In the last decades, digital technologies and global markets have reshaped the relationship between city and industry. Developed countries have largely adopted a postindustrial policy, which promotes one-dimensional service-based economy, moving manufacturing to factories in developing countries. However, recently, scholars and policy makers have begun to realize that despite its apparent benefits, post-industrial policy may present certain risks to industry, society and the environment. It may damage the industry’s ability to innovate, cause high unemployment rates and out-migration of industrial cities, and also generate an environmental damage. Due to these changing dynamics, as well as to rising labor and transportation costs, domestic production is making a comeback to many so-called “post-industrial” cities.

Using these processes as a point of departure, this paper aims to promote a new industrial-urban agenda in Israel and re-thinks the role of manufacturing in cities. Re-introducing manufacturing into the city may create opportunities for urban regeneration and job creation. However, this is not just an economic question but also a spatial one. Planners and policy makers should consider design and spatial considerations when rethinking the industry’s role within the city. Accordingly, the paper addresses questions such as: What might the future relationships between city and industry look like? What physical planning and design strategies should cities pursue to retain, attract, and increase manufacturing activity? Does contemporary manufacturing have the same spatial needs as in the past? Can industry and housing coexist in proximity or even be integrated ?Is there a way to design an industrial city while also enhancing livability and the quality of life of its inhabitants?