Bo Beaulieu & Michael Wilcox

Purdue Center for Regional Development &Extension Community Development Program

Exploring Your Local and Regional Economy – Clinton County

September 26, 2014

Presented at the Industry/Business Leaders Luncheon Series -- Frankfort, IN

Something to Ponder

The literature on job creation has frequently found that most jobs are created from existing employers, yet many local economic development organizations continue to emphasize new industry recruitment.

Daniel Davis

The Federal Reserve Bank of St. Louis.

May 2011

Focus of Today’s Program

• Examine the economic resources and opportunities that exist in your county/region (but are often overlooked) o The stages of your local establishmentso Regional competitive assets

• Discuss together ways to build on your local & regional assets

• Highlight some of the Purdue programs that might be of value to you

A Look at the Five Establishment Stages

Clinton County Business

Establishments

Data Source: NETS 2011, Edward Lowe, IEGC, PCRD

Establishments in Clinton CountyTotal 2,370State 0 957Stage 1 1,219 Stage 2 173 Stage 3 17 Stage 4 4 EmploymentTotal 14,980Stage 0 957Stage 1 3,751 Stage 2 4,581 Stage 3 3,271 Stage 4 2,420 Sales ($) in 2011 Total 1,633,643,973State 0 62.499,691Stage 1 295,858,327 Stage 2 401,469,360 Stage 3 555,607,695 Stage 4 318,208,900

Definition of company stages• Stage 0 (self-employed)

• Stage 1 (2-9 employees)

• Stage 2 (10-99 employees)

• Stage 3 (100 to 499 employees)

• Stage 4 (500+ employees)

• This table is based on the National Establishment Time Series (NETS) database

• The definitions for stages are based on research by the Edward Lowe Foundation

• A firm can have more than one establishment within the same county

Establishments in Clinton County: The Five Stages

Data Source: NETS 2011, Edward Lowe, IEGC, PCRD

Clinton County, Indiana

Employees Industry Establishments NAICS Sales

Stage 1 (2-9 employees)

9 Propane gas, bottled 454312

3,000,000

9 National commercial banks 522110

1,866,400

9 Drug stores and proprietary stores 446110

1,620,000

9 Trucking, except local 484121

1,000,000

9 Wood kitchen cabinets 337110 950,000

Stage 2 (10-99 employees)95 State commercial banks 522110 20,498,300

90 Injection molding of plastics 326199 9,000,000

90 Intermediate care facilities 623110 4,664,974

90 Youth organizations 813410 3,200,000

84 Secondary school, nec 611110 2,800,000

Stage 3 (100 to 499 employees)325 Seats, automobile 336360 220,000,000

300 Cleaners, air, motor vehicle 336312 45,780,000

275 General medical and surgical hospitals 622110 8,093,610

250 Candy and other confectionery products 311340 2,485,600

240 Retirement hotel operation 531110 2,856,406

Stage 4 (500 + employees)820 Gaskets; packing and sealing devices 339991 5,526,300

600 Potato chips and similar snacks 311919 60,000,000

500 Automotive electrical equipment, nec 336322 132,682,600

500 Potato chips and similar snacks 311919 0,000,000

820 Gaskets; packing and sealing devices 339991 5,526,300

Top Five Sales Establishments by Company Stage, 2011

A Look at Your Working Labor Force

Variable Job Counts, 2011 % Share

Employed in Clinton County 9,919 100

• Employed in county but living outside 4,958 50.0

• Employed and living in county 4,961 50.0

Living in Clinton County 12,103 100

• Living in county but employed outside 7,142 59.0

• Living and employed in county 4,961 41.0

o Based on strong commuting ties, Clinton County is linked to Tippecanoe, Boone and Howard, IN

o Cluster analysis is performed for the 4-county region

Source: OTM, LEHD, U.S. Census Bureau

4,958

4,961

7,142

Clinton County’s Laborshed and Commuteshed

Economic & Demographic Attributes Value Remarks Source

Population (2013) 356,327 People living in the region Census

Jobs (2013) 201,416 Full and part-time jobs EMSI (QCEW, BLS; BEA)

Average Earnings (2013) $42,984Include wages, salaries, supplements and proprietor income

EMSI (BLS; BEA)

Exports (2012) $25,112,756,357$ earned from selling goods and services to foreign and external domestic regions

EMSI model (BEA)

Imports (2012) $23,876,949,870$ spent on procuring goods and services from foreign and external domestic region

EMSI model (BEA)

Data Source: EMSI 2013.2 & Census

Key Data on the Region

A Word About Industry Clusters

• Industry clusters are groups of similar and related firms in a defined geographic area that share common markets, technologies, worker skill needs, and which are often linked by buyer-seller relationships.

• Firms and workers in an industry cluster draw competitive advantage from their proximity to competitors, to a skilled workforce, to specialized suppliers and a shared base of sophisticated knowledge about their industry.

-50% -45% -40% -35% -30% -25% -20% -15% -10% -5% 0% 5%

-0.5

0.5

1.5

2.5

3.5

4.5

Glass & Ceramics, 0.55, 174

Industry Cluster Analysis, 2007-2012

% Change in LQ, 2007-2012

LQ, 2

012

-35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20%

-0.5

0.5

1.5

2.5

3.5

4.5

Business&FinancialService, 0.62, 14,985

Biomedical/Biotech, 0.93, 13,924

Energy(Fossil & Renewable), 0.59, 4,843

Mfg Supercluster, 3.50, 22,648

Advanced Materials, 1.70, 9,425 IT & Telecomm., 0.60, 4,112 Transportation & Logistics,

0.90, 5,267

Arts & Ent., 0.58, 4,469

Edu. & Knowledge, 0.47, 2,135

Defense & Security, 0.57, 3,330

Printing & Publishing, 0.60, 2,024

Agri. & Food Process., 1.29, 3,723

Chemicals&Chemical Based, 0.65, 1,475

Mining, 0.50, 280

Forest & Wood Prod., 0.85, 1,410

Apparel & Textiles, 0.31, 452

Industry Cluster Analysis, 2007-2012

% Change in LQ, 2007-2012

LQ, 2

012

Note: Label includes cluster name, LQ 2012 and Employment 2012

Data Source: EMSI 2013.2, industry cluster definitions by PCRD

Mature Star

Transforming Emerging

13

How to interpret a bubble chartThe graph’s four quadrants tell a different story for each cluster.

Modified from: http://www.charlestonregionaldata.com/bubble-chart-explanation/

EmergingBottom right(weak but emerging)

StarsTop right (strong and advancing)

MatureTop left

(strong but declining)

TransformingBottom left (weak and declining)

Contains clusters that are more concentrated in the region and are growing. These clusters are strengths that help a community stand out from the competition. Small, high-growth clusters can be expected to become

more dominant over time.

Contains clusters that are more concentrated in the region but are declining (negative growth). These clusters typically fall into the lower quadrant as job losses cause a decline in concentration.

Contains clusters that are under-represented in the region but are growing, often quickly. If growth trends continue, these clusters will eventually move into the top right quadrant. Clusters in this quadrant are considered “emerging” strengths for the region.

Contains clusters that are under-represented in the region (low concentration) and are also losing jobs. Clusters in this region may indicate a gap in the workforce pipeline if local industries anticipatea future need. In general, clusters in this quadrant show a lack of competitiveness.

Note: Label includes cluster name, LQ 2012 and Employment 2012

Data Source: EMSI 2013.2, industry cluster definitions by PCRD

Mature Star

Transforming Emerging

-30% -20% -10% 0% 10% 20%

0

2

4

6

8

10

Comp. & Electrn. Prod. Mfg, 0.52, 641

Fab. Metal Prod. Mfg, 0.88, 1,347

Transportation Equip. Mfg, 8.58, 13,801

Machinery Mfg, 3.17, 3,947

Elec.Equip,App. & Comp. Mfg, 1.77, 748

Primary Metal Mfg, 4.95, 2,164

Manufacturing Sub Cluster Analysis, 2007-2012

% Change in LQ , 2007-2012

LQ, 2

012

P e r c e n t G r o w t h i n S p e c i a l i z a t i o n

L e

v e

l o

f

S p

e c

i a l

i z a

t i o

n

Transforming

StarsMature

Emerging

Clinton County Region, Industry Cluster Analysis, 2007-12

• Apparel & Textiles• Biomedical/Biotechnical (Life

Sciences)• Business & Financial Services• Defense & Security• Fabricated Metal Product

Manufacturing• Forest & Wood Products• Transportation & Logistics

• Advanced Materials• Agribusiness, Food Processing &

Technology• Manufacturing Supercluster

o Transportation Equipment Manufacturing

o Electrical Equipment, Appliance & Component Manufacturing

• Machinery Manufacturing• Primary Metal Manufacturing

• Arts, Entertainment, Recreation & Visitor Industries

• Chemicals & Chemical Based Prod.• Computer & Electronic Prod Mfg• Education & Knowledge Creation• Energy (Fossil & Renewable)• Glass & Ceramics• IT & Telecommunications• Mining• Printing & Publishing

Data Source: EMSI 2013.2, industry cluster definitions by PCRDRed numbers in parenthesis are negatives

Cluster Name 2012 Jobs 2012 LQ Percent Change LQ, 2007-2012 2013 EPW

Competitive Effect(Shift-share),

2007-2012

Manufacturing Supercluster 22,648 3.50 (5%) $89,366 (717)Business & Financial Services 14,985 0.62 3% $38,830 757Biomedical/Biotechnical (Life Sciences) 13,924 0.93 2% $48,621 561Transportation Equipment Manufacturing 13,801 8.58 (8%) $95,349 (890)Advanced Materials 9,425 1.70 (24%) $88,692 (2,699)Transportation & Logistics 5,267 0.90 3% $49,376 286Energy (Fossil & Renewable) 4,843 0.59 (11%) $55,055 (481)Arts, Entertainment, Recreation & Visitor Industries 4,469 0.58 (12%) $18,880 (502)Information Technology & Telecommunications 4,112 0.60 (3%) $61,794 (68)Machinery Manufacturing 3,947 3.17 10% $91,274 437Agribusiness, Food Processing & Technology 3,723 1.29 (7%) $57,784 (185)Defense & Security 3,330 0.57 10% $47,721 341Primary Metal Manufacturing 2,164 4.95 4% $90,397 133Education & Knowledge Creation 2,135 0.47 (4%) $14,541 (20)Printing & Publishing 2,024 0.60 (10%) $36,710 (201)Chemicals & Chemical Based Products 1,475 0.65 (30%) $88,336 (593)Forest & Wood Products 1,410 0.85 16% $45,661 212Fabricated Metal Product Manufacturing 1,347 0.88 7% $55,319 118Electrical Equipment, Appliance & Component Mfg 748 1.77 (3%) $51,596 (9)Computer & Electronic Product Manufacturing 641 0.52 (20%) $63,977 (134)Apparel & Textiles 452 0.31 7% $34,067 34Mining 280 0.50 (12%) $77,103 (35)Glass & Ceramics 174 0.55 (48%) $46,063 (150)

The Region’s Industry Clusters -- Some Highlights

Note : ** presents “Star clusters in 2012”Data Source: EMSI 2013.2, industry cluster definitions by PCRD

Glass & Ceramics

Apparel & Textiles

Education & Knowledge Creation

Computer & Electronic Product

Machinery Manufacturing **

Defense & Security

Agribusiness & Food Processing

Chemical and Chemical-based Industry Clsuters

Primary Metal **

IT & Telecommunications

Business & Finance

Manufacturing Supercluster

-$1,000,000,000 $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000

Regional Requirements, Expenditures & Leakages, 2012

Satisfied in region

Food for Thought

• What is being done to focus on establishments that are in stages 0, 1 or 2? Should anything be targeted specifically to these establishments?

• How about goods and services purchased from outside the region? What possibility exists in terms of supplying these inputs regionally?

Purdue Programs

Economic Gardening (targeted to second stage firms)

Business Retention and Expansion program

Creating a Regional Entrepreneurial System Together

Purdue Center for Regional DevelopmentPurdue University

Gerald D. and Edna E. Mann Hall, Suite 266

203 Martin Jischke DriveWest Lafayette, IN 47907-2057

https://pcrd.purdue.edu/