Manufacturing in the City: Data and Statistics
Urban manufacturing, often misperceived and undervalued, brings significant economic advantages to city centers. Understanding its importance and benefits is crucial for making informed decisions about the future of manufacturing in cities.
Currently, the European Commission has prioritized increasing the share of Europe's GDP from the industrial sector, with a goal of reaching 20% by 2020, although this target was not met, possibly due to the impact of the COVID-19 pandemic. Remarkably, eight of the top 20 countries by manufacturing output are in Europe, with Germany being a key player, as one-third of its companies manufacture within the continent.
Urban manufacturing is not only popular but also favored by businesses for reasons such as access to quality standards, lead times, intellectual property, research and development, skills and knowledge, and protection from international trade policy changes, leading to reshoring trends. A survey revealed that 26% of people already make things for themselves, 57% expressed a desire to learn, and 24% showed interest in shared workshop spaces.
Manufacturing plays a crucial role in Europe's economy, with the sector generating over €1.7 billion of Gross Value Added (GVA) in 2014. In that year, industry produced 80% of European exports and employed 30 million workers in the EU-10 alone. Even though a substantial part of the UK's manufacturing base has been outsourced, it still contributes four times more to the GVA than the country's financial core.
Despite these benefits, urban manufacturing faces threats, primarily due to deindustrialization in the past 50 to 70 years, as cities outsourced manual jobs, technical knowledge, and innovation. For instance, the productive surface area in the Brussels-Capital Region shrunk by more than one million square meters between 1997 and 2011. One-half of the companies questioned in a case study reported feeling pressured to relocate due to urban regeneration.
However, urban manufacturing also offers environmental advantages. Estimates by the World Bank reveal that municipalities spend 20% of their budgets on waste management. By creating a circular economy around urban manufacturing, waste expenses could be drastically reduced. In Europe, industrial sectors consume 25% of energy and account for 10% of greenhouse gas emissions. New technologies, such as 3D printing in metal or woodwork, can minimize material losses.
Small urban manufacturers often defy the stereotype, as they focus on their local community and contribute to its development. A UK research project found that 80% of small businesses were involved in the local community, and 30% employed people with disabilities.
In conclusion, urban manufacturing presents a valuable opportunity for city centers, offering economic benefits, supply chain efficiency, and sustainability. To maximize these advantages, it is essential to address potential challenges, such as gentrification, environmental impact, and integration issues, through careful planning and community engagement.
Technology plays a significant role in urban manufacturing, with new technologies such as 3D printing aiding in minimizing material losses and fostering a circular economy. The general-newsworthiness of this topic lies in its economic benefits, supply chain efficiency, and sustainability, as well as the challenges it faces, like gentrification and environmental impact, which require careful planning and community engagement to maximize its advantages.
