
approach implemented over a number of years may be more politically feasible, allowing the city to streamline
and perfect the process. Such an approach may also allow the private sector to scale up activities on its own.
It is worth acknowledging then that improving C&D recovery rates in Philadelphia will still be possible in the absence
of a city-wide ordinance. However, without the enactment of this ordinance, full potentials and specific recovery
rate goals will never be realized.
Waste Management Plan

Company:
Project:
Waste Management Goals:

This project will recycle or salvage for reuse____% [e.g. 75%] by weight of the waste generated on-site.
Communication Plan:
Expected Project Waste, Disposal, and Handling:

The following charts identify waste materials expected on this project, their disposal method, and handling procedures.
Deconstruction/Demolition Phase:
M a te r i a l Quantit y D i s p o s a l M eth o d H a n d l i n g P r o ced u r e
Construction Phase:
M a te r i a l Quantit y D i s p o s a l M eth o d H a n d l i n g P r o ced u r e
Department of Environmental Protection –

Pennsylvania C&D Salvaged Material Outlets
Eastern PA Habitat for Humanity ReStore
1853 E. Lincoln Highway
Building Materials Exchange
Coatesville, PA 19320
111 W. Erie Ave. 610-466-1890
Philadelphia, PA 19140 e-mail: hfhccrestore@aol.com
215-423-3613 Retail sales of appliances, cabinets, windows, doors,
Fax: 215-423-7434 and building materials, both new and salvaged.
Provides materials and furniture to low-income
homeowners in Philadelphia Kevin Brooks Salvage, LLC
1320 N. Fifth Street
Construction Waste Management
Philadelphia, PA 19122
7333 Milnor Street, Suite 220 215-848-5029
Philadelphia, PA 19136 fax 215-848-1669
215-333-5077 email: ktbsalvage@verizon.net
contact person: Avi Golen web site: www.kevinbrookssalvage
Accepts wallboard trimmings and clean wood Building deconstruction and salvage
wastes. Provide recyclable roll off service for
new building construction projects. Olde Good Things
National Warehouse
Frank’s Demolition Salvage
Scranton, PA 18508
Storage Yard location: Woodlyn, PA 570-341-7668
610-833-5167 e-mail: mail@oldegoodthings.com
web site: www.demolition-salvage.com www.oldegoodthings.com
Demolition technicians and salvage. Inventory
of recovered materials at their storage yard. Provenance
1610 Fairmont Avenue
The Green Guys
Philadelphia, PA 19130
95 James Way, Suite 120 215-769-1817
Southampton, PA 18966 Contact person: Bob Beaty
215-262-8063 Operates an Architectural Salvage Store
e-mail B.Shankin@comcast.net
Provides roll off containers for recyclable building Recycle Shack
materials at construction projects. The company 814 Second Ave.
takes these recyclable materials to companies Royersford, PA 19468
that use these salvaged materials. 610-948-2939
e-mail: recycall@hotmail.com
the RE PLACE The Habitat for Humanity of Greater Centre
County Restore opened in April of 2007
2330 26th Street
Allentown, PA 18103 1155 Zion Road
610-709-0205 Bellefonte, PA 16823
Fax: 610-709-0219 814-353-2390
e-mail: dkormanik@gsrh.org e-mail: Restore@habitatgcc.org
www.thereplace.org Retail outlet selling new and used donated
building supplies at discounted prices.
ReStore of Wyoming Valley
Habitat ReStore of Lancaster County
421 W. Main St.
Nanticoke, PA 18634 197F Greenfield Road
570-820-8002 (located on Greenfield Boulevard)
e-mail: lillhab@juno.com Lancaster, PA 17602
www.habitatofwv.org/ 717-293-0250
The ReStore accepts donations of new and used e-mail: georgeharris@dejazzd.com
building materials and fixtures from a variety of
sources. All donations are tax deductible to the Re-Source York
donor. The materials, whenever possible, are used (Formerly Re-Stor/York)
in the construction of Habitat for Humanity homes. 235 N. Beaver Street
The remaining materials are resold to the public York PA 17403
at prices lower than retail. 717-852-7574
e-mail: restoryorkinc@aol.com
RESTORE Retail sales and tax-deductible donations of hardware,
3016 East Thompson Street cabinets, fenestration, and building materials
Philadelphia, PA 19134 www.restoryork.org
215-634-3474
e-mail: info@re-store-online.com Sylvan Brandt
website: www.re-store-online.com/ 651 Main Street
ReStore offers salvaged building materials Lititz, PA
at affordable prices, deconstruction services 717-626-4520
as well as offering design consultations.
Historic York Architectural Warehouse
Central PA 465 Prospect St.
York, PA 17403
G & R Excavating and Demolition, Inc. 717-843-0320
“The Profession Homewreckers and Recyclers” Fax: 717-854-6050
900 Pennsylvania Avenue e-mail: info@historicyork.org
Tyrone, PA 16686 www.historicyork.org
Owner: Glenn Ray
814-684-4424 Toll Free: 866-788-4424
Hours of operation: Monday - Friday 8am - 5pm
Western PA
Central Westmoreland Habitat for Humanity

P.O. Box 516
Greensburg, PA 15601-0516
724-523-0308
e-mail: President@CWHFH.org
www.centralwestmorelandhfh.org
Construction Junction
214 N. Lexington Street
Pittsburgh, PA 15208
412-243-5025
e-mail: mgable@bellatlantic.net
www.constructionjunction.org
Furnish A Start
Mr. Steve Plotnick
751 East Warrington Avenue
412-481-5621
Fayette County Restore

280 E Fayette St
Uniontown, PA 15401
724 437-4150
Greater Erie Area Habitat for Humanity

1259 West 11th Street
Erie, PA 16502
814-454-7025
Donated doors, windows, cabinets, light fixtures,
plumbing fixtures, and some appliances for resale
to fund their HFH programs.
Pittsburgh Recycling Services, LLC

50 Vespucius St.
412-420-6000
Web site: www.RecyclingIT.com
Energy Efficiency and Retrofit
s t r ateg y a r t s
EMERGING
Industries Project

Emerging Industries Project | Energy Efficiency and Retrofit
This study produced for the Sustainable Business Network of Greater Philadelphia
by Strategy Arts, www.strategyarts.com, 610.701.5050.
Energy Efficiency and Retrofit Industry

Purpose
In order to learn how to grow green collar jobs in the Philadelphia area, we must
first understand the businesses that create these jobs. The purpose of this study
is to gain a deeper understanding of businesses in one of the Green Economy sectors —
the energy efficiency and retrofit industry. A strong focus on workforce issues and a
dialogue with workforce agencies offered a unique approach to this study and
produced very beneficial findings.
Process
Since the goal was to gain a deeper understand in order to direct further studies and initiatives/programs for the
Sustainable Business Network (SBN), the Green Economy Task Force (GETF) and their stakeholders, the study
was designed with focus groups that would provide rich data from dialogue. The study had three sessions:
Session 1: Businesses with less than 20 employees focusing on workforce needs and business growth factors
Session 2: Businesses with 20 or more employees focusing on workforce needs and business growth factors
Session 3: Businesses of all sizes and leaders from public workforce development agencies
focusing on gaps and alignments of these two stakeholder groups
Participants
Session 1: Businesses with < 20 employees

9 participants < 20 employees
Average 5.3 employees
Session 2: Businesses with > 20 employees

5 participants > 20 employees
Average 212.6 employees
Session 3:
4 businesses
7 workforce development organizations
Contributors
B u s ine s s e s
BioNeighbors Sustainable Homes, LLC businesses

Clark Energy Consultants
Elliot-Lewis
Energy Coordinating Agency
Fix’em, Inc.
Gensis Group, Ltd.
GREENandSAVE
Green Homeworks Inc.
Greenable, Inc.
JHK Sustainability Solutions, LLC
Lord Contractors, Inc.
Practical Energy Solutions
Tozour Energy Services
US Facilities
W o r kf o r ce D evel o p m ent O r g a ni z ati o n s
American Cities Foundation workforce

Community College of Philadelphia development
Energy Coordinating Agency agencies
Federation of Neighborhood Centers
JEVS Human Services
Metropolitan Career Center
Resources for Human Development
Highlights and Conclusions
The focus group data provides key insights on how to grow “green jobs” in
this industry and beyond and how to make them pathways out of poverty.
Policies are
Below are some of our key conclusions from analyzing the data. definitely having
They fall into 3 categories:
an impact on
• Programs and policies that enhance business growth
business growth
• Aligning workforce development programs with the skills needed in the businesses
in this industry.
• Create partnerships between workforce development programs and businesses
to ensure graduates have a clear path to open employment opportunities
Business Growth
Policies are definitely having an impact on business growth in this industry. The 2010 deregulation
of electricity generation was cited by many as a key policy change that is already impacting business, and expected
to impact even more over the next year. Many other policies and programs were cited, with the most favorable ones
being those that offset the capital investment of the energy efficiency work.
Increasing awareness of the benefits of energy efficiency and improvements in technology

are key factors causing growth for the industry. The market for this industry is growing significantly as
homeowners and business owners become aware that energy efficiency changes are not just good for the environ-
ment but also result in significant cost savings. The increasing affordability of energy efficiency options continues
to grow as technology advances. The smaller businesses cited the recession as a key impediment to growth.
There is increasing awareness of the importance of local and small businesses for our economy. The businesses
discussed that the increased pressure to “buy local” has had a positive effect on their businesses. Procurement
requirements that specify the need to use local and small businesses on projects in this industry are growing.
Many small businesses do not connect to these opportunities either because they do not know how to access
the information about these jobs or they do not know how to meet some of the requirements for the jobs
(i.e. insurance and bonding). Solutions to address this gap could be a strong support to growth in this industry.
Workforce Skill Needs

Workforce training programs focusing on “green collar jobs” need to include soft skill training.
Some of the necessary soft skills are ones that would be applicable to any job, such as strong communication
skills, job readiness skills and customer service. The ability and willingness to learn new skills and technology is
important in this industry as new products and services are coming to the market all the time, and the pace of
those changes is only expected to increase. For the smaller businesses, entrepreneurial skills and project
management skills are also important.
Specific technical skills vary according to the nature of the business itself (i.e. carpentry for installing
replacement windows) but there are a number of common skills shared across the industry. Almost all
the businesses expressed the need for employees to have a working knowledge of building energy systems and how
different systems impacted the overall energy performance. Also a working knowledge of energy efficiency and broad
understanding of “green” issues related to their work. Having said that, the businesses also acknowledged that “green
issues” is an evolving body of knowledge. “STEM” (science, technology, engineering and math) are also important,
with a strong emphasis on applicability, for example calculating the return on investment of a product or service a
customer is considering.
Aligning Public Workforce Training with Green Jobs
Smaller businesses would be more likely to consider candidates from public workforce training
programs if the process of accessing those candidates made their hiring process easier. Many of the
items they suggested (i.e. data base of candidates, single point of contact) already exist, suggesting that awareness
is a key factor for these businesses.
Larger businesses often have union employees and so need the training system and other systems
within the unions to adapt to the changing needs of the workforce. Some of the key items were less lag
time for training programs to include new technologies, increased need for cross-training and systems for
continued pathways for career growth.
When workforce development programs and businesses are aligned, pathways out of poverty are
created and businesses get great employees. Some of the key factors that create this alignment are:
• Workforce training programs and businesses create specific programs together. These include
training programs customized to specific jobs that a business is or will be hiring for on an ongoing basis and
hiring processes so that the graduates of the programs have priority consideration as open positions come up.
• Workforce
training programs collaborate with other social service organizations to provide
wrap-around services that a potential employee needs to be successful.
• T he support and communication continues after the hire is made. Business partners offer feedback
to the workforce development agency about worker needs. Workforce development agencies continue to offer
wrap around services as well as continuing education to both support the employee in their current job as well
as to open up possibilities for career growth.
There seems to be no current partnerships between workforce development agencies and small
businesses in this industry. Since the current partnerships are built are based on larger companies who
have a need for a large number of the same kind of position, a study of how to create such a partnership
with smaller businesses would need to be done.
conclusion
Conclusion
While this study had a limited number of respondents involved, the quality of the dialogue was high and
the data reveals some key areas for further work and research that will move the green jobs work in
Philadelphia forward significantly.
Data Results
Important Skills for New Employees – Soft Skills

S m a ll B u s ine s s
Numbers indicate which they ranked as most important within this category
• Motivation beyond paycheck – ideological fit (5)
• Customer service (4)
• Entrepreneurial nature (2)
• Willingness to lead projects, problem solve, pursue purposeful change (2)
• Specific skills include weatherization, home performance (Energy Star), solar (PECO initiative) (2)
• Skills/interest that are relevant to the business’ future
• Agility/flexibility; continuous learner; increased engagement
• Tenacity of spirit/work ethic
• Communication/team/networking/collaboration
L a r ge r B u s ine s s
Ranked technical and soft skills together – no numbers here indicates these
were not ranked as top importance
• Willingness/desire to learn
• Communication
photo courtesy of the Energy Coordinating Agency
Important Skills for New Employees – Technical Skills
• Systems understanding: technical expertise and holistic understanding: “building science” (5)
• Social and environmental understanding and business acumen (4)
• Carpentry (2)
• HVAC (1)
• Plumbing (1)
• Commercial vs. residential skill differentiation (1)
• Finance/tax research knowledge (1)
• Math (1)
• Return on investment (ROI) focus (1)
• Solar panel installation and broader understanding – “forest and trees”
• Weatherization
• Project management
• Electric
• Performance testing
• Benchmarking (comparing facility energy usage)
Ranked technical and soft skills together –numbers indicate which they
ranked as most important
• STEM (Science, Technical, Engineering – design understanding, Math) (4)
• “Universal” training for complete weatherization skill set (drywall, framing, windows) (1)
• Computer literacy, software skills
• Marriage of computer technology and mechanical skills
Working with Public Workforce Agencies—
What would it take to increase your use of these? (Small Business Group)
• A data base with indexing of skills (7)
• Awareness and information about access (4)
• Standardization of language about skills and certifications (3)
• Posting space/single point of contact (collection of relevant resumes) (3)
• Businesses can refer people to agencies when they get inquiries (1)
• Understand bureaucracy
• Refinement of skills (e.g. carpentry)
• Assessment of my business – filter the employee pool to match my business
• Representative to assess human capital needs
• Assurance that workers have deeper understanding of green/sustainability
Recruitment of Employees—
Where do new employees come from? (Larger Business Group)
• Philadelphia Carpenters Union Hall
• Workforce system (PWDC)
• Word-of-mouth (referrals from current employees)
• Unions (steamfitters, electricians)
• Ads (newspapers)
What training have new employees received? (Larger Business Group)

• Through Union programs (apprenticeships)
• Orleans Technical Institute
• DCCC training program
• LEED certified
• PE’s
• Certified energy managers (Association of Energy Engineers)
• Energy curricula at Rowan, Philadelphia Community College
Programs/Policies that have impacted your business
• Reinvestment Act—incentives to “green” (6)
• December 2010 deregulation of utilities (4)
• LEED requirements for municipalities (2)
• CDC investment in job training (2)
• Act 129—municipal reduction 10% (2)
• Tax incentives (grant $) (1)
• Policies that offset capital expenditures (1)
• Lift on cap for solar expenses
• New technology now paying for itself – subsidies, incentives
• State grants for small business and municipalities (holistic approach to reduction)
• Harvest Grant
• Corporate environmental policies
• Storm water management (municipal)
• President’s Climate Commitment (colleges/universities)
• Increased public awareness
• Changing military policies
• Clean Energy Act—cap and trade
• Renewable Portfolio Standard—scaled down?
Actual Programs (past/present)
• Act 77—fiscal tool for capital improvements, state funding for energy service contractors,
state and municipal buildings (built in training programs) (3)
• Act 129—electrical rebate program (begins 11/09) for appliances/PUC agreements with power companies (2)
• ARRA (Recovery Act)—residential/ light commercial, industrial, federal gives funds to state
to distribute, e.g. schools
• PECO training of end users on energy efficiency (“Energy Education”)
• Penn Future energy education programs and rebate programs
• Conservation service providers—businesses credentialed as CSPs, bridge industry and consumers

which increases end user understanding of homes and buildings as systems
F u t u r e / D e s i r ed P r o g r a m s
• College—level training, degrees that support/prepare skilled trades (4)
• Broader implementation of basic skills certification (1)
• Emergence of new systems specialist class of worker/project manager that might

be a future driver of a union shift
photo courtesy of the Energy Coordinating Agency
Growth Factors: What factors are enhancing business growth in your industry?
• Increased public awareness, motivation (6)
• New technology (on demand hot H2O, solar heating is no longer exotic) (3)
• Incentives (2)
• “Buy local” movement (2)
• New generation of banks starting to understand and offering incentivizing loan programs (2)
• K-12 education curricula (1)
• Recession – culture shift
• Government hand-holding increasing for first steps
• Some municipalities requiring energy efficiency audits vis-à-vis home sales (inspections)
• Smart meters—property operation information and feedback
Ranked “enhance growth” and “impede growth” factors together –numbers indicate
which they ranked as most important
• Personal experience with energy, dollar savings—drives corporate/organizational adoption of changes (2)
• Immediate dollar savings (1)
• Rebates, incentives—support investment in longer run savings
• Education, awareness—emerging among broader public
• Available, affordable—commercially viable technology
Growth Factors: What factors are impeding business growth in your industry?
• Recession = lack of dollars, fear (8)
• Public misinformation (4)
• Not understanding how to execute/implement (1)
• Market/investment behind the curve—asset valuation lag and lending/mortgage/bank industry lag
and fear of overvaluing green changes (1)
• Public information disconnect to small business
• Length of payback period
• Inertia in building industry
Ranked “enhance growth” and “impede growth” factors together – numbers indicate
which they ranked as most important
• Minimization of skilled trades as a viable, valued career choice (5)
• Lack of skilled workforce, under-educated high school graduates, e.g. decreasing STEM skills
• Non-local service providers without skills/training
Examples of Success: Workforce Training Program Grads
Each training organization person gave a specific example. The factors overlapped so
they are all listed together with an * when mentioned multiple times
• This opportunity served as a gateway for upward mobility *
• On-going counseling/guidance *
• Increased self-awareness, self-worth, personal responsibility *
• Feedback from business when issues come up for individual employees *
• Simultaneous management of multiple tasks, responsibilities, personal changes *
• Entrepreneurial outlook of the worker—have it or learn it *
• Mutual (organization/business) facilitation of hiring process *
• Agency connection to business informs training curricula *
• On-going connection to neighborhood center for range of services *
• Connection to entry-level position with business partner
• Phased approach with increasing opportunities
• Trainee assumes responsibility for program costs
• Customer service skills
• Have to get driver’s license
• Take initiative on the job
• Guide them to self-assess their success factors
• Deliberate career pathways programming
• Pursuit of multiple certifications, training, degrees
• Partnership with additional training opportunities (e.g. CCP)
• Cross-over skills acquisition (e.g. OSHA)—survey course approach exposes trainees to multiple skills, pathways
• Environmental literacy
• Business reps teach courses—businesses get to observe potential candidates in class prior to hire
• Financial literacy
• Business familiarity with training, businesses send employees
• Programs support upward mobility (i.e. phased programs, supervisory training)
Examples of Success: Business New Hires
Each business person gave a specific example of a successful new hire —
they are broken out by each story.
( s to ry 1)
• Had strong work ethic

story 1
• Willingness to take on multiple, varied tasks (“do anything I asked him to”)
• High standard of task completion
• Was required to enter labor system, did so successfully
• That added restrictions (and limited which jobs he could work on)
• Ran into problems keeping up with union dues and then was not eligible to work
(story 2)
Potential hire had strong IT skills

•
(formal training and informal experience/projects)

story 2
• An in-depth interview revealed additional skills
(not aware of from application/resume)
• Hiring person made an effort to cultivate an appropriate position,

waiting for position, keeping him in the pipeline
• Was able to show IT experience
• Position finally opened and he was hired
(story 3)
• College grad with electrical/mechanical engineering background

story 3
• Skill alignment with retrofit needs
• Understanding of market, holistic comprehension

of energy efficiency opportunities
• Local (city-endorsed)
Where are alignments?
• Transferable skills (e.g. from helicopter blades to windmills)
• Training programs that have formal employee relationships
Where are the gaps?

• Bridge to subcontractors that informs them about access to jobs and specific requirements
for jobs (i.e. bonding, insurance)
• Educate City procurement about Green Jobs (beyond the basic guidelines)
• Green Education – for consumers and contractors, including tax education
• “Green collar” terminology is misleading and can be restricting, need to understand breadth
of green beyond weatherization
° Need increased awareness of transferability
What can be done to improve alignments?

• Public awareness campaigns
° Training of spokespeople – these can be jobs such as Energy Educator
° 13 Energy centers around the city
° PECO/Act 129 will stimulate education
• Educate private sector on benefits of “going green”
• Increased specificity about “green” opportunities, jobs, evolution, retrofit
° Need definitions and differentiation
° Use broader language/concepts of “conservation”
• Continue building career pathways
• Increased access of workforce to wrap-around social services
° Workforce agencies partners with CBOs, support services, colleges
• Build on prior skill sets
• Green Education Fair
° Employers
° Trainers
° Social service agencies
Miscellaneous Notes from Large Business Session
• “Universal” training (community college, apprenticeships) to encompass complex skill sets
required for new technologies—need trade union buy-in, especially in Philadelphia
• Training must evolve faster for labor to stay competitive
• Jurisdiction over new technology install and maintenance is challenging to determine
• Need for continuing education partnerships with industry
• Challenge: early identification and evolution of training needs, entering workforce skills
• Need marriage of union apprenticeships, community college curricula, technical training,

e.g. steamfitters curriculum (Drexel)

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Emerging Industries Project

Yours in Prosperity & Equality,

Green Economy Task Force

Redeveloping Local Sustainable Manufacturing

Philadelphia Materials Project Sponsors

Philadelphia Materials Project Presenters

• This is not 20th century manufacturing

° Much of the manufacturing that remains is now the high-value

• Manufacturing still present within and integral to the Philadelphia economy

° $33.6 million in business privilege taxes contributed

of wage taxes, accounting for nearly 8% of all wage tax 20

revenues in fiscal year 2009 0

° What is it: two potentially overlapping categories of manufacturers

° Current & projected growth

° Low cost of living: salaries, rent, storage, transportation

° Transportation network: highway, rail, air, sea

° Power of local economy:

Philadelphia as seen from below the Ben Franklin Bridge at sunset

° Need support and convenience

° Also limits manufacturers’ abilities to talk to each other

° Sustainability = elimination of waste

° Material waste = economic waste

what do I what’s the what’s the

Manufacturer Opportunity to contract Don’t know how; don’t Manufacturing

Reliable workforce Lack of interest in Marketing program

City Government Lower city’s Encouraging businesses Marketing Program

Increase Green Jobs Identifying and exploiting Market Studies

1) Developing existing manufacturing;

Introducing additional manufacturing includes attracting manufacturing operations to Philadelphia as well as

•  Limited capacities prevent ability

Opportunities for local

business development exist,

Limited capacities prevent them from

identifying worthwhile sustainability/

to their manufacturing occupations

Limited capacities prevent ability to

Difficulties in identifying workers

with necessary skill-sets

from identifying most promising ex c e l m a c h i n e d i v i s i o n

opportunities on their own

Strengths & Opportunities

7 Select Greater Philadelphia. http://www.selectgreaterphiladelphia.com/data/transportation.cfm

8 Select Greater Philadelphia. http://www.selectgreaterphiladelphia.com/data/marketposition.cfm

Identifying Growth Opportunities

Identifying Supply Chain Needs

Understanding Local Procurement

Local Business Entities

Section 17-109 of the Philadelphia Code establishes

Leveraging City-Wide Purchasing Power

14 City of Philadelphia Fiscal Year 2008 Operating Budget

The Great Lakes Wind Network is a supply chain advisory

Access to Global Markets

The Lehigh Carbon Community College has developed a

Expanding job-training and educational programs will develop

316 luggage manufacturing – – 1 0.1%

Source: Urban Industry Initiative

Gross Inputs Purchased Within Philadelphia by Commodity Type (Millions of $)

Green Economy Task Force

building a green economy for all philadelphians

building a green economy for all philadelphians

Green Economy Task Force

Gross Inputs Purchased $46,792.58

Gross Mfg. Goods Purchased $10,074.13

Gross Inputs Purchased in Philadelphia by Commodity Type (Millions of $)

° Much of the manufacturing that remains is now the high-value

• Manufacturing still present within and integral to the Philadelphia economy

° $33.6 million in business privilege taxes contributed

° What is it: two potentially overlapping categories of manufacturers

° Current & projected growth

° Low cost of living: salaries, rent, storage, transportation

° Transportation network: highway, rail, air, sea

° Power of local economy:

° Need support and convenience

° Also limits manufacturers’ abilities to talk to each other

° Sustainability = elimination of waste

° Material waste = economic waste

• Limited capacities prevent ability

• Conduct a thorough examination of Philadelphia’s municipal waste stream through next

° A minimum of 20 percent of the building materials, by weight and excluding asphalt,

° A minimum of 50 percent of the building materials, by weight and excluding asphalt,

• Commit to deconstruction for public sector demolitions when feasible,

• Motivation beyond paycheck – ideological fit (5)

• Customer service (4)

• Entrepreneurial nature (2)