December 09, 2010Brooklyn Chamber of Commerce President and CEO Carl Hum today appeared before the Finance Committee of the New York City Council in support of the City's industrial business zones (IBZs). Below is his testimony:
Council Member Recchia and Finance Committee Members:
In 2005, Mayor Bloomberg created the Office of Industrial and Manufacturing Businesses and designated 16 Industrial Business Zones (IBZs) to preserve and retain industrial businesses and blue-collar jobs in New York City. As you may know, I was the director of the office from its inception until I joined the Brooklyn Chamber of Commerce in 2007. Having served as both policymaker and now, as contracted partner to the NYC Department of Small Business Services managing the Brooklyn Flatlands-Fairfield IBZ, I have a unique perspective on how industrial policy impacts the business community.
The IBZs play an important role in assuring safe havens for manufacturers and offer critical assistance to industrial and manufacturing businesses in navigating government and advocating for conditions that can help them stay and grow. The IBZ managers work on the street day after day with businesses, both large and small, ensuring that all of their needs are met. Whether it is hiring newly-skilled workers, financing new machinery, or assisting companies in accessing cost-cutting incentives, the IBZ’s are critical building blocks for industrial retention in New York.
Any reduction of funding to these programs will have a severe and negative impact to industrial firms and will continue to put industrial businesses at a competitive disadvantage to keep their businesses afloat during these tough economic times. While the Chamber recognizes that the City of New York, like most municipalities in the current economy, is looking for cost-saving measures, we feel that programs that serve and retain industrial businesses are the most impactful and provide the highest return on investment among city-funded programs.
The Flatlands-Fairfield Industrial Business Zone, which covers parts of east Flatbush, Canarsie and East New York, plays a critical and vital role in the local economy. With nearly 400 businesses in this zone, it is estimated that these companies employ over 3,000 people, most of them local residents, with family-sustaining wages. Businesses such as 4C Foods, Hena Coffee, Victoria Packaging, and the Brooklyn Terminal Market keep these communities going. Needless to say, a significant reduction in funding to the IBZs will have a significant impact on these businesses. We proudly support the work that the industrial business zone managers do and the support they provide. In fact, they are vital partners in the great work that the City Council and the Administration have done to address small business needs. Indeed, the City Council and the Administration have done so much to advance the cause of small businesses – and particularly, industrial businesses – that it would be the embodiment of “one step forward, two steps back” if these reductions were enacted.