Boston, MA, May 21, 2024 (GLOBE NEWSWIRE) -- The Initiative for a Competitive Inner City (ICIC) is proud to announce the release of its latest report, "Racial Equity in America's New Industrial Transformation." Funded by ICIC’s Michael E. Porter Research Fund, this groundbreaking research dissects the impacts of the Infrastructure Investment and Jobs Act, CHIPS and Science Act, and Inflation Reduction Act on Black- and Hispanic-owned manufacturers. This legislation, passed in 2021 and 2022, authorizes nearly $1.5 trillion in federal investments to rebuild the nation’s infrastructure, encourage domestic semiconductor manufacturing, and promote the use of clean vehicles and renewable energy, while fostering a more equitable economic landscape.
The report uncovers a deeply concerning reality: Black-owned and Hispanic-owned manufacturers account for only 0.5% and 0.8%, respectively, of all manufacturers across 13 critical supply chains supported by the three pieces of legislation. By mapping the current landscape and proposing actionable strategies, this study aims to significantly influence America's industrial renewal to ensure equitable benefits.
The report presents recommendations in six key focus areas:
- Increasing capital access for Black- and Hispanic-owned businesses to stimulate growth and innovation.
- Improving the flexibility and competitiveness of minority-owned suppliers with technical assistance and training.
- Identifying and removing barriers in the advanced manufacturing STEM education pipeline, crucial for nurturing startup companies.
- Reforming the procurement practices of large purchasers to increase opportunities for Black- and Hispanic-owned companies in manufacturing.
- Collecting and disseminating data about supply chains in advanced manufacturing.
- Taking advantage of opportunities Black- and Hispanic-owned manufacturers may have to operate at lower tiers of their supply chains and hire residents of under-resourced communities.
Steve Grossman, CEO of ICIC, stated: "We stand at a critical juncture in our nation's history, with a unique opportunity to reshape the industrial landscape to be as diverse as the country it serves. The findings in this report lay the groundwork for meaningful change, ensuring that growth and innovation in American manufacturing are powered by a new generation of business owners that is as inclusive as it is entrepreneurial. As we implement these recommendations, we commit to transforming the promise of racial equity into tangible economic progress for Black- and Hispanic-owned businesses across the nation."
A Call to Action: Join the Movement for Equitable Industrial Renewal
ICIC calls upon industry leaders, policymakers, and stakeholders to embrace the recommendations laid out in this report and join the movement toward a more equitable manufacturing sector. This initiative not only addresses racial disparities but also unlocks potential for economic prosperity that is inclusive and sustainable.
For further information, to access the full report, or to participate in upcoming discussions and initiatives based on these findings, please visit https://icic.org/research/industry-clusters/racial-equity-in-americas-new-industrial-transformation.
About ICIC:
Initiative for a Competitive Inner City (ICIC) is the widely recognized authority on accelerating small business growth in under-resourced communities. Founded by renowned Harvard Business School professor Michael Porter 30 years ago as a research and strategy organization, today ICIC drives inclusive economic prosperity in under-resourced communities through innovative research and programs to create jobs, income, and wealth for local residents.
About the Michael E. Porter Research Fund
In 2023, ICIC created the Michael E. Porter Research Fund to honor its founder and strengthen the foundation of financial support sustaining, informing, and transforming ICIC to create more competitive and inclusive communities. The fund supports the organization’s ability to pursue trailblazing research projects, create new and effective programming, and continue expanding our efforts to drive equitable economic prosperity and close the racial wealth gap.
