|
“Once a backwater of the entertainment industry, Broadway is now at the center of American popular culture.”
Michael Riedel, Variety, May 2019
by Steven Koczak, Ph. D., Program Research Specialist
When people refer to “Broadway” in New York City, they’re probably referring to one of three related things:
- An avenue that defiantly interrupts Manhattan’s rigid grid system of numbered streets and avenues; or
- The main portion of Manhattan’s famous theater district, clustered around Broadway and Times Square; or
- The theater business in New York City.
Whichever meaning is intended, the word symbolizes the hopes and dreams of aspiring performers and producers, and has for over a century.
According to the New York Preservation Archive Project, the theater district took shape in the early 1900s, when rents in Times Square were relatively cheap. Broadway’s iconic status was not far behind. “Off Broadway” and “Off Off Broadway” generally refer to smaller venues and productions of less notoriety (though sometimes considerable artistic merit).
Common agreement places the commercial and artistic golden age of Broadway from the 1940s through the early 1960s. The “death” of Broadway has been predicted multiple times. One famous example occurred in a 1995 article in City Journal. The very next year (1996), however, the musical Rent came out, which a 2019 article in Variety highlighted as the start of yet another golden age. A June 2024 article in The Hollywood Reporter highlighted how Broadway was troubled by the lack of full recovery from the COVID-19 pandemic and the ever-increasing costs of production.
Here, we review the latest economic data and recent news relating to Broadway.
Tote That Barge, Lift That Bale
“Broadway” roughly corresponds to NAICS industry 711110 — “Theater Companies and Dinner Theaters” — in New York City, with private sector ownership. Per annual data from the Quarterly Census of Employment and Wages (QCEW), we see the damage COVID-19 did to Broadway industry employment — from which it has yet to fully recover.
From 2019 to 2020, the annual average job count in the industry fell by 7,100, or 53%, to 6,200, reflecting the closure of Broadway’s theater district for the entire 2020-21 season due to the pandemic. (Note: Broadway seasons typically run May to May, while QCEW data are based on calendar years.)
Broadway’s subsequent 2021-22 season was shortened; as a result, industry employment was essentially unchanged between 2020 and 2021 on an annual basis. However, employment bounced back with a vengeance in 2022 with a jump of more than 5,600 jobs, or 93%, to more than 11,700 jobs. In 2023, the industry job count stood at just over 12,000, or about 92% of its peak 2019 level.
The rebound in Broadway industry employment likely is being lifted by the broader comeback in New York City’s travel and tourism sector and follows a similar pattern. A recent analysis found a total of 62.2 million tourists visited the Big Apple in 2023, which was about 93% of the record 66.6 million tourist visits, set in 2019.
Memories
Trends in attendance and gross revenues at Broadway shows follow a similar pattern to industry employment levels, and to New York City’s travel and tourism sector. The 2018-19 season was the peak year for both metrics, with Broadway attendance of 14.8 million generating $1.83 billion in gross revenues.
The end of the 2019-20 season was impacted by the first few months of the COVID-19 pandemic. This in turn was followed by the complete shutdown of the 2020-21 season and the shortened 2021-22 season. As a result, the 2022-23 Broadway season was the first “normal” one in four years. However, attendance and gross revenues in 2022-23 were only about 85% of levels set during the peak, pre-pandemic 2018-19 season. In 2023-24, attendance was only 10,000 higher than the year prior and gross revenues actually dropped by $39 million over the year.
Come to the Cabaret
A trade group called the Broadway League compiles data related to Broadway. Using their data, a NYSDOL report published in 2019 told a story of change and growth.
Articles in trade publications tend to tell similar stories, though that growth has not been in a straight line and has not wanted for drama. Over the years, Broadway changed considerably, incorporating Hollywood stars, higher ticket prices, increasingly extravagant productions, various popular music styles and so forth.
Broadway League data, among other things, show how COVID-19 became the latest disruption for Broadway.
The last full season before COVID-19 was 2018-19. A recent Hollywood Reporter piece used the difference between the 2022-23 and 2018-19 seasons, combined with increasing production costs, to sound an alarm. However, 2018-19 was a banner season, beating every season going back to 1980-81 (the earliest season for which the League publishes data). The League also points out that the average age of the Broadway theatregoer during the 2022-23 season, 40.4, was “the youngest in the past twenty seasons.” (A 2019 article in Variety suggested that attracting a younger audience was important for Broadway’s post-Rent revival.)
Around 64.5% of Broadway’s audience during the 2022-23 season was from outside the New York metro area, and only 20% of the audience actually worked in New York City. The audience was 65% female identified and 29% BIPOC (Black, Indigenous, or People of Color) identified, “the highest percentage to date.”
However, higher ticket prices have taken their toll on Broadway’s mass appeal. Per the Broadway League, Broadway attendees had an average annual household income of $271,277, nearly double the 2022 average annual income ($136,405) of households in the New York City metro area, per U.S. Census Bureau data. Show attendees reported having paid an average price of $161.20 per ticket.
Carry the Banner
The biggest news on Broadway was and remains the pandemic and its lingering effect. Alternate forums exist for movies and television in a way they do not for Broadway. A close second, of course, is the phantom of ever-rising costs.
Speaking of phantoms, The Phantom of the Opera, the longest-running show in Broadway history, closed in 2023 after a 35-year run. The closure, due to increasing costs and “soft” ticket sales (the show was losing money even before COVID-19), put 125 entertainment professionals out of work and highlighted the fact that even an extremely successful show cannot withstand rising costs.
A company called ATG Entertainment, described by the finance news site Sherwood News as “a British company backed by private equity,” recently bought a majority interest in multiple Broadway theaters. The purchase was considered disruptive to the traditional, family-owned nature of most of the Broadway theaters and was described by Sherwood News as “an invasion.”
So far, the move by ATG seems to be viewed simultaneously as potentially disruptive (financial firms are not known for caring about artistic merit), but also a vote of confidence (ATG’s investors wouldn’t be on Broadway if they didn’t think they could make money there). ATG’s first show was an extravagant production of the famous musical Cabaret, and neither reviewers nor audiences have been kind.
Finally, the culture of Broadway took a hit in July 2024 when it was announced that the West Bank Cafe and the off-Broadway Laurie Beechman Theater on West 42nd Street would close the following month. This establishment was a 100-seat café that hosted a 90-seat theater, which had a reputation of finding and nurturing talented performers. The owners cited rising costs.
Give My Regards to Broadway, Remember Me to Herald Square
Broadway has waxed and waned over many years, and probably will continue to. A smooth, speedy recovery from COVID-19 is simply impossible, though a rocky but steady recovery seems realistic, especially if participants in the business can adjust their expectations. While signs are mixed, there seems little reason to think that the end of Broadway is at hand. The popular point of comparison, the 2018-2019 season, was a banner year for Broadway, so comparisons inevitably are going to suffer. Broadway is more likely to keep marching on a rocky road than it is to stop.
While, in economics, just like on the Broadway stage, anything’s possible, it’s fair to say that the chandelier hasn’t been dropped on Broadway just yet.
|
|
"Food and beverage manufacturing promises to be an important source of future economic growth in the Finger Lakes.”
by Kurt Meichtry, Economist, Finger Lakes Region
Growth in food and beverage manufacturing employment continues to be a bright spot in the Finger Lakes’ regional economy. Over the past decade, employment among the region’s food and beverage manufacturers (NAICS industries 311 and 312) surged by an impressive 20.0% to just under 10,000 in 2023, per data from the Quarterly Census of Employment and Wages (QCEW).
Industry Specifics
The region’s food and beverage manufacturing sector is comprised of nine specific industry groups. The two largest groups — beverage manufacturing (NAICS 3121) and fruit, vegetable and specialty foods (NAICS 3114) — had workforces of 2,700 and 2,300, respectively, in 2023. Together, these two industries accounted for over one-half of the food and beverage manufacturing jobs in the Finger Lakes.
Among food and beverage manufacturing industries, dairy products (NAICS 3115) experienced a particularly robust decade, with employment soaring by 57%, to 1,200, between 2013 and 2023. Other food manufacturing (NAICS 3119) — which is a catch-all category that includes snack foods, coffee, tea, dressings and seasonings — employed 1,300 workers and paid the highest average wage — $72,200 —among food and beverage industries in 2023.
The significant economic impact of the Finger Lakes’ food and beverage manufacturers is further evidenced by their substantial $1.6 billion contribution to the region's Gross Regional Product (GRP) in 2023, per data analytics firm Lightcast. GRP measures the total value added in the production of goods and services. This activity generates positive ripple effects benefiting other businesses and communities across the region.
Major Company Developments
The importance of food and beverage manufacturers in the region is underscored by recent milestones and expansions by a number of leading firms:
- Fairlife, a subsidiary of Coca-Cola known for its ultra-filtered milk and other dairy products, broke ground on a new $650 million production facility in Webster (Monroe County) in April. The new plant is expected to create over 250 new jobs when operational in 2025.
- LiDestri Foods recently celebrated its 50th anniversary, according to local media. As the largest pasta sauce producer in the U.S., the company employs 1,000 workers, including 850 in the Finger Lakes region, per published reports. LiDestri produces an impressive three million food items daily.
- The Genesee Brewery in Rochester (Monroe County), one of the largest and oldest continually operating breweries in the U.S., is undergoing a $50 million renovation to transform the 146-year-old facility into a world-class packaging plant. The update is expected to create up to 57 new jobs over the next two years, while retaining over 500 existing workers. Genesee is part of FIFCO USA, the largest independently owned beer company in the nation.
The Finger Lakes region is also home to Victor-based (Ontario County) Constellation Brands, the third-largest wine company in the world. Constellation sells more than 75 million cases of wine each year. With a market capitalization worth more than $47 billion in June 2024, the beverage producer and marketer ranks among the world's 400 most valuable companies.
According to the Finger Lakes Wine Alliance, the Finger Lakes region's wineries and vineyards account for 90% of New York State's wine production. The Finger Lakes region was recently ranked as the nation's fourth-best wine region in a readers' survey conducted by USA Today.
Growth Factors
Lightcast data show that the Finger Lakes’ concentration of food and beverage manufacturing jobs was about 1.4 times higher than the U.S. average in 2023. This figure means the region’s food and beverage manufacturing sector is producing more than is needed for local consumption and is thus export oriented. In general, industry sectors with an above-average employment concentration have a competitive advantage and are well positioned to compete with other regions.
What accounts for the Finger Lakes’ competitive edge in food and beverage manufacturing? Analysts cite several factors including:
- The proximity of farms and high-quality agricultural inputs in the surrounding rural areas provide manufacturers with a stable supply of key raw materials and ingredients.
- The region's centralized geographic location offers producers efficient access to major population centers across the Northeast and mid-Atlantic for product distribution.
- Collaborative partnerships between leading producers, farmers, colleges and workforce development organizations ensure a robust talent pipeline.
- The region's natural habitat, boasting deep lakes, like Canandaigua and Seneca, that create a unique microclimate ideal for cool-climate grape varieties such as Riesling. This habitat is highly conducive to the growth of its food- and beverage-related industries, particularly its renowned vineyards and wineries.
Continued Growth Projected
The initial shock of the COVID-19 pandemic left the Finger Lakes region with 17.1% fewer private sector jobs in the second quarter of 2020 than in the same quarter in 2019. Despite this downturn, food and beverage manufacturing proved remarkably resilient. Although its job count fell over the year by 800, or -8.6%, due to supply chain disruptions and changes in consumer demand, those jobs were fully recovered within one year. This resilience underscores the stability of food and beverage manufacturing, positioning it as an ongoing stabilizer for the Finger Lakes’ economy.
The region’s food and beverage sector is expected to add a total of 2,800 jobs in 2020-30, per industry projections prepared by the New York State Department of Labor. This translates into a growth rate of 30%, which is nearly six times higher than the comparable rate for the nation over the same period. With 10,000 jobs and growing, food and beverage manufacturing promises to be an important source of future economic growth in the Finger Lakes.
|
|
 In May 2024, New York State’s seasonally adjusted private sector job count increased over the month by 15,800, or 0.2%, to 8,376,200. In addition, the state’s seasonally adjusted unemployment rate held steady at 4.2% in May 2024, while New York’s seasonally adjusted labor force participation rate also held steady at 61.3%.
Capital
Over the past year, the private sector job count in the Capital Region rose by 6,400, or 1.5%, to 441,900 in May 2024. Job gains were largest in the following sectors:
- leisure and hospitality (+4,800)
- education and health services (+3,600)
- manufacturing (+400)
- natural resources, mining and construction (+300)
- other services (+200)
Job losses occurred in the following sectors:
- professional and business services (-1,900)
- information (-600)
- trade, transportation and utilities (-500)
Central NY
The number of private sector jobs in the Syracuse metro area increased over the past year by 6,300, or 2.5%, to 259,700 in May 2024. Employment gains were greatest in the following sectors:
- professional and business services (+2,300)
- education and health services (+1,800)
- leisure and hospitality (+1,400)
- trade, transportation and utilities (+800)
- natural resources, mining and construction (+200)
Job losses occurred in the following sectors:
- information (-200)
- manufacturing (-200)
Finger Lakes
From May 2023 to May 2024, the private sector job count in the Rochester metro area rose by 5,800, or 1.3%, to 454,900. Job gains occurred in the following sectors:
- education and health services (+3,800)
- leisure and hospitality (+2,900)
- financial activities (+500)
- natural resources, mining and construction (+400)
- other services (+200)
Job losses were greatest in the following sectors:
- professional and business services (-1,400)
- information (-500)
Hudson Valley
Over the past year, the number of private sector jobs in the Hudson Valley grew by 10,900, or 1.3%, to 826,600 in May 2024. Job gains occurred in the following sectors:
- education and health services (+10,800)
- leisure and hospitality (+3,900)
- financial activities (+1,100)
- other services (+900)
Job losses occurred in the following sectors:
- professional and business services (-2,200)
- trade, transportation and utilities (-1,700)
- natural resources, mining and construction (-1,100)
- information (-600)
- manufacturing (-200)
Long Island
For the year ending May 2024, private sector jobs on Long Island increased by 16,800, or 1.5%, to 1,169,200. The largest gains occurred in the following sectors:
- education and health services (+10,400)
- leisure and hospitality (+8,000)
- natural resources, mining and construction (+2,500)
- other services (+1,200)
- manufacturing (+700)
Job losses occurred in the following sectors:
- professional and business services (-3,000)
- trade, transportation and utilities (-2,700)
- information (-400)
Mohawk Valley
For the 12-month period ending May 2024, the number of private sector jobs in the Mohawk Valley region increased by 2,100, or 1.5%, to 143,400. The largest over-the-year employment gains occurred in the following sectors:
- education and health services (+1,200)
- natural resources, mining and construction (+300)
- trade, transportation and utilities (+300)
- financial activities (+200)
Job losses occurred in the following sectors:
New York City
The private sector job count in New York City rose over the past year by 60,300, or 1.5%, to 4,178,400 in May 2024. Job gains occurred in the following sectors:
- education and health services (+81,300)
- leisure and hospitality (+15,700)
- other services (+700)
- financial activities (+200)
Job losses occurred in the following sectors:
- information (-12,600)
- professional and business services (-10,300)
- trade, transportation and utilities (-9,200)
- natural resources, mining and construction (-3,800)
- manufacturing (-1,700)
North Country
Private sector jobs in the North Country rose over the year by 1,400, or 1.3%, to 109,900 in May 2024. Gains were greatest in the following sectors:
- education and health services (+300)
- professional and business services (+300)
- trade, transportation and utilities (+300)
- leisure and hospitality (+200)
- natural resources, mining and construction (+200)
Southern Tier
For the 12-month period ending May 2024, the number of private sector jobs in the Southern Tier region increased by 1,800, or 0.8%, to 218,100. Employment gains occurred in the following sectors:
- leisure and hospitality (+1,200)
- education and health services (+1,000)
- natural resources, mining and construction (+600)
- financial activities (+200)
Losses occurred in the following sectors:
- professional and business services (-700)
- manufacturing (-300)
- trade, transportation and utilities (-200)
Western NY
Over the past 12 months, the private sector job count in the Buffalo-Niagara Falls metro area rose by 8,300, or 1.8%, to 474,100 in May 2024. Employment gains occurred in the following sectors:
- education and health services (+5,000)
- leisure and hospitality (+2,900)
- natural resources, mining and construction (+800)
- manufacturing (+600)
- financial activities (+200)
- trade, transportation and utilities (+200)
Job losses were greatest in the following sectors:
- professional and business services (-1,300)
|
|
|
Click the button below to become a subscriber to Employment in New York State
|
|
|
|
|
