Increased U.S. defense spending presents economic opportunities for cities with military assets, allowing them to create jobs, support local suppliers, revitalize business districts, and promote innovation, while local leaders must strategically position their cities to maximize these benefits.

Cities must adapt to a rapidly shifting global economic order driven by geopolitical tensions, technological changes, and major federal investments. These forces are reshaping supply chains, national security priorities, and economic policies, requiring local leaders to leverage opportunities and mitigate risks.

The post-pandemic period in the U.S. has seen a major resurgence in advanced manufacturing, driven by federal initiatives like the Inflation Reduction Act and CHIPS and Science Act. States like Ohio have attracted significant private investment, while Pennsylvania lags behind due to weaker coordination and incentives. To compete, Pennsylvania must leverage its industrial assets, maximize funding sources, and foster better collaboration between public and private sectors to attract investment and strengthen its economic position.

Rising rental costs and housing shortages are putting increasing pressure on cities, exacerbating affordability challenges for low-income renters. While federal resources, such as the American Rescue Plan and Housing Tax Credits, offer potential solutions, the lack of affordable housing stock remains a critical problem.

Remote work is reshaping downtowns, with office vacancy rates rising and tax revenues falling. Cities are exploring office-to-residential conversions to address housing shortages and stabilize finances. Despite challenges like high conversion costs, local governments are using incentives, zoning reforms, and public-private partnerships to make these projects feasible.

Recent development trends in neighborhood commercial corridors emphasize revitalizing underserved areas through investment in infrastructure and services. By leveraging public-private partnerships, these corridors aim to attract both funding and businesses, creating vibrant areas that improve economic access and social mobility.

Empowering UK cities requires leveraging local assets and fostering collaboration across public, corporate, and civic sectors. Drawing inspiration from U.S. cities' industrial transitions, UK cities can benefit from adapting to new economic conditions, such as reshoring and technological change.

The Cincinnati Jobs Bond is a $100 million initiative by the Port of Greater Cincinnati Development Authority to acquire, remediate, and prepare 150 acres of industrial land in targeted city areas, aiming to attract manufacturing and mixed-use development, thereby revitalizing the local economy.

The industrial transition offers opportunities for revitalizing older industrial cities in the U.S. By leveraging legacy assets and federal investments, these cities can attract advanced manufacturing, enhance infrastructure, and create workforce development hubs.

On June 2, 2023, Bruce Katz, Director of the Nowak Metro Finance Lab, presented to the US Conference of Mayors Metro Economies Standing Committee in Columbus, Ohio. This presentation was used to inform a roundtable discussion on the industrial transition, economic development, and downtown revitalization.

Jonathan Tower, founder of Arctaris Impact Investors, drives efforts to revitalize underserved communities by leveraging partnerships to attract private capital for real estate, infrastructure, and minority-owned business projects.

Cities must proactively manage the transition to a low-carbon economy by capitalizing on federal investments, advancing clean energy technologies, and strengthening workforce development initiatives. This transition presents opportunities to modernize infrastructure, attract new industries, and create quality jobs while addressing environmental challenges.

The Inflation Reduction Act offers significant funding to accelerate clean energy adoption through tax incentives rather than traditional grants and encourages communities to align projects with key societal goals, such as job creation and environmental justice. To maximize benefits, cities must organize stakeholders, develop investment strategies, and build local capacity to implement transformative projects effectively.

The lack of detailed data on small, diverse businesses impedes efforts to address disparities and design effective support programs. Incomplete data, particularly for minority-owned businesses, limits policymaking and economic intervention. Initiatives like the Small Business Equity Toolkit aim to address these gaps, but challenges persist in obtaining accurate, up-to-date information.

U.S. industrial policy offers key lessons for the UK in addressing regional inequalities. Federal investments in manufacturing and infrastructure help reduce disparities, while local collaboration enhances resource integration. Initiatives like the Build Back Better Regional Challenge demonstrate potential for fostering economic growth through regional competitive advantages.

Navigating federal funding opportunities is challenging for localities. The new Infrastructure Funding Tracker, simplifies the process by providing concise updates on available funds from major federal packages, helping local leaders identify and access opportunities efficiently.

A National Housing Commission is needed to tackle the U.S. housing crisis, addressing rising homelessness, rent burdens, and racial inequities. The initiative seeks collaboration from financial institutions and philanthropies to develop policies that expand affordable housing and homeownership opportunities.

The growing trend of large-scale real estate investors purchasing single-family homes has led to reduced housing affordability and increased market volatility. This practice, often driven by institutional investors, can displace local residents and limit homeownership opportunities, further exacerbating housing inequality and pushing up rent prices.

Addressing this issue requires policy changes to prioritize affordable housing and curb the unchecked expansion of corporate real estate holdings.

In order to better understand the impact of investor purchases on existing homebuyers, we have written “We Buy Houses”: You Lose Out. This report looks at the differences in price and geography between houses that sell on the Multiple Listing Service (MLS) and those that sell off the MLS, to investors and to individuals, in Philadelphia between January 2018 and June 2022.

The Cincinnati Jobs Bond is a $100 million initiative aimed at revitalizing distressed industrial sites in the city. It focuses on acquiring, remediating, and preparing 150 acres of land for manufacturing and mixed-use development, helping Cincinnati participate in the national manufacturing resurgence.