This bill has been amended

Bill S1768-2011

Creates the niche market assistance projects for small businesses to identify and develop niche markets for their products in competitive environments

Creates the niche market assistance projects for small businesses to identify and develop niche markets for their products in competitive environments.

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  • Jan 4, 2012: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Jan 12, 2011: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Memo

BILL NUMBER:S1768

TITLE OF BILL: An act to amend the New York state urban development corporation act, in relation to creating niche market assistance projects to promote economic development

PURPOSE OR GENERAL IDEA OF BILL: To assist small manufacturers to seek niche markets.

SUMMARY OF SPECIFIC PROVISIONS: A "niche market" is a targeted market composed of individuals and businesses that have similar interests and needs, which can be readily identified and that can be easily targeted and reached, or group of potential customers who share common characteristics making them especially receptive to the company's product, service or opportunity.

The bill establishes a competitive program in UDC providing grants of up to $200,000 to a not-for-profit corporation or Manufacturing Extension partnership program with a demonstrated capacity to conduct market analysis and seek new markets for niche products for manufacturers, to enable the grant recipients to work with and assist small manufacturers identify and develop niche markets.

Entities eligible to apply for funding for a niche market assistance project include not-for-profit corporations, local development corporations, trade associations, educational institutions, technology development corporations which operate manufacturing extension programs, and other not-for-profit organizations which promote economic development.

Projects eligible to be a niche market assistance include research, market analysis, marketing assistance, and identifying sources of financial assistance to enter into new markets.

JUSTIFICATION: Small manufacturing enterprises are responsible for an estimated 28%-40% of employment in the manufacturing sector. They tend to be more effective at job creation and job replacement, more innovative in the development of products and process improvements, more flexible and thus more competitive, in terms of the ability to produce small quantities. All of these factors help to explain the shift to a smaller average plant size and the national trend toward more of the total production of goods coming from smaller manufacturers.

Small manufacturing enterprises, often owned by, minorities and immigrants, have been growing. Leading this expansion in New York are specialty and ethnic food manufacturers, which have grown by more than 8 percent over the past year. other evidence suggests that there is similar growth in construction; specialty apparel for niche markets and other design-based manufacturing industries such as luxury consumer goods like jewelry; medical instruments; suppliers to

service industries; end companies serving local markets, such as makers of food products or suppliers of construction materials.

Often, small manufacturers can not only survive, but grow, if they can identify and develop niche markets - targeted markets composed of individuals and businesses that have similar interests and needs, which can be readily identified, and that can be easily targeted and reached, or group of potential customers who share common characteristics making them especially receptive to the company's product, services, or opportunity.

Small firms are traditionally hard to reach by centralized state programs. Therefore this program reaches out to local and regional partners who are familiar with and have established relationships with businesses in their areas.

PRIOR LEGISLATIVE HISTORY: 2009-2010: Referred to Corporations, Authorities and Commissions Reported and Committed to Finance

FISCAL IMPLICATIONS: Undetermined.

EFFECTIVE DATE: Immediate.


Text

STATE OF NEW YORK ________________________________________________________________________ 1768 2011-2012 Regular Sessions IN SENATE January 12, 2011 ___________
Introduced by Sen. PERKINS -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the New York state urban development corporation act, in relation to creating niche market assistance projects to promote economic development THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Statement of legislative intent. Small manufacturing enter- prises are responsible for an estimated twenty-eight to forty percent of employment in the manufacturing sector. They tend to be more effective at job creation and job replacement, more innovative in the development of products and process improvements, more flexible, and thus more competitive, in terms of the ability to produce small quantities. All of these factors help to explain the shift to smaller and average sized plants and the national trend toward more of the total production of goods coming from small manufacturers. Small manufacturing enterprises, often owned by minorities and new immigrants, have been growing. Leading this expansion in New York are specialty and ethnic food manufacturers, which have grown by more than eight percent over the past year. Other evidence suggests that there is similar growth in construction; specialty apparel for niche markets and other design-based manufacturing industries such as luxury consumer goods like jewelry; medical instruments; suppliers to service indus- tries; and companies serving local markets, such as makers of food products or suppliers of construction materials. Often, small manufacturers can not only survive, but grow, if they can identify and develop niche markets - targeted markets composed of indi- viduals and businesses that have similar interests and needs, which can be readily identified, and that can be easily targeted and reached, or a group of potential customers who share common characteristics making
them especially receptive to the company's product, service, or opportu- nity. S 2. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 16-u to read as follows: S 16-U. NICHE MARKET ASSISTANCE PROJECTS. 1. THE CORPORATION IS HEREBY AUTHORIZED TO PROVIDE ASSISTANCE TO NICHE MARKET ASSISTANCE PROJECTS DESIGNED TO ENCOURAGE AND ASSIST SMALL AND MEDIUM-SIZED MANUFACTURING OR FOOD PROCESSING BUSINESSES WITH FEWER THAN TWO HUNDRED FIFTY EMPLOYEES TO IDENTIFY AND DEVELOP NICHE MARKETS FOR THEIR PRODUCTS. 2. FOR THE PURPOSES OF THIS SECTION, "NICHE MARKET" SHALL MEAN A TARGETED MARKET COMPOSED OF INDIVIDUALS AND BUSINESSES THAT HAVE SIMILAR INTERESTS AND NEEDS, WHICH CAN BE READILY IDENTIFIED AND REACHED, OR GROUP OF POTENTIAL CUSTOMERS WHO SHARE COMMON CHARACTERISTICS MAKING THEM ESPECIALLY RECEPTIVE TO THE COMPANY'S PRODUCT, SERVICE OR OPPORTU- NITY. 3. THE CORPORATION SHALL ACTIVELY SEEK TO IDENTIFY ENTITIES AND DISSEMINATE INFORMATION TO SUCH ENTITIES WHICH MAY BE ELIGIBLE TO RECEIVE ASSISTANCE PURSUANT TO THIS SECTION AND SHALL MAKE AWARDS, SUBJECT TO AVAILABLE APPROPRIATIONS, FOR NICHE MARKETING ASSISTANCE PROJECTS ON A COMPETITIVE BASIS TO SUCH ENTITIES. (A) ENTITIES ELIGIBLE TO APPLY FOR FUNDING FOR A NICHE MARKET ASSIST- ANCE PROJECT SHALL INCLUDE NOT-FOR-PROFIT CORPORATIONS, LOCAL DEVELOP- MENT CORPORATIONS, TRADE ASSOCIATIONS, EDUCATIONAL INSTITUTIONS, TECH- NOLOGY DEVELOPMENT CORPORATIONS ESTABLISHED PURSUANT TO SECTION 3102-D OF THE PUBLIC AUTHORITIES LAW WHICH OPERATE MANUFACTURING EXTENSION PROGRAMS, AND OTHER NOT-FOR-PROFIT ORGANIZATIONS WHICH PROMOTE ECONOMIC DEVELOPMENT. (B) APPLICANTS SHALL BE REQUIRED TO DEMONSTRATE: (I) THEIR ABILITY TO PROVIDE THE SERVICES PROPOSED; (II) THE POTENTIAL FOR MANUFACTURING OR FOOD PROCESSING INDUSTRIES IN THEIR AREA OF SERVICE TO DEVELOP NICHE MARKETS; (III) THE POSSIBILITY THAT THE SERVICES TO BE FUNDED WOULD BECOME SELF-SUSTAINING; (IV) THE PARTICIPATION OF LOCAL AND REGIONAL ECONOMIC DEVELOPMENT ORGANIZATIONS; AND (V) TO PROVIDE A PROGRAM BUDGET, INCLUDING MATCHING FUNDS, IN-KIND AND OTHERWISE, TO BE PROVIDED BY THE APPLICANT. (C) A PROJECT ELIGIBLE TO BE A NICHE MARKET ASSISTANCE PROJECT MAY INCLUDE, BUT NOT BE LIMITED TO, RESEARCH, MARKET ANALYSIS, MARKETING ASSISTANCE, AND IDENTIFYING SOURCES OF FINANCIAL ASSISTANCE TO ENTER INTO NEW MARKETS. 4. NO SINGLE GRANT FOR A NICHE MARKET ASSISTANCE PROJECT SHALL EXCEED TWO HUNDRED THOUSAND DOLLARS. S 3. This act shall take effect immediately.

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