An Economic

Gardening
Strategy for
Syracuse, NY
Michael Greene
 Table of Contents
Geography2
Salt Industry2
Syracuse as a Community2
The Abolitionist Movement3
Manufacturing.3
Transition to a Service Economy4
Syracuse Today5
The Strategy for Syracuse5
Values for Development6
Economic Gardening for Existing Companies9
Target Industries for Growth10
Metrics11
References12

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 Geography
Syracuses location in the center of upstate New York has always played a key role in
determining the citys future. As the largest city in Central New York, its geography has always
played an important role. Initially, Syracuses location on the shores of Onondaga Lake,
combined with its central location, led to the Iroquois Nation deciding to make Syracuse the
capital of the Six Nations.1 The Iroquois decision to make Syracuse the central meeting point
for the Six Nations foreshadowed the important role that Syracuses location would have on its
economy throughout history.
Salt Industry
In the years before refrigeration, salt was used to preserve meat. Therefore, Onondaga
Lakes salt was considered a valuable resource in early America. In 1797, New York State set up
the Onondaga Salt Spring Reservation to further the salt production capacity in Syracuse.2
Before the construction of the Eric Canal, the land on which Syracuse now sits was marshy
and considered unsuitable for settlement, however, the construction of the canal drained the
marshes and created prime real estate close to the salt production facilities. The opening of the
canal in 1825 allowed Syracuse to become the national leader in salt production since the canal
made it possible to ship salt easily and cheaply to cities along the Eastern seaboard and the Great
Lakes. 3
In 1840, rail lines opened in Syracuse. With rail supplementing the Erie Canal, shipping salt
from Syracuse became even more lucrative. The salt industry in Syracuse continued to grow,
peaking during the Civil War at 9 million bushels per year.4
By the beginning of the 20th century, however, the boiling and evaporating process used
for producing salt in Syracuse could no longer compete with salt mines in the West. By the early
1900s, salt production began to wane and by the 1920s salt production in Syracuse ceased
altogether.3

1 Arnold, Phil. Shanoh Center Onondaga County Historical Society. Web. 12. Apr. 2014.

2 Scramm, Henry. Syracuse- An Historic Outline. Preservation Association of Central New York. Web.
12 Apr 2014.

3 Chan, Sewell. On The Road: A Proudly Salty Reputation. The New York Times. 31 Dec. 2009. Web.
11 Apr 2014

4 Knauss, Tim. Industrial Age Fed Syracuse Boom. The Syracuse Post-Standard. Jul 29, 2010. Web.

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 Syracuse as a Community
After the completion of the Erie Canal in 1825, Syracuse received its first wave of ethnic
immigration. Since the construction of the Canal coincided with an era of high levels of
immigration to the country from Ireland, many unskilled Irish laborers decided to work on the
Canal when they arrived in the country. After the construction of the canal was completed many
stayed in Syracuse. Much of the Irish population chose to live together in a neighborhood called
Tipperary Hill on Syracuses Westside. Tipp Hill (as it is known) created its own Roman
Catholic schools and the Irish-owned shops in the neighborhood meant that many of the Irish
rarely had a reason to leave their homogenous ethnic enclave.
The construction of the railroad in 1850 brought with it a different ethnic group: the
Italians. The Italians created their own ethnic neighborhood known as Little Italy.2 While the
Italians also started their own Roman Catholic churches, schools and local businesses, they were
separate from the Catholic schools and businesses found on Tipp Hill, resulting in communities
that were relatively isolated culturally.
Abolitionist Movement
In the mid-nineteenth century, Central New York was known as a region with a strong
abolitionist sentiment. In 1851, many Syracuse citizens defied the federal government, violating
the Fugitive Slave Act by rescuing a runaway slave who was being held prisoner. The event,
known as the Jerry Rescue, came to symbolize Syracuses status as an abolitionist stronghold.5
Syracuses status as abolitionist center is an important part of the story of Syracuse.
Today, African-Americans make up the largest ethnic group in Syracuse at 29.5% and the city
has approximately 1,000 black-owned businesses.3
Manufacturing
When the salt industry declined in the beginning of the 1900s, Syracuses central location
positioned it well to transition into a hub of manufacturing. As such, at the start of the twentieth
century, Syracuse was a national leader in the production of the wide variety of products.
For example, in 1921 Syracuse was the worlds largest producer of both typewriters and
soda ash. It was also the worlds largest producer of high-grade candles and mince-meat.
Syracuse was the third largest producer of steel in the world, trailing only Pittsburgh and
Sheffield, England. Syracuse was also one of the largest producers of car parts in the country. In
fact, Franklin Auto of Syracuse was the third largest car producer in the country at the time,
selling approximately 15,000 cars a year while employing 3,500 people.6 At that point in time,
local businessman JP Whitcomb stated in a speech that the economy of Syracuse was so
diversified that Syracuse, does not suffer during business depression.8

5 Smith, Gerrit. The Jerry Rescue. New York History Net. 1996. Web. 12 Apr. 2014

6 Case, Dick. The Manufacturing Powerhouse The Syracuse Post Standard. Jan.15, 2002. Web.

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In 1950, Syracuses population was 221,000. That would be the peak of the city as a
demographic shift to the suburbs, combined with a gradually declining manufacturing industry to
reduce the citys population in the next few decades. The number of jobs in the manufacturing
industry went from 40,630 in 1954 to 21,138 in 1997, a decline of 48%.7
The decline of manufacturing in Syracuse can be attributed to a variety of causes. In particular,
as international trade and globalization spread, manufacturing in the United States became less
tenable due to reduced shipping costs from foreign countries and lower wages paid abroad.
Additionally, as technology made manufacturing more automated, the need for skilled labor was
reduced, allowing production to shift to poorer countries with large populations of unskilled or
semi-skilled workers.
However, in a sense, Syracuse manufacturing workers were a victim of their own
success. In 1997, the average hourly manufacturing wage in Syracuse was $15.44 per hour
compared to the national average of $13.99.7
Transition to a Service Economy
As the manufacturing industry in Syracuse declined, the transition to a service-based
economy gradually took hold. By 2003, the service sector accounted for 109,000 jobs in the
Syracuse metro area. Today, the education and health care industries are of particular importance,
with 29,000 jobs in health care and 17,000 jobs in education.9 In fact, by 2013 those two sectors
of the service industry alone provided more jobs than all Syracuses manufacturing facilities
combined. 8
The list of Syracuses largest employers is dominated by Syracuse University and the
health care industry. Upstate University Medical, St. Josephs Hospital, and Crouse Hospital
provide the most jobs for the city.8
The presence of great hospitals has provided Syracuse with some medical device and
pharmaceutical companies such as Bristol-Myers Squibb, Welch Allen, and Hanford
Pharmaceuticals. While the existence of these companies in Central New York is a bright spot
for the region, they are ultimately not large enough to have a significant impact on the economy.
Welch Allen is the largest regional employer for this industry with 1,300 employees, which helps
demonstrate this point.8
The health care industry is not the lone bright area for employment in Central New York.
Additional industries that have seen success include: radar & sonar production, agribusiness &
food production, green technology, and advanced manufacturing. These industries are able to
thrive due to competitive advantages enjoyed by Syracuse, in particular the presence of a variety
of well-regarded institutions of higher education.

7 Crandall, Robert. The Decline in Manufacturing Jobs in the Syracuse Metropolitan Area. The Brookings
Institution. Mar 6, 2003. Web. 22 Apr. 2014.

8 Syracuse Central. Onondaga County Office of Economic Development. Web. 18 Apr. 2014.

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However, Syracuses transition to a service economy has not been without its challenges and
missteps. For decades, economic development centered on smokestack chasing in which
community leaders would attempt to attract manufacturers to the region to appease a local
population that had difficulty envisioning any alternative. In particular, tax incentives were often
given to corporations based outside Syracuse with the hope that they would bring new jobs to the
region. 9
One experiment that Syracuse has attempted to rejuvenate its economy was to provide a
developer with lucrative tax breaks to create a mega-mall known today as Destiny, USA. The
project was initially opposed by local retailers and downtown shop owners who felt that their
businesses would be threatened.10 Ultimately, their objections went unheeded and Carousel
Center was constructed. In 2002, Robert Congel, a mall developer, proposed tripling the size of
the mall in exchange for lucrative tax breaks. The regions leaders, desperate for any sort of
economic development, agreed to the deal. 9
Syracuse Today
While there are many ethnic groups represented in Syracuse today, the Irish (15.9%) and
Italians (14.1%) are still the second and third largest ethnic groups in the city trailing only
African-Americans. As such, the city still remains predominantly Roman Catholic. In fact, of the
55% of people in Syracuse who describe themselves as religious, 35.9% are Catholic dwarfing
Baptists, the next largest group at 2.4%.11 As such, Catholic institutions still play a key role in
defining the values of the community
In the 2010 census, Syracuses population was 145,710. While Syracuses population has
declined over the last few decades, this decline has been particularly dramatic for non-Hispanic
whites. In 1970, non-Hispanic whites represented 87.2% of the population, but by 2010 this
percentage had diminished to 52.8%.3 This white flight from the city has impacted the
demographics of Syracuse as many middle-class white families have left for the suburbs or have
abandoned the region altogether. While ethnic neighborhoods such as Tipperary Hill and Little
Italy still exist, their populations are mostly integrated, leaving only the local Irish and Italian
themed businesses to display the neighborhoods history.
Many Syracusans today choose to live in Syracuse because of social ties and the sense of
community. Many choose to stay because they have generations of family in the area and
identify strongly with their neighborhoods. Syracuse University sports are a value in the
community as they provide a source of unity and pride. During Syracuse football and basketball
games, the residents of all the diverse neighborhoods unite and watch as the city becomes
nationally relevant for the duration of the game.

9 De Maria, Kat. The History of Carousel Center. Time Warner News. 26 Dec. 2011. Web. 19 Apr. 2014.

10

11 Religion in Syracuse, NY. Sperlings Best Places. 2013. Web. 18 Apr. 2013.

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 The Strategy for Syracuse

Most of the issues facing Syracuse are directly attributable to a lack of economic
opportunities in the community. Therefore, where a community like the Lower East Side in
Manhattan or South Boston may fear that an injection of wealth into the community will cause
gentrification and irreparably harm the culture of the community, Syracuse has been facing the
opposite problem. For decades, the loss of wealth in the city has eroded the community. Issues
such as declining schools, increases in crime, poor infrastructure, and declining property values
are all symptoms of a common problem: a weak economy.

Therefore, while other communities may be well-served to tinker with quality of life
issues such as increasing park space, renovating libraries, or restricting overdevelopment,
concerns such as these are a distance second in Syracuse. After all, if youre unemployed, it
doesnt matter so much how nice the park system is.

Values for Development

Syracuses economic strategy needs to begin with identifying which types of

development are most likely to serve the local economy well over a long period of time.
Syracuse should focus on growing jobs in companies with the following values and
characteristics in the sections below, many of which follow the ideas of Chris Gibbons and
Economic Gardening. 12

1. Be Supportive of Entrepreneurs
Syracuses legacy as a manufacturing city means that it is perhaps less open to innovation
than other cities. After all, most manufacturing facilities are very hierarchical with few
opportunities for the average employee to express creativity. This problem has been
compounded by the fact that there is a persistent negativity and a general skepticism that the area
is capable of improvement.
For Syracuses economy to gain momentum, it needs to be welcoming and supportive of
entrepreneurs. This means that there must be incubators and accelerators to help entrepreneurs,
but it also means that there needs to be a cultural appreciation for risk-takers and an acceptance
of the failure that is inevitable with high levels of entrepreneurship.

2. Support Locally Based Companies

Syracuse would be wise to understand that attempts to attract companies based outside
the community are not a long-term solution. Companies that open satellite offices in Syracuse
may provide jobs in the short-term, however, if the economy enters a recession, will those jobs
remain? While Syracuse has no reason to be antagonistic toward any corporation that wants to

12 Gibbons, Chris. Economic Gardening. The Edward Lowe Foundation. 2013. 14 May 2014.

6
provide jobs in Syracuse, the focus of economic development in Syracuse should be on locally
based companies.

Instead, the focus should be on supporting locally based companies who will keep their
profits and reinvest them in the community. Successful local companies can also play an
important role in supporting philanthropy, the arts, and other activities vital to improving the
quality of life in the region.
3. Stay Away from Commodities
Syracuses run as the largest salt producer in the nation was a boon for the region, but it
was not a long-term sustainable economic model for the city. Communities with abundant
natural resources often counterintuitively suffer from high rates of poverty. This resource
course manifests itself where a relative few amount of people control production and become
extremely wealthy at the expense of wage earners who have few alternative opportunities for
employment. (CITE)
Because salt is a commodity, Syracuses stranglehold over its production was destined to
be short-lived. As soon as another community was capable of producing salt, it would do so at a
lower price than Syracuse in an effort to enter the market. This competition would result in a
back and forth reduction in price until the least efficient community could no longer profitably
produce salt.
Syracuse should learn its lesson from its history as a producer of a commodity. An
economy based on the production of a commodity will ultimately either be forced out of the
market, or be forced to cut wages as low as possible to remain in business. If Syracuse wants a
sustainable and healthy economy, it needs to export innovation and products and ideas that
cannot be replicated elsewhere.
4. Export Innovation
In order for Syracuse to grow its economy, it needs to be able to produce products or
ideas that can be exported to other communities. If Syracuse can increase its exports, then this
means that new cash will be entering the economy, and that income can then have a multiplier
effect on other businesses.
However, for exports to be sustainable, they need to be something that cannot be
replicated in other communities. Therefore, Syracuse needs to find areas of innovation that take
advantage of the knowledge and unique abilities of its residents. When this concept is combined
with the idea of Syracuse using its competitive advantages, we can produce a strategy for
identifying specific industries that are candidates for growth.
5. Embrace What is Special About Syracuse
Syracuse has a number of potential competitive advantages that, if leveraged effectively,
could allow it to prosper economically. First, its location in Central New York puts it within a
few hours drive of most of the densely populated cities in the northeast such as Boston, New
York, and Philadelphia, and Toronto and Montreal in Canada. This location means that any
product produced in Syracuse can be shipped to a large market relatively quickly and cheaply.

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Its location near Canada also means that growing firms have the opportunity to test international
expansion without having to ship their products very far.
Syracuse also has a large number of universities in close proximately to the city, and they
can provide a skilled and talented workforce. In addition to Syracuse University and Le Moyne
College within the city, Cornell University, Clarkson University, Hamilton College, and Colgate
University are all institutions with strong reputations, located very close to Syracuse. The ability
to attract and retain students from these universities to live and work in Syracuse can go a long
way to reinvigorating the economy of the city.
Lastly, Syracuse must be able to recognize industries where strong companies already
exist within in the city and it must be able to help these companies grow. There are clusters of
companies based in Syracuse in certain industries which could grow if given the proper guidance
and knowledge.
6. Dont Abandon Manufacturing Completely
It would be easy to embrace an economic development strategy that excluded
manufacturing entirely. That reaction would be understandable, given problems arising in the
last few decades from an overreliance on manufacturing. However, Syracuse has been involved
in manufacturing since its existence. The notion of putting in a hard days work and physically
producing something is a key value in the community, particularly amongst those citizens who
dont have a lot of advanced education but do have strong manufacturing experience. Therefore,
Syracuse should not entirely abandon its roots as a manufacturing community. Instead, the
community should adapt and refocus itself on new technologies and make advanced
manufacturing a portion of its economy.
7. Support Entrepreneurs
Syracuse must be a supportive environment for entrepreneurs. One way in which this can
happen would be through the continued growth and expansion of incubators. Syracuse currently
has The Tech Garden which is an incubator focused on emerging tech-based businesses. The
community would benefit from added incubators that focus on other industries that could provide
growth in Syracuse.
Syracuse must also provide outreach to university students and find out what it would
take to get them to stay in the region after graduation. While the main driving force would most
likely be employment, perhaps other factors, such as walkable neighborhoods or increased
community arts festivals, would inspire talented young people to stay in the region.
Lastly, Syracuse must change its culture to become less negative about risk and new
ideas. The community tends to be very risk-averse and resistant to change, so community
leaders must change the attitude of the city to celebrate and reward entrepreneurs. Perhaps some
sort of annual award ceremony to honor entrepreneurs in various fields could begin to help
change some attitudes.

Economic Gardening for Existing Companies

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 The strategy that can provide the best growth opportunities for the Syracuse region is to
identify companies with 10-100 employees and provide them with the tools needed to expand.
Specifically, the tools used in Economic Gardening, such as identifying potential new customers
and using search engine optimization, would provide useful guidance in helping to grow
Syracuse-based businesses.
Currently, Syracuse has a competitive advantage in five industries: clean tech, health &
biosciences, radar & sensor devices, agribusiness & tourism, and advanced manufacturing.
These industries represent Syracuses best opportunities for growth. While there are numerous
companies within each industry, I have identified a handful within each category to serve as an
example of how Syracuse-based companies can export innovation throughout the country and the
world.
Target Industries for Growth
Clean Tech
Syracuse has a competitive advantage in the clean tech industry because of the proximity
of SUNY Environmental Science and Forestry & Cornell University. Both of these institutions
offer programs dedicated to environmental issues that feed the area with graduates eager to work
in the area of clean tech. Syracuse also benefits from the presence of an incubator named, The
Tech Garden which focuses exclusively on tech-based startups and includes a number of
environmental companies. In fact, Syracuses reputation as a city focused on clean tech has
earned it the occasional nickname of The Emerald City.

There are numerous examples of Syracuse-based businesses in clean tech that are poised
to grow. One is NuClimate, which builds energy efficient air conditioning. Another is TactAir
which produces hydraulic and pneumatic controls for the aerospace industry. Ashley McGraw
Architects are designers of sustainably designed schools. These companies are examples of how
Syracuse is capable of exporting knowledge and innovation in the clean tech industry.

Health & Biosciences

Syracuses competitive advantage in the field of health and biosciences is derived from
the fact that Upstate Medical University is located in the city. Its presence means that there are
many professors and graduates from the school who live in the area and have (some of) the
knowledge required to create businesses in the health industry.

Some examples of companies in this field currently, with the potential to grow in
Syracuse, are: Hanford Pharmaceuticals, US Optical, Welch Allyn (a producer of medical
devices), and a producer of digital radiography called InfiMed. These companies represent
examples of how Syracuse can leverage its knowledge in the medical industry to grow its
economy.
Radar & Sensor Devices

Syracuses plethora of nearby engineering colleges, as well as the presence of a large

Lockheed Martin facility, means that there are many local residents with the education and work
experience necessary to work in the radar and sensor device industry. Some examples of current

9
companies in this field include: Anaren, a manufacturer of microwave components; Eagle
Comtronics, a producer of radio frequency communication; Syracuse Research Corporation,
which produces defense technology; and C-Speed, LCC, which produces black boxes. All of
these locally based businesses could benefit from economic gardening, which could introduce
them to new customers and potentially raise their online profiles. Further support in this industry
could also create new spinoff companies, which would fuel further employment growth in the
region.
Advanced Manufacturing

Syracuse has a proud history of manufacturing and the city would benefit by putting its
skilled laborers to work in the field of advanced manufacturing. Syracuse also benefits from the
presence of the Central New York Technology Development Organization, which is a non-profit
organization dedicated to helping companies adapt from older methods of manufacturing to
newer, more advanced methods. Currently, there are a few companies using their advanced
knowledge to produce products that are difficult to replicate without innovative techniques.
These include: RAM Manufacturing, which produces fabricated metal tubing; and Kilian
Manufacturing, which creates precision machined bearings.

Agribusiness and Tourism

Syracuses location in idyllic upstate New York presents opportunities not only for
tourism but also for agribusiness and food production. One small company with room for
growth is Middle Ages Brewing Company. Middle Ages used a unique brewing procedure that is
intended to replicate production the middle ages (thus the name). This approach makes the
company relatively unique in the industry. Middle Ages currently has distributions in New York
City but economic gardening could allow further growth and perhaps inspire other breweries to
produce beer in the city of Syracuse.

Byrne Dairy currently produces a variety of dairy products but is beginning to enter the
lucrative Greek yogurt market, which operates in Upstate New York. Syracuse is also the largest
city in the Finger Lakes Winery region, which has the capacity to generate tourism money as
well as money associated with the production and distribution of wine. There are hundreds of
wineries in Upstate New York, which presents as an opportunity to export a product that cannot
be grown in most of the country.

Metrics

In order to measure the progress of our development, the key metric will be job creation.
Therefore, we should evaluate job growth in different areas to determine how successful
development in Syracuse has been. Given the current state of the economy, I believe that a time
horizon of eight years is needed in order for the applied policies to take effect.

For expansion in Stage 2 Companies, we will look for a 6% increase per year. For
companies that are based in Syracuse or resident companies, we hope to see a 5% increase per
year. For companies who sell products to markets outside Syracuse, we hope to see 7% increases
per year. For expansion startups, we hope to see growth of at least 1% per year.
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 Although the development policy of this paper does not focus on metrics other than job
creation, it is my belief that improvement can be expected in other areas as jobs return to the city.
Additional wealth for the city will likely result in improved schools, increasing property values,
better kept neighborhoods, and less crime. It is my belief that most current problems in the city
of Syracuse are symptoms of the larger problem of a weak economy. When more jobs are
created in Syracuse, the city will benefit in countless ways.

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 References

Case, Dick. The Manufacturing Powerhouse The Syracuse Post Standard. Jan.15, 2002.
Web.

Chan, Sewell. On The Road: A Proudly Salty Reputation The New York Times. 31 Dec. 2009.
Web. 11 Apr 2014

Crandall, Robert. The Decline in Manufacturing Jobs In the Syracuse Metropolitan Area. The
Brookings Institution. 6 Mar. 2003. Web. 22 Apr. 2014.

De Maria, Kat. The History of Carousel Center. Time Warner News. 26 Dec. 2011. Web. 19
Apr. 2014.

Gibbons, Chris. Economic Gardening. The Edward Lowe Foundation. 2013. 14 May
2014.

Knauss, Tim. Industrial Age Fed Syracuse Boom. The Syracuse Post-Standard. Jul 29, 2010.
Web.

Smith, Gerrit. The Jerry Rescue. New York History Net. 1996. Web. 12 Apr. 2014

Religion in Syracuse, NY. Sperlings Best Places. 2013. Web. 18 Apr. 2013.

Scramm, Henry. Syracuse- An Historic Outline. Preservation Association of Central New

York. Web. 12 Apr 2014.

Syracuse Central. Onondaga County Office of Economic Development. Web. 18 Apr. 2014.

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