RPA thanks members of the Committee for the opportunity to submit comments on small business-related proposals for the Fiscal Year 2027 Preliminary Budget.
For more than a century, RPA has been advancing efforts to strengthen the New York City metropolitan area’s economic resilience. But true success for our region relies so much on the local groups and communities that help implement bold ideas, translate plans into action, and ensure that the services and resources we have make it to those that truly need them. In fact, we have worked directly with NYCSBS to support local partners in previous work because of a shared understanding that New York City can only thrive if community partners are given the tools and resources they need to serve their communities.
That is why we are writing to express our strong opposition to the proposed elimination of the Industrial Business Service Provider (IBSP) program. We view the effort to streamline services as effectively a rollback of this much needed support, which runs counter to the City’s claim that the industrial sector is essential for the City’s economy.
As the 2025 Industrial Action Plan frames it, the industrial sector plays a vital and underappreciated role in New York City’s economy while simultaneously being the second largest industrial economy in the United States. From waste management to renewable energy manufacturing, industrial businesses are responsible for the production of essential goods and services that supply and support New York City. Industrial businesses are also the backbone of this City’s economic justice future, providing over 500,000 accessible, well-paying jobs to New Yorkers. Given that the current demographic makeup of the industrial sector is 67% non white workers and 70% workers without a college degree, this industry also creates opportunities for those who are too often left out of the City’s prosperity—immigrants, people of color, and workers without a college education.
Many industrial businesses are small, with the 47,000 private industrial businesses in the City employing an average of 10-13 workers per establishment. Additionally, the sizable amount of industrial businesses located along the City’s historic manufacturing waterfront places roughly half of industrial land within the 100 year floodplain, meaning that almost 2,000 businesses and over 45,000 employees are also vulnerable to flood impacts from sea level rise, increasing heavy rainfall and coastal storm surge events. And unlike other small business sectors, industrial businesses do not have many choices when it comes to locating and opening a business.
At a time when macroeconomic headwinds and intensifying climate impacts make it difficult for small manufacturing businesses to survive, the IBSP’s critical and community-oriented work is more necessary than ever.
Industrial businesses have unique challenges and needs. To truly thrive and be successful in an everchanging economy, their success necessitates the tailored services of the few IBSP’s we have across the City. Providers like SIEDC, SBIDC and others provide a critical line of support to small manufacturers and industrial businesses, regularly connecting businesses with resources that allow them to operate and grow in the City.
And local knowledge and engagement is where their services really matter. One-on-one assistance, help to secure loans, emergency support and so many other functions may seem typical of all businesses, but the specialized needs of small industrial businesses in terms of real estate, freight and mobility, workforce development, supply-chain challenges, and others highlight just how important it is to have tailored services.
The IBSP program supports the work of these organizations and ensures that industrial businesses have the specialized support they need to remain in the City and continue employing local residents. Eliminating this program would remove one of the few existing services that can help small, industrial businesses survive in an increasingly difficult business environment. As climate impacts continue to intensify in NYC, these organizations also play an essential role in helping businesses stay informed, connected, and prepared against flood risks. Without this assistance, it would be far more difficult for small industrial businesses to survive in New York. Removing this program would also mean one less opportunity for building climate resilience and capacity for New York’s small industrial business owners.
What makes this rollback particularly troubling is that it runs counter to how the City supports other sectors that similarly rely on local groups to provide services.
We expand support for BIDs because they provide on-the-ground services to strengthen commercial corridors. We rely on community partners to run Open Streets and take care of public plazas. Many of our best parks have community partners or non-profits that provide programming and stewardship. We give resources to non-profit service providers to support tenants and ensure housing and social services meet the needs of New Yorkers.
We invest in community partners and service providers because we know that government cannot be everywhere it needs to be, and cannot understand the needs of specific communities or sectors the way local groups can. Investing in IBSPs is no different and deserves the same seriousness and commitment.
Over the last several months, RPA has been working with a range of small business stakeholders, including IBSPs, to understand what is needed to help them be more resilient in the face of climate change. In a forthcoming report, we call for more not less support to help service providers and community groups coordinate with local businesses who are often left behind in our planning processes.
Industrial Business Service Providers are already doing a lot with very little. For a modest $1.2M citywide investment, these providers protect $1.7B in annual tax revenue for New York City and support a sector that employs over half a million New Yorkers in well-paying jobs that don’t need college degrees.
Transitioning towards the Business Solutions model cannot meet the specialized needs of industrial businesses and represents a severe cut in essential infrastructure to this sector.
We strongly urge the City of New York to preserve and expand funding for the IBSP program and continue supporting these few but vital organizations that provide essential services to the industrial business community. The livelihood of industrial business owners and their employees depends on this critical resource.
