san francisco food & beverage industry cluster

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SAN FRANCISCO FOOD & BEVERAGE INDUSTRY CLUSTER PLANNING DEPARTMENT OEWD SPUR BAE URBAN ECONOMICS

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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 Presentation

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Page 1: San Francisco Food & beverage Industry Cluster

SAN FRANCISCO FOOD & BEVERAGE INDUSTRY CLUSTER

PL ANNING DEPARTMENTOEWDSPURBAE URBAN ECONOMICS

Page 2: San Francisco Food & beverage Industry Cluster

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

Page 3: San Francisco Food & beverage Industry Cluster

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

Page 4: San Francisco Food & beverage Industry Cluster

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.

Page 5: San Francisco Food & beverage Industry Cluster

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

Page 6: San Francisco Food & beverage Industry Cluster

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.

Page 7: San Francisco Food & beverage Industry Cluster

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.

Page 8: San Francisco Food & beverage Industry Cluster

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.

Page 9: San Francisco Food & beverage Industry Cluster

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

Page 10: San Francisco Food & beverage Industry Cluster

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)

Page 11: San Francisco Food & beverage Industry Cluster

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

Page 12: San Francisco Food & beverage Industry Cluster

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)

Page 13: San Francisco Food & beverage Industry Cluster

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)

Page 14: San Francisco Food & beverage Industry Cluster

FOOD & BEVERAGE CLUSTER “MAP”

Sources: BAE, 2014.

Page 15: San Francisco Food & beverage Industry Cluster

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?

Page 16: San Francisco Food & beverage Industry Cluster

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]