NEW YORK (1010 WINS/WCBS 880) – Mayor Eric Adams announced a $25 million investment on Thursday focusing on health and beauty businesses owned by BIPOC and women in New York City.
The investment will go toward the AYO Labs hub in the Brooklyn Navy Yard R.F. Wilkins Consultants was selected to develop and operate the project.
With the wellness and beauty industry coming to nearly $450 billion market share, only 2.5 percent of the revenue are linked to Black-founded or -owned beauty companies, according to a 2022 McKinsey report.
On average, Black brands secure around $13 million in venture capital startup funding, which is about two-thirds of the median $20 million that non-Black brands raise, according to the report.
When the project is completed, AYO Labs will be among the country’s largest Black woman-owned contract manufacturing facilities, according to the release.
The project is expected to create over 900 jobs in the first five years, as well as strengthen New York City’s position as a leader in the health and beauty industry.
“Our administration believes we have a critical role in helping small businesses turn their big dreams into a reality,” Adams said. “While the beauty and wellness industry continues to boom by serving Black and Brown people, that wealth has not come back to those same communities.”
The first phase of the project is set to finish by 2025, featuring a 26,000-square-foot, $12 million manufacturing ecosystem to support over 100 entrepreneurs each year as they develop their companies.
The second phase is set to be completed in 2026 and will expand the facility to 14,000 square-feet of space.
Through the project, AYO Labs will support BIPOC and women entrepreneurs in growing their businesses. The space will support “product formulation, small and large batch manufacturing, and packaging services.”
It will also offer tools and resources, providing programming for early-stage entrepreneurs. Participants will have access to tech-driven back-office support, instructors, technical support, mentorship and networking opportunities.
R.F. Wilkins Consultants will work with Black woman-owned businesses, McKissack & McKissack and Studio 397 Architecture, for the design and construction of AYO Labs.
Jacklitch Gardner, a New York-based minority- and woman-owned business firm, will be the architect of record on the project.
“With this announcement, New York City is taking a stand, putting money back in the pockets of Black and Brown entrepreneurs, especially women of color,” Adams said. “Our investment in AYO Labs at the Brooklyn Navy Yard will help small businesses — including many owned by BIPOC and women entrepreneurs — enter the beauty market, develop and scale up their brands, and become the next generation of successful entrepreneurs.”