Michael Brown expects he will have to close his Black-owned union construction business by the end of next year.<\/p>\n
Craig Williams said his firm, Pride Enterprises, a Norristown-based general contractor, has seen a \u201csharp decline\u201d in opportunities to partner with larger companies on major projects.<\/p>\n
Both men blame national and local shifts in diversity, equity and inclusion policies, including Mayor Cherelle Parker\u2019s decision last year to abandon race- and gender-based contracting preferences.<\/a><\/p>\n \u201cToday minority businesses across Philadelphia are witnessing a catastrophic erosion of market share, pushing foundational enterprises to the brink of collapse,\u201d said Brown, a partner in the 360 Group of Companies.<\/p>\n Williams\u2019 other enterprise, American Power Electrical Supply Co., has experienced a 40% drop in local revenue over the past year. In the same time period, sales at the firm\u2019s New York warehouse have doubled; he said the Empire State \u201cremains a DEI stronghold\u201d in spite of the Trump administration\u2019s attempts to dismantle the diversity framework.<\/p>\n \u201cBoth of my companies have benefited tremendously from affirmative action and diversity, equity, inclusion policies and initiatives,\u201d Williams said. \u201cMy concern is primarily focused on the emerging businesses that need that support to scale and the generations that are coming behind us that may not have the resources available to them that were so critical to the development of my businesses.\u201d<\/p>\n Brown and Williams were among the minority business owners who testified Monday morning before a special committee established by City Council in 2024 to examine DEI policies in the government and private sectors.<\/p>\n Harold T. Epps, a senior advisor at Bellevue Strategies and co-chair of the committee, said the body \u201chas found persistent structural barriers\u201d facing minority-, woman- and disabled-owned companies.<\/p>\n During a two-hour hearing at City Hall, industry leaders discussed access to financing, bundling of municipal contracts and delays in processing payments to prime and sub contractors.<\/p>\n Members of the committee were tasked with coming up with a report for lawmakers, and they approved a lengthy document Monday. Legislative staff said they needed to finalize corrections before releasing it to the public. The report is expected to be posted online<\/a> in the coming days, and interested parties can also reach out to the Council President\u2019s Office for a mailed copy.<\/p>\n Shifting DEI policies<\/p>\n In November, the Parker administration transformed the city\u2019s 40-year-old minority-, women-, and disabled-owned enterprise (M\/W\/DSBE) initiative into a program favoring small and local businesses<\/a>. City officials cited legal risks stemming from a number of recent rulings, including the 2023 U.S. Supreme Court decision striking down affirmative action in college admissions<\/a>. The policy helps to guide the billions City Hall spends on contracts every year.\u00a0<\/p>\n Nadir Jones, director of Parker\u2019s Office of Business Impact and Economic Advancement, said the city has four tiers of small firms, ranging from those earning less than $1 million in annual revenue up to $47 million.<\/p>\n \u201cThose caps put significant impediments on businesses having the potential to scale,\u201d Epps responded.<\/p>\n Jones said the administration is developing \u201cmiddle market\u201d regulations to incorporate diverse and local companies that may have graduated out of the \u201csmall\u201d category. Later, Council President Kenyatta Johnson expressed his \u201csupreme confidence\u201d in Jones\u2019 leadership of the small and local initiative.\u00a0<\/p>\n Voters in November\u2019s general election will be weighing a ballot question authorizing bid preferences and contract set-asides for small and local enterprises.<\/p>\n Private sector barriers<\/p>\n Donna Allie, founder and president of Team Clean Inc., a janitorial business, asserted that the problem may not be public contracts. About 80% of her firm\u2019s work is with the City of Philadelphia.<\/p>\n \u201cThe challenge is the private sector,\u201d she testified. \u201cI don\u2019t golf with them. I don\u2019t eat at the same restaurants. I ain\u2019t from the same neighborhood.\u201d<\/p>\n Maria Roberts, a member of the special committee and leader of MFR Consultants, noted that there was only one representative on a panel at Monday\u2019s hearing focused on \u201cprivate sector participation models and effects.\u201d<\/p>\n \u201cThis city, this region has got to do better in supporting its women, minorities and all of its citizens,\u201d she said. \u201cThe government is doing the best it can, but private industry has got to be in the ring and be an active participant.\u201d<\/p>\n