JUNE 23, 2006

AGENDA

Welcome, Introductions, and Project Overview

Review/Refine Targets of Opportunity Next Steps: Employer Consultations Adjourn (3:00 p.m.)

Project Overview

Regional Dataset (1990-2004 employment, change in firms with and without employees)

Clusters of Opportunity Training and Product Targets of Opportunity Revisions, Coaching

on Base Cluster Update, and Occupational Patterns by Target Area

Employer Consultations/Further Refinements Summary Document and Presentations

Cluster or “Target” of Opportunity

How You CreatedInitial Targets of Opportunity

Focused on industry sectors that are highly-concentrated and/or have been growing in employment, concentration, or wages.

Grouped them according to similar and related types of industries, products, and services. Used your knowledge about the regional economy and consulted the NAICS manual. Can use other cluster studies to understand how firms are related.

Considered the following components as you assembled targets of opportunity:

o Export-oriented sectors: sectors that sell products or services primarily outside the region

o Population-serving sectors: sectors that sell products or services primarily inside the region

o Support sectors: sectors selling goods and services to the either the export-oriented or population-serving sectors.

Create Target of Opportunity Tables by assembling a list of NAICS codes and summarizing employment, wage, and concentration (location quotient) data by individual NAICS code and for the group as a whole

Targets of Opportunity Revisions

Target of Opportunity Criteria

CRITERIA INTERPRETATION

Expanding Opportunity

Job GrowthShows how various industries have weathered market forces and their subsequent employment generationFirm GrowthGrowth in firms can indicate a change in organization of an industry, a surge in local entrepreneurship, or attraction of outside investment to the region

Growing Quality

Job QualityHigh average payroll per employee relative to the regional average indicates a sector with relatively high productivity per employee. Additionally, pay is a reflection of job quality and indicates the amount of training and skill required to perform the job

Improving Competitivene

ss

Strong and/or Growing Regional SpecializationA concentration of greater than 1 indicates that employment in the region is more specialized in the industry compared with U.S. or California. Specialization generally reflects competitiveness and outward orientation.

Career Potential

Occupational Distribution and DynamicsOccupational opportunities spread across higher, mid, and lower-levels, suggesting possible pathways for upward mobility. Occupations that are highly-concentrated and/or fast-growing are of particular interest.

Key Linkages

Important Relationships and Common NeedsRelated to other sectors in important buyer-supplier or complementary partnering relationships. Share a common workforce, markets, or others.

Cluster Sectors in Target of Opportunity

Most Initial Target AreasCarried Forward

Most of “Finance” became the core of investment support services

All of “Innovation Services” carried forward Most of “Specialty Manufacturing” became

the core of “Niche Manufacturing” All of “Agriculture” included in “Specialty

Agriculture, Food, and Beverages” All of “Health” carried forward

What Was Very Low on Key Criteria or Was Shifted to Other Target Areas

Very Low on Key Criteria

Most of North Coast Experience (very low wage)

Education (very low wage & concentration outside of government)

Shifted to Other Areas Some North Coast

Experience shifted to Specialty Agriculture, Food, and Beverages

Some of Information Technology shifted to Management and Innovation Services

Six Targets of Opportunity

28% of total regional employment—up from 22% in 1990.

Some are larger with concentrations greater than one (Specialty Ag/Food/Bev, Diversified Health, and Buildings & Systems Construction and Maintenance)

Some are smaller with fast growth rates (Niche Mfg, Mgt and Innovation Services)

Investment Support Services is in the middle

North Coast Region Base Clusters

Dairy and Ranching

623

Manufacturing

3,851

Tourism

11,414

Information Technology

168

Arts and Culture

2,994

Specialty Agriculture

3,597

Education and Research

1,742

Fishery and Aquaculture

6,350

Forestry & Logging

6,160

-1

0

1

2

3

4

5

6

7

-0.06 -0.04 -0.02 0 0.02 0.04 0.06 0.08 0.1

Average Annual Growth (1990-2002)

Conc

entr

atio

n (1

.0 is

sam

e as

CA

)

NORTH COAST REGION BASE CLUSTERS AND TARGETS OF

OPPORTUNITY

Targets of Opportunity Review

Overview of target area Questions about overall definition or

specific industry sectors included in target area

Suggestions for revisions to target area

Suggestions for possible employer consultations

Diversified Health Care

3,459 7,784 $ 28,887 $ 31,547 0.82 1.13 6% 5% 8% 940 1,413 33%

Average Annual Growth

Rate

1990 2004 1990 2004 1990 2004 1990-2004 1990 2004 1990 2003 % Change

68841 93318 $ 27,129 $ 27,467 2.2% 16293 16540 1.5%

6214 Outpatient Care Centers 191 538 $ 27,712 $ 36,610 1.38 1.91 7.7% 0.3% 0.6% 20 29 31.0%

6211 Offices of Physicians 1453 2037 $ 39,409 $ 38,681 1.49 1.52 2.4% 2.1% 2.2% 292 360 18.9%

6216 Home Health Care Services 25 226 $ 14,875 $ 18,481 0.27 0.82 17.0% 0.0% 0.2% 8 23 65.2%

6232Residential Mental Retardation, Mental Health and Substance Abuse Facilities 199 388 $ 16,987 $ 17,067 1.17 1.21 4.9% 0.3% 0.4% 3 6 50.0%

6213 Offices of Other Health Practitioners 366 575 $ 22,675 $ 23,035 1.67 1.62 3.3% 0.5% 0.6% 173 341 49.3%

6241 Individual and Family Services 501 787 $ 17,122 $ 22,578 2.23 1.64 3.3% 0.7% 0.8% 153 360 57.5%

6212 Offices of Dentists 579 732 $ 25,134 $ 31,350 1.50 1.09 1.7% 0.8% 0.8% 141 139 -1.4%

6233 Community Care Facilities for the Elderly 99 623 $ 11,409 $ 13,734 0.59 1.92 14.0% 0.1% 0.7% 15 8 -87.5%

8122 Death Care Services 24 73 $ 24,312 $ 29,420 0.43 1.15 8.3% 0.0% 0.1% 31 30 -3.3%

6239 Other Residential Care Facilities 0 202 $ - $ 19,789 - 1.65 0.0% 0.0% 0.2% 32 49 34.7%

3391 Medical Equipment and Supplies Manufacturing 22 58 $ 21,521 $ 29,399 0.09 0.19 7.2% 0.0% 0.1% 37 29 -27.6%

6221 General Medical and Surgical Hospitals 0 1509 $ - $ 43,123 - 0.68 0.0% 0.0% 1.6% 17 17 0.0%

6219 Other Ambulatory Health Care Services 0 36 $ - $ 23,241 - 0.30 0.0% 0.0% 0.0% 18 22 18.2%

North Coast Summary

Cluster Summary

NAICS Code

2002 NAICS Title

Regional Employment

Regional Average Annual Wage (inflation adjusted,

2004)

Regional Employment Concentration (relative to

CA)

% Regional Employment

Total Establishments

Diversified Health Care

33%

28%

39%

Investment Support Services

2,405 3,160 $ 27,933 $ 35,383 0.56 0.60 2% 3% 3% 811 1,067 24%

Average Annual Growth Rate

1990 2004 1990 2004 1990 2004 1990-2004 1990 2004 1990 2003 % Change

68841 93318 $ 27,129 $ 27,467 2.2% 16293 16540 1.5%

5231

Securities and Commodity Contracts Intermediation and Brokerage

29 87 $ 79,777 $ 89,477 0.18 0.34 8.2% 0.0% 0.1% 16 39 59.0%

5313Activities Related to Real Estate

240 347 $ 19,105 $ 25,328 0.71 0.67 2.7% 0.3% 0.4% 42 59 28.8%

5312Offices of Real Estate Agents and Brokers

220 315 $ 26,432 $ 25,271 1.07 0.96 2.6% 0.3% 0.3% 219 244 10.2%

5242Agencies, Brokerages, and Other Insurance Related Activities

323 410 $ 33,539 $ 42,445 0.73 0.69 1.7% 0.5% 0.4% 198 199 0.5%

5412

Accounting, Tax Preparation, Bookkeeping, and Payroll Services

368 418 $ 24,854 $ 23,816 0.65 0.66 0.9% 0.5% 0.4% 163 239 31.8%

5221Depository Credit Intermediation

1013 1131 $ 26,558 $ 31,302 0.87 1.06 0.8% 1.5% 1.2% 105 108 2.8%

5222Nondepository Credit Intermediation

0 263 $ - $ 60,327 - 0.49 0.0% 0.0% 0.3% 30 58 48.3%

5223Activities Related to Credit Intermediation

0 15 $ - $ 38,564 - 0.05 0.0% 0.0% 0.0% 9 29 69.0%

5239Other Financial Investment Activities

0 6 $ - $ 20,108 - 0.02 0.0% 0.0% 0.0% 16 63 74.6%

5241 Insurance Carriers 212 168 $ 35,768 $ 47,323 0.31 0.21 -1.6% 0.3% 0.2% 13 29 55.2%

North Coast Summary

Cluster Summary

NAICS Code

2002 NAICS TitleRegional

Employment

Regional Average Annual Wage (inflation

adjusted, 2004)

Regional Employment

Concentration (relative to CA)

% Regional Employment

Total Establishments

Investment Support Services

38%

22%

40%

Management & Innovation Services

937 2,298 $ 29,086 $ 31,923 0.31 0.38 7% 1% 2% 628 1,102 43%

Average Annual Growth Rate

1990 2004 1990 2004 1990 2004 1990-2004 1990 2004 1990 2003 % Change

68841 93318 $ 27,129 $ 27,467 2.2% 16293 16540 1.5%

5417 Scientific Research and Development Services 43 72 $ 23,393 $ 29,114 0.09 0.12 3.8% 0.1% 0.1% 18 37 51.4%

5611 Office Administrative Services 9 75 $ 36,238 $ 38,756 0.05 0.24 16.4% 0.0% 0.1% 8 37 78.4%

5511 Management of Companies and Enterprises 93 702 $ 24,395 $ 38,102 0.37 0.48 15.5% 0.1% 0.8% 4 9 55.6%

5416Management, Scientific, and Technical Consulting Services 47 308 $ 20,973 $ 29,876 0.14 0.41 14.4% 0.1% 0.3% 132 279 52.7%

5414 Specialized Design Services 5 45 $ 24,528 $ 28,902 0.05 0.31 17.0% 0.0% 0.0% 73 105 30.5%

5419Other Professional, Scientific, and Technical Services 233 404 $ 15,210 $ 19,151 1.08 1.21 4.0% 0.3% 0.4% 113 180 37.2%

5413 Architectural, Engineering, and Related Services 458 575 $ 36,972 $ 37,484 0.62 0.58 1.6% 0.7% 0.6% 160 202 20.8%

5418 Advertising and Related Services 0 66 $ - $ 18,543 - 0.18 0.0% 0.0% 0.1% 53 68 22.1%

5415 Computer Systems Design and Related Services 49 19 $ 42,201 $ 31,128 0.14 0.02 -6.5% 0.1% 0.0% 35 102 65.7%

5182 Data Processing, Hosting, and Related Services 0 32 $ - $ 35,747 - 0.25 0.0% 0.0% 0.0% 14 32 56.3%

5112 Software Publishers 0 0 $ - $ - - - 0.0% 0.0% 0.0% 13 23 43.5%

5181Internet Service Providers and Web Search Portals 0 0 $ - $ - - - 0.0% 0.0% 0.0% 5 28 82.1%

% Regional Employment

Total Establishments

North Coast Summary

Cluster Summary

NAICS Code 2002 NAICS Title

Regional Employment

Regional Average Annual Wage (inflation adjusted, 2004)

Regional Employment Concentration (relative to

CA)

Management & Innovation Services

83%

<1%

17%

Building & Systems Construction & Maintenance

4,911 7,358 $ 28,720 $ 29,019 1.02 1.02 3% 7% 8% 1,867 1,802 -4%

Average Annual Growth Rate

1990 2004 1990 2004 1990 2004 1990-2004 1990 2004 1990 2003 % Change

68841 93318 $ 27,129 $ 27,467 2.2% 16293 16540 1.5%

5617 Services to Buildings and Dwellings 542 1386 $ 19,640 $ 23,971 0.71 1.13 6.9% 0.8% 1.5% 184 241 23.7%

2383 Building Finishing Contractors 356 573 $ 28,778 $ 26,486 0.52 0.53 3.5% 0.5% 0.6% 173 201 13.9%

2371 Utility System Construction 52 126 $ 38,677 $ 37,682 0.31 0.61 6.5% 0.1% 0.1% 40 28 -42.9%

2373Highway, Street, and Bridge Construction 287 423 $ 51,991 $ 51,149 1.99 2.46 2.8% 0.4% 0.5% 81 60 -35.0%

2361 Residential Building Construction 1211 1488 $ 23,042 $ 28,248 2.11 1.82 1.5% 1.8% 1.6% 484 473 -2.3%

5622 Waste Treatment and Disposal 0 172 $ - $ 32,945 - 2.14 0.0% 0.0% 0.2% 2 3 33.3%

2381Foundation, Structure, and Building Exterior Contractors 171 426 $ 21,782 $ 25,600 0.35 0.47 6.7% 0.2% 0.5% 113 112 -0.9%

2389 Other Specialty Trade Contractors 170 291 $ 23,106 $ 27,453 0.59 0.70 3.9% 0.2% 0.3% 157 155 -1.3%

2382 Building Equipment Contractors 627 798 $ 35,831 $ 34,579 0.84 0.70 1.7% 0.9% 0.9% 284 246 -15.4%

4441 Building Material and Supplies Dealers 1243 1371 $ 29,669 $ 25,501 2.54 1.87 0.7% 1.8% 1.5% 219 166 -31.9%

2362 Nonresidential Building Construction 252 259 $ 33,018 $ 32,548 0.74 0.64 0.2% 0.4% 0.3% 82 62 -32.3%

2213 Water, Sewage and Other Systems 0 45 $ - $ 25,809 - 1.38 0.0% 0.0% 0.0% 48 55 12.7%

North Coast Summary

Cluster Summary

NAICS Code

2002 NAICS Title

Regional Employment

Regional Average Annual Wage (inflation adjusted, 2004)

Regional Employment Concentration (relative to

CA)

% Regional Employment

Total Establishments

Building & Systems Construction & Maintenance

31%

20%

49%

Specialty Agriculture, Food and Beverages

4,443 5,639 $ 20,936 $ 22,804 1.27 1.23 2% 6% 6% 893 953 6%

Average Annual

Growth Rate

1990 2004 1990 2004 1990 2004 1990-2004 1990 2004 1990 2003 % Change

68841 93318 $ 27,129 $ 27,467 2.2% 16293 16540 1.5%

3121 Beverage Manufacturing 807 938 $ 27,194 $ 31,778 - 4.11 1.1% 1.2% 1.0% 50 80 37.5%

3115 Dairy Product Manufacturing 86 190 $ 34,686 $ 34,079 0.98 1.84 5.8% 0.1% 0.2% 6 8 25.0%

4931 Warehousing and Storage 50 241 $ 22,289 $ 31,527 0.43 0.63 11.9% 0.1% 0.3% 33 38 13.2%

1151 Support Activities for Crop Production 235 470 $ 15,402 $ 20,607 0.34 0.48 5.1% 0.3% 0.5% 30 31 3.2%

1113 Fruit and Tree Nut Farming 1151 1533 $ 14,880 $ 14,196 2.41 2.96 2.1% 1.7% 1.6% 95 120 20.8%

4452 Specialty Food Stores 281 428 $ 16,586 $ 16,787 1.45 1.90 3.1% 0.4% 0.5% 55 64 14.1%

1114Greenhouse, Nursery, and Floriculture Production 0 282 $ - $ 18,739 - 1.28 0.0% 0.0% 0.3% 35 39 10.3%

4248Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers 0 103 $ - $ 33,587 - 1.27 0.0% 0.0% 0.1% 18 11 -63.6%

1141 Fishing 302 172 $ 37,086 $ 57,551 38.58 39.08 -3.9% 0.4% 0.2% 22 17 -29.4%

1121 Cattle Ranching and Farming 464 433 $ 16,605 $ 20,261 5.05 3.11 -0.5% 0.7% 0.5% 159 159 0.0%

1119 Other Crop Farming 388 207 $ 21,809 $ 20,692 2.01 1.40 -4.4% 0.6% 0.2% 82 78 -5.1%

4244 Grocery and Related Product Wholesalers 309 382 $ 29,494 $ 27,215 0.88 0.74 1.5% 0.4% 0.4% 120 97 -23.7%

1124 Sheep and Goat Farming 0 4 $ - $ 22,043 - 1.52 0.0% 0.0% 0.0% 9 6 -50.0%

1112 Vegetable and Melon Farming 264 92 $ 12,694 $ 11,229 1.37 0.41 -7.3% 0.4% 0.1% 29 22 -31.8%

3118 Bakeries and Tortilla Manufacturing 74 77 $ 16,042 $ 20,509 0.31 0.31 0.3% 0.1% 0.1% 48 48 0.0%

1125 Animal Aquaculture 0 18 $ - $ 20,395 - 5.20 0.0% 0.0% 0.0% 8 8 0.0%

3119 Other Food Manufacturing 0 69 $ - $ 13,295 - 0.51 0.0% 0.0% 0.1% 10 12 16.7%

1129 Other Animal Production 32 0 $ 17,203 $ - 2.84 - -100.0% 0.0% 0.0% 43 67 35.8%

1152 Support Activities for Animal Production 0 0 $ - $ - - - 0.0% 0.0% 0.0% 28 31 9.7%

3116 Animal Slaughtering and Processing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 3 4 25.0%

3114Fruit and Vegetable Preserving and Specialty Food Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 6 9 33.3%

* 3113Sugar and Confectionery Product Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 4 4 0.0%

* Employment growth is evident in NETS data.

% Regional Employment

Total Establishments

North Coast Summary

Cluster Summary

NAICS Code 2002 NAICS Title

Regional Employment

Regional Average Annual Wage (inflation adjusted,

2004)

Regional Employment Concentration (relative to CA)

Specialty Agriculture, Food and Beverages

6%

64%

30%

Niche Manufacturing 320 994 $ 27,634 $ 33,849 0.12 0.33 8% 0% 1% 450 521 14%

Average Annual

Growth Rate

1990 2004 1990 2004 1990 2004 1990-2004 1990 2004 1990 2003 % Change

68841 93318 $ 27,129 $ 27,467 2.2% 16293 16540 1.5%

3399 Other Miscellaneous Manufacturing 0 266 $ - $ 38,560 - 1.05 0.0% 0.0% 0.3% 86 110 21.8%

4541 Electronic Shopping and Mail-Order Houses 91 220 $ 27,014 $ 33,501 1.45 1.87 6.5% 0.1% 0.2% 46 42 -9.5%

4239 Miscellaneous Durable Goods Merchant Wholesalers 149 262 $ 25,902 $ 28,220 0.81 0.99 4.1% 0.2% 0.3% 70 68 -2.9%

8112Electronic and Precision Equipment Repair and Maintenance

20 45 $ 29,965 $ 40,485 0.26 0.58 6.0% 0.0% 0.0% 59 54 -9.3%

3327Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

38 57 $ 38,225 $ 38,426 0.16 0.23 2.9% 0.1% 0.1% 32 38 15.8%

4236Electrical and Electronic Goods Merchant Wholesalers

0 62 $ - $ 40,112 - 0.22 0.0% 0.0% 0.1% 21 22 4.5%

3329 Other Fabricated Metal Product Manufacturing 0 24 $ - $ 17,541 - 0.21 0.0% 0.0% 0.0% 4 10 60.0%

3391 Medical Equipment and Supplies Manufacturing 22 58 $ 21,521 $ 29,399 0.09 0.19 7.2% 0.0% 0.1% 37 29 -27.6%

3132 Fabric Mills 0 0 $ - $ - - - 0.0% 0.0% 0.0% 4 6 33.3%

3159Apparel Accessories and Other Apparel Manufacturing

0 0 $ - $ - - - 0.0% 0.0% 0.0% 1 3 66.7%

3255 Paint, Coating, and Adhesive Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 2 5 60.0%

3261 Plastics Product Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 4 6 33.3%

3271 Clay Product and Refractory Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 12 22 45.5%

3272 Glass and Glass Product Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 12 25 52.0%

3323 Architectural and Structural Metals Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 18 23 21.7%

3328Coating, Engraving, Heat Treating, and Allied Activities

0 0 $ - $ - - - 0.0% 0.0% 0.0% 10 19 47.4%

3331Agriculture, Construction, and Mining Machinery Manufacturing

0 0 $ - $ - - - 0.0% 0.0% 0.0% 6 10 40.0%

3353 Electrical Equipment Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 0 2 100.0%

4243Apparel, Piece Goods, and Notions Merchant Wholesalers

0 0 $ - $ - - - 0.0% 0.0% 0.0% 16 21 23.8%

* 3222 Converted Paper Product Manufacturing 0 0 $ - $ - - - 0.0% 0.0% 0.0% 2 1 -100.0%

* 3321 Forging and Stamping 0 0 $ - $ - - - 0.0% 0.0% 0.0% 8 5 -60.0%

* Employment growth is evident in NETS data.

North Coast Summary

Cluster Summary

NAICS Code

2002 NAICS Title

Regional Employment

Regional Average Annual Wage (inflation adjusted,

2004)

Regional Employment

Concentration (relative to CA)

% Regional Employment

Total Establishments

Niche Manufacturing

20%

30%

50%

Project Schedule

Regional Dataset (1990-2004 employment, change in firms with and without employees)

Clusters of Opportunity Training and Product Targets of Opportunity Revisions, Coaching

on Base Cluster Update, and Occupational Patterns by Target Area

Employer Consultations/Further Refinements Summary Document and Presentations