What I found interesting this week was the discussion of NYC’s economy post WW II. While the NYC we know is the one that is a global center (a World Trade Center, if you will), the NYC that emerged post-war was a district run manufacturing center. While it may not have been home to big mass production factories, NYC did play a vital role in manufacturing. The factories in the city specialized in one-of-a-kind and limited run goods. This led to the formation of districts that still exist today. Ever wonder about the garment or diamond districts of NY? Well I have. I’ve always found them kind of strange. To me, it seemed silly to limit the growth of an industry to a specific area, and yet every fashion company I knew in NY seemed to be in Midtown.
I actually gained a lot of insight about this system when I was in Italy this winter. Italy actually still runs on the district system somewhat. If you want gold, you go to central Italy. Leather? You’ll need to look in Florence. If it’s silk you’re looking for (especially printed silk), Como is the place for you. I could go on for paragraphs about this system, but I think the most important part of this is that it still exists. No matter how globalized the world is getting, Italy has stuck to this system of regions. While this sometimes leads to incredibly expensive items, it also leads to amazing quality. Italy is known for producing luxury goods.
So in a time when we have moved all manufacturing to China, and other countries where we can use cheap, unskilled, labor, my question is this: Is it really for the best? Has New York lost its competitive edge?
Despite leading you to the answer that this is bad for New York, I’m going to go ahead and say that it is not terrible. New York has instead become a hub for finance, government, and service industries. While New York may no longer manufacture beautiful embroidered blouses anymore, the planning is still done here. Somewhere between 34th and 40th street, there is a fashion designer sketching the idea, and pattern-makers creating a sample. While New York may no longer be the center for blue-collar work, it is still the home of many industries.
While I’m not quite sure all these thoughts go together, it’s kind of quick look into what went through my mind.
