BROOKLYN MADE Certification Program May 2014 - NYU Wagner Capstone Team Scilla Albanese Emmett Mehan Jaleesa Murrell Yusuf Siddiquee Patrick Yacco
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NYU Wagner Capstone Team
Scilla Albanese
Emmett Mehan
Jaleesa Murrell
Yusuf Siddiquee
Patrick Yacco
BROOKLYN MADE
Certification Program
May 2014
Table of Contents
2
Executive Summary
4 Introduction
5 Background Research
Economic Trends
Other Certification Programs
9 Brooklyn Manufacturing Sector Research: Methods and Findings
In-Depth Interviews
Survey of Brooklyn Businesses
Industrial & Manufacturing Coalition Presentation
19 Proposed Brooklyn Made Certification Framework
Baseline Certification Criteria
The Brooklyn Made Assessment Tool
The Development of the BMAT
Certification Results from the Survey
Expanding the BMAT
29 Recommendations on Implementation and Management
Management of the Certification Program
Incentivizing Business to Apply for Certification
Promoting the Brooklyn Made Certificaiton
35 Appendices
Certification Programs Summary
Interview Guide
Survey of Brooklyn Business
Survey Results
Brooklyn Made Assessment Tool
Percent of Surveyed Businesses That Fit Each Certification Criteria
59 Works Cited
Photo Credit: Piotr Redlinski for The New York Times / Blog 1
Executive Summary
T
he term “Brooklyn” has become a valued eligibility is high relative to other programs – but
brand commonly associated with things also viable within the Brooklyn market in that it is not
that are trendy, and artisanal. Numerous disproportionately difficult for products to become
businesses use either the borough name (e.g. certified. The BMAT uses a points-based system to
Brooklyn Salsa, Brooklyn Winery, Brooklyn determine whether individual products are eligible
Industries, Brooklyn Cured) or a specific Brooklyn for Brooklyn Made certification. The points-based
neighborhood (e.g. Red Hook Winery, Bed|Stu) in scale was inspired by the B-Corporation model and
the name of their company or their products. In light allows for the greatest flexibility in determining
of the success of Brooklyn’s manufacturing sector how stringent the requirements for eligibility
and influence as a culture hub, makers outside of are. In other words, the Chamber can easily raise
the borough have attempted to benefit from it as and lower the threshold to adjust the number of
well, some going as far as to include “Brooklyn” products that qualify for certification without
in the name of their product even with little or no changing the process by which points are measured
affiliation with the borough. The Brooklyn Made and allocated. This flexible framework allows the
certification is an opportunity for businesses that Chamber to adjust the eligibility requirements from
manufacture products within Brooklyn to market year to year based on the size of the applicant pool
their authenticity, differentiating themselves from and changes in the market without the need for an
those that use the borough exclusively for branding entirely new foundation.
purposes.
Finally, the Capstone team developed a series of
The Brooklyn Chamber of Commerce engaged recommendations on how to manage and grow the
the NYU Capstone team to develop a framework Brooklyn Made program. These recommendations
for the Brooklyn Made certification, and to make are broken into three categories. The first focuses
recommendations on the ongoing management on the effective management of the application and
and strategy of the program. Drawing from research certification process and the allocation of resources
conducted on other certification programs – in support of the program. The second lays out
including regional certifications like Portland Made strategies to incentivize Brooklyn businesses
and SFMade as well as non-regional certifications to apply for certification. The third suggests
like LEED and B-Corporation – the Capstone team methods to promote the certification in a way that
developed the Brooklyn Made Assessment Tool communicates the authenticity of Brooklyn Made
(BMAT). The BMAT was further refined using products both within Brooklyn and to new markets.
data collected from a survey of 117 Brooklyn
manufacturers, which painted a picture of the The Brooklyn Made Assessment Tool allows the
industrial landscape in Brooklyn and allowed us to certification to be more sophisticated and complex
test the implications of using certain components than comparable programs. Given the nascent
of production to determine eligibility (for example, growth in the Brooklyn manufacturing sector, we
product assembly and the processing of raw believe that there is an opportunity to leverage this
materials). This dual approach to the development sophistication to reward and encourage businesses
of the BMAT was critical to ensure that the whose production processes are located in
Brooklyn Made certification is both competitive – Brooklyn, and potentially spark additional growth
in that the expectation of authenticity required for in the sector.
2Photo Credit: Adventure Student Travel / Reuters 3
I. Introduction
T
he name “Brooklyn” has become a valued of product assembly in Brooklyn. The Chamber
brand associated with things that are trendy, recognizes, however, that these measures may be
and artisanal. Numerous businesses use imperfect in some cases. For example, a retailer
either the borough (e.g. Brooklyn Salsa, Brooklyn rejected at least one Brooklyn product because
Winery, Brooklyn Industries, Brooklyn Cured) most of it was manufactured outside Brooklyn.
or a specific Brooklyn neighborhood (e.g. Red Establishing a clear definition of what it means
Hook Winery, Bed|Stu) in naming their business for a product to be made in Brooklyn will ensure
or products. In light of the success of Brooklyn’s clear expectations for customers and retailers.
manufacturing sector and influence as a culture
hub, makers outside of the borough have attempted The objectives of this report are to provide
to benefit from it as well, going as far as to include the Chamber with recommendations on how
“Brooklyn” in the name of their product with little to differentiate Brooklyn products through a
to no production occurring within the borough. framework of defining characteristics under
Absolut Brooklyn vodka is an example. Although a voluntary, market-driven, and independent
Absolut Brooklyn’s “locally inspired” flavors and certification structure entitled “Brooklyn Made,”
bottle design was done by Brooklyn resident Spike and to recommend an organizational structure by
Lee and inspired by “Brooklyn stoop life,” some which this certification program can be executed
have argued that the multinational liquor company and grown over time.
is taking advantage of the Brooklyn trend. Clearly
identifying products that are actually manufactured
locally would help shift the benefits of this trend to
Brooklyn-based businesses. This is where a data-
driven urban manufacturing certification program
based in Brooklyn can help interested local
businesses differentiate themselves from other
firms who use the borough simply as a branding
tool. In addition, a program like this can be used
as a marketing and promotional tool for local
businesses domestically and internationally.
To this end, the Brooklyn Chamber of Commerce
sought to develop a standard that allows customers
to differentiate which products are actually made
in Brooklyn because unassociated products are
using the borough name or claiming to support
the local economy. The Brooklyn Chamber of
Commerce started with the launch of its “Made in
Brooklyn” awards this year and used three criteria
for this recognition: the percentage of production,
the amount of product development, and amount
4II. Background Research
Economic Trends
B
rooklyn, NY is the most populous borough of A large portion of the manufacturing sector is employed
New York City, with 2.5 million residents as of in Brooklyn. The number of people employed in the
June 20131. Even with a growing population manufacturing sector in Brooklyn is 19,900, about
and a 16% increase in the number of jobs between 27% of the total employed in the manufacturing sector
2000 and 2011, Brooklyn’s manufacturing sector citywide. In 2012, the average annual salary for the
experienced a loss of 24,000 jobs in that time period2. 1,740 manufacturing establishments in Brooklyn’s
In New York City, the total number of manufacturing manufacturing sector was $37,000, the lowest in the
jobs halved from 150,000 in 2001 to just over 75,000 in manufacturing sector citywide. According to the federal
2012. This downward turn in manufacturing jobs was standard measurement, North American Industry
experienced nationwide: from 2002 to 2012, the U.S. Classification System (NAICS), a manufacturing
experienced a 21.7% decrease in manufacturing jobs. establishment is one “engaged in the mechanical,
There has been a downward trend in manufacturing physical, or chemical transformation of materials,
jobs since the 1960s. However, from 2010 to 2013, substances, or components into new products”.
there was an upswing in the manufacturing sector in Although establishments in the manufacturing sector
Brooklyn. From 2010 to 2012, Brooklyn was the only are often described as “plants, factories, or mills and
borough that experienced any increase in the number characteristically use power-drive machines and
of manufacturing jobs3 (a net gain of 39 jobs), while materials-handling equipment”,any establishment
the other four boroughs experienced a decrease during that “transforms materials or substances into new
the same time period. Between July and August products by hand or in the worker’s home and those
2013, there has been an increase in manufacturing engaged in selling to the general public products
jobs in New York City by 1,400, mostly in Brooklyn4. made on the same premises from which they are sold,
Brooklyn was the only borough in New York City to experience
a percent increase in the number of manufacturing jobs.
Historically, manufacturing thrived in New York City such as bakeries, candy stores, and custom tailors”
because of its close proximity to ports and railroad may also be included in this sector. Manufacturing
infrastructure, and a steady flow of immigrant labor establishments may also “process materials or may
force. Now, instead of mass-producing one or two contract with other establishments to process their
products, manufacturers are paying attention to materials for them”.
consumption patterns and producing goods that are
locally sourced to satisfy recent consumer appetite With the rise in the cost of rent and of conducting
for regional, specialty products (e.g. Made in New business in New York City, many large manufacturing
York, influx of food markets). This reveals that there firms have left, but small firms remain. According
is a demand for some type of branding or certification to results from the NYC Economic Development
for Brooklyn-made products on the consumers’ end Corporation’s 1,000 Business Survey, the average
to accommodate the changing face of manufacturing. manufacturing firm in New York City is now
smallsize (majority has less than 10 workers), well-
5Other Certification Programs
established (60% have operated for more than 20 The Capstone team researched an array of comparable
years), renter (60% lease their space), and family- local and regional programs, including SFMade (San
owned (about 75% of firms are family-owned). The Francisco), Portland Made, Made in NY, Made in
manufacturing subsectors are: Food & Beverage (which NYC, and Made in USA. In addition, we researched
is highly concentrated in Brooklyn), Textile, Apparel & a number of non-regional certification programs,
Leather; Wood, Paper & Printing, Petroleum, Chemical, including USDA Organic, Leadership in Energy &
Plastic & Mineral, Metals & Machinery, Computers & Environmental Design (LEED) and B Corporation to
Electronics, Transportation Equipment, Furniture & understand the mechanics of a larger certification
Related Products (which is historically concentrated program. From this research, we observed that a
in Brooklyn), and Miscellaneous. Although these certification program usually has a definition, a
subsectors are experiencing a downward trend in verification process, an application fee associated
jobs, Food & Beverage is the only subsector in New with being certified, benefits associated with being
York City that is growing. From 2011 to 2012, Food certified, and an administrative body.
& Beverage added 1,041 jobs to the manufacturing
sector5. Certain programs stood out for their unique, value-
adding components. SFMade operates as a nonprofit
Recent efforts to stimulate more growth in Brooklyn’s organization. It excels in identifying incentives for
manufacturing community include initiatives such businesses to certify their products, including strong
as the New Lab, a public and private collaboration brand recognition and strategic business consulting.
that brings community-manufacturing space to the SFMade defines their certification using the business
Brooklyn Navy Yard in order to share laser cutters rather than the product as the unit of analysis. Eligible
and 3D printers that are too expensive for individual businesses are headquartered in San Francisco
businesses to purchase on their own. Another initiative and/or have a registered business license in San
to help stimulate growth in the manufacturing Francisco; primarily design and manufacture at least
sector was the establishment of Industrial Business one product (versus a digital product or a service)
Zones (IBZ). In 2005, the Bloomberg administration within San Francisco; have a San Francisco-based
established Industrial Business Zones to stabilize work force with the desire to grow over time; have
industry areas in the Bronx, Brooklyn, and Queens. one full-time employee; and for manufacturers of
One main purpose for IBZs is to foster industrial consumer products, have one or more products for
growth by establishing real estate certainty. IBZs have sale at a retail store or online.
lower rents ($13.50/sq. ft. per month compared to the
New York City average of $14.03/sq. ft. per month)
and lower vacancy rates. As of 2013, there are 20,000
acres of manufacturing districts in New York City,
about 15% of total New York City land. Industrial rent
rates in New York City are the highest in Manhattan
at $30.00/ sq. ft. per month, while in Brooklyn, the
industrial rent rate is $15.64/ sq. ft. per month, the
second highest in New York City. With IBZs lower
rents of $13.50/ sq.ft. per month, this initiative has
helped foster industrial growth in Brooklyn.
6Benefits associated with the SFMade certification certified must submit substantial documentation
include access to a suite of tools to help local in order to verify their qualifications in certain
manufacturers connect more powerfully with their areas. Points are then awarded for each successful
customer base, including exclusive use of the verification. B Corporation is a certification
trademarked SFMade logo and brand collateral; program for sustainable businesses, where a
listing in the SFMade directory and other Shop business is defined by a “B Impact Assessment”
Local directories and search engines; and exclusive and must earn a verified score of at least 80
selling opportunities at SFMade hosted events points out of 200. The benefits associated with a
and other local events. There is no application B Corporation certification include differentiation
fee or required documentation to be certified, from “pretenders,” access to services, attracting
with verification done by the SFMade staff. and engaging talent, helping to lead a movement
towards businesses taking accountability for
Portland Made, another regional certification their impact on the world, generating press,
program, has developed a strong member-sustained participating in the "B the Change" campaign,
collective, where members share resources, partnering with peers, and helping to protect the
advocate for one another and educate the public on business's mission.
benefits of buying local. It also has an operational
side that connects consumers to local designers,
retailers and manufacturers. The only criterion for
the free membership is that the business has to be
“based in Portland” (i.e. they do not specifically
define what this means). The benefits associated
with membership include access to media and
physical platforms and partnerships to help grow
the local manufacturing community and educate
the public about manufacturing, connecting
manufacturers and designers to build skills and
foster job creation, marketing of local goods through
promotion, and rewarding shoppers for buying
locally through their partnership with Supportland.
Points-based certification
allows for the greatest
flexibility and adaptability in
a diverse market.
B Corporation and LEED, two examples of non-
regional certification programs, have by far the most
sophisticated certification criteria. They are both
points-based, which allows for the greatest flexibility
and adaptability for a diverse market. In a points-
based system, businesses that wish to become
7LEED, which is administered by the U.S. Green Building Council (USGBC), certifies green buildings through
a ratings system of 100 base points. Each credit is allocated based on the environmental impacts and
human benefits of the building-related impacts that it addresses. The rating system is: certified (40 - 49
points), silver (50 - 59 points), gold (60 - 79 points), and platinum (80+ points). Because LEED’s verification
process is so extensive, the certification and registration fee is high compared to the other certification
programs (on average $2,000 per project). There is a flat registration fee that is paid up front at the time of
registration. The certification fee is based on the size of the project and the rating system that the project
was registered under. Certification fees are paid at the time a project team submits their application for
review.
In addition to these four certification programs - which were most influential in creating the Brooklyn Made
certification program - we also looked at the following programs (a more detailed description of each can
be found in Appendix A):
• Made in New York City: certifies website companies made in New York City
• Made in NY: an initiative from the NYC Mayor’s Office mainly geared at Film & TV productions and
technology companies
• Made in NYC: Pratt Center’s initiative that certifies manufacturers
• Made in USA: a federal law that requires “all or most” of a product to be made in the USA before being
labeled as such
• Made in Portland: certifies Portland-based beer, bikes, coffee, and websites
• Minority- or Women-Owned Business Enterprise (M/WBE): ensures that a small business is actually
owned, controlled, or operated by minorities or women
• USDA Organic: labeling that indicates a food or other agricultural product has been produced through
approved methods
Many of the programs examined certified the business rather than products. The certification programs
varied greatly in their sophistication, with B Corporation and LEED being the most sophisticated programs
we researched. Most of the regional certification programs did not clearly define important terms, such as
“manufacturing” or were vague in regards to how much of a product’s manufacturing should take place
in the region in order to get certified. A majority of the regional certification programs verified based on
an honor system, while non-regional certification programs like MWBE, B Corporation and LEED verified
eligibility via tax documents, site visits, and a thorough verification process. The certification programs are
mostly owned or run by nonprofit organizations. Among the certification programs looked at, a business’s
certification either requires annual reviews (e.g. LEED) or is permanent (e.g. Portland Made).
Based on the team's findings, it was decided that the Brooklyn Made certification program would be points-
based, with the components of the eligibility criteria derived from our survey of Brooklyn businesses.
8III. Brooklyn Manufacturing Sector Research:
Methods and Findings
In-Depth Interviews
T
he Chamber prepared a list of businesses recognize businesses with a large portion of
that could represent specific industries and their manufacturing conducted in Brooklyn,
discuss both the qualities of Brooklyn’s diverse while eliminating those who are “Brooklyn in
manufacturing sector and offer input into the name only.”Several interviewees recognized the
certification program. The Capstone team interviewed challenge of capturing the “craftsmanship” that
five different businesses throughout November takes place in Brooklyn. One individual stated that
2013, and conducted an additional interview with Brooklyn manufacturers were beginning to develop
one retailer in February 2014. This information a reputation for unprofessional working conditions
was then used to shape a survey distributed to a and selling wares at venues with a low threshold
wider pool of manufacturers. Interviewees were for entry. More specifically, these types of products
asked approximately 20 questions during a one- were identified as “being made in a bathtub and sold
hour session regarding the demographics of their at farmers’ markets.” Therefore, there must be some
business (number of employees, years in business, sort of criteria that separates those businesses that
number of products manufactured), why and how are serious about their trade from makers that treat
Brooklyn was important to their business (what their craft as a hobby.
There must be some sort of criteria that separates those
businesses that are serious about their trade from makers
that treat their craft as a hobby.
aspects of production were essential to being Nearly all interviewees expressed concern about
located in Brooklyn, if/how being located in the value added by a certification program. For
Brooklyn influenced marketing), and opportunities example, interviewees wondered about what type
and challenges faced due to operating in Brooklyn. of extra visibility the certification would provide.
(The Interview Guide can be found in Appendix B). They believed that the organization managing the
program should offer benefits such as advertising.
Key takeaways were relatively consistent across Furthermore, while the certification could be
these conversations. Interviewees believed that designed in order to benefit smaller businesses,
the certification program must exclude products larger firms need to join the program to add
with no true connection to the borough. For credibility to the certification itself. Additionally,
example, one interviewee mentioned that they a number of interviewees highlighted the need to
source ingredients locally to the extent that they provide networking opportunities among businesses
are available, and all labor and equipment takes themselves, as well as develop some type of
place within Brooklyn. In contrast, one of their lobbying mechanism to advocate for better benefits
competitors actually uses “Brooklyn” as part of their for Brooklyn manufacturers in general.
branding, though the only local ingredient is water.
Thus, the certification program must somehow
9Some interviewees went so far as to suggest specific Overall, it was clear that a certification program
criteria by which to measure a business's stake in should recognize products that were created
Brooklyn. These included where ingredients were primarily in Brooklyn, as well as firms that
sourced from, how much, if any, production (i.e. implemented processes and procedures that
transforming raw materials into useable parts) took showed a seriousness towards owning and
place in Brooklyn, how much product assembly took operating a business. In order to encompass these
place in Brooklyn, share of employees located requirements and based on additional feedback
in Brooklyn, and whether or not the firm was from our interviews, our survey asked a mix of
headquartered in Brooklyn. Additionally, some questions about where a firm was located and how
makers believed that it was important for much production, design, and assembly took place
manufacturers to give back to the Brooklyn in Brooklyn, as well as the size of the company’s
community, either by hiring workers from Brooklyn Brooklyn-based staff. Additionally, those surveyed
or donating a portion of their profits to local would be asked what resources they would need to
organizations. further their business interests, which could then
be possible incentives to pursue Brooklyn Made
certification.
10Survey of Brooklyn Businesses
Methodology Results
Drawing on insights gained from the interviews, the Because of our emphasis on product manufacturing,
team used the research software Qualtrics to build the Capstone team analyzed survey results
an online survey that gauged how much product looking at the entire survey sample as well as a
manufacturing and business operations occur in smaller subset of companies we could identify as
Brooklyn, as well as capture business demographics manufacturers (in our sample, non-manufacturing
and trends. We worked in consultation with Judy meant service industry, restaurants, or software
Polyne, an NYU expert on survey methods, and companies). However, the results were almost
submitted the survey for review to a small pilot identical so the full survey results (N=117) are
group that included Chamber staff members and reported here. Below we have summarized the
the initial group of interviewees. After a final findings and called out the most relevant survey
revision, a link to the survey was emailed in mid- results (see Appendix D for additional graphs of
January 2014 to over 1,000 businesses and related survey questions not shown below).
contacts through the Chamber’s network of both
members and non-members. The team ended the Respondent Profile: 74% of respondents identified
4-week period with 117 responses. as Founder/CEO, co-founder, or founding partner of
their organization while everyone else held a senior
Survey questions were similar to those asked of management or ownership role. Respondents
businesses in the in-depth interviews and included clustered around a few industries: 50% worked
inquiries into labor demographics, location of in Food and Beverage, 15% worked in Textiles,
each step in the production process, and ideas Apparel and Leather, 14% were Furniture and
to improve the manufacturing sector in Brooklyn. Related Product, and 5% worked in Wood, Paper,
Most importantly, the survey split production into and Printing. Petroleum, Chemical, Plastic and
six components: Marketing, Senior Management, Mineral; Metals and Machinery; and Computers
Processing of Raw Materials, Research, Design, and Electronics each represented 1% (see Table
and Development, Product Assembly, and Product 1). A majority were small businesses (less than
Finishing (the full survey can be found in Appendix ten employees) operating for less than five years,
C). although a significant portion (23%) have been
operating for more than ten years.
11Table 1: Industries Represented in Survey
Business Sales: 44% of respondents earned less than $100,000 in 2012 gross revenues, 30% earned
between $100,000 and $999,999, and 10% earned $1,000,000 or more (15% preferred not to answer).
78% of companies market their products outside of New York City and 75% of respondents’ sales happen
in the Northeast region (in order of highest sales: New York, New Jersey, Connecticut, Massachusetts,
Pennsylvania, Rhode Island, Vermont, Maine, New Hampshire). 40% of companies reported that they
export outside of the United States, mostly to Europe (67%) and Asia (42%).
Details of Production Process: Slightly less than half of respondents (46%) used Brooklyn in the name of
their company or their product(s) while the vast majority were headquartered and incorporated in Brooklyn
(93% and 75%, respectively). 72% of respondents said that at least 76% of their products are made or
manufactured in Brooklyn (see Appendix D) and an overwhelming majority said that most or all of the six
components of production activities took place in Brooklyn (see Figure 1).
12Figure 1: How much of each of the following activities take place in Brooklyn?
3% 3% 3% 4%
10% 5%
7% 4%
5% 15% 4%
6% 5%
10% 13%
10%
11%
13% 9% 14%
15%
80%
77% 72% 74%
68%
56%
Senior Research Marketing Processing of Product Product
Management Design, and Raw Assembly Finishing
Development Materials
The most prevalent reported challenges to manufacturing in Brooklyn were high facility costs (66%),
condition and size of available facilities (41%) and high labor costs (42%) (see Figure 2). Respondents
also indicated that raw materials for their products are difficult to source within Brooklyn, mostly because
the specific materials or ingredients are unavailable or are too expensive; 24% of those surveyed said
their business does not use any Brooklyn-based materials, while 39% indicated that at most 25% of their
materials are sourced from Brooklyn.
13Figure 2: What do you see as major challenges to manufacturing in Brooklyn?
Community Engagement: 65% of businesses give back to the community either through in-kind (57%)
or cash donations (23%) (see Figure 3). 69% also employ Brooklyn residents, 27% employ low-skilled or
low-income workers, and 23% provide healthcare for employees. We also found that less than 30% of
respondents are using other organizations to further their business interests (see Figure 4) and an even
smaller percentage of companies currently participate in certification programs (see Figure 5).
Figure 3: How does your business give back to the Brooklyn community, if at all?
14Figure 4: What organizations do you utilize to further your business interests?
Figure 5: Which of the following certification programs does your business participate in?
15The survey also asked about the kinds of business support services that currently exist (see Figure 6) and
what services respondents would like to see in the future (see Figure 7).
Figure 6: Do you think there is enough support to help Brooklyn manufacturers in the following ways?
Figure 7: What services would you find beneficial for a third-party to offer in support of your business?
16Analysis Limitations
With the exception of Processing of Raw Materials, While the survey covered many of the challenges
68-80% of respondents indicated that “All” production Brooklyn makers face, it failed to capture a very
components take place in Brooklyn (for raw materials large number of businesses and products, notably
processing it was 56%). While our survey sample may those not in the food and beverage sector and those
not be a representative sample of all businesses in operating for longer periods of time in less central,
Brooklyn, we do believe that it demonstrates strong perhaps less developed neighborhoods. The survey
interest in a Brooklyn Made certification program or also excluded restaurants and software companies
at the very least more support from the Chamber and for the most part, which are responsible for a lot of
beyond. The data also allows us to extrapolate that economic activity in Brooklyn but are not well suited
a certification structured around the six components for this certification. The survey sample is also biased
we named would be viable since a strong subset of towards those businesses that have relationships
businesses and products would be able to fulfill much or membership with the Brooklyn Chamber of
of the criteria. We also learned that these particular Commerce. Even though many respondents were
respondents used a variety of organizations to not Chamber members, all of our initial interviewees
further business interests (including NYC Economic were members recommended to us by the Chamber
Development Corporation, Brooklyn Borough because of their interest in the idea of a certification.
President’s Office, and BID), but no one organization
stood out, indicating additional market potential In terms of measuring the production criteria, we
for Brooklyn Made. Our sample of businesses also asked respondents to indicate whether “All,” “Most,”
participates overwhelmingly in charitable donations, or “Some” of the production components occurred
which suggests a strong sense of community among in Brooklyn, which left some room for error or
these respondents, a characteristic that we believe misinterpretation. It is also true that this framework
will help support Brooklyn Made. may not apply as evenly to a beverage distributor as
it would to an apparel maker, so some adjustments
Furthermore, most respondents indicated that they may need to be made when establishing a scoring
would benefit from a variety of business services system (see certification criteria discussion below).
such as better access to financing options, customer The results also showed some inconsistencies within
databases, trade-show support, marketing, or the data, such as a business reporting more Brooklyn
business advising, further highlighting the need employees than its total employees or indicating
for small to medium business support services. they have zero employees—presumably because
While the Chamber already provides some of these many CEOs or founders do not consider themselves
benefits, these results suggest an outstanding need as “employees” of the company.
for more. We also learned that many businesses
market and export their product(s) outside of New
York City and outside of the United States, which
is relevant when considering the impact of an
official certification beyond New York City, where
it is much harder for consumers to distinguish the
details of a product’s manufacturing. For example,
at the Chamber’s Industrial and Manufacturing
Coalition meeting in February (described next), it
was confirmed that there is significant demand
for Brooklyn made or Brooklyn-labeled products in
Japan and China – a Brooklyn Made certification
could allow businesses to capitalize on this demand.
17Finally, the Capstone team acknowledges that we may not have imagined every possible criterion that is
relevant in identifying a Brooklyn Made product, especially so early in our research process. Some questions
that might have clarified the viability and perceived benefit of the program are:
• Do you participate in Brooklyn Eats or Brooklyn Designs?
• Would you be willing to pay for a certification program? If so, how much?
• How many Brooklyn residents do you employ?
• How much of your sales stay in Brooklyn?
Industrial & Manufacturing Coalition Presentation
After compiling and analyzing the data, the products and businesses that conducted as much
Capstone team presented its survey findings to the of their processes within the borough. They
Chamber’s Industrial and Manufacturing Coalition emphasized the need for certified businesses
on February 12, 2014. Approximately forty business to employ Brooklyn residents as well as build
owners (mostly Food and Beverage) and three up Brooklyn as a bustling manufacturing hub.
Chamber staff members were in attendance. After Attendees also expressed concern over the
the presentation, attendees asked questions about transparency of the certification program and how
the Brooklyn Made certification and were also it would continually evaluate products to ensure
asked to write down their response to the question that certified products maintained their Brooklyn
“What does Made in Brooklyn mean to you?” The Made status. Overall, the business representatives
team received a total of 11 responses. that attended this meeting seemed proud of their
work in Brooklyn, interested in the team’s results,
In both verbal feedback and written responses, and eager to see how the program would continue
meeting attendees highlighted the need to certify to develop.
18IV. Proposed Brooklyn Made Certification
Framework
T
o make the Brooklyn Made certification activities, for example, a business’s location
program market-driven, the Capstone team of senior management. However, many of the
used the survey of Brooklyn businesses criteria are product-specific, for example, where
to determine the viability of each certification the product is assembled or finished, allowing for
criteria. Since different products within a business certification at the product level.
can vary significantly in terms of how and where
they are manufactured, the Brooklyn Made The Brooklyn Made Score is what determines a
certification program is product-specific, allowing product’s eligibility for certification. By setting a
businesses to certify some of their products that threshold for certification, any product that meets
meet manufacturing requirements, without being the threshold score becomes certified as Brooklyn
penalized for products that do not meet the criteria. Made. The Capstone team decided on the mean
BMS as the threshold score, consistent with the
As described in an earlier chapter, most regional B Corporation model. The qualifying score for the
certification programs like Portland Made and B Corporation certification turned out to be the
SFMade lack sophistication. As a result, the average score from their assessment. This is not
Capstone team used the B Corporation certification to say that the B Corporation specifically chose
program as the inspiration for Brooklyn Made. At the average score as their qualifying bar. As they
the heart of the certification program is the Brooklyn indicate on their website, their threshold is “a
Made Assessment Tool (BMAT) developed from work in progress” and other factors went into
the manufacturing-specific questions of the survey making the designation. However, the Capstone
and informed by the results. team felt comfortable making the mean score the
At the heart of the certification program is the Brooklyn Made
Assessment Tool (BMAT) developed from the manufacturing-
specific questions of the survey and informed by the results.
To get the Brooklyn Made certification for cut-off because it allowed for impartiality in the
products, businesses must meet minimum baseline certification process, and it was consistent with
requirements and complete the Brooklyn Made the goal of having the Brooklyn Made certification
Assessment Tool. The BMAT is points-based and program be data and market driven.
includes several criteria weighted by importance
that will give a product a composite score, referred
to as the Brooklyn Made Score (BMS). Several of
the criteria in the BMAT relate to overall business
19Baseline Certification Criteria
As baseline criteria, all businesses wishing to have standard for certification. Since our survey of
their products certified as Brooklyn Made must be Brooklyn businesses did not ask respondents about
a legal business entity headquartered in Brooklyn, their legal business structure, we did not exclude
and make or manufacture one or more physical any survey respondents based on this criterion and
products. Businesses seeking certification would worked with the assumption that all businesses
have to provide legal or tax documents indicating in our survey were registered legal entities.
they fit into one of the following business structures: 75% of survey respondents indicated they were
an incorporated business, sole proprietorship, incorporated in Brooklyn specifically so we thought
limited liability company (LLC), cooperative, or it would be fair to assume registered Brooklyn
partnership. For the purpose of Brooklyn Made, businesses made up our survey sample. A strong
headquarters is “the chief administrative office of majority of survey respondents (93%) indicated
an organization” as defined by Merriam-Webster. they were headquartered in Brooklyn, and based
on survey responses and additional research, the
The Capstone team chose these baseline criteria Capstone team determined that 84% of surveyed
because they are not too stringent that it would businesses make or manufacture a physical
deter Brooklyn businesses from applying for the product, which resulted in 89 businesses meeting
certification, but it would still set a minimum our baseline certification criteria.
• Business must be a legal business entity registered as: an incorporated business, a sole proprietorship,
a limited liability company, cooperative, or partnership
• Businesses must be headquartered in Brooklyn
• Businesses must make or manufacture one or more physical products.
20The Brooklyn Made Assessment Tool
If businesses meet these minimum baseline Within the heavy-weight criteria, the maximum
requirements they can then fill out the Brooklyn points for each criteria is 5, but products could
Made Assessment Tool (BMAT) for each product still get 1 or 3 points if some level or amount of
they wish to certify as Brooklyn Made. The BMAT the criteria takes place in Brooklyn. For example,
integrates the business and manufacturing specific having Brooklyn employees is a heavy-weight
questions from our survey of Brooklyn businesses criteria because the Capstone team agreed it was
into a weighted points-based system leading to important for a business with Brooklyn Made
certification. certified products to have a share of their employees
The BMAT asks businesses about various business and
product-manufacturing activities. It is scored out of 40
possible points.
The BMAT asks businesses about various business located in Brooklyn. As a result, the Capstone team
and product-manufacturing activities. It is scored broke down the share of employees in Brooklyn
out of 40 possible points, with businesses receiving into three tiers: 1% to 50%, 51% to 75%, and more
points for the extent to which the various activities than 75%, to give Brooklyn businesses 1, 3, or 5
take place in Brooklyn. Possible points range from points, respectively for the tier they fall into. One
1, 3, or 5, with the criteria perceived to be of the exception to the tier approach for the heavy-weight
highest importance weighted most heavily and criteria is the requirement that businesses employ
given a maximum score of 5. Criteria considered Brooklyn residents. Ideally this question would
to be important but not highly important were have a 3-tier point distribution, but this question
given a maximum score of 3 points, and criteria was only asked on an overall basis in our survey
that should be considered in the certification, but of Brooklyn businesses so we could not break
of lowest importance were given a maximum score responses out by tier. The points-based criteria for
of 1 point. the Brooklyn Made certification program are:
21Heavy-Weight Criteria (maximum 5 points each)
Product ingredients/ raw materials sourced from Brooklyn (or New York state)
• 5 Points: 51% to 100% sourced from Brooklyn
• 3 Points: 1% to 50% sourced from Brooklyn
• 1 Point: At least 51% sourced from New York state
Research, design and development of product takes place in Brooklyn
• 5 Points: All of the activity takes place in Brooklyn
• 3 Points: Most of the activity takes place in Brooklyn
• 1 Point: Some of the activity takes place in Brooklyn
Product assembly takes place in Brooklyn
• 5 Points: All of the activity takes place in Brooklyn
• 3 Points: Most of the activity takes place in Brooklyn
• 1 Point: Some of the activity takes place in Brooklyn
Product finishing takes place in Brooklyn
• 5 Points: All of the activity takes place in Brooklyn
• 3 Points: Most of the activity takes place in Brooklyn
• 1 Point: Some of the activity takes place in Brooklyn
Share of total employees located in Brooklyn
• 5 Points: More than 75% of employees
• 3 Points: 51% to 75% of employees
• 1 Point: 1% to 50% of employees
Business employs Brooklyn residents
Mid-Weight Criteria (maximum 3 points each)
At least some of the processing of raw materials that go into product takes place in Brooklyn
Business participates in charitable activities in Brooklyn community
Low-Weight Criteria (maximum 1 point each)
All or most of product marketing takes place in Brooklyn
At least some senior management is located in Brooklyn
Business is incorporated in Brooklyn
Business has been continuously operating in Brooklyn for 10 years or more
22Each criterion within the BMAT will include clear definitions so that businesses taking the assessment will
know exactly what is meant by each activity, and businesses can answer questions with the same context.
The definitions for each criterion are as follows:
• Ingredients/raw materials: the components used in the making of a product
• Research, design and development: defining the product concept, conducting market research, and
testing product concepts
• Assembly: the process of putting different inputs together to make your product
• Finishing: packaging, quality control, and final stage product touch-ups
• Employee: an individual hired by a company and given compensation in exchange for providing services
to a company; for the purpose of this certification, a business owner, proprietor, etc. can be included
as an employee
• Brooklyn resident: an individual that lives in Brooklyn
• Share of total employs located in Brooklyn: the number of employees located in Brooklyn divided by the
total number of employees
• Processing of raw materials: the transforming, cleaning, or modifying of materials into usable inputs
• Charitable activities: cash or in-kind donations to Brooklyn organizations
• Marketing: any product promotion or advertising
• Senior management: CEO, CFO, CTO, CMO, etc.
• Incorporated in Brooklyn: registered as a legal business corporation with a Brooklyn address
A mock-up of the Brooklyn Made Assessment Tool can be found in Appendix E.
23The Development of the BMAT
The Capstone team used information gathered from heavily in the assessment. Sourcing ingredients and
the in-depth interviews of Brooklyn businesses and raw materials from Brooklyn was also given a heavy-
Chamber employees to decide on the importance of weight in the assessment because the Capstone
each of the business and manufacturing activities team thought it was important to promote the use
and whether they should be weighted as a heavy, of local ingredients. Some businesses are not able
mid-, or low certification criteria. Once we decided to source their ingredients or raw materials from
on the importance of each criterion, we turned to Brooklyn, so an alternative to sourcing materials
the survey data to make sure none of the individual from Brooklyn is sourcing them from New York
criteria were too stringent. Most of the criteria had State in general. The final criteria given a heavy-
at least 67% of surveyed businesses participating weight in the assessment is the extent to which
in the activity in Brooklyn to some extent, which the the research, design and development of a product
Capstone team viewed as a good starting point for takes place in Brooklyn. The Capstone team gave
each criterion (see Appendix F). The exception was this activity a heavy-weight because it promotes
the criteria that a business continuously operates thought leadership in Brooklyn where it can have
in Brooklyn for ten years. Since this is a low-weight an inspirational effect on new and future Brooklyn
criterion, changing this criteria or removing it from businesses as new products are developed.
the assessment had little impact on the number
of businesses that got certified, so the team felt Most of the business-level criteria were given mid-
comfortable keeping this in the certification or low- weights. The Capstone team gave a mid-
assessment. weight to charitable giving in Brooklyn to signal the
importance of a Brooklyn business giving back to
Since the Brooklyn Made certification program the local community in some way. The assessment
at its core is about properly identifying products currently defines charitable giving as giving in-
that are made in Brooklyn, the Capstone team kind or cash donations to local organizations,
decided to weight the manufacturing activities of but that definition could be expanded in the final
product assembly and product finishing heavily in assessment.
the certification assessment. The Capstone team
recognized the processing of raw materials as Other business activities that the Capstone team
important, but of all the manufacturing activities thought should be included in the assessment,
in our survey, this particular activity received the but were less important than the other activities
most “not applicable,” (10%) and “none” (10%) were given a low-weight. Many of these activities
responses indicating it was a difficult activity were included to incentivize businesses to do the
for businesses to do in Brooklyn. As a result, the activity in Brooklyn. For example, giving businesses
processing of raw materials was given a mid- one point if they were incorporated in Brooklyn
weight score to avoid unnecessary difficulty for would incentivize start-ups in Brooklyn. And giving
businesses to get the Brooklyn Made certification a business a point for operating in Brooklyn for 10
for their products. or more continuous years incentivizes a business
to stay in Brooklyn for an extended period of time.
Having employees in Brooklyn and specifically
employing local Brooklyn residents are important
social and political goals for the Chamber and helps
to boost the local economy, so both were weighted
24Certification Results from the Survey
The Capstone team used the BMAT on the survey differently than they would a formal application
of Brooklyn businesses to determine what the for certification. Despite these limitations, the
mean Brooklyn Made Score would be and see Capstone team has developed a framework for
how many businesses in the sample would get the certification that will easily transition to the
certified under the criteria we developed. It product level when the Chamber administers it.
Using the mean score of 31 as the cut-off for certification,
60 of the 89 Brooklyn businesses (67%) in this sample would
get certified as Brooklyn Made.
is worth mentioning that even though the final When the Capstone team administered the BMAT
certification program developed here will be on the survey of Brooklyn business, 89 Brooklyn
product specific, the survey data the Capstone businesses met the minimum baseline requirements
team used to create the certification criteria was for certification and went on to receive a Brooklyn
not – most questions were asked about business Made Score. The mean Brooklyn Made Score turned
activities overall, or products in general. As a result, out to be 31. The minimum Brooklyn Made Score
the certification results from the survey of Brooklyn was 10, and the maximum was 40. Using the mean
businesses will have to be viewed on the business score of 31 as the cut-off for getting certified, 60
level. Additionally, the survey data that informed of the 89 Brooklyn businesses (67%) in our sample
the certification program was self-reported, and would get certified as Brooklyn Made. See Figure 8
businesses might have answered some questions for full distribution.
Figure 8: Full Distribution of the BMS Among Surveyed Businesses (N=89)
25The Capstone team took a deep-dive look at products certified. While a strong majority of small
Brooklyn businesses that received a Brooklyn businesses received the highest possible points for
Made Score between 26 and 30 to see if these all the product-specific manufacturing criteria of
businesses struggled with any single certification the BMAT, a smaller majority of these businesses
criteria. Eighteen businesses fell between (about 60%) participated in charitable activities in
5-points of the mean Brooklyn Made Score. A Brooklyn and employed Brooklyn residents. Small
strong majority of these businesses received businesses also tended to be newer, with only 6%
the highest possible score on most certification indicating they’ve been operating in Brooklyn for
criteria including: product R&D, processing of raw 10 or more years. To ensure that the final BMAT
materials, product assembly, product finishing, and does not penalize small businesses, the Chamber
product marketing. A majority of these businesses can make revisions to the current BMAT framework
also had a share of their workforce in Brooklyn and (see Expanding the Brooklyn Made Assessment
used ingredients and/ or raw materials sourced Tool). Additionally, as will be discussed in the next
from Brooklyn or New York State. The businesses section, the Advisory Board that will be established
were roughly evenly split, and had a difficult time for the management of the Brooklyn Made
meeting the criteria of charitable giving within the certification program can make judgment calls on
Brooklyn community, and employing local Brooklyn product certification for small businesses that fall
residents. Only 50% of these 18 businesses said just short of getting certified.
they gave back to the community, while 44%
indicated they employed a local Brooklyn resident. The mean BMS also varied by industry, but since
some industries were only represented by a few
The Capstone team also looked at whether getting businesses, statistical significance could not be
certified varied based on business characteristics determined. As Table 2 shows, some businesses
such as size or industry. Very small businesses (1 such as those classified as Textile, Apparel and
to 5 employees) received a mean Brooklyn Made Leather might have a more difficult time getting
Score of 30.4, while the mean score for businesses certified. Interestingly, businesses that used
with over 5 employees was 33.8. The two BMSs “Brooklyn” in the name of their business or one of
were statistically different from each other at a their products had a higher BMS than businesses
95% confidence level, and the mean score for a that did not incorporate “Brooklyn” in their company
small business was just slightly below the cut-off or product names (33 vs. 30, respectively). This
(six-tenths of a point) for certification indicating difference was statistically significant at a 95%
that size could affect whether a business gets its confidence level.
Table 2: Mean Brooklyn Made Score by Industry (N = 89)
26Expanding The BMAT
The current version of the BMAT was developed using only questions asked of Brooklyn businesses during
the initial survey so that we could create a mean score for the sample of Brooklyn businesses and study the
distribution of the Brooklyn Made Score within the sample. The Chamber does not have to adhere to these
individual criteria, and could even add or remove criteria with the final BMAT. As the Capstone team was
developing the current tool, we thought of several additional criteria that may be important to include in
the future assessments. For example, the Chamber might want to consider making the criteria of employing
Brooklyn residents into a tier-distribution to reward different levels. Other potential criteria include:
• Percent of sales occurring in Brooklyn (mid-weight)
• Participation in Brooklyn business activities such as Smorgasburg, Brooklyn Flea Market, Brooklyn Eats,
or others (low-weight)
• Working out of a Brooklyn manufacturing facility (low-weight)
The Chamber might want to expand the certification Similarly, if the Chamber would like to change
as the program matures and there are more the weighting of any of the current criteria in the
applicants to collect data from. If the Chamber assessment tool, they have the flexibility to do so and
chooses to expand the assessment tool, the current create a new maximum and mean Brooklyn Made
framework for the certification program can still be Score. Finally, since we saw that small businesses
used. Rather than using the current mean score and businesses in certain industries might have a
of 31 from our survey sample, the Chamber would more difficult time getting their products certified
simply have to calculate the mean Brooklyn Made with the current framework, the Chamber might
Score from the applicant pool for the certification want to create a different frameworks or calculate
program. As Brooklyn Made expands, it would also various BMS thresholds depending on business
be possible for the certification criteria to have size or industry. The B Corporation certification
different levels of certification, similar to the LEED program actually has different versions of its
certification program, which has four levels of assessment tool tailored to five different industries
certification (certified, silver, gold, and platinum) and six different business sizes.
determined by the points earned for the project.
As Brooklyn Made expands, The flexibility of the BMAT
allows for the certification criteria to have different levels of
certification, or different thresholds for businesses based on
size or industry.
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