Diversity, Equity, and Inclusion (DEI) have become key areas of focus across industries, with New York State leading the charge in setting policies aimed at leveling the playing field for women and minority-owned businesses. However, the big question remains: how much progress has truly been made, especially in male-dominated industries?
This article examines the latest updates in DEI, the industries most impacted, and whether women and minority businesses are genuinely receiving new opportunities. Additionally, we explore the role of prime contractors in meeting DEI targets and assess which regions of New York State are flourishing in DEI initiatives and which areas need improvement.
Industries Impacted by DEI Initiatives
In New York State, construction, manufacturing, finance, and technology continue to be male-dominated sectors. These industries have been the focus of DEI initiatives designed to create more equitable opportunities for women and minority business enterprises (WMBEs). According to New York State's Department of Economic Development, the construction industry, in particular, has been a focal point of these efforts due to its historical lack of diversity.
Industry Snapshot:
Construction: 90% of the industry is male dominated, with women and minorities holding only 3% of top positions.
Manufacturing: Women and minorities hold less than 6% of leadership roles.
Technology: Women and minorities make up less than 25% of the total workforce.
The Progress: Are Women and Minority-Owned Businesses Gaining Opportunities?
New York State’s DEI initiatives have set ambitious targets for women and minority-owned businesses to benefit from procurement and contracting opportunities. Governor Kathy Hochul recently raised the MWBE (Minority and Women-Owned Business Enterprises) utilization rate to 30% for state contracts, one of the highest in the country. This effort is aimed at ensuring that state-funded projects allocate a substantial portion of their contracts to underrepresented groups.
Key DEI Data:
As of 2023, approximately 31% of all contracts in New York State have gone to certified MWBEs.
In male-dominated industries like construction, about 22% of prime and subcontractor opportunities went to MWBEs in 2022, up from 18% in 2019.
The finance sector has made strides, with MWBEs representing 12% of contract opportunities as of 2022.
While the data shows progress, women and minority-owned businesses continue to face challenges accessing contracts, particularly in more competitive, male-dominated sectors like construction and manufacturing.
Are Prime Contractors Held Accountable?
An important piece of the DEI puzzle is whether prime contractors, who are awarded large, scale contracts, are genuinely held accountable for meeting their MWBE participation goals. New York State has enacted strict penalties for contractors who fail to meet DEI goals, with fines and contract cancellations possible for non-compliance. However, enforcement remains inconsistent.
In practice, prime contractors often meet the letter of the law by outsourcing small tasks to MWBEs, while the most profitable and high-skill tasks remain in the hands of larger, established companies. Accountability remains a challenge.
Regional DEI Performance: Who’s Leading and Who’s Lagging?
Areas with Flourishing DEI Initiatives:
New York City leads the state in MWBE utilization, with over 36% of contracts going to women and minority businesses, especially in construction and professional services.
Albany has also made substantial progress, with 28% of contracts being awarded to MWBEs, particularly in technology and public infrastructure projects.
Areas Needing Improvement:
Western New York, including Buffalo and Rochester, trails behind with only 15-18% of contracts awarded to MWBEs.
Long Island also struggles to meet DEI targets, with many women and minority business owners citing difficulties in accessing contracts due to a lack of local government enforcement and prime contractor cooperation.
Are We Moving in the Right Direction?
While New York State has made impressive strides in improving DEI, particularly in setting MWBE goals, there is still work to be done. Women and minority-owned businesses are gaining opportunities, but systemic challenges remain, particularly in male-dominated sectors.
Prime contractors must be more accountable for the real participation of MWBEs in large-scale projects, and enforcement of DEI goals should be more robust across the state, particularly in underserved regions like Western New York and Long Island.
To truly move the needle, it will take a combination of policy enforcement, contractor accountability, and continued advocacy to ensure that the benefits of DEI initiatives reach every corner of New York’s economy.
Citations:
New York State Department of Economic Development, MWBE Utilization Report 2023
New York State Comptroller's Report on Construction Industry Diversity, 2022
Empire State Development, "Governor Hochul's Commitment to DEI," 2023
Note: The reason I conducted this research and wrote this article is deeply personal. As the owner of Nevalliance, a certified MWBE, and the co-Director of Ascend Long Island, I understand the challenges that women and minority-owned businesses face in male-dominated industries. Through my work, I’ve been able to observe both the progress and the areas where we still need improvement. My goal is to highlight these gaps and encourage meaningful changes that will ensure true equity and inclusion in New York State's business landscape.
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