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Creative Industries CREATIVE INDUSTRIES: A NEW ECONOMIC GROWTH OPPORTUNITY FOR THE GREATER MILWAUKEE REGION DECEMBER 2010 PREPARED FOR: Cultural Alliance of Greater Milwaukee PREPARED BY: Beth Siegel and Michael Kane, Mt. Auburn Associates Stu Rosenfeld and Jenna Bryant, RTS, Inc. Bill Bulick, Creative Planning, Inc. Surale Phillips, Decision Support Partners, Inc. Preface This report provides the analysis and The purpose of this project was to define, strategic plan for Creativity Works!, a joint inventory, and measure the economic project of the Cultural Alliance of Greater contribution of the region's creative Milwaukee and the Greater Milwaukee industries as well as to position the creative Committee. The roots of this creative industries as a cohesive economic cluster. industries project were established in 2008 Also, the goal was to capitalize on the when the Cultural Alliance of Greater region’s highest economic development Milwaukee completed a regional study on potential by elevating the identity, value, the arts and culture sector that was and contribution of the creative industries commissioned by the Greater Milwaukee to help ensure a globally competitive Committee. This Cultural Asset Inventory of regional economy. the seven-county region made clear that the Milwaukee 7 region has outstanding The Mt. Auburn team used several different arts and cultural assets — and a fragile methodologies and approaches to collect infrastructure. The study recommended a and analyze creative industry data and to planning process for the creative get a well-grounded understanding of the community incorporating for-profit region, its creative industries, and the businesses, nonprofit arts and culture, and creative industries support system. Data in individual artists and creatives. this report were primarily derived from Economic Modeling Systems, Inc. This The Greater Milwaukee Committee company provides a complete picture of convened a summit of regional community industry employment. It is done by leaders that was held in February 2009 to combining covered employment data from begin this process, preceded and followed the U.S. Department of Labor’s Quarterly by gatherings across the creative Census of Employment and Wages with community. These meetings resulted in the data from the Bureau of Economic Analysis, formation of a Creative Coalition, which was County Business Patterns, and Non- charged with creating a clear vision to employer Statistics from the U.S. Census. support and grow the region’s considerable Mt. Auburn Associates and RTS have a creative assets. It was determined that the proprietary methodology for determining focus would be on a strategic plan to how to allocate certain employment identify and leverage the region’s creative categories across segments. assets. The Cultural Alliance received a $146,250 grant from the U.S. Department In addition to the data sources that were of Commerce’s Economic Development used for this project, the Mt. Auburn team Administration in late 2009 to fund the also held focus groups with creative planning process and, after a national industry stakeholders in each of the search, Mt. Auburn Associates, Inc., with counties and with industry leaders in each RTS, Inc. and Creative Planning, Inc., was of the creative industry segments. hired. The team’s research began in Interviews were held, both in-person and by January 2010, and the project was called phone, with dozens of individuals from Creativity Works! business, economic, and workforce ii development organizations, higher Three surveys were conducted during the education, foundations, state government, project: one of individual artists, one of and throughout the creative industries. manufacturers, and one of the organizers Additional research was also undertaken to and sponsors of fairs and festivals. broaden our knowledge base. Extensive databases were created on the Several meetings were held with the enterprises, organizations, and employment Creativity Works! Executive Council and in the creative industries, on the higher Planning Committee, and several education system in the region, and on the presentations were made to the creative galleries and facilities and venues. community and the general public. More than 800 individuals were engaged in this Finally, all of the creative industry assets project in one form or another. were mapped by county and by segment. The location of support system organizations and resources was also included in the mapping. iii Table of Contents CHAPTER 1. INTRODUCTION ………………………………………………………………………..…….1 CHAPTER 2. THE ECONOMIC SIGNIFICANCE OF CREATIVE INDUSTRIES and TALENT IN THE MILWAUKEE REGION……………………………………………………………….….5 CHAPTER 3. CREATIVE SEGMENTS……………………………………………………………………..19 CHAPTER 4. MILWAUKEE REGIONAL COUNTY PROFILES…………………………………....53 CHAPTER 5. NURTURING CREATIVE INDUSTRIES – KEY FINDINGS……………………...72 CHAPTER 6. GOALS AND RECOMMENDATIONS………………………………………….………85 iv Chapter 1. Introduction Image today is what business climate was THE CULTURAL ROOTS OF yesterday. In the last century, the MILWAUKEE 7’S INDUSTRIAL economic vitality of a region was often STRENGTH determined and measured by the quality of its “business climate.” These ratings, most For much of the last century, southeast prominently the Grant Thornton Index, but Wisconsin was known as the nation’s others as well, presumably determined industrial heartland. Building on its history where companies would choose to locate as a logistics and processing hub and its and remain as they grew their business. influx of skilled German craftsmen, the Costs (labor, taxes, real estate, and region became the nation’s leading beer utilities), natural assets, and the specialized manufacturer. The entrepreneurs that skills of the population, were king. founded Pabst, Schlitz, and Miller were all German immigrants. In 1905, 63 percent of In this century, the economic vitality of a all immigrants to Milwaukee were from region is much more closely aligned with its Germany. quality of life and “coolness” indices. These newer rankings are presumed to predict The region also developed a renowned where young, educated, and mobile talent metalworking cluster that, beginning with chooses to live and work. Lifestyle (i.e., agricultural and transportation equipment, entertainment venues, bike lanes, running such as tractors, silos, and automobiles, paths, etc.) has now assumed the throne became one of, if not the nation’s densest once held by cost, and modern-day concentration of small engine business climate is more closely linked to manufacturers, heavy metal fabricators, amenities. and machine builders. With a base solidly anchored in Milwaukee, Kenosha, and Cities around the world now are seeking Racine, companies like Allis Chalmers, A.O. ways to distinguish and brand themselves. Smith, Chrysler, American Motors, Briggs Once decaying cities such as Bilbao, Spain; and Stratton, and Harley-Davidson Mendoza, Columbia; Riga, Latvia; and South employed tens of thousands of people. Miami, Florida, have been rejuvenated by refurbished or new architecture, new A third industrial activity of significance was design, and the arts, and they have re- in tanneries, founded by German branded themselves with a new image. immigrants Pfister and Vogel, but expanded, with the help of Polish and Jewish immigrants, into a full-blown leather goods cluster. In the early part of the 20th century, the region’s leather goods were exported all over the world. 1 The region’s fourth significant cluster has THE NEW PARADIGM been printing, part of a larger cluster corridor that extends from Minneapolis and In the new economic development southeastern Minnesota across to paradigm, a shift has occurred and a new southeastern Wisconsin. Quad/Graphics set of factors is shaping the way business traces its roots to the Quadraccis, an Italian and economic choices are made. Ease of immigrant family that started printing as a movement, attractiveness of surroundings, hobby in the back of their grocery store in sustainability, and perceptions of safety all Racine in 1930. This ultimately led to its influence the decisions that companies, first printing plant in Pewaukee. With its CEOs, and talented individuals make about acquisition of Canadian company location. And, some parts of the Milwaukee Worldcolor Press this summer, 7 region have been able to successfully Quad/Graphics became the second largest convert the liability of an abandoned printer in the western hemisphere. industrial infrastructure into an asset by finding new tenants able to retain the Although the Milwaukee 7 (M7) region’s historical significance, but make it cool. industrial base included large companies, Milwaukee’s historic Third Ward as an arts those companies were not simple assembly and fashion district exemplifies the operations, they were crafts, and they transition from the old economy into the required highly-skilled — and often new economy. The historic Pfister and innovative — employees. The region’s Vogel Tannery facility, for example, has industrial base had a creative, design- been preserved on its original 15 acres and intensive side that produced high-quality converted to commercial and retail space goods for niche markets — goods that and Tannery Row as living space. While the relied on creative packaging, printing, Santiago Calatrava design of the Quadracci marketing, and advertising. Clifford Brook Pavilion of the Milwaukee Art Museum has Stevens, who founded his design company become a recognized symbol of the
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