Wilmington: Economy
Major Industries and Commercial Activity
Companies working in service industries such as health care, banking, trade, and manufacturing remain Wilmington's largest employers. The Wilmington/Newark metropolitan area is home to some of the world's most prominent technology companies, including DuPont, AstraZeneca, W.L. Gore and Associates, Hercules, Inc., and Andersen Consulting. The Delaware Technology Park in Newark is host to more than 49 technology-driven businesses. Delaware is a national corporate center, and more than half of the Fortune 500 charter their operations in the city because of the state's favorable corporate franchise tax laws and nationally recognized Court of Chancery.
More than 60 banks—state, national and regional—are located in Wilmington. MBNA Bank is the area's largest employer with more than 11,000 workers. American Life Insurance Company's world headquarters is an impressive anchor in the city's developing Christina Gateway, a commercial center encompassing the eastern sector to the waterfront. Chase Manhattan has invested millions of dollars in downtown offices, as have PNC, First Union, Wilmington Trust, First USA, and Beneficial National Bank. Manufacturers Hanover has relocated a portion of its domestic lending operation to the city as well.
Other large manufacturing companies with operations in the Wilmington region include Daimler-Chrysler, Ciba-Geigy (pharmaceuticals), and Dade Behring (medical apparatus manufacturers).
Items and goods produced: chemicals, medical apparatus, mineral products, pharmaceuticals, aerospace products, automobiles
Incentive Programs—New and Existing Companies
Local programs
Wilmington provides strong incentives to businesses thinking of establishing operations in the city. Among the city incentives are: Christina Gateway Tax Incentive Program; Real Property Tax Exemption Program; Head Tax, which allows any new or relocating business in the city that brings over 100 new employees to obtain a waiver to the City's Head tax, a $6.00 fee per employee the city charges for upkeep of the city's infrastructure, police and other city services; Enterprise Zone; Blue Collar Tax Program, which provides that any business that creates blue-collar jobs in the city is eligible for a $250.00 state tax credit per $100 million invested; and incentives for locating in brownfields.
State programs
Delaware corporations have always benefited from the absence of either sales or inventory tax, and there are tax credits on corporate income and gross receipts tax reductions for new or expanding key industries. State incentive programs include Industrial Revenue Bond Financing; the Delaware Innovation Fund, developed to support the creation and development of new high growth, technology based firms, and high quality jobs in Delaware; and The Delaware Access Program, developed to assist banks in making high-risk business loans.
Job training programs
When the labor market cannot respond to an employer's needs, or when additional skills are necessary because of a particular business situation, the Delaware Economic Development Office has access to recognized educational resources that can provide skill training designed to the company's specifications. Training contracts may be arranged with colleges, vocational schools, specialized training centers, and independent agencies that provide business, industrial, and service-related instruction.
Development Projects
In his 2000 message to the city, Mayor Sills reported the following developments in Wilmington: "Through initiatives like Wilmington Renaissance, major corporations have expanded their business operations in the city, largely by shifting thousands of employees and new jobs to Wilmington from suburban locations. . . [In recent years] we have also brought in more than $10 million in private and government funds for key neighborhood development projects." Wilmington Renaissance is a nonpartisan, nonprofit organization that works to expand downtown employment and downtown living through partnerships with the mayor, city council, state and county officials, and agencies supporting development in Wilmington's downtown. A major recent project that has come out of the collaboration is a retail and residential project in the city's historic Ships Tavern District. The $24 million development, completed in the fall of 2004, brought more than 80 apartments and 18 retail shops to a city block that holds more than a dozen historically significant buildings. Originally constructed in the 18th and 19th centuries, the three- and four-story buildings had mostly been sitting vacant or used as warehouse space for more than two decades.
Mayor James M. Baker also announced plans to begin construction in March 2005 on a new 150,000-square-foot office and retail complex at the site of the former Wilmington Dry Goods in downtown Wilmington. Called the Renaissance Centre, the $50 million project would house more than 550 employees and is expected to be completed by 2007. The city also came to an agreement that would allow the Brandywine Realty Trust Corp. to develop a piece of prime downtown property with a proposed 22-story, 500,000-square-foot office complex near 2nd and King Street.
Economic Development Information: Delaware Economic Development Office, 820 N. French Street, Wilmington, DE 19901; telephone (302)577-8477. New Castle County Chamber of Commerce, County Commerce Office Park, Suite 201, 630 Churchman's Road, Newark, DE; telephone (302)737-4345
Commercial Shipping
The flow of goods in and out of Wilmington is facilitated by its network of interstate highways and air and rail freight service. The city also boasts one of the busiest ports in the world. Perhaps the city's greatest economic asset, the state-owned Port of Wilmington lies at the mouth of the Christina River, only 65 miles from Atlantic Ocean shipping lanes. Incoming cargo, such as fresh fruit, concentrated juice, frozen meat, vehicles, lumber, and steel can be dispatched directly from ships to freight cars, trucks, and lighter carriers, saving handling costs and speeding delivery. The port has been designated a Free Trade Zone, offering customs benefits that are attractive to international trade. The full-service, deep-water port handles more than 400 vessels and nearly 5 million tons of cargo yearly, and its discharging facilities include two 46-ton container cranes that can handle 35 containers an hour.
The interstate highways that pass through Wilmington give truckers direct access to one-third of the nation's consumers; more than 60 common and contract carriers operate in the metropolitan area. Wilmington is also served by the mainline of Norfolk Southern System, with excellent direct freight service to major markets.
The New Castle County Airport offers worldwide cargo services with an unusually fast and efficient ground delivery system. Repair and maintenance services, leasing and storage facilities for commercial and corporate aircraft are also available. Also within a short commute of Wilmington are both Philadelphia International Airport and Dover Air Force Base. Additionally the smaller public-use airports of New Garden, Brandywine, and Spitfire are within 20 miles of downtown Wilmington.
Labor Force and Employment Outlook
Wilmington offers businesses a diverse labor force with a good mixture of blue- and white-collar workers. Forbes magazine rated the Wilmington-Newark and Dover metropolitan areas among the nation's "Best Places for Business and Careers" in the May 2000 edition.
The following is a summary of data regarding the Wilmington-Newark metropolitan area labor force, 2003 annual averages.
Size of nonagricultural labor force: 318,500
Number of workers employed in . . .
construction and mining: 18,100
manufacturing: 23,400
trade, transportation and utilities: 58,500
information: 6,500
financial activities: 39,500
professional and business services: 52,800
educational and health services: 38,300
leisure and hospitality: 26,000
other services: 13,500
government: 41,900
Average hourly earnings of production workers employed in manufacturing: $21.76
Unemployment rate: 4.0% (November 2004)
| Largest employers (2004; New Castle County, including Wilmington) | Number of employees |
| MBNA Corp. | 11,000 |
| EI DuPont de Nemours Co. | 9,600 |
| Christina Care Health Services | 6,500 |
| Alfred I. DuPont Institute (Medical Campus) | 2,800 |
| Astra-Zeneca | 2,400 |
Cost of Living
In comparison with other eastern seaboard cities such as Philadelphia and New York, Wilmington boasts of relatively low living costs, particularly those associated with housing.
The following is a summary of data regarding several key cost of living factors for the Wilmington area.
2004 (3rd Quarter) ACCRA Cost of Living Index: 105.4 (U.S. average = 100.0)
2004 (3rd Quarter) ACCRA Average House Price: $247,820
State income tax rate: Ranges from 2.2% to 5.95%
State sales tax rate: None
Local income tax rate: 1.42%
Local sales tax rate: None
Property tax rate: $1.3348 per $100 of assessed valuation (assessed valuation = 100% of fair market value)
Economic Information: City of Wilmington Department of Commerce, City-County Building, 800 French St., Wilmington, DE 19801-3537; telephone (302)571-4169