Industrial Business Zones | The Foundation of our City’s Economy - Part 2

Created in 2006 to support manufacturing in New York City, Industrial Business Zones (IBZs) provide a relocation tax credit of $1,000 per employee and up to $100,000 to industrial and manufacturing firms choosing to move into IBZs. 

These 21 zones – all in existing manufacturing zoned space in the outer boroughs – are billed as “safe havens” for manufacturing and other industrial companies.

The IBZs provide financial incentives for maximum growth, broadening access to state-of-the-art technology and connecting manufacturers to the City’s talented workforce. The jobs that the IBZs bring to their communities are high paying, provide generous healthcare benefits, have union protections, and are open to workers without college degrees.

As we mentioned in part one of our series, the average wages for NYC manufacturing workers have grown 12.4% (inflation-adjusted) from 2012 to 2022. According to Zip Recruiter, the average entry-level annual salary for manufacturing jobs in New York City is $62,851.

Moreover, 81% of workers in industrial business zones are people of color. And more than 50% of New Yorkers employed at workplaces in industrial business zones are immigrants. As City Council Member Jennifer Gutiérrez, District 34, said, “I know people whose parents, when they got here, were employed in (manufacturing-zoned land) and whose family have really been able to thrive.”

Christopher Casey of the Association for Neighborhood and Housing Development said, “A thriving industrial sector is not only critical in meeting NYC’s overall economic and sustainability goals, but also a key strategy to expand the availability of good-paying jobs, especially in BIPOC (Black, Indigenous and People of Color) communities.” 

Beyond creating jobs, manufacturing is a boon to the City’s economy. In 2020, the manufacturing industry contributed $61 billion to New York’s GDP. From the beginning of 2016 through July 2023, NYC’s advanced manufacturing sector saw $270 million in venture capital funding.

City manufacturing includes traditional industries like furniture makers, fabricated metal facilities, and garment makers. But the future is bright as new sectors are growing within these economically safe havens.

Brooklyn Navy Yard President and CEO Lindsay Greene noted, “We have people that make kombucha, we have people that make jewelry, we have people that make garments – and that ranges from fast fashion-type stuff to very highly engineered and technically sewn apparel for the military.” 

In fact, New York has seen a rise in technical manufacturing. This includes computer products, mobile devices, video games, 3-D printing, and general software engineering tools. These jobs tend to pay well above the average state wage.

Regarding the City’s investment in its manufacturing future, Council Speaker Adrienne Adams said, “The city can achieve its green energy goals, expand job opportunities with low barriers to entry and sustainable wages, and meet citywide needs.” Broadway Stages sees the value of these investments every day, and we not only play a key role in the success of the IBZ, but also support numerous manufacturing jobs that are vital to the film and TV industry. From plumbers, carpenters, and painters to costume designers, scenic artists, electricians, and more; we work with countless people from all backgrounds with amazing talents and with multiple local manufacturing businesses that provide jobs that drive our industry and the economy. We look forward to the bright future the IBZs are creating for all of us today, and into the future. 

Check back for our next installment on the “Foundation of our City’s Economy – the IBZs.”