Crains New York - February 4, 2013 - (Page 3)

IN THE BOROUGHS QUEENS ‘Made in USA’ sees an uptick Big project is missing in Flushing Apparel-making picks up (slightly) in NYC as trends favor city manufacturers BY ADRIANNE PASQUARELLI 8 years after plans unveiled, still no sign of actual progress LOCAL TIES: Paulette Garafalo of Brooks Brothers, which manufactures neckwear at a factory in Long Island City BY CHRIS BRAGG buck ennis See MADE on Page 22 Borough chambers unite to speak for the little guys Nonprofit hopes to be a Partnership for NYC-type group for small businesses BY CHRIS BRAGG Tired of depending on deeppocketed big-business interests to fund their legislative fights, New York City’s small business leaders are looking to strike out on their own. The heads of New York City’s five borough chambers of commerce met on Feb. 1 to plot the formation of a new, issue-based advocacy group that they hope will be the small business equivalent of the Partnership for New York City. “Some people think the Partnership is the voice of business, but they’re a large Manhattan organiza- tion,” said Queens Chamber of Commerce President Jack Friedman. “We want to speak for small mom-and-pops.” The nonprofit will be the 501(c)4 arm of the Five Borough Chamber The agenda is likely to include opposition to paid sick leave Alliance, which was formed in 2009 to fight against a union-backed push for mandated paid-sick-leave legislation. Its lobbying may include everything from running advertisements to holding 2013 mayoral fo- rums pinning down pledges from candidates on particular small business issues, Mr. Friedman said. It will be administered by the Brooklyn Chamber of Commerce, according to Mr. Friedman, and will push issues of common interest among the five borough chambers’ members. The agenda is likely to include opposition to paid sick leave, as well as regulatory reform and small businesses’ budget priorities in the city budget. But the group won’t touch issues of potential disagreement,such as congestion pricing,and does not plan to make endorsements. “Over the past two or three years, we’ve been getting much more organized, and a 501(c)4 will allow us to use money to advocate on issues, and for voter education on businessfriendly issues,” Mr. Friedman said. It remains uncertain whether local small businesses will have the fi- For almost a decade, small business owners and others have been bracing for a huge development project slated to rise in Queens’busiest business district: downtown Flushing. Fat chance. To date, no groundbreaking has occurred—or even been scheduled—for the $825 million Flushing Commons project. “It’s like this comet that we were told was coming,” said Ikhwan Rim, a third-generation jewelry-store owner in the neighborhood. “It never came.” Civic leaders, local lobbyists and even elected officials all admit they still have no idea what is going on with the housing, retail and office project. Marilyn Bitterman, district manager for Community Board 7 in Flushing, said she recently ran into one of the developers and was told an announcement on the groundbreaking was coming soon—though she has been told the same thing before. In 2005, Flushing-based TDC Development, backed by the bluechip Rockefeller Group, won the rights to knock down a five-acre See BIG on Page 18 STATS AND THE CITY BLACKBERRY IS BACK, MAYBE? Once-ubiquitous BlackBerry is angling for a comeback with a revamped smartphone, the BlackBerry10. 4.6% global smartphone 1,601 in POLE-TOP installations BLACKBERRY’S market share, down from 19.9% in 2009. Apple holds about 19%. $2.35B and its BOOK VALUE of BlackBerry info-tech division, as of December 2012, with 77 million subscribers 45.5% share of the SMARTPHONES’ cellphone market NYC, which enhance cell service and generate $2.2M in annual revenue for the city 153.7K NYC SUMMONSES issued for driving while using a cellphone in FY 2012, down 19% from FY 2008 Sources: IDC, Research in Motion Ltd., NYC Dept. of Information Technology & Telecommunications, Mayor’s Office istockphoto Manufacturing clothes in the garment center might seem like a step back in time—but it’s actually forward growth for Ricky Schiffer. In December, the third-generation sweater maker, with his business partner, Leonard Keff, opened a 7,500-square-foot knitting factory on West 36th Street. “We are just the first of many to come,” said Mr. Schiffer, who has committed $2.6 million to the project. “We’ll keep growing.” The Made in USA movement is gaining steam, as retailers from Brooks Brothers to Walmart push to manufacture their wares in the United States to appeal to patriotic consumers and avoid costly overproduction as overseas labor and shipping costs rise. Surprisingly, the trend is playing out on a smaller scale in the city. For an area that has seen apparelmaking plummet—last year, on average, there were 14,900 apparel manufacturing workers in New York City, and two decades ago, there were more than 80,000, according to the New York State Department of Labor—new factories are welcome additions. Mr. Schiffer’s factory, Keff NYC, has eight knitting machines (each costs $100,000), and he has ordered a dozen more. Though the company is currently making samples, Mr. ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY See CHAMBERS on Page 22 February 4, 2013 | Crain’s New York Business | 3

Table of Contents for the Digital Edition of Crains New York - February 4, 2013

THE INSIDER
ALAIR TOWNSEND
IN THE BOROUGHS
IN THE MARKETS
BUSINESS PEOPLE
OPINION
GREG DAVID
DIGITAL NY
SMALL BUSINESS
REPORT: HEALTH CARE
THE LIST
CLASSIFIEDS
REAL ESTATE DEALS
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - February 4, 2013