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Thursday, March 18th, 2010

The Next Industrial Revolution

In my previous post “The New Industrial City” I argued that cities should not turn their back on manufacturing but instead embrace it and seek to build a future where industry and “making things” still played a key role. But this would be an industrial city based on smaller scale specialty and craft manufacturing, not large scale, routinized production.

The January edition of Wired magazine ran a lengthy but incredible story of how this future is starting to take shape called “In the Next Industrial Revolution, Atoms Are the New Bits.” As the title implies, the author argues that radical changes in design and supply chains, along with extremely low cost fabrication technology that is coming online and business practices honed in the high tech world, make starting a manufacturing company today much more like starting a dotcom than an old school heavy industrial concern. But as with the internet before it, these new technologies are being exploited first and fullest outside the traditional manufacturing heartland, with ominous implications for the future of places that by right should own manufacturing.

One of the stories is that of Local Motors in Boston. They’re creating a $50,000 car called the “Rally Fighter” based off the kit car concept. One unusual aspect of this is that they crowdsourced the design and have released it under a Creative Commons license. The actual engineering and componetry under the hood are mostly off the shelf.

Image via Gear Heads

This is all being done in an extremely low overhead and capital-light manner:

Local Motors plans to release between 500 and 2,000 units of each model. It’s a niche vehicle; it won’t compete with the major automakers but rather fill in the gaps in the marketplace for unique designs. Rogers uses the analogy of a jar of marbles, each of which represents a vehicle from a major automaker. In between the marbles is empty space, space that can be filled with grains of sand — and those grains are Local Motors cars.

Local Motors has just 10 full-time employees (that number will grow to more than 50 as it opens build centers, the first of which will be in Phoenix), holds almost no inventory, and purchases components and prepares kits only after buyers have made a down payment and reserved a build date.

There are already obvious lessons to take from this. First, note the small scale, specialty nature of the product and firm. Second, the ability to get into what would have once been a formidable business using modern manufacturing and social-networking techniques. Third, while not a per-se high tech product, the corporate HQ is Boston, a traditional startup hub. Manufacturing is in Sunbelt Phoenix, likely chosen to be close to California where I suspect most of these cars will be sold. This reinforces the pattern of the tech hubs getting a high value but very narrow job base, with troubling implications for them. But also shows how the Midwest and other old school manufacturing bases are getting completely shut out.

The story does indeed seem to be playing out just like high tech all over again, sans the Silicon Valley “plan to take over the world or we won’t fund you” model. This is the type of “business model” led innovation I’ve often argued other places should attack. But again, the ecosystem for this new industrial economy is being built – and it is being built in places that are already winning in the high tech race:

A garage renaissance is spilling over into such phenomena as the booming Maker Faires and local “hackerspaces.” Peer production, open source, crowdsourcing, user-generated content — all these digital trends have begun to play out in the world of atoms, too. The Web was just the proof of concept. Now the revolution hits the real world.
….
To see this model emerging in the real world, you need only visit TechShop, a chain of DIY workspaces that offer access to state-of-the-art prototyping tools for around $100 a month.
….
This is an incubator for the atoms age. When TechShop founder Jim Newton went looking for an executive to run it, he quickly decided on Mark Hatch, a former Kinko’s executive. The analogy is apt: In the same way that Kinko’s democratized printing and, in the process, created a national chain of service bureaus, TechShop wants to democratize manufacturing. It now has two additional locations, in Durham, North Carolina, and Beaverton, Oregon, and has plans for hundreds more. One of the spots being considered is San Francisco, within the facilities of the much-shrunken San Francisco Chronicle. The irony is delicious: the seeds of tomorrow’s industry growing in the ashes of yesterday’s.

Only a coastal dweller could see locating a startup in San Francisco as irony, but I digress.

Note the list of places where Tech Shop is located: Menlo Park, CA; Durham, NC; and Beaverton, OR. The usual suspects.

Interestingly, some months ago I was forwarded an article about Tech Shop by an Indianapolis entrepreneur who is passionate about building a startup culture there. He was wondering if maybe a Tech Shop like facility could be built in Indianapolis. One of the other folks on the list, an Indy skeptic, said the region’s “state of mind” is so different from places like Portland and Raleigh-Durham as to make any uptake difficult. Undaunted, my friend decided to see if he could get anyone interested in a Tech Shop Indianapolis concept. He couldn’t.

This I think shows the challenge for the Midwest and other regions outside of the established tech zones. The problem is cultural. These places have a set of aspirations, established business practices, social structures, and idea of the good life that was formed in an era of large scale industrialsm. The new era is radically different. As the same mindset and business practices that led to the high tech era get applied with success to different, albeit related, fields, it shows that the true secret sauce isn’t “high tech” or anything else. It’s an entire approach to business for the 21st century:

In the mid-1930s, Ronald Coase, then a recent London School of Economics graduate, was musing over what to many people might have seemed a silly question: Why do companies exist? Why do we pledge our allegiance to an institution and gather in the same building to get things done? His answer: to minimize “transaction costs.” When people share a purpose and have established roles, responsibilities, and modes of communication, it’s easy to make things happen. You simply turn to the person in the next cubicle and ask them to do their job.
….
Now, working within a company often imposes higher transaction costs than running a project online. Why turn to the person who happens to be in the next cubicle when it’s just as easy to turn to an online community member from a global marketplace of talent? Companies are full of bureaucracy, procedures, and approval processes, a structure designed to defend the integrity of the organization. Communities form around shared interests and needs and have no more process than they require. The community exists for the project, not to support the company in which the project resides.

Thus the new industrial organizational model. It’s built around small pieces, loosely joined. Companies are small, virtual, and informal. Most participants are not employees. They form and re-form on the fly, driven by ability and need rather than affiliation and obligation. It doesn’t matter who the best people work for; if the project is interesting enough, the best people will find it.

The importance of flexible, network-based approaches has been amply documented by AnnaLee Saxenian and others as well.

That’s the real shift that needs to happen. Most Midwest cities I know have some sort of a startup base and network economy but it is generally built around a pretty shallow talent pool of people. It’s as true in Chicago as it is in Cincinnati. Much of the rest of the community is oriented around traditional approaches, and outside of the biggest cities everything is almost entirely “smokestack chasing” based.

Cultures don’t get changed over night. It is going to be a journey. The key is to make sure you nurture the flame so that it can grow into something, and not end up having it flicker out as your key entrepreneurs and other people making the new economy happen end up leaving out of frustration or for other reasons.

The startups and tech culture that exists in pockets spread across the country may not be huge, but it is there. And with the internet and this new global, virtual supply chain, the playing field is more level than ever. You don’t have to move to California. The networked economy can potentially work in your region’s favor. That provides some room for optimism that some cities are going to get it right and one day join the club of new economy winners.

Tuesday, March 16th, 2010

Detroitblog: Solitary Man

[ Detroit is a city unlike any other in the world. You can even see it in the city's blogosphere. Today I want to highlight one of the single greatest blogs on Planet Earth: Detroitblog. Published by someone who prefers to be known only as "Detroitblogger John", the stories in this blog are some of the most powerful anywhere. Detroitblog is simply unlike anything else on the web. Here's a sample for you - and another example of the frontier ethos in Detroit. - Aaron. ]

Six years ago, Glendale Stewart took a look at the world around him and decided to drop out of it. He quit working, bought an empty plot of land at a city auction, parked an old trailer on it, built a wood privacy fence around it and made it his home.

He lives in a run-down part of the east side, where grassy fields fill long spaces between old houses. It’s the perfect place for someone to leave it all while going nowhere, to live a frontier life in a part of the city that’s gone rural in spots, to step away from society while still living in the middle of it.

“This trailer here is just as good as any house,” says Stewart, a short, skinny 49-year-old. “It’s small, portable, easy to clean, easy to take care of. I had a house and I had a handful. I’m one person; I don’t need all that.”

He’s immune to power outages, indifferent to rising utility costs, oblivious to gas prices. He has no plumbing to bring water, no gas lines, no electric or cable wires streaming to his place. Mail never arrives because he gets no bills. He has no car, only a bike. He is on his own, under the radar, outside everyday concerns.

“It was for financial reasons, mostly,” he says of the decision to set up his unique homestead. “I was renting and then the guy sold the house, so what can you do? This other guy wanted to charge more, and he wanted to make some changes to the house and rebuild the house on the inside.”

Stewart is an electronics wizard with a knack for inventing things out of scrap. He’s rigged the frame of a bicycle to several motors he’s built, which he uses to generate enough electricity to power a primitive microwave oven and a small TV and to light some bulbs.

“I’ve been working on electronics for quite some time — radios and other little small devices and stuff — so I pretty much know my way around electrical things,” he says. “I can pretty much build anything if I get the money.” He pedals for about an hour and a half to create enough power to last through a day. The power is collected and stored in an old car battery at the foot of the bike.

A little windmill fastened atop his fence creates a weak current when the breeze turns it. He fashioned it from flattened pieces of rain gutter. “Electrical impulses let me know how high the wind is,” he says as a needle on a dial jumps in reaction to the turning blades. He hasn’t yet found a use for it, other than as a measure of wind speed and a generator of unharnessed power.

He’s adjusted to being without other utilities as well. “I get my water from the rain,” he says. He shows off storage tubs where the water collects. “I wash my clothes with that, but it’s not drinking water. I go to the supermarket to get my water.” A similar tub sits under his toilet; when it gets full he pulls it out and dumps it down the sewer, a short walk to the curb that a slip and fall can turn into a sanitation nightmare.

Stewart has no real occupation anymore, other than endlessly inventing things. “I do odd jobs, stuff like that. Sometimes I cut grass for people.” The only things he really needs money for are bottled water, food and kerosene to cook meals on a small stove. Two large, two-wheel, homemade wood carts sit in a corner; they attach to the back of his bicycle to bring groceries and supplies home. He recently took an old radio from a car and rigged it to his bike, creating a high-decibel curiosity that onlookers see and hear passing through the otherwise quiet streets of his neighborhood. Cops have stopped him to compliment him on his contraption, for which he’s built a sturdy plastic rain hood.

The tall privacy fence leaves a snug space around the trailer, only a few feet wide. The hinge on the front gate locks, and Stewart’s rigged an electric doorbell to the outside for visitors to announce themselves. Small scavenged statues and toy figures decorate his tiny yard. A strange, amateur drawing of a raccoon on a branch is framed and nailed to the fence, discolored by the weather.

The inside of his trailer is dark, cramped and musty, a hermit’s dirty nest lined with filthy wood boards for insulation. It’s segmented into his bedroom, a kitchen and an alcove by the door where the bike frame stands with motors and wires going in all directions. In the summer, the trailer’s sweltering; in winter, it’s warmed by a kerosene heater that he uses carefully and sparingly. “You really got to know what you’re doing when you’re living like this, know all the outs and ins and stuff,” he says.

He’s vague about his past, saying only that he’s a lifelong Detroiter who used to work at a plating plant and lived in a house with a girlfriend at one time. He says he went to college but doesn’t say where.

What little mail he must get is sent to his parents’ house. They stop by occasionally to drop it off and check in, he says. Otherwise he’s got few visitors. “Not too many,” he says. “I’m sort of a loner.”

Stewart’s rather matter-of-fact about his lifestyle. He says he doesn’t live this way for any particular philosophical reason, other than he’s dirt poor and deft enough to adapt. “We can’t live the way that we used to, because the prices are up and situations nowadays we’re having is not the same, so we gotta change with the world.”

There have been no complaints about his homestead from neighbors on either side of the green lots around him, nor from the city. “As long as you keep it clean enough, you know, they never bug me or say anything about it,” he says.

Most days he putters around his trailer, working on several peculiar inventions at once, with nothing but time at his disposal. The tight fence around the little trailer creates a cozy space where he feels protected, where his whole existence is entirely within his grasp. “Because of the world we live in nowadays and how things are in general, I like to be in a space where there’s security,” he says. “I like security. This is excellent here. I don’t like a big old house. This is safer and better than any house that I know.”

This post originally ran in Detroitblog and the Metro Times. Reprinted with permission of the author.

Sunday, March 14th, 2010

The City as Platform

I’ve seen and heard a lot about the notion of a “city as a platform”. I haven’t seen a lot of great definitions of exactly what is meant by it though, so I thought I would explore various dimensions of the concept a bit.

Let’s take a look at the actual definition of the word platform, of which there are several:

• a raised horizontal surface or stage
• a document stating the aims and principles of a political party
• the combination of a particular computer and a particular operating system
• a military structure or vehicle bearing weapons
• a section of pathway, alongside rail tracks at a train station, metro station or tram stop, at which passengers may board or alight from trains
• a woman’s shoe with a very high thick sole

It is immediately obvious how we can think of some of these as applicable to cities.

The City as a Stage

In this view, the city serves as a place for personal performance. Like a speaker or actor mounting a platform in order to be heard, people come to a city to get noticed. This is simple, but powerful. Cities are where the action is. Even if you perform your work or live your life elsewhere, if you want people to know about it, you generally have to come to the city or somehow get someone in the city to pay attention.

The bigger and more prominent the city, the bigger the stage. This creates a positive reinforcement cycle.

The City as a Manifesto

The political platform version wasn’t something that originally came to my mind when thinking of this, but it too has applicability. What is your city all “about”? What does it stand for? What is its ambition? I’m reminded again of Paul Graham’s piece “Cities and Ambition“:

Great cities attract ambitious people. You can sense it when you walk around one. In a hundred subtle ways, the city sends you a message: you could do more; you should try harder.

The surprising thing is how different these messages can be. New York tells you, above all: you should make more money. There are other messages too, of course. You should be hipper. You should be better looking. But the clearest message is that you should be richer.

What I like about Boston (or rather Cambridge) is that the message there is: you should be smarter. You really should get around to reading all those books you’ve been meaning to.
…..
How much does it matter what message a city sends? Empirically, the answer seems to be: a lot. You might think that if you had enough strength of mind to do great things, you’d be able to transcend your environment. Where you live should make at most a couple percent difference. But if you look at the historical evidence, it seems to matter more than that. Most people who did great things were clumped together in a few places where that sort of thing was done at the time.

Think about the great cities of America, and they all seem to have something of a point of view on the world and what it should be like, even if it isn’t totally clear. Especially for those cities where the civic ambition and POV is murky, a process of reflection on this is clearly warranted. Going back to the notion of a stage, since not everyplace can be New York or London, the question might be how you can create a premier stage or environment in which to attract notice for a focused set of activities or ambitions.

The City as a Computing Environment

It strikes me that today when people talk about the city as a platform, they are often making some variant of an analogy to computing. See, for example, “The City as Interaction Platform“.

As a tech guy myself, I find this one particularly of interest. A computing platform is collection of capabilities, services, and constraints that is generally shared among multiple users. In this sense, the platform defines what can and can’t be done, how easy or hard it is to do things, and mediates between users and activities.

You can think of a classic hardware/operating system combination like Wintel. But you can also think of applications like Twitter or Facebook. Some platforms, like the ones I mentioned, were and are extremely powerful and durable. Others either flourish then wither, or never get much traction to start with.

What factors affect this and how might they shape our thinking about urban success? Some that I would suggest include:

• Platform power. Ultimately how much can your platform do? Does it have constraints that limit it? (Sometimes, a city might consider constraint a good thing, however). What services is it providing that make your life easier?
• Network Effects. As with William H. Whyte saying people attract other people, users attract more users, more R&D, etc. That’s obviously a huge factor in the success of major social networking sites like Facebook, Twitter, and LinkedIn. People go there because other people are there. This implies that scaling quickly is important.
• Timing. First mover advantage is sometimes key, but often the first people to pioneer a market fail, and it is only the second or third generation that gets it right. (Friendster, anyone?)
• Adaptability. The Unix operating system was easily adaptable to many different hardware platforms and architectures. This has made it one of the most successful operating systems in history, and one that has stood the test of time. Operating systems tied too closely to particular hardware platforms or particularly technology problems typically fail once technology moves on.
• Openness. In a related note, how well does the platform interact with others? Companies like Apple and IBM thrived with “closed platform” systems. But notably Apple stumbled once and easily could again. IBM also went through struggles. I tend to think that standards compliance, interoperability, and multi-vendor approaches are more robust over the long term
• Ease of Programming and Use. One of the computer systems I worked on in college ran an operating system called VMS, which was extremely baroque. If you wanted to change your directory, you’d have to type some obscure command like “$ set default $disk54[arenn].” Everyone who worked on VMS system had scores of “utilities” that made the system usable. The greatest epiphany of my computing life was when I got an account on a Unix system, went to port over my VMS utilities, and found they were superfluous.

How do these apply to a city? Again, easy to see. Your city has to offer a set of “services” and it has to be easy to access them. Your city needs to be able to adapt over time. Etc.

This is something I think deserves more study. What makes a platform like Twitter so successful? What lessons can we learn? This might also make a useful framework for comparing cities.

The City as Weapons System

What I find interesting about this is the notion of power. Cities are powerful places. This is true for good or ill. Cities can be a “force multiplier” for people who are working in harmony with them, but they can also be a force that squelches people. Depending on what you are trying to do, a powerful city or a weak city might be more appropriate.

The City as a Train Station

Again, I even find merit in this. We can think of the city as the place we access networks that give us the ability to travel to or interact with other places and things. They are our “network access point”. Just as some train stations or air hubs have better service that others, so to with cities. How many networks does it give you access to? How can you improve your connectivity?

The City as Stripper Heels

Cities have always alternately attracted and repelled by the little bit of Sodom they all contain. “They tell me you are wicked and I believe them, for I have seen your painted women under the gas lamps luring the farm boys.” Cities define worldliness. They have always drawn those who long to be free of the strictures of their origins. They’ve long been the target of ire and suspicion from those who fear their unholy influence.

Friday, March 12th, 2010

Midwest Miscellany

I will be giving the keynote address at the IndyPartnership annual meeting on March 23rd, so Indianapolis readers should check it out. It would be great to get to meet some of you there.

Also, I was just up in Minneapolis yesterday for the Urban Land Institute Minnesota Chapter 2010 annual program.

I’m on the left. Photo by Megan Dobratz

It was a great time with a great group of people talking technology, talent attraction, and other fun topics. And I was reminded yet again of why Minneapolis is such a great city. Like many Midwest cities, they worry about having limited brand visibility and mind share out in the nation at large. But they’ve got a great product. If you haven’t been there, go check it out.

If you are interested in having me speak to your group or at your event, just email me at arenn@urbanophile.com to discuss a booking.

Also, Planetizen recently gave the Urbanophile an honorable mention in their Top Ten Web Sites of 2010 and also gave the nice quote above which is making me blush. They similarly noted New Geography, where I am a contributing editor. Thanks for the kind words and mention.

Top Stories

1. Richard Layman: Commercial district revitalization and return on public investment. Richard nails it: “The other thing to remember is that it took many decades for neighborhoods and commercial districts to decline, so we have to recognize that it will take a long time for these places to be improved. It takes even longer when we don’t know what we are doing, and we fail to learn from previous practice, not to mention best practice, and we put in minimal amounts of money so that it makes improvement very hard to come about, and we don’t direct money in ways where it can have great impact so that money gets wasted.”

Richard also has another great piece this week called Economic impact of arts-culture events vs. incentives for corporate headquarters vs. building a local economy

2. Ed Glaeser: Why the anti-urban bias? Glaeser describes how cities lose out in transportation funding. You might also be interested in my piece on reforming anti-urban bias in transportation spending as well.

3. Roger Scruton @ The American: The High Cost of Ignoring Beauty.

4. Boston Globe: London from above at night – Simply stunning photographs of London.

Renewable Energy

GOOD pointed me at this map showing the percentage of each state’s electricity needs that could be supplied from renewable sources:

Traffic Congestion

The folks at INRIX just released their 2009 National Transit Scorecard with travel time details and ranking for America’s metro areas. Here is how the Midwest metros stacked up in the league tables of most congested cities:

• #3 – Chicago
• #12 – Minneapolis-St. Paul
• #21 – St. Louis
• #24 – Pittsburgh
• #27 – Detroit
• #28 – Kansas City
• #33 – Cincinnati
• #36 – Louisville
• #37 – Cleveland
• #42 – Milwaukee
• #48 – Indianapolis
• #55 – Columbus

The Beer Belly of America

Flowing Data pointed me at this analysis from that compares the number of bars vs. the number of groceries in American counties:

World and National Roundup

Shareable: Can we design cities for happiness?

The Guardian: The Pei Master (IM Pei interview)

Libby Brooks @ The Guardian: The Dignity of Labor

Ribbonfarm: An Infrastructure Pilgrimage. If you like this, you might also be interested in the epic story of container shipping.

USA Today: New Ghost Towns – industrial communities teeter on the edge.

The Guardian: Los Angeles on the brink of an abyss.

Ed Glaeser: Betting on Atlanta

Architect’s Newspaper: Lost in Penn Station

Jim Russell: Post-Industrial South

Joel Kotkin appeared on Minnesota Public Radio to promote his book. I thought he got a reasonably positive response, but not from Twin City Sidewalks, who blew a sprocket. See both sides for yourself.

“Possibility Journalism” in Cincinnati

Cincinnati Blog pointed me at this piece about a meeting of journalists in Cincinnati trying to figure out how to create a new and possible narrative of the city. Here’s the video they produced about the event. (If it doesn’t display for you, click through to the article above).

Detroit Population Loss

This Robert J. Cristiano piece in New Geography included this AP graphic of population loss in Detroit:

On the good news front, the founder of Quicken wants to bring 2,400 jobs downtown.

Google Maps Adds Biking Directions

Google Maps will now give you directions for travel by bike, which is pretty cool as this video demonstrates (if the video doesn’t display, click here).

Branding and Biking in Rotterdam

The amazing folks over at Copenhagenize found this inspiring music video/branding film/advert about Rotterdam created in conjunction with their hosting the le Grand Départ for Le Tour de France this year. (If the video doesn’t display, click here).

More Midwest

Ohio won Site Selection magazine’s Governor’s Cup for economic development last year as the number one state in the country for deals done.

Also in Ohio, Community Research Partners took a look back at the Census results for Ohio over the decades.

Chicago
Tri-State/I-57 interchange will move forward (Tribune) – $570M for one interchange? I think I’m beginning to see why Illinois has a budget problem.
CTA pay for bus drivers is #3 in the nation (Tribune) – #1 if cost of living is taken into account

Cincinnati
A love-hate relationship (Urban Out)

Cleveland
Cleveland’s Comeback (Next American City)

Detroit
Detroit: The Last Days (The Guardian)

Indianapolis
Fishers named America’s stop affordable suburb (Business Week)

Louisville
Abramson wants city or state to buy LG&E or KU if they are for sale (C-J)

St. Louis
Mayor Slay endorses rejoining St. Louis County (Mayor’s web site) – St. Louis is an independent city not part of St. Louis County today.
Designers should plan removal of downtown I-70 lanes (Post-Dispatch) – editorial board endorses City to River
St. Louis: City and River – part one, part two (Exquisite Struggle)

Post-Script

The Chicago Transit Authority has approved the “mobile garden” concept, which would attach a garden car to the L and have it travel the city. Now the organizers are fundraising for the project. Check out their web site if you want to learn more or contribute.

Thursday, March 11th, 2010

Detroit: Embracing the Ruins

(Photo Urbanarcheology via Wikipedia)

The New York Times ran yet another article on the fate of the Michigan Central Depot, a former grand train station that has come to symbolize the decay of Detroit. The building is a shambles. It’s owned by billionaire Matty Morourn, who hasn’t invested anything in its maintenance and probably never will as long as he remains embroiled in a dispute with various government agencies over plans for another Detroit River crossing to Canada. (He owns the existing Ambassador Bridge and wants to build a twin span, while the state has a rival proposal). The previous Detroit City Council voted to condemn and demolish the building, sending Moroun the bill, but nothing has happened and the building just sits there forlorn. From the NYT:

Preservationists, business owners, state leaders and community activists are taking what feels like a last stab at saving the 97-year-old building before it goes the way of New York’s Pennsylvania Station or, more locally, Tiger Stadium and countless other pieces of old Detroit that have fallen to the wrecking ball in recent years.

Among the recent proposals have been to turn the cavernous brick, steel and stone facade into an extreme sports castle; a casino; a hotel and office park; a fish hatchery and aquarium; an amphitheater; or a railway station again, with high-speed trains.

Or just clean and secure it, and leave it the way it is as an attraction for tourists.
…
It is still a magnet for urban explorers and photographers from around the world. On various Facebook pages, it has more than 15,000 fans and friends. Phillip Cooley, a restaurant owner who lives across a park from the station, estimates that about 30 sightseers a day show up at its locked gate, cameras raised. He calls the building “an education.”

This notion of securing the Michigan Central Depot, and other “industrial ruins” Detroit and converting them into tourist attractions as ruins is a good one that should be explored.

(Photo Shane Gorski/Flickr via Infrastructurist)

I realize full well this is the type of suggestion that, when it comes from an outsider, infuriates locals. But hear me out.

Detroit has a vast supply of decayed and vacant buildings, many of them architectural treasures. Even if MCD is somehow restored, it will be one of only a handful saved, while so many others will languish for some time. Many, like the Lafayette Building, may become so damaged that they have to be torn down.

What if instead of spending a huge amount of money to try to save one building, the city found a little bit of money to do basic maintenance to preserve the structural integrity of many buildings – and create a safe path through parts of them that tourists could walk through similar to how ancient ruins are displayed in Europe. Heck, don’t even clean the buildings up. That saves money and makes them even more impressive to visitors. This could preserve more structures for the long haul, and create a tourist attraction. The structures can always been renovated later when demand warrants.

Actually, the tourists are already coming whether it is authorized or not. Thirty folks a day at MCD is pretty impressive. Imaging putting a string of these sites together – probably including many of the same ones we’ve seen photographed before – and allowing tours. And of course marketing the heck out of it.

(Photo JBCurio/Flickr via Infrastructurist)

This idea also shows the type of thinking Detroit needs to be doing to build a future. Harvard business professor Michael Porter has stated that “competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique matrix of value.” The CEO’s for Cities “City Vitals” research identified four key dimensions of success, of which one is “distinctiveness”.

Being distinctive, being different, means you are doing things that most other people aren’t. It doesn’t mean that everything you do has to be different. There is plenty of scope for implementing best practices, such as complete streets. But you can’t hang your hat on that alone.

Imagine a Detroit with a light rail line on Woodward, bike lanes, art galleries, etc. That’s a nice vision, and those might do some good, but ultimately they are not really going to attract anyone to Detroit or create a unique offering there because there are plenty of places that already do those things better than Detroit ever will.

I’ve said before that Detroit is a big city with a powerful brand, the sort of place that can attract people. One possible way is to make Detroit the ultimate arena in which to prove out alternative visions of our urban future, a new American frontier where you can re-imagine and reinvent yourself and pursue wild and crazy urbanist dreams that would just plain be off limits anywhere else.

The concept of “embracing the ruins” goes right alone with this. What other city has such a supply of these or would dare step up to preserve them as ruins? I can’t name one. That’s distinctiveness for you, and distinctiveness that totally reinforces a possible brand image.

Frankly, we probably should preserve some of these in America. I’ve written before about the possibility that the enclosed mall might end up all but obliterated from the American landscape. So too the industrial ruin.

America should perhaps keep some reminders of the vanity of life and the follies of the industrial age, to the hubris that brought so many gains, but also so many ills – and one heckuva hangover – to our country. This might even be a legitimate place where federal assistance is warranted – to save these buildings from the wrecking ball and preserve them as national monuments to the industrial moment in America.

For another view on MCD, see Wayne Senville’s take.

Shrinking Detroit

There were more reports this week about Detroit’s plans to shrink itself. Unlike the Youngstown situation, where a more or less gradual and voluntary approach is being taken, it looks like Detroit is lining up to take stronger action to more or less decommission tracts of the city. According to the Associated Press:

Things that were unthinkable are now becoming thinkable,” said James W. Hughes, dean of the School of Planning and Public Policy at Rutgers University, who is among the urban experts watching the experiment with interest. “There is now a realization that past glories are never going to be recaptured. Some people probably don’t accept that, but that is the reality.”
…
Politically explosive decisions must be made about which neighborhoods should be bulldozed and which improved. Hundreds of millions of federal dollars will be needed to buy land, raze buildings and relocate residents, since this financially desperate city does not have the means to do it on its own. It isn’t known how many people in the mostly black, blue-collar city might be uprooted, but it could be thousands. Some won’t go willingly.
…
Several other declining industrial cities, such as Youngstown, Ohio, have also accepted downsizing. Since 2005, Youngstown has been tearing down a few hundred houses a year. But Detroit’s plans dwarf that effort. The approximately 40 square miles of vacant property in Detroit is larger than the entire city of Youngstown.

The Detroit News chimes in with a story on the locations of the most desolate neighborhoods.

The matter of the sheer scale of Detroit is worth noting again. Youngstown has a lot of great things going on, and I believe is on the right track. But it strikes me that a place like Youngstown is unlikely to attract many of the truly audacious dreamers that don’t have a pre-existing connection to the place. When you want to take on that challenge, it’s a city like Detroit or New Orleans that has the powerful brand to be a draw. I think this powerful brand is a huge asset of Detroit, a city known around the world.

This will be an interesting one to watch. I continue to be impressed with the leadership of Mayor Dave Bing and Detroit Public Schools financial receiver Robert Bobb. I’d put those two up against almost anyone in the country based on what I’ve seen so far. This gives Detroit one crucial advantage that is all too lacking in so many cities: quality leadership. We’ll see where it takes them.

Previous Urbanophile Articles on Detroit

Detroit: Urban Laboratory and New American Frontier
A Plan for Detroit
Outmigration Devastates Michigan – and the Midwest
Detroit: Do the Collapse
Detroit: Not the Future of the American City

Tuesday, March 9th, 2010

Carl Wohlt: Learning from Starbucks

In Learning from Las Vegas, authors Robert Venturi, Denise Scott Brown and Steven Izenour challenged the architectural community to re-examine the design of commercial structures along the Las Vegas Strip. They believed that the explicitly symbolic features of “ugly and ordinary” vernacular design along the Strip were every bit as functional and legitimate as the forms created by modernist architects. Learning from popular culture, they suggested, would make high culture elites “more sympathetic to current needs and issues” and promote the creation of “people’s architecture as people want it.”

Can the Midwest’s struggling commercial areas learn from Las Vegas? Perhaps. Almost every town of any size has the ubiquitous strip of auto-oriented franchises and retail boxes. Rather than trying to reduce the visual affects of blatantly commercial signs and structures, perhaps these features should be ramped up and made even more dazzling and playful. Everyone needs a little excitement in their life. If a community’s local version of the Las Vegas Strip can provide some of it, maybe that should be celebrated and not dialed down as most of today’s conventional zoning and design regulating practices attempt to do.

However, for the traditional commercial centers of most Midwestern cities, the drama of the Las Vegas Strip is probably far too over the top. Many have historic features that are integral to the community’s unique culture and identity. Showcasing these elements requires a much more nuanced approach. To enhance marketplace appeal, I believe these places would be much better served by learning not from Las Vegas but from Starbucks.

To understand why, it’s useful to glance at the research from the field of environmental psychology that emerged in 1950s and 1960s, often driven by collaborations between psychologists and architects. Daniel Stokols, who in 1987 coedited two comprehensive volumes entitled Handbook of Environmental Psychology, described the field as “the study of human behavior and well-being in relation to the large-scale sociophysical environment.” Early research focused not only on environmental characteristics but also personality and individual dispositions towards a variety of environmental topics. The visibility of the field has waxed and waned over the years, in part because much of the work has been adopted into mainstream psychology. In some design quarters, interest remains strong, as demonstrated by the work of “evidence based design” advocates.

Most of the research has focused on interior environments. In a 2002 Journal of Business Research article, L. W. Turley and R. E. Milliman wrote that research pertaining to “exterior variables,” including storefronts, marquess, entrances, building architecture, parking and the surrounding area had been extremely limited to date. However, they also noted three studies that found “external variables have an influence on the behavior of retail customers.”

Private sector retailers continue to research how interior store environments affect consumer behaviors, most of which is proprietary and never published. Called “atmospherics,” a term used by Philip Kotler in an influential 1973 Journal of Retailing article, this research has focused on a variety of variables, including sound and music, color, lighting, crowding, store layout, scent, ambient odor and various social factors. Greenland and McGoldrick’s 2004 working paper “Measuring the Atmospheric Impact of Customers” provides an excellent summary of atmospherics research, including a list of completed studies organized into categories based on the five human sensual receptors — visual, aural, tactile, olfactory and taste.

The absence of research on exterior commercial environments should not deter downtown stakeholders from taking advantage of strategies that have proven effective for retailers. I think Starbucks is an especially useful model because they demonstrate in a very compact space how to effectively appeal to every human sense. These positive sensory experiences help customers develop strong emotional connections to the Starbucks brand.

Kevin Roberts, in his wonderful book Lovemarks, underscores the value of making these emotional connections:

Direct, provocative, immediate. Tough to fool. Even tougher to override. The senses speak to the mind in the language of emotions, not words. Emotions alert us to how important the findings of our senses are, not only to our well-being, but indeed to our very survival.

To Roberts, the sensory connection is how “lovemarks” — brands that “inspire loyalty beyond reason” — are created. The lovemarks concept helps to explain why Starbucks remains one of the world’s top brands even though they’ve faced some serious marketplace challenges over the past several years.

Creating a positive sensory experience is not just about brand building. More fundamentally, it’s about the degree to which commercial areas compel visits and, just as importantly, return visits. From the work of environmental psychologists, we know that places motivate one of two basic behavioral responses — people either feel comfortable approaching them or they avoid them. This sounds incredibly simple, but it’s actually quite profound when you think about it because it’s the essence of what development and redevelopment initiatives are really all about. Approach / avoidance behaviors are triggered by emotional responses that are generated by either cognitive processes (“I heard/read this place is safe/dangerous, so I think I feel most comfortable approaching/avoiding it”) or through sensory data acquired directly from the environment (“this place looks good, smells good, tastes good, sounds good and feels good — or it doesn’t — so I will approach/avoid it”).

For commercial district stakeholders, the emotional responses generated through cognitive processes help to underscore the value of creating and managing a brand image and identity that motivates approach behaviors. However, the success of the brand image begins with and is reinforced over time by the emotional responses of visitors who experience the place first hand at a sensory level. This is where the folks at Starbucks really nail it — and, the lessons of Starbucks are remarkably direct and simple to comprehend once you become aware of the individual sensory experiences.

For starters, Starbucks interiors are visually appealing. The color treatments are warm and friendly, which encourage customers to slow down and linger. The lighting is generally subdued and feels very natural. The casual atmosphere is almost the opposite of the high pressure, brightly lit work environments in which many of their customers must toil. As someone with a background in graphic design, I find the consistently high quality of the packaging on display especially impressive. Of course, the aroma of freshly brewing coffee is always appealing, and there are always a number of other tasty products to enjoy. There’s usually good music by top-notch artists playing in the background. The environments are easy to comprehend and navigate regardless of the unique characteristics of the specific store site. The seating is varied and comfortable. And, who among us does not appreciate the availability of free, clean bathrooms? I almost never see an empty Starbucks, and this is golden. In the immortal word of William Whyte, “what attracts other people most, it would appear, is other people.”

If your commercial areas are not creating the strong emotional connections that motivate approach behaviors and brand loyalty, conducting an informal sensory audit is a simple way to better understand your strengths and the issues that might be holding you back. To create Starbucks-like emotional connections, the sensory variables have to be working largely in synch — one or two chronic weaknesses can inhibit the connection.

Years ago, my wife and I were looking for place to have coffee on a beautiful May afternoon in Paris. We found a charming outdoor cafe with a stunning view of the Eiffel Tower and sat down. The coffee was excellent, the chairs were comfortable and the visuals were classically Parisian. However, after about ten minutes, we started to become annoyed by the constant stream of busses that were pulling up to the curb by our table in increasing numbers. It was difficult to carry on a conversation and the exhaust fumes became overwhelming. We hadn’t noticed that our charming little cafe was located at a bus stop. So, the coffee was good, the seating was comfy and the visuals were outstanding. But the noise and exhaust fumes from the buses made the overall experience very unpleasant. A positive emotional connection to the cafe was never established.

A walk around your commercial areas in different seasons and at different times of the day with a focus on the sensory experience can be highly revealing. Is it visually appealing, night and day, all year long? Are the smells pleasant — or, is there at least an absence of obnoxious odors that might drive visitors away? Are there places to dine, grab a snack or have drink with friends? Are the sounds you hear appealing or discomforting? Are your commercial areas easy to access and navigate for both pedestrians and those arriving by vehicle? Are there comfortable places to sit and linger? Are there convenient public bathrooms or places to change a diaper?

At a sensory level, all places have strengths and weaknesses. As mentioned, other factors such as individual personalities and personal preference also influence emotions. For example, some people will never find your downtown appealing no matter how much your strive to please. One person’s child pleasing splash fountain is another person’s highly irritating noise machine. But without a critical mass of largely positive sensory experiences, a la Starbucks, your chances of motivating “approach” behaviors and brand loyalty are greatly diminished.

For commercial area stakeholders seeking inspiration for ways to attract more customers, inspire them to stay longer, spend more money and compel them to return again and again, a visit to the closest Starbucks is a good place to start.

Carl Wohlt is the founder and principal of wohltgroup, a placebranding consultancy. He can be reached at cwohlt@gmail.com.

Sunday, March 7th, 2010

Downsides of Consolidation #2 – Cost Increases, Dilution of Urban Interests, Deferred Problems

This is the second and last installment in my mini-series on the downsides of city-county consolidation, or “big box” vs. “small box” government. Part one covers neighborhood redevelopment challenges. For those of you who didn’t read that, I’m not opposed to city-county consolidations at all, and generally think they’ve been positives in places that have pursued them. I am merely examining some of the trade-offs that come with that choice. Like any form of government, this one too has its challenges.

Cost Increases

Proponents of government mergers and consolidations typically tout efficiencies and economies of scale that make a consolidated government less costly to operate than separate governments. While I think there may be areas where this is true, it’s easy to find scenarios where the opposite is the case.

One reason mergers make costs go up is because it is almost certain that wages and benefits for the employees in the various districts will be harmonized to the high water mark. For example, fire departments were not part of the original Indianapolis-Marion County merger, but the city has been pursuing additional mergers in this area lately. The merger of the Indianapolis Fire Department with the Perry Township Fire Department is is an interesting case study. 120 Perry Township fire fighters are getting $2,000-$3,000 raises to bring them up to IFD levels. This is actually increasing the cost of providing fire service by $600,000 a year. This is real cash money out the door. There may be valid reasons for merging these departments, but saving money isn’t one of them.

I can’t name a single government merger where salaries weren’t harmonized to the high water mark. There probably are examples, and I’d be interested to hear them, but this is likely the exception more than the rule.

The second reason mergers increase cost is Brook’s Law. Originally coined for the software industry as “adding more manpower to a late software project only makes it later”, this draws attention to the downside of larger teams and bureaucracies. While always an over-simplification, and not directly applicable outside of projects, it is still an interesting insight that productivity goes up linearly with bodies unless you substitute capital for labor, while organizational complexity increases at an increasing rate over time. For something like fire fighting, where there are fewer benefits to raw scale, the overhead itself eventually imposes costs with few benefits in return. For example, the Indianapolis Fire Department already has hazmat teams, dive teams, high rise capabilities, etc. It’s not like combining with Perry Township will enable them to do something they couldn’t do before. IFD already had minimum efficient scale. There would appear to be no opportunity to substitute fixed for variable costs. There are likely some purchasing benefits and the like, but those could have been gotten without merger. On the other hand, this will clearly create a more complex bureaucracy.

In short, I believe mergers, particularly those of general purpose governments or highly visible agencies, typically increase costs.

Dilution of Urban Interests

This is the core of the argument laid out by Savitch and Vogel that I discussed previously. Basically, merger dilutes the voice and clout of the urban core. Among the implications:

• Dilution of minority voting power. (I should note that in places like Europe, expanding the local government box beyond the core might actually bring in more minorities. But their entire systems are different).
• Limiting the power of grass roots or outsider candidates and strengthening the establishment. It should be noted, however, that in Indianapolis complete outsider Greg Ballard was elected mayor in the last election, so clearly this is not entirely the case.
• One size fits all solutions. It is the nature of government to promote uniform rules. Combining an urban core with more suburban areas may result in rules appropriate to neither, or even tilted in favor of the suburbs, such as by adoption of suburban style zoning, which is the case in Indianapolis.
• Shifting of spending to the periphery. Outlying areas, particularly if it is still a developing county, may result in a shift of spending towards infrastructure hungry suburbs. For example, the major parks initiative in Louisville-Jefferson County is a huge ring of new parks in outer Jefferson County called “City of Parks”.
• Limited income redistribution. While not technically a requirement for merger, separate “urban services districts” that cover the old city are designed to firewall off the former suburbanites from contributing towards central city services are common features. I’ve even seen this in smaller scale mergers, such as the merger of the town of Zionsville, Indiana with two surrounding townships.
• Parasitization of the urban tax base. The central city tax base is forced to support region-wide amenities on its own “inside the firewall” tax base, while region-wide revenues to go build suburban infrastructure. Tax increment financing is a typical vehicle for this.

Carol Coletta called regionalism “identity theft for cities.” As a type of regionalism solution, city-county mergers suffer from this. I think that’s a good way to sum it up. Actually, Brookings style regionalism might be better than merger in a way. An approach like the Minneapolis-St. Paul regional tax sharing solution actually allows revenues to flow to places where they are needed, without the firewalls of urban services districts typically created during mergers.

Problem Deferral

The other challenge of city-county mergers is that they basically kick the can down the road in terms of the problems facing the urban core and inner suburbs. For example, the Louisville-Jefferson County merger “solved” the problem of the suburbanization of jobs (and hence the tax base in a state where local income taxes are a key revenue source). But it didn’t solve anything for the long term. This works today because Louisville has not experienced significant development in its collar counties, outside of a small area of southern Indiana that is itself more or less an “inner city” type of place. When Jefferson County itself fills up, and all the new office parks are being built in Oldham or Shelby County, it will be right back where it started. Unless local leaders use the time between now and when that happens to built a long term sustainable product in the urban core and suburban areas of Jefferson County, this won’t really have accomplished much. No one should be breathing a sigh of relief just because a merger passed. Urban success is not just about lines on the map, it’s about the product.

Friday, March 5th, 2010

Replay: Small Cities Should Have Fareless Transit

[ When this post originally ran, one of the principal objections was that homeless people would just hang out on transit. First, I think that is a pretty pathetic basis for making a major public policy decision. Second, I think there are many ways to prevent buses and trains from turning into rolling homeless shelters besides making everyone else pay a fare. ]

Following on from my transit award, I thought I’d turn from Chicago to smaller cities and look at ways they can design better transit systems. I think one of the best ways to do this is to simply build fareless systems.

Why have a fare in the first place? It is odd that we pay per use on transit. We don’t pay to check books out of a library. We don’t pay to visit most city parks. We don’t pay when the police or fire department come to our house for a legitimate emergency. Most non-utility municipal services are provided for free to users and funded by taxes. So why is transit different? I suspect it is rooted in the origins of public transit systems when they were private, for-profit companies. But they aren’t that today so why adopt those legacy practices?

It seems to me that there are two basic reasons you would charge for a government service. One is to recover the costs associated with it from users. Two is to ration usage.

For the first, think of something like getting a building permit. The city can charge a fee for this that more or less covers the cost of administering the permitting and inspection process. And only the people who are building something need to pay. Sounds like a fair system, as it were. Toll roads also fall into this camp. Of course, the question immediately proceeds to, if you can recover the full cost from users, why is the government providing the service in the first place instead of the market? A good question that should be seriously considered.

As for the second, one can again think of toll roads and using variable pricing as a way to reduce traffic congestion. There are several practical examples of this in actual operation around the world.

Does transit fit this model? No, especially in smaller cities. It is true that only a segment of the community rides transit and so it might seem logical to make them pay for it. But by itself this seems insufficient to justify it. There are lots of services that are not consumed by everyone, but nevertheless are paid for by everyone. As someone who doesn’t have kids but has a rather large property tax bill, schools immediately come to mind. This argument has seldom held water by itself.

Can we recover the cost of transit from riders? Not even close. Large city systems like the Chicago CTA can recover a significant percentage from fares, but nothing close to the cost of operations. The CTA’s farebox recovery is about 50%. And that’s just for the operating budget. It does not include, due to the vagaries of government accounting (not the CTA’s fault), depreciation, which is a huge expense in a capital intensive business like transit.

The Indianapolis IndyGo system recovers less than 20% of its operating costs from fares. IndyGo charges $2 per ride to collect $10 million a year in user fees (i.e., taxes), largely from the poorest segment of the community. But this is only a fraction of the $55 million operating budget. There are already $45 million in taxes going into IndyGo, just for operations. Despite the illusion of fares, the Indianapolis bus system is almost entirely tax supported today.

Again, if you look at a large city like Chicago you can find overcrowded routes where pricing can help regulate congestion. But in smaller cities, this is usually the least of concerns. The real problem is trying to figure out how to convince discretionary riders to use the system.

Add it up, and just generally transit in smaller cities seems like a bad fit for fares based solely on the inability to recover a meaningful percentage of the cost and the lack of any over-crowding problems.

On the other side, there are big benefits to going fareless.

1. Reduced capital expenses. No fares == no fare collection equipment. You don’t need to kit out buses with fareboxes, rail stations with turnstiles or ticketing equipment, etc.

2. Reduced operating expenses. Collecting fares means you need an entire cash management apparatus. Handling money requires care, proper processes, accounting, security, etc. Get rid of all that and you are saving money. Plus, you don’t have to worry about enforcement. Even on POP systems you’ve got the labor of people auditing tickets. Why bother? And you don’t need to pay repair technicians to service this equipment because it will never break down because it doesn’t exist. That also means no spare parts, which can mean less storage requirements, etc. And with less personnel you probably need a smaller office. The list of savings goes on and on.

3. Improved operations. How long does it take for everybody to board at a bus stop as one person after another swipes a pass or fumbles for change? No fare collection means boarding is quicker. You can even board through every door, not just the front. This means less time spent idling, lower fuel consumption, and faster journey times (a big point in getting people into transit).

4. Better ROI. You are building a transit system so that people will ride it. Fares discourage ridership, especially off peak, non-commute trips. That ain’t good. A transit system is a more or less fixed cost network like an airline. Every seat that goes empty goes to waste. We’re paying to run the buses or trains whether or not anyone is on them. The marginal cost of an additional passenger, up until the point where capacity is maxed, is very low. So why not make sure those seats don’t expire worthless?

5. Marketing. It’s a lot easier to sell something that costs nothing. And any city that did this would get major kudos.

The federal rules around transit are beyond byzantine, so I don’t know if this would be legal or not. If not, we need to change the law. But regardless, here’s my thought process. With so little federal New Start funds available, most cities that want to build say a new rail line or BRT system or significantly beefed up city bus network are going to be paying for most of the capex out of their own pocket anyway. This often means a referrendum to approve a tax. If you’re asking for hundreds of millions if not billions in tax dollars to build something, why not also ask for the taxes to run it? Frankly, it’s unfair to ask someone to vote for a tax to build something if the money to operate isn’t going to be in the bank. That’s why our transit systems seem to be in a state of perpetual funding crisis. If you are going to build something, you need to build the opex and long term maintenance into the deal up front. It strikes me that asking for a whole lot of money plus a bit more for operations isn’t that must different from just plain asking for a whole lot of money. And you are doing your citizens a service long term by avoiding the downstream crises. And if you have to pay for the whole thing yourself anyway, you can probably avoid many of the rules that might get in your way.

For America’s smaller cities looking to implement significantly improved transit systems, fareless is definitely the way go.

This post original ran on April 1, 2009.

Thursday, March 4th, 2010

The 10% Solution

My latest post is online at New Geography. It is called “The 10% Solution for Urban Growth“. My thesis is that for cities below the top tier (tier one’s are already seeing a major urban influx because of their high quality product and economic changes), the best policy is to seek to capture about 10% of net new regional growth for the urban core. If we can get more, great, but let’s start with that base goal and develop a strategy to get there.

This might seem particularly unambitious, but it would actually be totally transformative:

Cincinnati provides another example. It is a metro growing a bit less than the national average, but still adding people at a rate of about 150,000 per decade. The city of Cincinnati declined from a peak of 503,998 in 1950 to 333,336 today, a loss of 170,000 people. Again, if the city captured 100% of just regional growth, in little more than a decade it would be back to a record high population. That’s not realistic of course, but 10% of that total, or 15,000 people, would still make a tremendous impact on the city. Like Indianapolis, there’s already some sign of an inflection point, as the city population began growing again in the 2000’s.

Can this 10% solution really happen? The answer is a resounding Yes, because it is already happening in Atlanta. Its reputation as a sprawlburg overshadows the fact that it is experiencing one of America’s most impressive urban core booms. The city of Atlanta has added almost 120,000 new residents since 2000, an increase of 28%. This is a mere 10.5% of the metro area’s growth during that time – but it has totally changed the city. Atlanta lost over 100,000 people from its 1970 peak, but is now at an all time high.

I know many people would love to see a more aggressive return to the city, and even view it as an imperative for environmental or other reasons. But just because it is desirable, doesn’t mean it is going to happen. The numbers just don’t add up for it, which you can read about in my piece.

Also, excessive rhetoric about the need for mass re-urbanization is actually counterproductive outside of those few cities where people are already primed to accept it. James Howard Kunstler comes to mind. Don’t get me wrong. I own some of his stuff and enjoy reading it. He’s a great writer and I enjoy a good screed as much as anyone from time to time. But he obviously has nothing but contempt for the suburbs and the people who live in them. Given that in most places in America, suburbanites are in the majority, and we need their votes for the Congressional and state action we have to have to reinvigorate our cities, I don’t think picking a fight is advisable. This sort of over the top writing or advocacy for change only scares people and lends itself to caricature as urban advocates wanting to force people back into overcrowded tenements and such, when I’m not aware that’s actually the case.

Again, if we can get more than 10%, great. I’m all for it. But I’d rather set a modest, realistically achievable target that we can hold ourselves and our leaders accountable for reaching than a pie in the sky vision of growth that isn’t likely outside of places like New York City. And in practice today, few cities are getting anywhere near 10% of regional growth in the urban core.

Obviously this only works if your region is growing. If you are stagnant or shrinking, you’ve got a bigger challenge on your hands. There the imperative is to restart the regional economic and demographic engine. Hopefully the core can play a role in doing that.

Tuesday, March 2nd, 2010

Featured Site: Branding for Cities

As someone who is interested in civic branding, I wanted to highlight a relatively new blog called Branding for Cities, which is put out by one of the brains behind City Mayors. I’ve already found some very interesting information via this site. One of the things I like about it is that, being based in London, it brings a global perspective to the table. This is too often missing from US urbanist discussions. Particularly in civic branding, I think European cities are ahead of American ones, so that global perspective is especially helpful here. I’ll share some interesting highlights I’ve found to give you a flavor for what’s there.

The Brand-Territory Matrix

One highlight is a framework for relating commercial brands with territorial brands called the Brand-Territory Matrix. It was developed by Gildo Seisdedos of IE Business School and Cristina Mateo, a member of the Madrid City Council.

The general idea is that the brands of products draw on the brand of their place of origin to create part of their own image. Think Hermès , Barneys New York, or Ikea. In return, the products themselves then strengthen the place brand. This reciprocal benefit between commercial and territorial branding has developed organically, and has disproportionately benefited only a few places. However, there is opportunity for cities to look to more consciously encourage this process as part of a place branding strategy.

Here’s a very informative ten minute video where Seisdedos explains his framework. For anyone with an interest in place branding, I strongly encourage watching it. (If the video doesn’t display, click here).

As someone with a background in management consulting, I’m a sucker for 2×2 matrices. Since not everyone will watch a video, I took the liberty of turning their framework into a framework diagram for you. This is part of my continuing effort to provide useful frameworks and techniques cities can apply themselves.

There are two axes, the market scope of the commercial brand (wide or narrow) and the emphasis on the place of origin (low or high). This produces the four brand quadrants of Emerging brands, Ambassador brands, Impostor brands, and Aristocratic brands.

Ambassador brands are those like Ikea that are both broad in scope, but also make high use of place. You know it is a Swedish company through and through. Emerging brands are broad in scope, but downplay their origin. Seisdedos uses Spanish clothing chain Zara as an example. Aristocratic brands are often then most powerfully associated with place. Barneys New York, for example. And as an example of an Impostor brand, Seisdedos uses Victorio & Lucchino, a clothing line that sounds Italian, but is actually from Seville.

For cities, you can catalog your commercial brands and map them on this matrix. Then look at where there are opportunities to mutually enhance commercial and territorial brands through linkages or other mechanisms. For example, how could emerging brands potentially be encouraged to be more ambassadorial? Can aristocratic brands be leveraged for tourism benefits? If your city has lots of Impostor brands, what is that telling you?

Actually, I think Impostor is the weakest of the four, since not all low-low brands are faking who they are. I think of Endangered Species Chocolates in Indianapolis, which isn’t trying to fool anyone about its origins, but doesn’t highlight them either.

Whatever you think of this framework, the exercise of examining the relationship between your city and the commercial brands that call it home is a useful exercise.

Philippe Mihailovich

In part of a series on luxury branding, Philippe Mihailovich extends this theme of the linkage of place brand and commercial brand.

Not long after meeting someone for the first time, you may expect to be asked, “where are you from?” based on your name, your accent or your look. The same will be asked (even if just in thought) of your brand, especially if it is different. We may be interested to know the brand’s place of origin, nationality, neighbourhood, everything. Here’s where heritage kicks in, even for new brands. If a watch brand is from Switzerland, that helps. If the car is from Germany, that helps. Luxury branding cannot be separated from place branding. They work by adding brand value to each other.

Places now compete in the same way as companies do and the emerging nations now realise the need to start developing their own luxury brands instead of importing them. Clearly cities, regions and nations can benefit from encouraging the development of local luxury brands. Paris is no stranger to this. The city positions itself as “Paris, Capitale de la Creation”. It’s a branding operation that brings together 20 professional fashion and home decoration exhibitions annually and helps the city to compete with all others and it works. We believe Paris to be the capital of creation just as we believe the best sparkling wine comes from Champagne and that the best watches are Swiss.

And

Hermès without Paris, could be misperceived as being Greek. Hermès and even L’Oreal, by adding Paris to their brand names, have effectively co-branded themselves with all Parisian associations thereby enabling their brands to stretch into almost any French category that Paris is known for….Reputation of a place can make or break a luxury brand just as it can affect the employment chances of an individual. The “Made in China” brand is a case in point. After concerns over pet food, toothpaste, seafood and defective tires, China had to cope with exploding mobile phone batteries and poisonous baby food. Ironically in the 18th Century the French were importing the finest luxury goods from China. It takes a long time to establish a good reputation for a brand and a very short time to destroy it. “Made in China” now reads like a consumer warning. Bad news always travels faster than good.

Read the whole things for yourself.

Aesthetic Failure in Brisbane

It’s not all Europe and it’s not all good news either, as this opinion piece illustrates.

One of the great frustrations of growing up and living in Brisbane is watching the city get uglier. Granted, we have, in the past few decades, grown from parochial cow town to “Australia’s new world city”, whatever that might mean. But did we have to lose so much of what made the place unique?…..just when you think you’ve seen the nadir of ugliness, something new comes along to set a new benchmark for practical plainness…..Hale says ugly outcomes are a symptom of, among other things, poor leadership from politicians “who fail to encourage better design”. As he said, “no self-respecting European politician would be seen cutting the ribbon on an ugly pile of concrete”. For years our self-promoting politicians have been far more interested in looking good by cutting the ribbon than making sure whatever it is they are opening itself looks good.

This is just a sample of what you’ll find at Branding Info for Cities. So if civic branding is your game, check it out.

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About the Urbanophile

Aaron M. Renn is an opinion-leading urban analyst, consultant, speaker, and writer on a mission to help America’s cities thrive and find sustainable success in the 21st century.

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Contact

• arenn@urbanophile.com
• twitter.com/urbanophile
• linkedin.com/in/aaronmrenn

Please email before connecting with me on LinkedIn if we don't already know each other.