Big names like Heinz and Guinness used to produce in London. Like many other manufacturers, however, they had to relocate, taking with them innovation, jobs, and technical skills. This phenomenon is not unique to London but can be observed in many cities around the globe. Despite its many benefits, urban manufacturing is diminishing. But how come? What challenges do urban manufacturers face? Below, we have summarised six main hurdles in the way of a flourishing urban industrial sector.
1. Urban Manu-what?
What is urban manufacturing?
Most people have only a vague, or worse, very simplified idea of urban manufacturing. They associate it with polluting factories, tough labour, and terrible environmental impacts. Many don’t know what modern manufacturing really looks (or could look) like in their city and, as a result, simply oppose it.
However, urban manufacturing does not have to be dirty and detrimental to our health and the climate; on the contrary, it can bring real value to cities. Urban manufacturing has many different elements, e.g., transportation, waste management, storage, agriculture, repairs, retail, offices, film production, and core manufacturing activities such as the production of car parts or processing food.
If we want to bring manufacturing back to cities, we need to consider all these facets, explain what exactly urban manufacturing is, and show how it can benefit urban areas. We also need this clear definition to adequately target urban manufacturers and respond to their needs.
2. Finding (and Keeping) Space in Cities
If people don’t see the benefit of urban manufacturing, they are more likely to oppose it. Industrial land is quickly re-zoned and used for other, seemingly more important or lucrative, purposes. Many industrial trades find it difficult to obtain and retain working spaces in cities. Here’s why:
Many cities are already relatively dense, and space is a valuable commodity. As rents continue to increase, manufacturers struggle to make ends meet. Relocating from expensive urban centres to the periphery is not an attractive but a potentially necessary move for many.
The high demand for housing puts industries further under pressure. Residential property is not only desperately needed as more people flock to cities, but it also brings higher profits than industrial space, which is considered “weak land use”. There is considerable pressure on companies to make space for housing. Landlords even offer manufacturers large sums of money to relocate. Many accept, even if it means losing customers, vital connections, and strong supply chains.
In the Cities of Making Case study report: London Borough of Haringey, one interviewee summarises this development:
“The problem is that all manufacturing is being pushed out of London because everybody needs houses, but people also need jobs”.
But why can’t we have both – housing and industrial sites? Mixed-use areas are always great, right? Yes – and no.
Certain industrial trades are seen as incompatible with residential use. A furniture manufacturer explains: “Industries produce dust and noise. […] If my children were growing up next to a place like this, I wouldn’t like it, I want green space for my kids, clean air.”
And it’s not just companies’ dust and noise that is a thorn in residents’ sides. Vehicle movement, fumes, and off-gassing of materials like MDF also give urban dwellers reason to find fault with manufacturing in their neighbourhoods. Although not all making produces such nuisances, companies in general are pushed out and left struggling to find a suitable space for production.
Given the lack of space and the complexity of mixed zones, many urban manufacturers find it hard to grow and plan ahead. Zoning could change anytime, and (especially poorer) councils might suddenly ask industries to make space for housing. One manufacturer complains, “They [the council] keep you in this limbo land, we have no idea when they are going to take the land or if they are going to take it at all”.
3. Not Yet Sustainable
When it comes to manufacturing, the current mindset of urban dwellers is often: out of sight, out of mind. Messy (and polluting) production mostly happens in third countries, and the clean, packaged goods arrive in European cities, ready to be bought and consumed. If manufacturing is re-introduced there, the negative environmental impacts of production could suddenly become a lot more visible. This, in turn, might lead to opposition. So, to strengthen support for urban manufacturing and protect our planet, manufacturers must work sustainably. However, doing so involves some challenges:
Manufacturers often lack knowledge about waste flows. They sometimes miss opportunities to reuse and recycle their waste (or waste from other manufacturers) and simply dispose of it. On-site storage is also unsightly and draws complaints from neighbours.
Even though urban manufacturers produce locally, they often have to source materials abroad; either because they are not available locally, or because they are simply too expensive. As a clothing manufacturer states, “There are good fabric mills in the UK such as Abraham Moon & Sons or British Millerain, the problem with these is that they’re more expensive [than imported inputs]”.
Importing materials from abroad is a cause of concern as it produces emissions. (That said, one city can probably not produce everything its residents need. Certain imports are necessary.)
Industries consume a lot of energy. The Cities of Making Case study report: London Borough of Haringey shows that manufacturers seldom use renewable energy. Most commonly, they rely on electricity, gas, and diesel.
Manufacturers are busy people. Often, they don’t have the time to sit down and redesign their production line to make it more sustainable, let alone circular. So, they hold on to existing, potentially more polluting methods.
Waste management, supply chains, energy use, and knowledge need to be improved urgently to make urban manufacturing sustainable and have it reach its full potential.
4. Lack of Collaboration
Several studies note that urban manufacturers hardly collaborate. One of the main reasons for this: companies – especially those active in similar sectors – see each other as competitors and do not want to share their knowledge, research, intellectual property, or data.
However, at the end of the day, hardly any urban manufacturer benefits from keeping to themself. The lack of collaboration among companies brings several drawbacks. For instance, isolated companies are less inclined to innovate. Manufacturers are tempted to stick to their routine, without exploring other options or looking at their production line from an outsider’s perspective. Additionally, new businesses have a hard time getting started. Machinery and working spaces are expensive and often present a financial hurdle to start-ups. Without the help of other, already established companies it may be difficult for them to get their foot in the door.
Convincing companies to collaborate and exchange knowledge as well as resources presents a major challenge of urban manufacturing.
5. The Problem with Labourers
Many urban industries grapple with finding and retaining employees. This problem is linked to two factors:
We all know city life can be expensive. To pay for expenses, people need decently paid jobs. Urban manufacturers must ensure their employees have enough money in their pockets to pay bills, enjoy recreational pursuits, care for their families, and cover any additional needs. In particularly pricy urban terrains, like London, paying adequate wages becomes a struggle. In fact, in the Cities of Making Case study report: London Borough of Haringey, labour cost is the challenge mentioned most by urban manufacturers.
Image credit: Oliver Hörzer
However, before urban manufacturers can even worry about pay, they need to find staff. Skilled labourers are hard to come by these days. For one thing, many (young) urban dwellers are not interested in taking on “dirty” and monotonous industrial jobs. Instead, they opt for other career paths and, for instance, find work in the service sector. Additionally, industries change very quickly, making it difficult for trainers to stay up-to-date with the latest technology and techniques, i.e., even trained labourers might lack the necessary skills.
If we can neither find nor pay employees of urban manufacturing industries, getting the ball rolling is difficult.
6. Lack of Coordination
Who is responsible for protecting and re-introducing industrial space to cities? The private sector will do the job, many might argue. However, public sector involvement is also key. At the same time, it makes things a little complicated. Urban manufacturing falls under several departments, e.g., employment, environment, economic affairs, public works, and mobility. Bringing all these different departments and the private sector together to create a shared vision might be tricky.
The Challenge of Urban Manufacturing in a Nutshell
Let’s not beat around the bush; urban manufacturing comes with plenty of challenges. Let’s summarise: