WEBVTT - How an American City Can Become a Manufacturing Hub

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Hello and welcome to another episode of the All Thoughts Podcast.

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<v Speaker 2>I'm Tracy Alloway and I'm Joe.

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<v Speaker 3>Why isn't Joe?

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<v Speaker 2>Do you ever discover little cultural blind spots that you

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<v Speaker 2>had in your life?

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<v Speaker 3>I'm like, where are you going with this?

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<v Speaker 2>So I discovered one recently and it kind of led

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<v Speaker 2>to a minor epiphany for me. But I had heard

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<v Speaker 2>the Billy Joel song Alan Town. I had never watched

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<v Speaker 2>the video, and in preparation for this episode, I watched

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<v Speaker 2>the video and suddenly a bunch of Simpsons references made

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<v Speaker 2>sense to me.

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<v Speaker 4>Interesting.

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<v Speaker 2>And I don't mean to be I don't mean to

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<v Speaker 2>be very grand millennial by making Simpsons references.

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<v Speaker 3>Simpsons reference to like someone younger in the office, they

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<v Speaker 3>look at the blank stare. I know, it's reallyressed. I

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<v Speaker 3>just don't do it anymore because it's so depressing.

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<v Speaker 2>I know, and here I am doing it on the podcast.

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<v Speaker 3>But I actually, you know, we're the same generation, so

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<v Speaker 3>we could do it.

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<v Speaker 2>We can do it.

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<v Speaker 3>This is a safe listeners might not get it.

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<v Speaker 2>So the reason I bring it up, though, is for

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<v Speaker 2>kind of a serious point, not just to talk about

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<v Speaker 2>Billy Joel music, although now that I think about it,

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<v Speaker 2>he has a lot of songs about like the political

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<v Speaker 2>economy of America. But it is because Allentown, Pennsylvania basically

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<v Speaker 2>became a poster child for de industrialization and the hollowing

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<v Speaker 2>out of American manufacturing in the nineteen eighties.

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<v Speaker 3>It was a great intro and thank you and of course, right,

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<v Speaker 3>so we know, and obviously over the years on odd lots,

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<v Speaker 3>we've talked a lot about industrialization, de industrialization, reindustrialization, great,

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<v Speaker 3>all very interesting themes. Everyone maybe like feels in their

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<v Speaker 3>gut somehow that they're like pro reindustrialization, whatever that means. Right,

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<v Speaker 3>But then the gap between like somehow like we feel

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<v Speaker 3>good about producing physical things, we want more of that,

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<v Speaker 3>What does that actually look like in practice? What are

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<v Speaker 3>these jobs? What are these potential industries? Then it suddenly

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<v Speaker 3>gets much more hazy. Right, people don't know what that

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<v Speaker 3>actually looks.

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<v Speaker 2>Like in practice? Right, how do you actually go about

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<v Speaker 2>implementing industrial policy on a local scale. And I have

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<v Speaker 2>to say, the other thing I found out in researching

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<v Speaker 2>for this podcast. I had no idea, but Allentown, Pennsylvania

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<v Speaker 2>was also the site of the first some of the

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<v Speaker 2>first mass produced transistors, yeah, which are like the precursor

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<v Speaker 2>to semiconductors of today.

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<v Speaker 3>Can I say what random thinking about Billy Joel before

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<v Speaker 3>we go further, you know, because obviously you mentioned he

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<v Speaker 3>talks about, you know, a lot of political economy things

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<v Speaker 3>and including of course, and we didn't start the fire.

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<v Speaker 3>The final line of that song is like something about

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<v Speaker 3>the Cola wars, and he's like, I can't take it anymore,

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<v Speaker 3>and I just think it's really funny that the Cola

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<v Speaker 3>wars coke vers pepsi is the thing that tip to

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<v Speaker 3>over edge like a Vietnam War. All these things happened,

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<v Speaker 3>and finally the thing that tipped them over the edge

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<v Speaker 3>was the cold anyway sidechrick, but I just had to.

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<v Speaker 4>Get that out.

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<v Speaker 2>We should do a whole episode on Billy Joels songs

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<v Speaker 2>at some point, including my favorite karaoke standard, which is

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<v Speaker 2>down Easter Alexa, all about the decline of the fishing industry.

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<v Speaker 2>But anyway, Allentown, Pennsylvania, let's focus. We do, in fact

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<v Speaker 2>have the perfect guest. We're going to be speaking with

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<v Speaker 2>the Mayor of Allentown, Matt Turk. So thank you so

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<v Speaker 2>much for coming on all thoughts place.

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<v Speaker 5>It's a huge pleasure to be here.

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<v Speaker 3>It actually helps because we are we are at the

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<v Speaker 3>conference in Madrid, right and.

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<v Speaker 2>We just saw you have a medal from me from

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<v Speaker 2>the marathon over the weekend. Tell us about that.

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<v Speaker 6>I landed on Saturday, went right to the marathon expo,

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<v Speaker 6>picked up my bib. Twenty four hours later I was

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<v Speaker 6>starting the Madrid forty two k not twenty six miles,

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<v Speaker 6>forty two kilometers marathon. It was hot, it was hilly,

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<v Speaker 6>it was beautiful, great crowd support, phenomenal marathon fun finished

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<v Speaker 6>the marathon and then went right to a reception for

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<v Speaker 6>Bloomberg City Lab and I've been NonStop since then.

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<v Speaker 2>That is dedication to both Cardio and city Bustling. So

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<v Speaker 2>congrats on that. I mentioned Allantown the song and the

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<v Speaker 2>video in the intro, and I discovered there's some controversy

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<v Speaker 2>about this because apparently the steelmaking was more in Bethlehem

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<v Speaker 2>rather than in Allantown. So should Billy Joel have been

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<v Speaker 2>talking about semiconductors instead of steel?

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<v Speaker 6>I mean, there's he could have been talking about Max trucks.

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<v Speaker 6>He could have been talking about silk manufacturing. That's like

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<v Speaker 6>the local controversy is that like he's talking about you know,

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<v Speaker 6>Bethleem but he didn't rhyme as well with shutting factories down.

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<v Speaker 6>But then there's you know, I was surprised.

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<v Speaker 5>I thought that.

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<v Speaker 6>Everyone in the country felt like not great about the

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<v Speaker 6>song Allentown. Then I met the mayor of Toledo and

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<v Speaker 6>he was like, that's a great song. It's about the

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<v Speaker 6>working man and blah blah blah blah blah, And I

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<v Speaker 6>was like, what are you talking about, Like this is

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<v Speaker 6>the song that like everybody in our region and the

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<v Speaker 6>Lehigh Alley just like dreads hearing because it's about this

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<v Speaker 6>like different era that maybe was like felt right in

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<v Speaker 6>the moment in eighteen eighty two, like that maybe kind

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<v Speaker 6>of captured the moment, But in twenty twenty six, it's

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<v Speaker 6>like it doesn't sound further from it couldn't sound further

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<v Speaker 6>from the truth.

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<v Speaker 3>Give us like a little Allentown history, Like what is

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<v Speaker 3>the timeline when we talk about these sort of key

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<v Speaker 3>industries that were once associated with the city of Allentown.

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<v Speaker 3>What was the sort of peak of it and when

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<v Speaker 3>was the sort of trough.

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<v Speaker 6>Maan, Yeah, I mean so, I mean the city was

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<v Speaker 6>founded back in seventeen sixty two. It had its revolutionary moment.

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<v Speaker 6>We hid the liberty bell there, but it really picked

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<v Speaker 6>up and incorporated in eighteen sixty seven for the kind

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<v Speaker 6>of reconstruction, and that's when the industry really started to

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<v Speaker 6>It started to industrialize. Like many American cities, early industry

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<v Speaker 6>was cigar manufacturing, so tobacco that was growing in Lancaster

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<v Speaker 6>was shipped to Allentown for production into cigars. Silk manufacturing

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<v Speaker 6>became a pretty big deal in that area. It was

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<v Speaker 6>a place where silk could be brought in and then processed.

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<v Speaker 6>In the early kind of nineteen ten, sort of around

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<v Speaker 6>the First World War, mac truck moved to Allentown from Brooklyn.

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<v Speaker 6>This was like nineteen fifteen, and industrial production of those

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<v Speaker 6>vehicles started. We manufactured volty bombers, a particular type of

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<v Speaker 6>bomber for World War Two. This is all coincident with

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<v Speaker 6>Bethlehem's steel industry rising up. The industrial work continued through

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<v Speaker 6>I think you guys must mentioned the transistor in Western Electric.

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<v Speaker 6>That was kind of a big story. But then, like

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<v Speaker 6>a lot of places, manufacturing started to decline, not as

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<v Speaker 6>strongly in Allentown as other parts of the country. But

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<v Speaker 6>the Western Electric plant eventually shut down. The year were

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<v Speaker 6>we talked about with that Western Electric was.

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<v Speaker 5>In the seventies.

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<v Speaker 6>It actually it morphed into something else that eventually became Broadcom.

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<v Speaker 6>So there's still some manufacturing. It didn't necessarily exist in

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<v Speaker 6>the city. It spread out into suburban parts of the region.

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<v Speaker 6>There's still some chip manufacturing occurring or wafer polishing occurring

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<v Speaker 6>in the area. We still have the kind of muscle

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<v Speaker 6>memory of semiconductor manufacturing. But again, the industry evolved and changed.

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<v Speaker 6>The Volta aircraft shut down when there's no need to

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<v Speaker 6>produce bombers anymore. MAC Trucks continued operations in Allentown, but

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<v Speaker 6>in the eighties shifted most of its production to a

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<v Speaker 6>plant in Mcunjie that still operates today. A lot of

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<v Speaker 6>those old MAC plants were acquired by an organization that

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<v Speaker 6>I used to work for, the Allentown Economic twelve in Corporation,

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<v Speaker 6>and repurposed. Initially repurposed for this is the eighties. The

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<v Speaker 6>thought at the time was that it could be an

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<v Speaker 6>incubator facility, a business incubator. It did become that, but

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<v Speaker 6>it is more of a manufacturing incubator. These were old

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<v Speaker 6>sawtooth roof buildings with twelve to eighteen foot ceilings, so

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<v Speaker 6>some big spaces but not a lot of clearance. They

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<v Speaker 6>weren't suited for modern manufacturing. And that's what a lot

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<v Speaker 6>of the building stock in all the time looked like.

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<v Speaker 6>But the production was still occurring in some capacity in

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<v Speaker 6>the city, definitely in the region. When the steel shut

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<v Speaker 6>down in Bethalem in eighteen ninety eight, I think was

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<v Speaker 6>when they did their last cast. That's when leading up

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<v Speaker 6>to that, the region had already started to think about

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<v Speaker 6>how to diversify, how to build on the Western electric

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<v Speaker 6>The semiconductor manufacturer Lehigh University was a source of engineering talent.

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<v Speaker 6>They started to diversify out into life sciences. So there's

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<v Speaker 6>some precursor drugs that are manufactured there, some medical supplies

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<v Speaker 6>that are still manufactured there bibraun Another one that I

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<v Speaker 6>didn't meant was air products. So it's an industrial gas manufacturer.

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<v Speaker 6>I know you guys were recently talking about helium. Air

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<v Speaker 6>products is like, it's.

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<v Speaker 4>So fun talking to a listener. That makes it so easy.

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<v Speaker 3>It's like a helium.

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<v Speaker 5>Yeah, the helium.

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<v Speaker 6>So helium was something that air products manufacturers. It's one

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<v Speaker 6>of those head scratchers when you're talking about a region's

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<v Speaker 6>industrial output to say, like we make like an element,

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<v Speaker 6>like an elemental element like the low Yeah, it's hard

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<v Speaker 6>to describe how that happens. But that was founded in Allentown,

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<v Speaker 6>actually was founded in Tennessee and moved Downlandtown in the fifties,

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<v Speaker 6>but a lot of that production was still occurring. The

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<v Speaker 6>kind of civic leaders of the time in the early

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<v Speaker 6>nineties as they could foresee the end of Bethelm Steel

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<v Speaker 6>when it was acquired I think it was acquired by

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<v Speaker 6>our store, Midal, But they could see the end in sight,

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<v Speaker 6>and so they made a conscious effort to diversify, working

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<v Speaker 6>with a commonalth of Pennsylvania to stand up some tech

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<v Speaker 6>led economic development, which had its It was successful in

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<v Speaker 6>a few places. The biggest sess in attracting investment or

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<v Speaker 6>the biggest kind of economic development story for the region

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<v Speaker 6>was in two thousand and six when the region convinced Olympus,

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<v Speaker 6>which is the manufacturer of surgical devices, to relocate its

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<v Speaker 6>North American headquarters too.

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<v Speaker 5>They were out in suburban Bethlehem.

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<v Speaker 6>But that's been the character right, there's it's a very

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<v Speaker 6>diverse fide economy today, it's still about seventeen percent of

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<v Speaker 6>the jobs or manufacturing jobs, so it's much higher than

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<v Speaker 6>many other parts of the country and it's held pretty steady.

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<v Speaker 5>So that's.

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<v Speaker 2>Well, that was a fantastic summary. But on that note,

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<v Speaker 2>I mean, I think a lot of cities and towns

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<v Speaker 2>in America, whether they're in the russ Belt or Pennsylvania

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<v Speaker 2>or the South or wherever, who have gone through this

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<v Speaker 2>de industrialization phase. They all say they want to build

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<v Speaker 2>back their manufacturing sector in some way. But it feels

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<v Speaker 2>like Allentown has kind of gone about it in a

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<v Speaker 2>slightly different way in that you've had to sort of

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<v Speaker 2>grand strategy or vision for how to do that rather

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<v Speaker 2>than try to attract just like individual businesses in a

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<v Speaker 2>piecemeal way. Can you talk about how you actually formulated

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<v Speaker 2>that plant.

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<v Speaker 6>Yeah, So I started working for the Economic Development Corporation

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<v Speaker 6>in two thousand and eight, and we had the manufacturing

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<v Speaker 6>incubator it's called the Bridgeworks and Manufacturing Incubator that was

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<v Speaker 6>in place at that time. It was trying to pivot

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<v Speaker 6>away from manufacturing.

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<v Speaker 5>When I got there.

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<v Speaker 6>We also had an industrial building that sort of funded

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<v Speaker 6>our existence, where we had a T shirt manufacturer an

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<v Speaker 6>industrial valvevest manufacturer and somebody who is building large scale

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<v Speaker 6>tents as tenants, and they were kind of keeping the

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<v Speaker 6>organization alive. There was this, you know, in two thousand

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<v Speaker 6>and eight. It was right kind of in the early

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<v Speaker 6>days of the global financial crisis. There is some concern

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<v Speaker 6>about how we would recover economically, what we would do,

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<v Speaker 6>but these early investments in manufacturing were, from what I

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<v Speaker 6>could see looking ahead, something we shouldn't turn our backs on.

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<v Speaker 6>There was this healthy manufacturing, seemingly healthy manufacturing economy in

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<v Speaker 6>place in the Lehigh Valley, and it felt like it

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<v Speaker 6>felt like there was an opportunity to build for the future.

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<v Speaker 6>I worked with our CEO or executive director at that

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<v Speaker 6>time to start thinking about how we might position the

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<v Speaker 6>area as a place where you could bring smaller footprint manufacturing.

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<v Speaker 6>We knew we had this building stock of buildings that

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<v Speaker 6>were smaller than one hundred thousand square feet, sometimes on

0:12:34.000 --> 0:12:36.960
<v Speaker 6>multiple stories. There was a kind of gravity flow model

0:12:37.000 --> 0:12:40.760
<v Speaker 6>of manufacturing where you would load in raw material at

0:12:40.800 --> 0:12:43.280
<v Speaker 6>the top of the building and as it gained weight,

0:12:43.360 --> 0:12:46.280
<v Speaker 6>it would drop down the building for a final finishing

0:12:46.320 --> 0:12:49.560
<v Speaker 6>on the ground floor and then shipping. We felt like

0:12:49.600 --> 0:12:53.199
<v Speaker 6>there was an opportunity to kind of leverage the existing

0:12:53.760 --> 0:12:59.640
<v Speaker 6>industrial inventory to attract manufacturers that were more boutique. I

0:12:59.679 --> 0:13:03.640
<v Speaker 6>remember reading an article in the Wall Street Journal in

0:13:03.880 --> 0:13:06.720
<v Speaker 6>maybe two thousand and nine or twenty ten about a

0:13:06.800 --> 0:13:10.319
<v Speaker 6>bag manufacturer in San Francisco who was like very proud

0:13:10.400 --> 0:13:13.160
<v Speaker 6>of being in San Francisco. I was like, this is

0:13:13.240 --> 0:13:16.200
<v Speaker 6>I think there's something here for us. I reached out

0:13:16.280 --> 0:13:18.719
<v Speaker 6>to the manufacturer. At the time, this was kind of

0:13:18.760 --> 0:13:20.520
<v Speaker 6>around the same time as the rise of like maker

0:13:20.559 --> 0:13:22.800
<v Speaker 6>spaces and three to printing was kind.

0:13:22.640 --> 0:13:23.640
<v Speaker 5>Of coming online.

0:13:23.679 --> 0:13:25.760
<v Speaker 6>It looked like you could do some stuff in a

0:13:25.800 --> 0:13:28.640
<v Speaker 6>smaller form factor, and we kept thinking like, this is

0:13:28.679 --> 0:13:32.920
<v Speaker 6>a chance for us, with these strong roots in manufacturing

0:13:33.360 --> 0:13:36.400
<v Speaker 6>to bring some of it back. And we got deep into.

0:13:36.280 --> 0:13:37.320
<v Speaker 5>It and really explored.

0:13:37.360 --> 0:13:41.400
<v Speaker 6>We formed something called the Urban Manufacturing Alliance and collaboration

0:13:41.600 --> 0:13:44.959
<v Speaker 6>with San Francisco and the Pratt Institute in New York

0:13:45.120 --> 0:13:48.920
<v Speaker 6>and our friends in the Philadelphia Industrial Development Corporation and

0:13:49.000 --> 0:13:51.160
<v Speaker 6>in Detroit to just kind of bring cities who were

0:13:51.160 --> 0:13:56.440
<v Speaker 6>interested in manufacturing together. We started talking about reshoring or

0:13:56.480 --> 0:13:59.000
<v Speaker 6>on shoring at that time, but it felt distant.

0:14:14.840 --> 0:14:16.760
<v Speaker 3>I'm glad you brought up the sort of maker of

0:14:16.840 --> 0:14:18.640
<v Speaker 3>three D printing phenomenon, because.

0:14:18.679 --> 0:14:19.400
<v Speaker 2>Such a thing around that.

0:14:19.520 --> 0:14:22.400
<v Speaker 3>Yeah, it was, but it's forgotten, isn't it. Because when

0:14:22.440 --> 0:14:25.800
<v Speaker 3>we talk generally about the tailwind or the growth of

0:14:25.840 --> 0:14:29.000
<v Speaker 3>the twenty tens, it's almost entirely people talk about tech, right,

0:14:29.480 --> 0:14:32.640
<v Speaker 3>software et cetera, the Internet and all that, and then

0:14:32.680 --> 0:14:35.680
<v Speaker 3>we talk about post COVID, this re you know, this

0:14:35.760 --> 0:14:39.400
<v Speaker 3>new enthusiasm for reshoring. But it was like this forgotten

0:14:39.480 --> 0:14:42.920
<v Speaker 3>chapter that within particularly the first half of the twenty tens,

0:14:43.200 --> 0:14:46.240
<v Speaker 3>the various maker spaces and the three D printers and

0:14:46.280 --> 0:14:48.560
<v Speaker 3>people were really excited about that kind of fizzled out

0:14:48.600 --> 0:14:50.240
<v Speaker 3>like that, like that mini movement.

0:14:50.320 --> 0:14:50.880
<v Speaker 6>You don't hear that.

0:14:51.440 --> 0:14:52.280
<v Speaker 5>It fizzled out for sure.

0:14:52.320 --> 0:14:56.480
<v Speaker 6>But so we did a reindustrialization strategy in twenty fourteen.

0:14:56.520 --> 0:14:59.560
<v Speaker 6>We worked with somebody to evaluate our total industrial stock.

0:15:00.120 --> 0:15:01.680
<v Speaker 6>I had at that point moved on to work for

0:15:01.720 --> 0:15:06.000
<v Speaker 6>the Regional Economic Development Corporation, but was still involved with

0:15:06.040 --> 0:15:09.200
<v Speaker 6>the Serban Manufacturing Alliance at the region. We could see

0:15:09.240 --> 0:15:12.040
<v Speaker 6>that manufacturing was still important. I had a better sense

0:15:12.080 --> 0:15:15.400
<v Speaker 6>of what other types of manufacturing was occurring in the area.

0:15:15.840 --> 0:15:20.640
<v Speaker 6>We developed a strategy kept thinking what I kept seeing

0:15:20.640 --> 0:15:23.480
<v Speaker 6>at the region was that there is real demand to

0:15:23.600 --> 0:15:28.280
<v Speaker 6>be in the Lehigh Valley and in these smaller footprint buildings.

0:15:28.600 --> 0:15:32.440
<v Speaker 6>So we saw inquiries all the time for buildings between

0:15:32.440 --> 0:15:34.880
<v Speaker 6>forty and eighty thousand square feet. But this is a

0:15:34.880 --> 0:15:38.600
<v Speaker 6>time when we have ALLYS pivoting its economy toward transportation

0:15:38.640 --> 0:15:42.880
<v Speaker 6>and warehousing, building million square foot buildings with twenty four

0:15:42.920 --> 0:15:47.920
<v Speaker 6>to thirty six foot ceilings. Really, as this other technological

0:15:47.960 --> 0:15:51.200
<v Speaker 6>trend of the e comms started to show up, this

0:15:51.320 --> 0:15:53.920
<v Speaker 6>was the high demand for industrial space. So we had

0:15:53.960 --> 0:15:57.840
<v Speaker 6>lots of interest from small manufacturers, particularly coming out of

0:15:57.880 --> 0:16:02.320
<v Speaker 6>places like Brooklyn where it was like not quite the

0:16:02.440 --> 0:16:05.080
<v Speaker 6>place to be, who wanted to spread their arms a

0:16:05.160 --> 0:16:08.800
<v Speaker 6>little bit and maybe have access to to talent they

0:16:08.800 --> 0:16:10.360
<v Speaker 6>were trying to be in that we have ally, but

0:16:10.400 --> 0:16:13.120
<v Speaker 6>we didn't have a ton of building space to meet

0:16:13.120 --> 0:16:13.640
<v Speaker 6>their needs.

0:16:13.680 --> 0:16:14.640
<v Speaker 5>So when we.

0:16:14.600 --> 0:16:17.760
<v Speaker 6>Built that reindustrialization strategy, a big part of it was

0:16:17.800 --> 0:16:23.600
<v Speaker 6>how do we position the built environment for this demand.

0:16:24.160 --> 0:16:27.800
<v Speaker 6>And some of that is, you know, rehabbing existing industrial

0:16:27.840 --> 0:16:33.440
<v Speaker 6>buildings as surprise surprise industrial buildings, so it's it's continued

0:16:33.480 --> 0:16:34.080
<v Speaker 6>on from there.

0:16:34.480 --> 0:16:37.280
<v Speaker 2>Yeah, So this is another thing I learned about Allentown.

0:16:37.320 --> 0:16:40.000
<v Speaker 2>I'm full of Allentown facts at the moment. But apparently

0:16:40.160 --> 0:16:43.240
<v Speaker 2>Allentown is within a day's drive of forty percent of

0:16:43.280 --> 0:16:45.080
<v Speaker 2>the population in the US. Is that true?

0:16:45.240 --> 0:16:48.800
<v Speaker 6>Yeah, it's it's over on many more than one hundred

0:16:48.800 --> 0:16:51.600
<v Speaker 6>million people, and that's what made it such a strong

0:16:52.000 --> 0:16:55.120
<v Speaker 6>destination for some of the e comm But it's also

0:16:55.240 --> 0:16:57.600
<v Speaker 6>like that, you know, you go back to, like why

0:16:57.640 --> 0:17:01.400
<v Speaker 6>it is a vibrant economic region is that it's a

0:17:01.440 --> 0:17:03.760
<v Speaker 6>great place for weight gaining industries.

0:17:03.920 --> 0:17:04.080
<v Speaker 5>Right.

0:17:04.160 --> 0:17:08.119
<v Speaker 6>So the other big thing we worked on the Regional

0:17:08.160 --> 0:17:12.280
<v Speaker 6>Economic Development Corporation was we recruited Ocean Spray to make

0:17:12.480 --> 0:17:15.879
<v Speaker 6>most of its great cranberry juice in the weih Have Alley.

0:17:15.960 --> 0:17:18.760
<v Speaker 6>Sam Adams was brewing most of its beer in the

0:17:19.040 --> 0:17:19.520
<v Speaker 6>High Valley.

0:17:19.840 --> 0:17:22.520
<v Speaker 3>Was it weight gaining industry anything.

0:17:22.240 --> 0:17:25.560
<v Speaker 6>You add water to basically, right, So you when you

0:17:25.600 --> 0:17:29.280
<v Speaker 6>have the cranberries come into the plant like to become

0:17:29.359 --> 0:17:31.840
<v Speaker 6>cranberry juice, you add a ton of water. It doesn't

0:17:31.840 --> 0:17:34.920
<v Speaker 6>make sense to produce that far away and then ship

0:17:34.960 --> 0:17:37.679
<v Speaker 6>all that water. So because you're not just you know,

0:17:37.680 --> 0:17:40.640
<v Speaker 6>within a day's drive of forty percent of this population,

0:17:40.720 --> 0:17:43.360
<v Speaker 6>you're also close in New York so a lot of

0:17:43.480 --> 0:17:47.480
<v Speaker 6>like Curraig Doctor Pepper has a big production plant, there's

0:17:47.520 --> 0:17:51.280
<v Speaker 6>a lot of food manufacturing that occurs there as well.

0:17:51.840 --> 0:17:54.680
<v Speaker 6>And then on the manufacturing side, you also because of

0:17:54.720 --> 0:17:58.040
<v Speaker 6>the e COMM because of the food manufacturing, you saw

0:17:58.160 --> 0:18:01.840
<v Speaker 6>a lot of packaging and bottling UH manufacturing show up.

0:18:01.960 --> 0:18:05.119
<v Speaker 6>So one of our most recent in Allentown successes was

0:18:05.160 --> 0:18:09.040
<v Speaker 6>recruiting a company called Schless Bottle that manufacturers bottles for

0:18:10.040 --> 0:18:14.040
<v Speaker 6>beverages and they wanted to be close to the production point.

0:18:14.080 --> 0:18:18.240
<v Speaker 6>So the manufacturing bottles in Allentown, filling it with beverages

0:18:18.280 --> 0:18:19.560
<v Speaker 6>and serving it back to New York.

0:18:19.640 --> 0:18:23.200
<v Speaker 3>This is so core like Ricardo Houseman coded stuff, like Okay,

0:18:23.240 --> 0:18:25.640
<v Speaker 3>you have this one industry and then you have innovation

0:18:25.840 --> 0:18:30.320
<v Speaker 3>in an adjacent industry. Super monkey swinging from China. So yeah,

0:18:30.320 --> 0:18:32.520
<v Speaker 3>I'm also just like learning all these terms. You know,

0:18:32.680 --> 0:18:36.320
<v Speaker 3>gravity based manufacturing I hadn't or weight gaining. This is

0:18:36.359 --> 0:18:38.080
<v Speaker 3>all fantastic stuff.

0:18:38.160 --> 0:18:40.679
<v Speaker 2>Weight gain industry is I think what we're both doing in.

0:18:40.720 --> 0:18:45.480
<v Speaker 3>Maderia, That's what we're both doing in Madrid. Yeah, we

0:18:45.520 --> 0:18:47.639
<v Speaker 3>should have run a marathon and then and then we

0:18:47.680 --> 0:18:51.520
<v Speaker 3>could have compensated for all that. What are like you know,

0:18:51.560 --> 0:18:55.600
<v Speaker 3>obviously this is all against the backdrop of this vortex

0:18:55.680 --> 0:18:59.640
<v Speaker 3>of manufacturing going to China largely, et cetera. When people think,

0:19:00.160 --> 0:19:02.560
<v Speaker 3>you know, you're at a conference like this and probably

0:19:02.560 --> 0:19:06.600
<v Speaker 3>a lot of mayors are interested in reindustrialization, et cetera.

0:19:07.040 --> 0:19:11.400
<v Speaker 3>What types of industries are good candidates generally for thinking

0:19:11.480 --> 0:19:13.800
<v Speaker 3>of like what should be built locally, Like it's something

0:19:13.880 --> 0:19:16.639
<v Speaker 3>like plastic bags or bags. It's like, well, I don't know,

0:19:16.680 --> 0:19:19.960
<v Speaker 3>maybe that could be offshore. What are like strong candidates

0:19:20.000 --> 0:19:21.679
<v Speaker 3>for what is durable here?

0:19:21.720 --> 0:19:24.560
<v Speaker 6>It's that you mentioned plastic bags because one of the

0:19:24.600 --> 0:19:28.360
<v Speaker 6>things we recruited as was kind of leaving the.

0:19:28.320 --> 0:19:30.240
<v Speaker 5>World of economic development and going into politics.

0:19:30.320 --> 0:19:34.320
<v Speaker 6>Yeah, it was a Turkish plastic bag manufacturer, So that

0:19:34.680 --> 0:19:36.760
<v Speaker 6>was kind of interesting. So one of the things that

0:19:36.800 --> 0:19:39.760
<v Speaker 6>distinguished the region. And I think it's good for onshoing

0:19:39.800 --> 0:19:41.520
<v Speaker 6>and I want to go back on the onshore for

0:19:41.600 --> 0:19:44.960
<v Speaker 6>a second. When we developed this strategy, when we're talking

0:19:45.000 --> 0:19:48.399
<v Speaker 6>about onshoing and reshoring, back in the early twenty tens,

0:19:48.960 --> 0:19:51.040
<v Speaker 6>there was no like we didn't know a global pandemic

0:19:51.160 --> 0:19:54.360
<v Speaker 6>was going to come and disrupt supply chains. We were

0:19:54.359 --> 0:19:58.399
<v Speaker 6>thinking about like the logistics of making things in close

0:19:58.440 --> 0:20:01.560
<v Speaker 6>to the customer. And and I was I was thinking

0:20:01.560 --> 0:20:05.000
<v Speaker 6>a lot about the theft of IP in China and

0:20:05.040 --> 0:20:09.000
<v Speaker 6>how it was kind of like those components of globalism

0:20:09.040 --> 0:20:11.600
<v Speaker 6>didn't make a ton of sense. You're like kind of

0:20:11.640 --> 0:20:15.000
<v Speaker 6>giving away your most precious resource. So a lot of

0:20:15.000 --> 0:20:17.480
<v Speaker 6>it was driven by like, how do you kind of

0:20:17.560 --> 0:20:21.360
<v Speaker 6>capture the spirit of a manufacturer of American manufacturing? Now

0:20:21.680 --> 0:20:23.600
<v Speaker 6>COVID hit and all of a sudden, That's what brought

0:20:23.640 --> 0:20:26.320
<v Speaker 6>into stark relief. That's what made it make sense. So

0:20:26.520 --> 0:20:27.959
<v Speaker 6>one of the things that I think makes a ton

0:20:28.000 --> 0:20:30.800
<v Speaker 6>of sense. And we still see a lot of in Allentown,

0:20:30.840 --> 0:20:35.119
<v Speaker 6>whether it's the transistors, or it's the bag manufacturing or

0:20:35.640 --> 0:20:41.120
<v Speaker 6>Westport axle manufacturers axles for Mac trucks in Allentown area,

0:20:41.840 --> 0:20:45.320
<v Speaker 6>it's components, right, It's how do how do you de

0:20:45.520 --> 0:20:50.600
<v Speaker 6>risk the supply chain by diversifying your component manufacturing? That

0:20:50.760 --> 0:20:54.520
<v Speaker 6>makes a lot of sense in cities because you're not

0:20:54.800 --> 0:20:58.200
<v Speaker 6>building the whole truck there, right, And to build the

0:20:58.240 --> 0:21:01.479
<v Speaker 6>whole truck you need something like Lordtown or Lordstown, you

0:21:01.480 --> 0:21:05.920
<v Speaker 6>need River Rouge, you need the enormous factories when you're

0:21:05.920 --> 0:21:08.840
<v Speaker 6>building the components whatever those components might look like you

0:21:08.880 --> 0:21:11.880
<v Speaker 6>can exist in a much smaller form factor, something as

0:21:11.880 --> 0:21:15.119
<v Speaker 6>small as forty thousand square feet, but even like to

0:21:15.160 --> 0:21:17.919
<v Speaker 6>get down to what we were calling craft manufacturing at

0:21:17.960 --> 0:21:20.439
<v Speaker 6>the time, you might be able to exist in a

0:21:20.640 --> 0:21:24.520
<v Speaker 6>much smaller space and perhaps the ground floor of a

0:21:24.600 --> 0:21:27.879
<v Speaker 6>mixed use building. And that's what the next step for

0:21:28.040 --> 0:21:30.560
<v Speaker 6>us was and what more cities should be doing, I

0:21:30.600 --> 0:21:35.200
<v Speaker 6>think is making sure that your zoning allows for light

0:21:35.320 --> 0:21:39.720
<v Speaker 6>industrial to take place in residential neighborhoods, so that you're

0:21:39.760 --> 0:21:42.080
<v Speaker 6>not kind of you have to make sure that you

0:21:42.160 --> 0:21:45.040
<v Speaker 6>allow this stuff to happen in your city and the

0:21:45.080 --> 0:21:49.440
<v Speaker 6>new manufacturing. We think about Pittsburgh in the early part

0:21:49.440 --> 0:21:52.480
<v Speaker 6>of the twentieth century as being so thick with smog

0:21:52.520 --> 0:21:55.440
<v Speaker 6>that you couldn't even see across the river. You know,

0:21:55.520 --> 0:21:58.600
<v Speaker 6>you still see pictures of I remember being in tangent

0:21:58.640 --> 0:22:01.159
<v Speaker 6>and China in two thousand and seven teen, and like

0:22:01.200 --> 0:22:04.080
<v Speaker 6>you couldn't see as you're going across the bridge. That's

0:22:04.080 --> 0:22:06.760
<v Speaker 6>not what manufacturing really looks like anymore. So you can

0:22:07.160 --> 0:22:10.159
<v Speaker 6>kind of do that in cities. So as cities are

0:22:10.200 --> 0:22:13.280
<v Speaker 6>thinking about what type of manufacturing you might try to attract,

0:22:13.359 --> 0:22:18.080
<v Speaker 6>I think high value component manufacturer, light touch, but high tech.

0:22:18.520 --> 0:22:21.720
<v Speaker 6>Again taking advantage of the resources that we have in

0:22:21.840 --> 0:22:25.840
<v Speaker 6>American cities and taking advantage of the fact that people

0:22:25.960 --> 0:22:29.000
<v Speaker 6>now are choosing where they're going to be first and

0:22:29.040 --> 0:22:32.399
<v Speaker 6>then what they're going to do second. And the cities

0:22:32.440 --> 0:22:35.359
<v Speaker 6>that have a vocational advantage on cost of quality of

0:22:35.600 --> 0:22:39.840
<v Speaker 6>life can attract those industries if they set themselves up

0:22:39.840 --> 0:22:40.199
<v Speaker 6>to do it.

0:22:40.320 --> 0:22:43.120
<v Speaker 2>I say more about the rezoning process because if there's

0:22:43.400 --> 0:22:46.919
<v Speaker 2>one thing I remember from playing some city for hours,

0:22:47.040 --> 0:22:49.280
<v Speaker 2>you know, in the late nineteen nineties, it was that

0:22:49.359 --> 0:22:53.600
<v Speaker 2>if you zone industry next to residential, your population is

0:22:53.640 --> 0:22:56.399
<v Speaker 2>not going to be happy. So I'm very curious like

0:22:56.560 --> 0:22:59.800
<v Speaker 2>how much that has actually changed and what the rezoning

0:22:59.800 --> 0:23:02.640
<v Speaker 2>part is like now versus say, ten years ago.

0:23:02.800 --> 0:23:06.400
<v Speaker 6>So a lot of cities, because of the housing crisis,

0:23:06.480 --> 0:23:12.240
<v Speaker 6>are exploring more aggressive zoning policy that allows for denser housing,

0:23:12.359 --> 0:23:17.040
<v Speaker 6>allows for different types of housing. We just passed in

0:23:17.200 --> 0:23:21.560
<v Speaker 6>the beginning of twenty twenty six reform to our zoning

0:23:21.600 --> 0:23:24.879
<v Speaker 6>code and a reform to our zoning map that is

0:23:24.920 --> 0:23:27.399
<v Speaker 6>a form based code, so it's really focused less on

0:23:27.440 --> 0:23:30.240
<v Speaker 6>what's happening inside the building and more on what the

0:23:30.240 --> 0:23:33.880
<v Speaker 6>buildings will look like interesting, so that can allow that's

0:23:33.920 --> 0:23:36.239
<v Speaker 6>the type of thing that can allow. For now in

0:23:36.280 --> 0:23:38.760
<v Speaker 6>some city, when you built, when you zoned industrial, you

0:23:38.760 --> 0:23:41.800
<v Speaker 6>were going to get like the tire manufacturing plant. Not

0:23:41.880 --> 0:23:44.639
<v Speaker 6>a great idea for cities to have tire manufacturing plants

0:23:44.640 --> 0:23:48.680
<v Speaker 6>in their downtowns, but great idea to have like craft

0:23:48.760 --> 0:23:53.600
<v Speaker 6>brewing or like small garment assembly, something that is kind

0:23:53.600 --> 0:23:57.160
<v Speaker 6>of like bespoke manufacturing. I think what cities can do

0:23:57.440 --> 0:24:01.760
<v Speaker 6>as they're investigating the limitations of their zoning code to

0:24:01.880 --> 0:24:04.639
<v Speaker 6>build towards the cities that they want to be is

0:24:04.800 --> 0:24:07.720
<v Speaker 6>dig in and understand exactly what you might allow. I mean,

0:24:07.720 --> 0:24:11.200
<v Speaker 6>in zoning, you have to allow for all uses somewhere

0:24:11.240 --> 0:24:15.399
<v Speaker 6>in in the jurisdiction. So if you can allow for

0:24:15.600 --> 0:24:19.360
<v Speaker 6>certain types of manufacturing uses, you create flexibility that can

0:24:19.400 --> 0:24:22.840
<v Speaker 6>add some vibrancy to the neighborhood. I go back to

0:24:22.920 --> 0:24:25.800
<v Speaker 6>like one of my big points when I was in

0:24:25.840 --> 0:24:28.119
<v Speaker 6>the Urban Manufacturing Alliance that I don't know what it

0:24:28.119 --> 0:24:32.040
<v Speaker 6>looks like now, but we talked about the lack of

0:24:32.040 --> 0:24:34.760
<v Speaker 6>interest in young people working in manufacturing, and that's always

0:24:34.760 --> 0:24:37.560
<v Speaker 6>been one of the challenges and one thing that occurred

0:24:37.560 --> 0:24:41.600
<v Speaker 6>to me is that when Mac Trucks moved to Allantown

0:24:41.640 --> 0:24:44.240
<v Speaker 6>in nineteen twenty three, they built a plant right next

0:24:44.280 --> 0:24:47.600
<v Speaker 6>to well, they built the plant and then they built

0:24:47.119 --> 0:24:50.520
<v Speaker 6>the worker housing right next door to the plant, and

0:24:50.560 --> 0:24:53.840
<v Speaker 6>people would walk to work all day. And what we

0:24:53.920 --> 0:24:56.880
<v Speaker 6>knew then is that it sounds amazing, and that's people

0:24:56.920 --> 0:24:59.719
<v Speaker 6>would like to do that whatever they're doing for work.

0:25:00.320 --> 0:25:04.119
<v Speaker 6>When young, when children saw people walking to work with

0:25:04.160 --> 0:25:06.640
<v Speaker 6>the lunch box and knew that that person was going

0:25:06.680 --> 0:25:10.159
<v Speaker 6>to work on in the silk plant or in the

0:25:11.320 --> 0:25:15.439
<v Speaker 6>truck plant, they saw a person working and a person

0:25:15.480 --> 0:25:18.639
<v Speaker 6>who was like connected to manufacturing. When we moved all

0:25:18.680 --> 0:25:20.679
<v Speaker 6>of the production out to the suburbs and people were

0:25:20.680 --> 0:25:23.639
<v Speaker 6>getting in a car to drive to work, the like

0:25:23.760 --> 0:25:26.680
<v Speaker 6>rando kid on the street who's just you know, hula

0:25:26.720 --> 0:25:29.840
<v Speaker 6>hooping or whatever, doesn't get a chance to see workers

0:25:30.280 --> 0:25:32.600
<v Speaker 6>and doesn't get a chance to see the dignity of

0:25:32.680 --> 0:25:35.800
<v Speaker 6>work in manufacturing and lose his interest in it. And

0:25:35.840 --> 0:25:38.080
<v Speaker 6>so we're so far removed now, and we've tried to

0:25:38.359 --> 0:25:41.200
<v Speaker 6>do things, whether it was to three D printing or

0:25:41.240 --> 0:25:45.119
<v Speaker 6>like kind of get kids excited about manufacturing, but fundamentally

0:25:45.160 --> 0:25:48.560
<v Speaker 6>it's still the work is removed from everyday life, and

0:25:48.640 --> 0:25:50.640
<v Speaker 6>so if you can get back to that point where

0:25:50.680 --> 0:25:54.440
<v Speaker 6>you can add manufacturing back to everyday life, I think

0:25:54.440 --> 0:25:58.640
<v Speaker 6>there's an opportunity to rekindle the interest in the careers.

0:25:59.080 --> 0:26:01.359
<v Speaker 4>We need to do an episode how sim City?

0:26:02.200 --> 0:26:04.960
<v Speaker 3>Right, Like we were internalizing all these lessons from a

0:26:05.040 --> 0:26:07.960
<v Speaker 3>video game and then oh, then suddenly all of the

0:26:08.119 --> 0:26:11.399
<v Speaker 3>main factoring goes out into the exerbs, and then no

0:26:11.440 --> 0:26:14.720
<v Speaker 3>one sees the workers, and then suddenly how City ruined?

0:26:14.960 --> 0:26:16.080
<v Speaker 4>Sim City ruined?

0:26:16.119 --> 0:26:16.879
<v Speaker 5>I would love that.

0:26:17.200 --> 0:26:19.240
<v Speaker 6>I would have loved to see that, honestly, Like the

0:26:19.440 --> 0:26:22.480
<v Speaker 6>I think the mayor, like any mayor who has played

0:26:22.480 --> 0:26:24.280
<v Speaker 6>some city, like the minute you sit down at the desk,

0:26:24.280 --> 0:26:25.160
<v Speaker 6>you're like, oh my god.

0:26:25.040 --> 0:26:26.840
<v Speaker 5>This is totally this amazing.

0:26:26.880 --> 0:26:30.159
<v Speaker 3>Were now I really actually want to do this episode.

0:26:30.680 --> 0:26:36.119
<v Speaker 3>Post COVID, you get this re enthusiasm for manufacturing just

0:26:36.760 --> 0:26:40.520
<v Speaker 3>supply chain reasons, also national security reasons. We get the

0:26:40.600 --> 0:26:43.680
<v Speaker 3>Chips Act, we get the Inflation Reduction Act. What did

0:26:43.720 --> 0:26:47.280
<v Speaker 3>that look like from the perspective of these big programs,

0:26:47.320 --> 0:26:48.960
<v Speaker 3>these sort of the Biden euro programs.

0:26:49.200 --> 0:26:50.720
<v Speaker 4>What did that look like from your perspective?

0:26:50.800 --> 0:26:54.119
<v Speaker 6>So for us, one thing was it was like a

0:26:54.119 --> 0:26:57.080
<v Speaker 6>return to an industrial policy right like previously the United

0:26:57.080 --> 0:27:00.439
<v Speaker 6>States is like the industrial policy didn't make a lot

0:27:00.480 --> 0:27:03.520
<v Speaker 6>of sense for an economic development professional. Now we saw

0:27:03.600 --> 0:27:08.200
<v Speaker 6>like this the federal government was pushing in a particular direction, right,

0:27:08.240 --> 0:27:11.120
<v Speaker 6>and it was like, let's start making stuff again. When

0:27:11.160 --> 0:27:14.479
<v Speaker 6>I became mayor in twenty twenty two, when you were

0:27:14.640 --> 0:27:17.520
<v Speaker 6>sworn in as mayor, you come in with a bunch

0:27:17.520 --> 0:27:19.840
<v Speaker 6>of campaign promises, you sit in the seat and you realize,

0:27:19.840 --> 0:27:22.920
<v Speaker 6>like all of a sudden, there's a completely new set

0:27:23.000 --> 0:27:24.320
<v Speaker 6>of challenges.

0:27:23.840 --> 0:27:24.840
<v Speaker 5>That you have to unlock.

0:27:24.960 --> 0:27:26.919
<v Speaker 6>Right, So all this stuff you wanted into do in

0:27:26.920 --> 0:27:31.760
<v Speaker 6>the campaign, it's nice, but there's more pressing needs. Among

0:27:31.800 --> 0:27:35.199
<v Speaker 6>the things that I could see in the city was

0:27:35.320 --> 0:27:38.480
<v Speaker 6>that we were well, we didn't know what we didn't know,

0:27:38.520 --> 0:27:39.720
<v Speaker 6>so we had a lot to learning. We had to

0:27:39.720 --> 0:27:42.439
<v Speaker 6>dig in and understand the city a little better and

0:27:42.520 --> 0:27:43.600
<v Speaker 6>understand what was going on.

0:27:44.119 --> 0:27:46.160
<v Speaker 5>We also didn't like.

0:27:46.200 --> 0:27:48.760
<v Speaker 6>We had to let some relationships fail, and so we

0:27:49.000 --> 0:27:51.360
<v Speaker 6>needed to get back and make sure that our partners

0:27:51.400 --> 0:27:54.000
<v Speaker 6>were on the same page as us, and we kind

0:27:54.000 --> 0:27:57.040
<v Speaker 6>of lost the capacity to innovate, to get creative and

0:27:57.119 --> 0:28:01.520
<v Speaker 6>do new things. So I was great that I entered

0:28:01.520 --> 0:28:05.879
<v Speaker 6>into the Bloomberg Harvard City Leadership Initiative at just the

0:28:05.960 --> 0:28:08.879
<v Speaker 6>right moment when when I was feeling desperate, and they

0:28:09.000 --> 0:28:12.960
<v Speaker 6>kind of invested in that capacity. Through doing that, I

0:28:13.000 --> 0:28:14.879
<v Speaker 6>was able to attack one of the things that was

0:28:14.960 --> 0:28:17.320
<v Speaker 6>clearly an issue, which was road safety.

0:28:17.880 --> 0:28:18.200
<v Speaker 5>We had.

0:28:18.320 --> 0:28:20.440
<v Speaker 6>There was a federal grant, the Safe Streets for All

0:28:20.680 --> 0:28:24.800
<v Speaker 6>program that was helping cities plan for safer streets. I'm

0:28:24.840 --> 0:28:28.400
<v Speaker 6>going to get to the point, I promised, so we

0:28:29.400 --> 0:28:32.520
<v Speaker 6>I was a bicycling and running guy, so I wanted

0:28:32.600 --> 0:28:34.880
<v Speaker 6>to like and I felt like we could do better

0:28:34.960 --> 0:28:38.960
<v Speaker 6>for our city if we had safer streets. Bloomberg stood

0:28:39.040 --> 0:28:41.160
<v Speaker 6>up with some partners, the Local Infrastructure Hub.

0:28:41.680 --> 0:28:42.360
<v Speaker 5>It helped me.

0:28:42.440 --> 0:28:45.680
<v Speaker 6>Teach my team how to use data to apply for

0:28:45.840 --> 0:28:48.800
<v Speaker 6>federal funds. It helped us think about how we could

0:28:48.920 --> 0:28:54.520
<v Speaker 6>work with partners to accomplish good outcomes for residents and

0:28:54.600 --> 0:28:55.520
<v Speaker 6>try some new things.

0:28:55.880 --> 0:29:00.200
<v Speaker 5>We're lucky. I also got right in Secretary Boudajes his

0:29:00.280 --> 0:29:01.320
<v Speaker 5>face and said.

0:29:01.200 --> 0:29:04.320
<v Speaker 6>I need help, and we're lucky to get a planning

0:29:04.360 --> 0:29:09.720
<v Speaker 6>grant through that program. That experience helped us understand how

0:29:09.760 --> 0:29:13.960
<v Speaker 6>to as a city returned to federal grants at the State.

0:29:14.000 --> 0:29:17.400
<v Speaker 6>About right after we were awarded that Safe Streets grant,

0:29:17.720 --> 0:29:22.080
<v Speaker 6>the Economic Development Administration announced its Recompete Pilot project and

0:29:22.160 --> 0:29:24.800
<v Speaker 6>it was focused on areas that were I think it

0:29:24.920 --> 0:29:28.040
<v Speaker 6>was this June of twenty twenty three. It was focused

0:29:28.080 --> 0:29:30.800
<v Speaker 6>on areas that had a high prime age employment gap,

0:29:31.240 --> 0:29:34.360
<v Speaker 6>and so prime age employment gap is people between the

0:29:34.360 --> 0:29:38.040
<v Speaker 6>ages of twenty five to fifty four. Prime age employment

0:29:38.120 --> 0:29:40.560
<v Speaker 6>gap as people who are either unemployed at higher than

0:29:40.560 --> 0:29:41.400
<v Speaker 6>average rates.

0:29:41.320 --> 0:29:42.880
<v Speaker 5>Or out of the labor force.

0:29:43.400 --> 0:29:46.160
<v Speaker 6>We looked and saw that Allentown, in fact had a

0:29:46.240 --> 0:29:49.520
<v Speaker 6>high prime age employment gap. Ours was like at six percent.

0:29:50.080 --> 0:29:52.760
<v Speaker 6>We dialed into a particular neighborhood and saw that in

0:29:52.760 --> 0:29:55.800
<v Speaker 6>that area is about twelve percent the region of about

0:29:55.920 --> 0:29:58.840
<v Speaker 6>our neighborhood of about twenty three thousand people that were

0:29:59.160 --> 0:30:03.800
<v Speaker 6>just disproportionately out of the labor force or unemployed. And

0:30:04.040 --> 0:30:06.880
<v Speaker 6>we started to dig in on that group of people

0:30:06.920 --> 0:30:10.040
<v Speaker 6>and how could we at the same time prepare as

0:30:10.080 --> 0:30:13.000
<v Speaker 6>we're thinking about like these changes and the changes to

0:30:13.440 --> 0:30:15.320
<v Speaker 6>the demands of the workforce, how can we make sure

0:30:15.320 --> 0:30:18.200
<v Speaker 6>that our people could work right? And that was where

0:30:18.240 --> 0:30:21.560
<v Speaker 6>these two things came together, is we knew that through

0:30:21.920 --> 0:30:24.800
<v Speaker 6>working with our partners that we have Valley Economic Development Corporation,

0:30:24.880 --> 0:30:28.120
<v Speaker 6>there's still a high demand for manufacturing labor as well

0:30:28.160 --> 0:30:31.280
<v Speaker 6>as healthcare. We knew that the barriers to getting people

0:30:31.320 --> 0:30:35.080
<v Speaker 6>to good jobs sometimes were a lack of available resources,

0:30:35.120 --> 0:30:39.680
<v Speaker 6>things like flexible and affordable childcare. We knew that people

0:30:39.760 --> 0:30:43.520
<v Speaker 6>were sometimes challenged by transportation, that if those jobs are

0:30:43.520 --> 0:30:45.360
<v Speaker 6>out in the suburbs and they didn't have a car,

0:30:45.680 --> 0:30:47.760
<v Speaker 6>it's hard to get to them. And we also knew

0:30:47.760 --> 0:30:49.720
<v Speaker 6>that if we wanted to make sure that people without

0:30:49.760 --> 0:30:52.760
<v Speaker 6>cars could get to work, went to build industrial sites

0:30:52.800 --> 0:30:56.840
<v Speaker 6>in the city. So we put together an application and

0:30:56.880 --> 0:31:00.400
<v Speaker 6>submitted it to EDA, and again, because of the work

0:31:00.400 --> 0:31:03.240
<v Speaker 6>that we had done in the past, we're successful and

0:31:03.320 --> 0:31:06.600
<v Speaker 6>we're able to So we landed a strategic development grant

0:31:07.000 --> 0:31:09.200
<v Speaker 6>in December of twenty three and then we got a

0:31:09.200 --> 0:31:13.040
<v Speaker 6>twenty million dollar investment for implementation. So our team right

0:31:13.080 --> 0:31:15.960
<v Speaker 6>now is working to make sure that as we work

0:31:16.040 --> 0:31:19.160
<v Speaker 6>to bring these manufacturing jobs to not just the city

0:31:19.200 --> 0:31:23.240
<v Speaker 6>but to the entire region, that Allentonians are well positioned

0:31:23.640 --> 0:31:27.600
<v Speaker 6>to get to those jobs. And that's that is, you know,

0:31:28.440 --> 0:31:31.120
<v Speaker 6>a big piece where cities have to be able to

0:31:31.120 --> 0:31:33.640
<v Speaker 6>play a role is making sure that people have the

0:31:34.160 --> 0:31:36.560
<v Speaker 6>tools they need to access the good things that are

0:31:36.560 --> 0:31:37.560
<v Speaker 6>happening in the economy.

0:31:38.240 --> 0:31:41.240
<v Speaker 2>Have you got all the grant money, the Biden aer

0:31:41.360 --> 0:31:45.400
<v Speaker 2>grant money, that all of it so okay, So there's

0:31:45.640 --> 0:31:46.240
<v Speaker 2>no make.

0:31:46.160 --> 0:31:46.880
<v Speaker 5>Sure or like.

0:31:47.040 --> 0:31:51.440
<v Speaker 6>As soon as the November fifth, twenty twenty four, like,

0:31:51.520 --> 0:31:54.280
<v Speaker 6>we went into overdrive to just make sure that we

0:31:54.280 --> 0:31:57.520
<v Speaker 6>weren't at risk of losing anything. And that came through

0:31:57.520 --> 0:32:00.160
<v Speaker 6>the Chips and Science Act, and it was a relatively

0:32:00.200 --> 0:32:05.240
<v Speaker 6>small programs so and you know, practically speaking, our region

0:32:05.320 --> 0:32:10.480
<v Speaker 6>is intensely political, so it would not make sense to.

0:32:09.880 --> 0:32:10.760
<v Speaker 5>Go back some of that.

0:32:11.200 --> 0:32:13.200
<v Speaker 6>I had to fight for some other stuff to make

0:32:13.240 --> 0:32:16.600
<v Speaker 6>sure that we got it, including us I wrote a

0:32:16.680 --> 0:32:19.840
<v Speaker 6>letter to Secretary Rawlins and the USDA about how important

0:32:19.880 --> 0:32:23.880
<v Speaker 6>trees were two cities across America. We've worked to make

0:32:23.920 --> 0:32:27.320
<v Speaker 6>sure we didn't lose the street funding. But you know,

0:32:27.520 --> 0:32:30.720
<v Speaker 6>we're for some of the funding for things that you

0:32:30.760 --> 0:32:33.320
<v Speaker 6>do in cities. It's like very practical, it's it's good

0:32:33.360 --> 0:32:37.520
<v Speaker 6>for residents, it's it should be nonpartisan as long as

0:32:37.560 --> 0:32:41.520
<v Speaker 6>you like, are not exclusively focused on the various different

0:32:41.560 --> 0:32:43.040
<v Speaker 6>things the administration is focused on.

0:32:58.680 --> 0:33:02.080
<v Speaker 2>So speaking of practicality. I sometimes get the sense that

0:33:02.120 --> 0:33:04.960
<v Speaker 2>there's like a bit of a disconnect between how people

0:33:05.000 --> 0:33:08.160
<v Speaker 2>in DC are thinking about industrial policy, whether it's Trump

0:33:08.320 --> 0:33:12.240
<v Speaker 2>or the Biden administration, versus like mayors such as yourself,

0:33:12.320 --> 0:33:15.400
<v Speaker 2>you actually have to implement the stuff and figure out

0:33:15.440 --> 0:33:19.200
<v Speaker 2>exactly how to spend the money. Like what's the biggest

0:33:19.320 --> 0:33:22.400
<v Speaker 2>area of I guess, like tension that you see or

0:33:22.440 --> 0:33:25.160
<v Speaker 2>what could DC actually do to make using those federal

0:33:25.200 --> 0:33:26.640
<v Speaker 2>funds easier for you?

0:33:27.480 --> 0:33:28.040
<v Speaker 1>Oh?

0:33:28.080 --> 0:33:32.240
<v Speaker 6>Wow, so there is tension for sure, right, And I

0:33:32.280 --> 0:33:34.880
<v Speaker 6>think that a recognition like the biggest thing that DC

0:33:35.040 --> 0:33:38.440
<v Speaker 6>could do is make sure that people are not worried

0:33:38.560 --> 0:33:41.200
<v Speaker 6>about their healthcare or not worried about putting food on

0:33:41.280 --> 0:33:43.680
<v Speaker 6>the table, or not worried about a thousand other things,

0:33:44.000 --> 0:33:46.720
<v Speaker 6>and can worry about just like being part of this

0:33:46.760 --> 0:33:50.560
<v Speaker 6>American dream, like and building towards something, and that they

0:33:50.600 --> 0:33:54.959
<v Speaker 6>could you be part of the dignity of work. And

0:33:55.000 --> 0:33:58.200
<v Speaker 6>so there's some things that they could just focus less

0:33:58.360 --> 0:34:01.320
<v Speaker 6>on or like trying to cut us of I think

0:34:01.360 --> 0:34:05.640
<v Speaker 6>that cities probably don't think as much about immigration from

0:34:05.640 --> 0:34:08.319
<v Speaker 6>that perspective as an economic driver, but I think that

0:34:08.600 --> 0:34:11.520
<v Speaker 6>we have to continue to bring new people in bring

0:34:11.560 --> 0:34:16.680
<v Speaker 6>new ideas in make American cities places that can receive investment,

0:34:17.200 --> 0:34:21.319
<v Speaker 6>and knowing that somewhat that investment is like it's intellectual capital, right,

0:34:21.400 --> 0:34:24.120
<v Speaker 6>So we want people to come in and feel comfortable

0:34:24.200 --> 0:34:27.960
<v Speaker 6>making stuff and making new technology in our cities. I

0:34:28.000 --> 0:34:30.720
<v Speaker 6>would to say, I think it's not uncommon for mayors

0:34:30.760 --> 0:34:36.080
<v Speaker 6>to be pretty bipartisan in Allentown, where one of my

0:34:36.440 --> 0:34:41.239
<v Speaker 6>senators is Senator Dave McCormick, who's on the the He's

0:34:41.239 --> 0:34:45.120
<v Speaker 6>a Republican. I'm a Democrat, but I appreciate Senat McCormick's

0:34:45.200 --> 0:34:49.920
<v Speaker 6>interest in competitiveness and trying to attract industry and particular

0:34:49.960 --> 0:34:54.920
<v Speaker 6>manufacturing to Pennsylvania. And I think my conversation with Senat McCormick,

0:34:55.000 --> 0:34:59.080
<v Speaker 6>he is somewhat agnostic about where that happens. I think

0:34:59.080 --> 0:35:03.600
<v Speaker 6>he's he'd be happy if the manufacturing investments happened in

0:35:03.640 --> 0:35:07.000
<v Speaker 6>the suburbs or in the cities. It doesn't matter to

0:35:07.040 --> 0:35:10.920
<v Speaker 6>him as much as Pennsylvania remaining competitive. I know he

0:35:11.040 --> 0:35:14.400
<v Speaker 6>was involved with one of the big kind of future

0:35:14.960 --> 0:35:19.920
<v Speaker 6>thinking or future looking manufacturing investments that occurred in our

0:35:20.000 --> 0:35:22.839
<v Speaker 6>area is Eli Lilly announced the three and a half

0:35:22.920 --> 0:35:26.560
<v Speaker 6>billion dollar investment that is just outside of the city limits,

0:35:27.160 --> 0:35:30.000
<v Speaker 6>but their three and a half billion dollar investment will

0:35:30.040 --> 0:35:32.200
<v Speaker 6>create like eight hundred and fifty jobs. I want to

0:35:32.200 --> 0:35:33.839
<v Speaker 6>make sure that all of the residents of the city

0:35:33.840 --> 0:35:37.680
<v Speaker 6>of Allentown are capable of accessing those jobs. I also

0:35:37.719 --> 0:35:40.399
<v Speaker 6>want to make sure that any of the supply chain

0:35:40.600 --> 0:35:46.880
<v Speaker 6>that goes into that Lily golp one manufacturing can be

0:35:46.960 --> 0:35:49.680
<v Speaker 6>produced in the city. If it can be, we want

0:35:49.719 --> 0:35:51.680
<v Speaker 6>to make sure that that we're capable of.

0:35:52.239 --> 0:35:53.120
<v Speaker 5>Connecting to that.

0:35:53.680 --> 0:35:56.680
<v Speaker 6>So that's one thing I think continuing to make sure

0:35:56.719 --> 0:36:01.239
<v Speaker 6>that the country is head of The other thing is

0:36:02.480 --> 0:36:04.239
<v Speaker 6>and this is one that we're kind of going back

0:36:04.239 --> 0:36:08.200
<v Speaker 6>and forth with we you know, Governor Shapiro has launched

0:36:08.239 --> 0:36:12.880
<v Speaker 6>a very aggressive economic development strategy that wants to attract

0:36:13.040 --> 0:36:16.279
<v Speaker 6>more investment and lots of different types of investment. I

0:36:16.320 --> 0:36:19.680
<v Speaker 6>think there's and I've spoken with Bruce Katz formula of

0:36:19.680 --> 0:36:23.160
<v Speaker 6>Brooking is about this, is that Pennsylvania seems like it's

0:36:23.160 --> 0:36:27.160
<v Speaker 6>well situated to be a center of defense manufacturing in

0:36:27.239 --> 0:36:31.680
<v Speaker 6>this new world. Clearly, like there's based on what's happening

0:36:31.760 --> 0:36:35.920
<v Speaker 6>in Iran, there is like there's still need for munitions,

0:36:36.040 --> 0:36:40.279
<v Speaker 6>right and how we can play a role in that

0:36:40.600 --> 0:36:43.960
<v Speaker 6>is I think part of our future. That was what

0:36:44.120 --> 0:36:47.600
<v Speaker 6>we proudly tell the story of how Bethlem Steel helped

0:36:47.600 --> 0:36:50.120
<v Speaker 6>win the war in World War two by building the

0:36:50.760 --> 0:36:53.719
<v Speaker 6>the ships that helped us when the war. I talked

0:36:53.719 --> 0:36:57.200
<v Speaker 6>about VOLTI bomber is helping us when the war. I

0:36:57.239 --> 0:36:59.680
<v Speaker 6>think that there is we have. We're home to mac

0:36:59.680 --> 0:37:04.480
<v Speaker 6>Defense in Allentown. Mac Defense makes giant like heavy duty

0:37:04.960 --> 0:37:08.920
<v Speaker 6>trucks for the US military. We can compete in that

0:37:09.080 --> 0:37:11.960
<v Speaker 6>area as well, and that is manufacturing. So I think

0:37:11.960 --> 0:37:17.800
<v Speaker 6>there's as if the federal government focuses on creating opportunities

0:37:17.840 --> 0:37:21.759
<v Speaker 6>in cities and the states to host manufacturing and it

0:37:21.800 --> 0:37:24.560
<v Speaker 6>makes it easy for that to happen and makes it

0:37:24.560 --> 0:37:26.799
<v Speaker 6>easy to hire people and train people to be ready

0:37:26.800 --> 0:37:28.920
<v Speaker 6>for that work. I think that's that's where we need

0:37:28.960 --> 0:37:29.560
<v Speaker 6>them to play.

0:37:29.680 --> 0:37:32.440
<v Speaker 3>You're already sort of alluded to this, but does it

0:37:32.480 --> 0:37:34.840
<v Speaker 3>feel good to be in a state where it's like

0:37:35.680 --> 0:37:39.680
<v Speaker 3>every national election is just geared towards making the citizens

0:37:39.719 --> 0:37:43.600
<v Speaker 3>of Pennsylvania happy? Like all like that is You're you're

0:37:43.840 --> 0:37:46.920
<v Speaker 3>talking to some mayor from another you know, from Florida.

0:37:46.960 --> 0:37:49.359
<v Speaker 3>It's like try being a swing state. Try being the

0:37:49.400 --> 0:37:51.960
<v Speaker 3>most important state for the electoral college.

0:37:52.040 --> 0:37:53.600
<v Speaker 5>It must be nice. It can be.

0:37:54.480 --> 0:37:57.240
<v Speaker 6>It also turns you into like, like I have given

0:37:57.960 --> 0:38:01.000
<v Speaker 6>tours of my city to foreign press.

0:38:01.960 --> 0:38:05.719
<v Speaker 3>Every country borders that they get the diner in Pennsylvania.

0:38:05.800 --> 0:38:07.160
<v Speaker 4>Right, that's the classic.

0:38:06.840 --> 0:38:10.279
<v Speaker 6>Trop Yeah then, so I mean it's it's nice to

0:38:10.360 --> 0:38:14.120
<v Speaker 6>be the center of attention for that way in the

0:38:14.320 --> 0:38:15.840
<v Speaker 6>like in that politicians kind of want.

0:38:15.680 --> 0:38:16.400
<v Speaker 5>To make you happy.

0:38:16.440 --> 0:38:21.080
<v Speaker 6>But practically speaking, you know, there's like, as a mayor,

0:38:21.160 --> 0:38:23.640
<v Speaker 6>your job is to just meet the needs of your residence, right,

0:38:23.719 --> 0:38:25.919
<v Speaker 6>Like that's what you dial in on, and so whatever

0:38:25.920 --> 0:38:29.000
<v Speaker 6>they're doing nationally, like you're just worried about residents.

0:38:29.200 --> 0:38:32.600
<v Speaker 3>One reason that people are very excited or that people

0:38:32.760 --> 0:38:36.200
<v Speaker 3>are have an affinity towards manufacturing is the jobs, right,

0:38:36.320 --> 0:38:38.600
<v Speaker 3>and you mentioned the jobs and people seeing.

0:38:38.480 --> 0:38:39.319
<v Speaker 4>People go to work.

0:38:39.640 --> 0:38:43.040
<v Speaker 3>Another reason, particularly over the last several years or the

0:38:43.120 --> 0:38:47.400
<v Speaker 3>last post COVID, is for national security reasons, not wanting

0:38:47.480 --> 0:38:52.080
<v Speaker 3>to rely on China or other countries for really critical things. However,

0:38:52.160 --> 0:38:56.640
<v Speaker 3>some of these most advanced industries they're they're not particularly

0:38:56.680 --> 0:38:58.200
<v Speaker 3>going to be job heavy, right. There's a lot of

0:38:58.280 --> 0:39:02.960
<v Speaker 3>robotics and increasing automation is there a disconnect between the

0:39:03.040 --> 0:39:06.440
<v Speaker 3>sort of again maybe emotional maybe like the sort of

0:39:06.520 --> 0:39:11.040
<v Speaker 3>romantic notions that people have about manufacturing versus the reality

0:39:11.120 --> 0:39:14.280
<v Speaker 3>of the actual labor intensivity of some of these industries.

0:39:14.640 --> 0:39:17.480
<v Speaker 6>I think that from the mayor's perspective, I probably am

0:39:17.520 --> 0:39:20.320
<v Speaker 6>more in that kind of romantic world, right like where

0:39:20.320 --> 0:39:22.960
<v Speaker 6>we're just kind of like, yeah, you know, we envision

0:39:23.000 --> 0:39:24.759
<v Speaker 6>a world in which people will always be putting their

0:39:24.760 --> 0:39:27.680
<v Speaker 6>hands on stuff right one way or another. And when

0:39:27.680 --> 0:39:31.240
<v Speaker 6>you get into a higher technology where like we already

0:39:31.239 --> 0:39:35.120
<v Speaker 6>have robots doing like precision surgery, presumably some of the

0:39:35.120 --> 0:39:37.719
<v Speaker 6>precision manufacturing is going to be better done with a

0:39:37.840 --> 0:39:40.600
<v Speaker 6>robotic hand than the steady hand or strong back of

0:39:41.920 --> 0:39:42.880
<v Speaker 6>somebody on the line.

0:39:43.280 --> 0:39:47.280
<v Speaker 5>I do think that, as you like, there's.

0:39:46.440 --> 0:39:48.239
<v Speaker 6>Still and this is a vibe that I'm starting to

0:39:48.239 --> 0:39:50.200
<v Speaker 6>get mayors tend to pick up, like because we're on

0:39:50.239 --> 0:39:53.600
<v Speaker 6>the ground, Yeah, we start to hear the vibes before.

0:39:53.360 --> 0:39:54.800
<v Speaker 5>They become national vibes.

0:39:55.200 --> 0:39:59.000
<v Speaker 6>But I think that there's there's a very strong at

0:39:59.120 --> 0:40:01.680
<v Speaker 6>least in in my city and some other cities that

0:40:01.880 --> 0:40:06.480
<v Speaker 6>have visited, there's like a strong like handmade or like

0:40:06.840 --> 0:40:11.480
<v Speaker 6>a rejection of the robots and AI, whether it's art

0:40:11.719 --> 0:40:15.440
<v Speaker 6>or like the produced goods, I don't know if anybody,

0:40:15.920 --> 0:40:18.600
<v Speaker 6>I don't know what the the logical end to that is,

0:40:18.680 --> 0:40:21.560
<v Speaker 6>but I think there's on on the consumer side, there's

0:40:21.600 --> 0:40:24.800
<v Speaker 6>there's still a desire. I think people romanticize some of

0:40:24.840 --> 0:40:28.040
<v Speaker 6>the product, right, and they'd rather have something that that

0:40:28.120 --> 0:40:31.440
<v Speaker 6>people have made. On the jobs side of it, I

0:40:31.480 --> 0:40:35.640
<v Speaker 6>think that there's there's still this belief that we need

0:40:35.640 --> 0:40:38.120
<v Speaker 6>to preserve the dignity of work, that there's always going

0:40:38.160 --> 0:40:39.400
<v Speaker 6>to be that we're going to have to find some

0:40:39.520 --> 0:40:43.640
<v Speaker 6>way to allow people to continue to work. That maybe

0:40:43.640 --> 0:40:46.399
<v Speaker 6>you don't need the robots running the whole warehouse, right,

0:40:46.480 --> 0:40:50.120
<v Speaker 6>that maybe you need, you know, somebody to be involved.

0:40:50.120 --> 0:40:53.760
<v Speaker 6>And we've seen that, Like this is my first job

0:40:53.840 --> 0:40:56.880
<v Speaker 6>out of grad school was working in the billboard industry

0:40:57.360 --> 0:41:01.720
<v Speaker 6>and in Panama, and I remember vividly talking to somebody

0:41:01.760 --> 0:41:04.160
<v Speaker 6>who has, you know, introduced myself. This is in my

0:41:04.200 --> 0:41:07.200
<v Speaker 6>economic development days, and I was like, oh, you know,

0:41:07.880 --> 0:41:09.880
<v Speaker 6>at first I started in billboards and the guy was

0:41:09.920 --> 0:41:11.839
<v Speaker 6>in private equity and he was like, that's great, man,

0:41:12.280 --> 0:41:15.480
<v Speaker 6>billboards are awesome. The only thing better than billboards is

0:41:15.920 --> 0:41:18.279
<v Speaker 6>coin up landromats, and I was like, I was like, dude,

0:41:18.960 --> 0:41:21.279
<v Speaker 6>you're in the wrong business now, because like maybe in

0:41:21.320 --> 0:41:23.880
<v Speaker 6>private equity, like that was a great idea, like the

0:41:23.960 --> 0:41:26.719
<v Speaker 6>fear of your jobs, like down to self storage, which

0:41:27.040 --> 0:41:29.440
<v Speaker 6>I think is the worse than the cities. But like

0:41:29.600 --> 0:41:32.160
<v Speaker 6>weird job creators, like we have to find ways to

0:41:32.680 --> 0:41:36.240
<v Speaker 6>create jobs, to create opportunities for people to be dignified

0:41:36.280 --> 0:41:39.280
<v Speaker 6>by their work. So while there may be some value

0:41:39.360 --> 0:41:44.840
<v Speaker 6>to like squeezing out every single nickel of cost from

0:41:44.880 --> 0:41:48.719
<v Speaker 6>some operation, there's a lot to benefit cities and to

0:41:48.800 --> 0:41:51.799
<v Speaker 6>benefit society of having people, you know, actually putting their

0:41:51.800 --> 0:41:52.480
<v Speaker 6>hands on things.

0:41:52.719 --> 0:41:55.560
<v Speaker 2>Can you talk specifically about how you're thinking about data centers,

0:41:55.600 --> 0:41:58.920
<v Speaker 2>because this is like the example of what we're getting at,

0:41:59.040 --> 0:42:01.680
<v Speaker 2>and in the theory, you know, Allentown, you got a

0:42:01.719 --> 0:42:04.720
<v Speaker 2>bunch of big warehouses and things like that.

0:42:04.120 --> 0:42:07.600
<v Speaker 3>That presumably, yeah to that needed energy at one point.

0:42:08.040 --> 0:42:12.359
<v Speaker 6>Yeah, I have lots of sophisticated and unsophisticated thoughts about

0:42:12.440 --> 0:42:15.319
<v Speaker 6>data centers we as a city and as a mayor.

0:42:15.320 --> 0:42:16.879
<v Speaker 6>I'm thinking about them in a couple of ways. One

0:42:17.440 --> 0:42:20.000
<v Speaker 6>like they're very clearly a political issue now, and they're

0:42:20.000 --> 0:42:23.319
<v Speaker 6>a political issue for hate saying both sides, but for

0:42:23.400 --> 0:42:24.400
<v Speaker 6>both sides, right.

0:42:24.239 --> 0:42:25.560
<v Speaker 4>Like we there really are.

0:42:26.360 --> 0:42:27.200
<v Speaker 2>It's kind of crazy.

0:42:27.320 --> 0:42:28.759
<v Speaker 5>There's legislation, so I think that.

0:42:29.160 --> 0:42:32.880
<v Speaker 6>So we amended our zoning Right after we amended our

0:42:32.960 --> 0:42:36.200
<v Speaker 6>zoning ordinance, we then we made an amendment to the

0:42:36.400 --> 0:42:40.560
<v Speaker 6>ordinance with reference to data centers. The reality for a

0:42:40.640 --> 0:42:43.600
<v Speaker 6>city like Allentown, in most cities in the country, is

0:42:43.640 --> 0:42:46.040
<v Speaker 6>that we don't really have any space for data centers.

0:42:46.480 --> 0:42:49.320
<v Speaker 6>It's unlikely that a hyperscale one. It's not just unlikely

0:42:49.480 --> 0:42:52.120
<v Speaker 6>a hyper scale er cannot locate in the city of

0:42:52.120 --> 0:42:57.839
<v Speaker 6>Allentown unless they acquire a bunch of homes and demolish them.

0:43:00.480 --> 0:43:04.440
<v Speaker 6>But it is reality in place like Phoenix, right, So

0:43:04.480 --> 0:43:08.000
<v Speaker 6>we amendedor zoning code to just set up certain requirements

0:43:08.040 --> 0:43:11.520
<v Speaker 6>around the establishment of a data center, just to make

0:43:11.560 --> 0:43:14.840
<v Speaker 6>sure that our backs are covered. The worst thing that

0:43:14.880 --> 0:43:17.840
<v Speaker 6>happens in any municipality is like something shows up that

0:43:17.880 --> 0:43:20.000
<v Speaker 6>people don't want and your hands are tied because your

0:43:20.080 --> 0:43:23.080
<v Speaker 6>zoning allows for it. So we make sure that we

0:43:23.120 --> 0:43:24.920
<v Speaker 6>are covered in that respect.

0:43:25.080 --> 0:43:25.799
<v Speaker 4>Sorry, just be clear.

0:43:25.880 --> 0:43:28.759
<v Speaker 2>Covered like you've data center proofed you're zoning is.

0:43:28.680 --> 0:43:33.160
<v Speaker 6>That we're in the process of review right now to

0:43:33.360 --> 0:43:37.680
<v Speaker 6>make sure that any proposed data center has to demonstrate

0:43:37.960 --> 0:43:41.600
<v Speaker 6>not just the highway use or the water use, but

0:43:41.640 --> 0:43:45.640
<v Speaker 6>also like energy sources. So we're making sure that data

0:43:45.640 --> 0:43:49.520
<v Speaker 6>centers have proposed for the city have can demonstrate their

0:43:49.960 --> 0:43:51.120
<v Speaker 6>compliance basically.

0:43:51.520 --> 0:43:53.760
<v Speaker 5>So it's it's political as.

0:43:53.640 --> 0:43:55.719
<v Speaker 6>I understand the technology, and this is probably the less

0:43:55.719 --> 0:43:59.440
<v Speaker 6>sophisticated side of the thought. It's getting smaller and smaller, right.

0:43:59.480 --> 0:44:02.120
<v Speaker 6>The data centers do not have to exist at this

0:44:02.840 --> 0:44:05.319
<v Speaker 6>incredible you know, to take up lots and lots of land.

0:44:05.360 --> 0:44:08.360
<v Speaker 6>They can exist perhaps in downtowns. I don't know what

0:44:08.360 --> 0:44:10.160
<v Speaker 6>their energy needs are going to be. I know that

0:44:10.560 --> 0:44:13.279
<v Speaker 6>most mayors are concerned about data centers, not because they're

0:44:13.320 --> 0:44:16.719
<v Speaker 6>worried about land use or a lack of jobs, but

0:44:16.800 --> 0:44:21.760
<v Speaker 6>because utility bills are significantly rising. At the same time

0:44:21.800 --> 0:44:24.560
<v Speaker 6>that food bills are rising and gas bills are rising

0:44:24.600 --> 0:44:28.440
<v Speaker 6>and housing is getting more expensive. Now people are also

0:44:28.440 --> 0:44:31.400
<v Speaker 6>seeing their utility bills rise, so that that's been driving

0:44:31.400 --> 0:44:32.560
<v Speaker 6>a lot of the concern for mayors.

0:44:32.600 --> 0:44:35.040
<v Speaker 3>I think, you know, I know someone I heard about it.

0:44:35.080 --> 0:44:38.960
<v Speaker 3>There's a startup in New York City that is doing

0:44:39.000 --> 0:44:40.920
<v Speaker 3>something that's like, I don't know exactly what it is.

0:44:41.160 --> 0:44:42.799
<v Speaker 3>I was hearing about it from a friend. But they're

0:44:42.800 --> 0:44:47.040
<v Speaker 3>like training some Nvidia chips or doing something and it's

0:44:47.160 --> 0:44:50.040
<v Speaker 3>just with like a normal like sort of like residential

0:44:50.120 --> 0:44:54.360
<v Speaker 3>connection to the electricity. It's fairly small scale. It's not mega,

0:44:54.520 --> 0:44:57.000
<v Speaker 3>but like, yeah, to your point, like it does feel

0:44:57.000 --> 0:44:59.920
<v Speaker 3>like the footprint there at least it's some potentially new

0:45:00.160 --> 0:45:03.560
<v Speaker 3>applications the footprints. You hear about the giant things, but

0:45:03.600 --> 0:45:05.439
<v Speaker 3>the footprints are also potentially coming down.

0:45:05.520 --> 0:45:07.080
<v Speaker 6>That was what was what I was here. You know,

0:45:07.160 --> 0:45:11.520
<v Speaker 6>I'm an AI skeptic as a mayor. I've been talked back.

0:45:11.920 --> 0:45:14.560
<v Speaker 5>I keep going back this.

0:45:14.719 --> 0:45:18.759
<v Speaker 6>Yeah, but I was talking to somebody at Hopkins, at

0:45:18.800 --> 0:45:22.080
<v Speaker 6>Johns Hopkins who is like, hey, you shouldn't be so skeptical,

0:45:22.120 --> 0:45:26.640
<v Speaker 6>because it's going to open It might result in some

0:45:26.640 --> 0:45:29.920
<v Speaker 6>somewhat fewer human human react interactions, but it's going to

0:45:30.400 --> 0:45:34.560
<v Speaker 6>open the door for humans and city government specifically to

0:45:34.600 --> 0:45:38.160
<v Speaker 6>participate more and more in helping people out. And she

0:45:38.280 --> 0:45:39.960
<v Speaker 6>was the one who mentioned like, and it's also like

0:45:40.480 --> 0:45:43.480
<v Speaker 6>all of the like the fear about data center might

0:45:43.520 --> 0:45:47.000
<v Speaker 6>be misplaced, like there is we are I'm not necessarily

0:45:47.320 --> 0:45:50.640
<v Speaker 6>a great believer in technology figuring out a way to

0:45:50.719 --> 0:45:54.200
<v Speaker 6>get us to like save our bacon for forever. But

0:45:54.719 --> 0:45:57.840
<v Speaker 6>it does seem like this is one that there's short

0:45:57.960 --> 0:46:00.880
<v Speaker 6>term concern about and I don't know what what it

0:46:00.960 --> 0:46:04.319
<v Speaker 6>really stems from, but whenever politicians are involved, you have

0:46:04.360 --> 0:46:05.240
<v Speaker 6>to raise an eyebrow.

0:46:06.080 --> 0:46:08.920
<v Speaker 2>I have one more question, and it's a very important one.

0:46:09.560 --> 0:46:14.480
<v Speaker 2>What's the deal with Yakos? If I google allanown controversy,

0:46:14.719 --> 0:46:16.080
<v Speaker 2>Yakos comes up.

0:46:16.400 --> 0:46:20.360
<v Speaker 5>Yeah. I think there's probably a couple of Yako's controversies.

0:46:20.719 --> 0:46:24.319
<v Speaker 6>The very local one is like you got to pick

0:46:24.320 --> 0:46:26.920
<v Speaker 6>a sort. You gotta choose between Yakos or Pots. Apparently

0:46:27.320 --> 0:46:31.239
<v Speaker 6>they eat pots hot dogs, and Bethlehem. I guess we

0:46:31.280 --> 0:46:34.760
<v Speaker 6>should say Yako's is a hot dog hot dog. Okay, Yeah,

0:46:34.960 --> 0:46:37.600
<v Speaker 6>the folks in Bethlam like, I love my neighbor, but

0:46:37.760 --> 0:46:39.240
<v Speaker 6>I would never eat a Pots dog.

0:46:40.680 --> 0:46:41.239
<v Speaker 5>Yakos.

0:46:41.600 --> 0:46:43.480
<v Speaker 6>There's one of the deals is like you have to

0:46:43.480 --> 0:46:46.319
<v Speaker 6>know how to order it right. So the order is

0:46:46.400 --> 0:46:48.560
<v Speaker 6>like you just get two dogs. I order two dogs

0:46:48.560 --> 0:46:52.120
<v Speaker 6>with everything and a chocolate milk. Some people get perogies

0:46:52.200 --> 0:46:54.879
<v Speaker 6>with it too. One of the there was a few

0:46:54.960 --> 0:47:00.440
<v Speaker 6>years ago a guy named Gary Eyakoca, whose family owned Yako,

0:47:00.520 --> 0:47:05.360
<v Speaker 6>has talked about how his Yako is on Seventh Street,

0:47:05.400 --> 0:47:08.759
<v Speaker 6>which is in center city, Allentown couldn't exist anymore because

0:47:08.760 --> 0:47:11.759
<v Speaker 6>of the demographic changes that we've seen in Allentown. So

0:47:11.880 --> 0:47:14.319
<v Speaker 6>Yako's I think is he and I went back and

0:47:14.360 --> 0:47:16.400
<v Speaker 6>forth a little bit. We're very good friends now, but

0:47:16.600 --> 0:47:20.319
<v Speaker 6>we were we struggled a little bit because I'm the

0:47:20.320 --> 0:47:22.680
<v Speaker 6>first Latino mayor of Allentown. So the other thing that

0:47:22.760 --> 0:47:26.400
<v Speaker 6>makes the Billy Joel song so wrong in twenty twenty

0:47:26.440 --> 0:47:29.560
<v Speaker 6>six is that in nineteen eighty two, it was like

0:47:30.080 --> 0:47:33.520
<v Speaker 6>it was a very homogenous. Basically everybody in Allentown was

0:47:33.680 --> 0:47:38.799
<v Speaker 6>white European. Today we're fifty five percent Latino, like we

0:47:38.840 --> 0:47:43.879
<v Speaker 6>are a very different city. And his case was like, well,

0:47:43.920 --> 0:47:46.600
<v Speaker 6>you know it isn't it ain't like it was, And

0:47:46.960 --> 0:47:49.560
<v Speaker 6>you know it was kind of it felt to me

0:47:49.680 --> 0:47:51.719
<v Speaker 6>like kind of a rejection of our new city that

0:47:51.800 --> 0:47:54.960
<v Speaker 6>I just love. So we went back and forth a

0:47:54.960 --> 0:47:59.000
<v Speaker 6>little bit on that. There's probably other Yako's controversies out there.

0:47:59.480 --> 0:48:03.200
<v Speaker 6>There's like he has like a big hot dog statue

0:48:03.719 --> 0:48:07.160
<v Speaker 6>that roves around a little bit, but it's a good

0:48:07.200 --> 0:48:09.759
<v Speaker 6>hot dog. If you come to Alentine, I will treat

0:48:09.760 --> 0:48:11.480
<v Speaker 6>you to Yaka is hot dog, and.

0:48:11.600 --> 0:48:12.640
<v Speaker 2>You'll teach us how to order it.

0:48:13.080 --> 0:48:15.960
<v Speaker 3>Teach you how to order like the politicians get a

0:48:16.000 --> 0:48:18.600
<v Speaker 3>huge scandal they ordered it the wrong way, like you know,

0:48:18.680 --> 0:48:21.239
<v Speaker 3>it is like John Carrey, like ordered whether you get

0:48:21.239 --> 0:48:23.239
<v Speaker 3>like Swiss cheese instead of something else.

0:48:23.440 --> 0:48:26.080
<v Speaker 6>Yeah, it's our version of the cheese steak.

0:48:26.520 --> 0:48:28.719
<v Speaker 5>And there's a special like Lee Have Valley version of

0:48:28.760 --> 0:48:29.520
<v Speaker 5>the cheese steak.

0:48:29.360 --> 0:48:32.799
<v Speaker 6>As well that the Philadelphians would want nothing to do with.

0:48:33.800 --> 0:48:35.120
<v Speaker 4>What makes America great.

0:48:35.280 --> 0:48:39.080
<v Speaker 3>Like these niche these niche loyalties towards certain orders and

0:48:39.160 --> 0:48:39.919
<v Speaker 3>certain hot dog.

0:48:40.120 --> 0:48:43.279
<v Speaker 2>Yeah all right, Maryturk, thank you so much for coming

0:48:43.280 --> 0:48:43.840
<v Speaker 2>on all thoughts.

0:48:43.840 --> 0:48:45.879
<v Speaker 5>That was great, Thank you. It really had a good time.

0:48:58.440 --> 0:49:00.640
<v Speaker 2>So that was super interesting. There are a lot of

0:49:00.640 --> 0:49:03.080
<v Speaker 2>things to pick out from there. But one thing that

0:49:03.120 --> 0:49:06.440
<v Speaker 2>stood out was that sort of twenty tens era of

0:49:06.560 --> 0:49:11.280
<v Speaker 2>like made in America craft manufacturing. I remember that really, Yeah.

0:49:11.160 --> 0:49:14.439
<v Speaker 3>No totally. It's actually pretently kind of depressing because those

0:49:14.640 --> 0:49:17.400
<v Speaker 3>maker bought festival or the maker body. I think it's

0:49:17.440 --> 0:49:20.400
<v Speaker 3>different than the maker festivals. But there was that culture

0:49:21.080 --> 0:49:25.279
<v Speaker 3>of people doing tinkering and.

0:49:23.640 --> 0:49:25.240
<v Speaker 2>The printing story.

0:49:25.360 --> 0:49:25.919
<v Speaker 6>Remember that.

0:49:26.000 --> 0:49:28.319
<v Speaker 3>Yeah, yeah, it was like a thing, and it's like

0:49:28.360 --> 0:49:31.000
<v Speaker 3>all sort of fizzled out, but there was just like

0:49:31.000 --> 0:49:36.680
<v Speaker 3>a forgotten part of post GFC artistical manufacturing, cynical manufacturing

0:49:36.719 --> 0:49:38.480
<v Speaker 3>and people just building weird stuff.

0:49:38.800 --> 0:49:40.400
<v Speaker 4>Things aren't weird enough anymore.

0:49:40.400 --> 0:49:42.319
<v Speaker 2>But yeah, I might get weird with AI.

0:49:42.480 --> 0:49:43.479
<v Speaker 4>No, they're gonna get weird.

0:49:43.600 --> 0:49:46.120
<v Speaker 3>But I'm glad he brought that up because I I

0:49:46.239 --> 0:49:49.359
<v Speaker 3>it doesn't get discussed enough. Yeah, just generally though, like

0:49:49.400 --> 0:49:51.200
<v Speaker 3>I thought it was great and like, first of all,

0:49:51.400 --> 0:49:53.480
<v Speaker 3>just learning a bunch of new things. You know, I

0:49:53.520 --> 0:49:56.719
<v Speaker 3>hadn't heard of weight gaining manufacturing, but that makes a

0:49:56.719 --> 0:49:59.560
<v Speaker 3>lot of sense, right, Like if there's some process that

0:49:59.640 --> 0:50:02.440
<v Speaker 3>adds a lot of weight, such as water to a product,

0:50:02.840 --> 0:50:04.840
<v Speaker 3>you want that to be at the last mile of

0:50:04.880 --> 0:50:08.360
<v Speaker 3>the supply chain rather than early on. Also fascinating to

0:50:08.400 --> 0:50:11.640
<v Speaker 3>think about, like, okay, what a strategic advantage it is

0:50:11.680 --> 0:50:14.880
<v Speaker 3>to be within a day's drive of one hundred million people.

0:50:15.200 --> 0:50:17.640
<v Speaker 3>So therefore it makes a less sense to put various

0:50:17.680 --> 0:50:20.840
<v Speaker 3>you know, e commerce warehouses in so much interesting stuff there.

0:50:20.719 --> 0:50:23.680
<v Speaker 2>Also the mixed zoning I found really interesting, but because

0:50:23.719 --> 0:50:26.440
<v Speaker 2>it is true if you think about industry, you know,

0:50:26.560 --> 0:50:29.439
<v Speaker 2>even ten or twenty years ago, it was much more

0:50:29.480 --> 0:50:33.880
<v Speaker 2>polluting and noisy and disturbing than it is now. And

0:50:33.960 --> 0:50:36.920
<v Speaker 2>so you can have in an era of high tech manufacturing,

0:50:36.960 --> 0:50:40.440
<v Speaker 2>you absolutely could have mixed use neighborhoods and buildings.

0:50:40.760 --> 0:50:42.640
<v Speaker 3>Why not, right, So you just have to update the

0:50:42.760 --> 0:50:45.680
<v Speaker 3>zoning to reflect the reality that it's not going to

0:50:45.719 --> 0:50:48.600
<v Speaker 3>be automatically repellent to the neighbors.

0:50:48.239 --> 0:50:51.200
<v Speaker 2>And then everyone can walk to work with their lunch boxes.

0:50:51.560 --> 0:50:52.279
<v Speaker 4>Yeah, all right?

0:50:52.320 --> 0:50:53.759
<v Speaker 3>Shall we leave it there for the bike to work?

0:50:53.800 --> 0:50:54.000
<v Speaker 5>Yeah?

0:50:54.040 --> 0:50:54.600
<v Speaker 2>Or bike to work?

0:50:54.680 --> 0:50:55.359
<v Speaker 4>Yeah?

0:50:55.440 --> 0:50:55.800
<v Speaker 3>Okay.

0:50:56.000 --> 0:50:58.320
<v Speaker 2>This has been another episode of the All Thoughts podcast.

0:50:58.440 --> 0:51:01.480
<v Speaker 2>I'm Tracy Allaway. You can follow me at Tracy Alloway.

0:51:01.280 --> 0:51:04.080
<v Speaker 3>And I'm Joe Wisenthal. You can follow me at the Stalwart.

0:51:04.160 --> 0:51:07.319
<v Speaker 3>Follow our producers Carmen Rodriguez at Carmen armand dash Ol

0:51:07.320 --> 0:51:11.520
<v Speaker 3>Bennett at Dashbot, Calebrooks at Kelbrooks, and Kevin Lozano at

0:51:11.560 --> 0:51:14.360
<v Speaker 3>Kevin Lloyd Lozano. And for more Oddloss content, go to

0:51:14.400 --> 0:51:16.920
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0:51:17.000 --> 0:51:19.439
<v Speaker 3>learned all of our episodes and you can chat about

0:51:19.440 --> 0:51:22.040
<v Speaker 3>all these topics twenty four to seven in our discord

0:51:22.320 --> 0:51:24.839
<v Speaker 3>Discord dot gg slash odd Loss.

0:51:24.560 --> 0:51:26.759
<v Speaker 2>And if you enjoy Odd Lots, if you like it

0:51:26.800 --> 0:51:29.440
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0:51:33.040 --> 0:51:35.400
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