san francisco food & beverage industry cluster
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San Francisco Food & beverage Industry Cluster. Planning department oewd SPUR bae urban economics. Introduction. Why is this important to San Francisco economy? Supports Employment and Socio-Economic Diversity Blue-collar jobs create opportunity for all educational backgrounds - PowerPoint PPT PresentationTRANSCRIPT
SAN FRANCISCO FOOD & BEVERAGE INDUSTRY CLUSTER
PL ANNING DEPARTMENTOEWDSPURBAE URBAN ECONOMICS
INTRODUCTION What is the Food & Beverage Industry Cluster?
Food Manufacturing Bakeries, Chocolate & Confections, Seafood Processing, etc
Beverage Manufacturing Breweries, Wineries, Distilleries
Food & Beverage Wholesalers Grocery, Alcoholic Beverage, Farm Products & Supplies Wholesalers
Why is this important to San Francisco economy? Supports Employment and Socio-Economic Diversity
Blue-collar jobs create opportunity for all educational backgrounds Cluster Effects
Positively reinforcing loops can accelerate growth and innovation The San Francisco Brand
Unique, creative businesses attract diverse residents and support the tourism, hospitality, and other
REGIONAL TRENDS Manufacturing and
wholesaling make up a small part of the regional and San Francisco economies...
…but Food & Beverage jobs make up an important part of those sectors, especially in San Francisco.
San Francisco
Bay Area
4%
13%
96%
87%
Manufacturing/Wholesale vs. Total Economy
2012
Manufacturing & Wholesale Jobs
San Francisco
Bay Area
24%
16%
76%
84%
Food/Bev. vs. Other Mfg/Wholesale2012
Food & Bev.Mfg/Wholesale JobsOther Mfg & Wholesale JobsSources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages
(QCEW), 2012; BAE, 2014
Food & Bev. Wholesalers
Beverage Manufacturing
Food Manufacturing
0 5,000 10,000 15,000 20,000 25,000
2,986
211
1,853
Alameda Contra Costa Marin Napa San Francisco San Mateo Santa Clara SolanoNumber of Employees
REGIONAL TRENDS
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.*As per QCEW disclosure policy, employment data for Beverage Manufacturing and Alcoholic Beverage Wholesalers in Solano County and for Farm Product Raw Materials Wholesalers in multiple counties are not publicly disclosed.
22,930
23,308
18,085
San Francisco plays a small role in the region’s food and beverage manufacturing.
Alameda, Napa, and Sonoma Counties are major players.
0
2,000
4,000
6,000
8,000
10,000
12,000Food Manufacturing Employment Growth
1990 - 2012
REGIONAL TRENDS In the Bay Area, San Francisco had the largest loss in food
manufacturing jobs
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.
San Francisco
Alameda
Santa ClaraSonoma
San MateoSolanoContra CostaMarinNapa
SAN FRANCISCO TRENDS
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
10,000
5,5
95
5,5
84
5,9
09
4,9
96
4,6
40
4,2
46
4,4
48
3,6
42
3,3
41
3,0
44
2,8
56
2,7
53
2,3
52
2,3
99
2,3
23
2,2
75
1,7
76
1,7
26
1,7
70
1,6
97
1,6
59
1,6
56
1,8
53
625
454
453
502
504
634
801
439
447
551
537
272
259
208
190
218
276
241
238
220
204
211
211
3,6
04
2,7
99
2,9
12
2,5
97
2,6
93
2,7
64
2,7
38
2,9
04
2,8
76
2,8
56
2,8
30
2,5
41
2,6
44
2,7
28
2,7
46
2,5
79
2,4
21
2,9
33
3,0
46
2,9
80
2,8
03
2,9
96
2,9
86
San Francisco Food & Beverage Cluster Employment Trends
1990 - 2012
Food Manufacturing Beverage Manufacturing Food & Bev. Wholesalers
Since 1990, food manufacturing has accounted for most of the loss in cluster jobs In recent years, however, wholesaling and manufacturing have both grown again
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.
SAN FRANCISCO TRENDS
Food and beverage manufacturing jobs have declined in San Francisco since 1990…
… even as jobs in restaurants, bars, grocery stores, and liquor stores grew
2010
2000
1990
0 10,000 20,000 30,000 40,000 50,000 60,000
47,472
42,941
32,209
8,726
8,465
6,966
1,863
3,393
6,220
Food and Beverage Jobs in San Francisco, 1990 - 2010
Food Services and Drinking PlacesFood and Beverage StoresFood and Beverage Manufacturing
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.
Food Manufacturing
Beverage Manufacturing
Food & Bev. Wholesalers
0 500 1,000 1,500 2,000 2,500 3,000
Bakeries and Tortilla Man.
1054Other317
Animal Processing 214
Seafood 98Sugar & Conf. 95
Dairy Products 29
Wineries 67
Soft Drink & Ice 31
Grocery & Re-lated Products
2075
Alcoholic Beverages
866
San Francisco Employment by Sector2012
Number of Employees
SAN FRANCISCO TODAY
(2,986)
(1,853)
(211)
Fruit & Veg. 46
Breweries & Distilleries 113
Farm Supplies 43
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.
SAN FRANCISCO TODAY
Sources: Dun & Bradstreet, 2013; BAE, 2014.
Sugar & Confectionery
Coffee & Tea
Fruit & Veg.
Seafood
Animal Slaughtering
Beverage
Bakeries & Torillas
$5,990,000
$6,920,000
$10,650,000
$32,020,000
$34,310,000
$34,552,000
$107,973,000
San Francisco Food Manufacturing Revenue 2012
Bakeries have highest revenue in total, but also large number of small establishments (not shown)
Coffee & Tea and Candy manufacturing are small subsectors in terms of revenues
Skilled workforce
Labor costs
Transportation/Access
Regulatory issues
Capital access
Real Estate
8%
9%
11%
12%
21%
27%
Food & Bev. Manufacturers(47 respondents)
% responses (multiple selections)
BUSINESS SURVEYS: KEY CHALLENGES
Real estate and capital access are the top challenges for manufacturers
Sources: SFMade, 2014; SF Planning, 2014; BAE, 2014.
Transportation/access and workforce issues are bigger challenges for wholesalers than for manufacturers
Capital access
Regulatory issues
Skilled workforce
Real Estate
Transportation/Access
Labor costs
10%
13%
16%
16%
19%
23%
Wholesalers/Distributors(12 respondents)
% responses (multiple selections)
BUSINESS SURVEYS: LOCATION DECISIONS
Sources: SFMade, 2014; SF Planning, 2014; BAE, 2014.
Found ideal space
Support services
Transportation
Industry community
Near home
Brand association
Near customers
5%
6%
6%
10%
18%
19%
20%
Food & Bev. Manufacturers(47 respondents)
% responses (multiple selections)
Near home
Near employees
Found ideal space
Near suppliers
Brand association
Near customers
8%
12%
12%
15%
15%
35%
Wholesalers/Distributors(12 respondents)
% responses (multiple selections)
Top reasons for San Francisco location? Near customers and “brand” of San Francisco
BUSINESS SURVEYS: SPACE & EXPANSION
Most manufacturers operate in their own space or a commercial kitchen More than half of manufacturers will need new or expanded space within
one year
Sources: SFMade, 2014; SF Planning, 2014; BAE, 2014.
Copacker
Shared space
Commercial kitchen
Own space
13%
19%
26%
43%
Current Production Space(Manufacturers only)
% responses
Not in the im-mediate future
After more than one year
In the next year
In the next few months
21%
21%
43%
14%
Need for New or Expanded Space(Manufacturers Only)
KEY FINDINGS San Francisco’s Food and Beverage Cluster:
Has relatively small share of Bay Area Food Cluster employment
Accounts of ¼ of all City’s manufacturing/wholesaling jobs Has seen a steep decline in employment since 1990, but
appears to be leveling off since 2006 Has more jobs in wholesaling than manufacturing (with
grocery wholesalers as largest) Bakeries is largest type of food manufacturer
Top challenges facing Cluster in San Francisco: Real Estate (Affordable/Available Space + Build-Out Costs) Access to Capital Labor Costs Regulatory Issues Skilled workforce Mobility (Transportation + Distribution Access)
FOOD & BEVERAGE CLUSTER “MAP”
Sources: BAE, 2014.
KEY DISCUSSION QUESTIONS Did we “get it right on the challenges facing this cluster?
Affordable space Access to capital Transportation issues Workforce issues Regulatory issues
How can San Francisco help existing food and beverage manufacturers and wholesalers to stay and grow?
What facilities, infrastructure, or services are missing today that, if located in San Francisco, would help existing businesses and attract new ones?
THANK YOU FOR YOUR PARTICIPATION! Next Steps
Steering Committee Meeting February 26th Draft Report March 17th Steering Committee Meeting March 26th Final Report April 21st
Final Steering Committee Meeting Date TBD
ContactsDiana SokoloveFood System Policy ManagerSan Francisco Planning Department(415) [email protected]
Eli ZigasFood Systems and Urban Agriculture Program ManagerSPUR(415) [email protected]
Tiffany GarciaBusiness Development ManagerOffice of Economic and Workforce Development(415) [email protected]