Evidence- Based Planning Session 2 March 22, 2016 Review Clusters - PowerPoint PPT Presentation

Evidence- Based Planning Session 2 March 22, 2016

Review • Clusters you selected to explore in greater detail. • Justification for selecting these clusters • Report Draft • People you invited and/or interviewed

What initiatives are already taking place in the region? Regional Prosperity Initiative : Funded by the State of Michigan’s Department of Technology, Management, and Budget, Governor Rick Snyder’s Regional Prosperity Initiative (RPI) is an ongoing collaborative planning process involving broad representation from private, public, and nonprofit participants. The purpose of the initiative is to foster a common vision for the future the region and to identify clear steps and partners in achieving a more prosperous tomorrow.

http://srdc.msstate.edu/set/sites/default/files/curriculum/phas e ‐ v/session2/Interpreting%20the%20Bubble%20Chart.mp4

Industry and occupation Industry cluster bubble chart Star Mature ‐ 70% Glass & Ceramics, 0.11, 15 Transforming Emerging Note: Glass & Ceramics cluster has too few jobs. Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 5 Note: Label includes cluster name, LQ 2014, and Employment 2014; NAICS 2012 definitions

Industry and occupation Manufacturing sub-cluster bubble chart Mature Star Transforming Emerging Note: Computer & Electronic Product Manufacturing sub-cluster has too few jobs. Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 6 Note: Label includes cluster name, LQ 2014, and Employment 2014; NAICS 2012 definition

Measuring Region’s Performance http://srdc.msstate.edu/set/sites/default/files/curriculum /phase ‐ v/session2/Shift%20Share%20Analysis_final.mp4 https://youtu.be/mukcI4OwT8M

Shift-Share Analysis by Top Industry Sectors Agribusiness, Food Processing and Technology Cluster National Industry Cumulative Actual Job Regional Industries Jobs 2014 Trend, 2009- Trend, 2009- Expected Growth, Performance, 2014 2014 Growth 2009-2014 2009-2014 A B C=A+B D D-C Crop Production 714 38 -29 9 119 110 Animal Production and Aquaculture 425 35 -50 -15 -118 -103 Commercial Bakeries 65 9 -4 5 -79 -84 Other Snack Food Manufacturing 49 0 1 1 42 41 Confectionery Manufacturing from Purchased 46 2 -1 1 21 20 Chocolate Farm and Garden Machinery and Equipment 44 3 0 3 -2 -5 Merchant Wholesalers Farm Labor Contractors and Crew Leaders 43 2 2 4 6 2 Soil Preparation, Planting, and Cultivating 42 2 1 3 14 11 Crop Harvesting, Primarily by Machine 34 0 1 1 32 31 Retail Bakeries 29 1 5 6 11 5 Soft Drink Manufacturing 27 2 -3 -1 -2 -1 Breweries 27 0 1 1 27 26 Farm Supplies Merchant Wholesalers 18 2 0 2 -10 -12 Dry Pasta, Dough, and Flour Mixes 16 0 0 0 16 16 Manufacturing from Purchased Flour Note: Upward arrow ( ) indicates regional competitiveness. EMSI does not show sufficient data for Cheese Manufacturing. 8 Source: EMSI Class of Worker 2015.4 (QCEW, non-QCEW, self-employed and extended proprietors).

Regional Performance • Over the last 4 to 5 years, did the national economy fare well or poorly? • Within your selected clusters, which of the larger industries fared well nationally? Which did not perform well? Why? • Did certain industries within the clusters perform well in the region, given national economic and industrial trends? (i.e. What are the strong sub ‐ sectors? – Box 1)

Top 15 Inputs by Dollars Agribusiness, Food Processing and Technology Cluster Estimated Input Industries % In-Region % Out of Region ($ Millions), 2013 Crop Production $15.83 12% 88% Animal Production and Aquaculture 5% 95% $13.00 Other Animal Food Manufacturing ** $8.79 0% 100% Corporate, Subsidiary, and Regional Managing Offices $5.83 1% 99% Wholesale Trade Agents and Brokers 11% 89% $3.00 Farm Labor Contractors and Crew Leaders $2.77 5% 95% Plastics Bottle Manufacturing ** $2.64 0% 100% Pesticide and Other Agricultural Chemical Manufacturing ** 0% 100% $2.21 Wet Corn Milling ** $1.71 0% 100% Flour Milling ** $1.63 0% 100% Flavoring Syrup and Concentrate Manufacturing ** 0% 100% $1.53 General Freight Trucking, Long-Distance, Truckload $1.52 24% 76% Fats and Oils Refining and Blending ** $1.50 0% 100% Nitrogenous Fertilizer Manufacturing ** $1.46 0% 100% Rail transportation $1.33 39% 61% Note: ** industry sector is not present in the region . 10 10 Source: EMSI Class of Worker 2015.4 (QCEW, non-QCEW, self-employed and extended proprietors).

Top 15 Inputs by Dollars Agribusiness, Food Processing and Technology Cluster Note: ** industry sector is not present in the region. Source: EMSI Class of Worker 2015.4 (QCEW, non-QCEW, self-employed and extended proprietors). 11 11

Input Requirements • What inputs do firms within this cluster purchase? • (i.e. What industries support the cluster? – Box 2) • Are these purchases made locally or imported from outside the region? • (i.e. Where do leakages occur? – Box 3) • Are these inputs available locally? • (i.e. Where does the region have the capacity to respond? – Box 4)

Plugging the Leaks through Import S ubstitution • What inputs are the industries within the cluster purchasing from outside the region (leakages)? • Does the region currently have capacity for supplying these inputs cost ‐ effectively? • If yes, why aren’t these transactions occurring? • If no, what are the resources needed to help promote the creation, expansion, retention or attraction of businesses to supply inputs?

Top Occupations Agribusiness, Food Processing and Technology Cluster % Change, Median Hourly Occupations Jobs 2014 Entry Level Education 2009-2014 Earnings Farmers, Ranchers, and Other Agricultural Managers 920 -4% $12.9 High school diploma or equivalent Farmworkers and Laborers, Crop, Nursery, and 158 41% $10.8 Less than high school Greenhouse Bakers 31 -24% $10.2 Less than high school Packaging and Filling Machine Operators and Tenders 25 19% $19.9 High school diploma or equivalent Sales Representatives, Wholesale and Manufacturing, 24 9% $22.0 High school diploma or equivalent Except Technical and Scientific Products Nonfarm Animal Caretakers 23 53% $8.9 Less than high school Animal Trainers 20 11% $9.3 High school diploma or equivalent Food Batchmakers 20 5% $14.9 High school diploma or equivalent Heavy and Tractor-Trailer Truck Drivers 16 23% $18.6 Postsecondary non-degree award Agricultural Equipment Operators 15 50% $16.9 Less than high school Managers, All Other 15 15% $19.3 High school diploma or equivalent Laborers and Freight, Stock, and Material Movers, 14 0% $12.9 Less than high school Hand Packers and Packagers, Hand 14 0% $9.6 Less than high school Farmworkers, Farm, Ranch, and Aquacultural Animals 14 40% $11.0 Less than high school Bookkeeping, Accounting, and Auditing Clerks 12 -8% $16.1 High school diploma or equivalent Note: SOC (Standard Occupation Classification) 5 ‐ digit occupations are included by jobs in 2014. Extended proprietors include estimates for underreported self employment, proprietorships, trusts, partnerships and cooperatives. Source: EMSI Class of Worker 2015.4 (QCEW, non-QCEW, self-employed and extended proprietors). 14 14

Workforce Needs • What types of occupations are needed to fulfill this cluster? • What is the expected educational attainment for these jobs? (Bottom box on worksheet) • Are these living wages with benefits? • Are there training programs in place for these occupations? • What is needed to meet the workforce demands of this cluster?

trengthening Clusters Approaches for S

C.A.R.E. Model C reation A ttraction R etention E xpansion Foundation of Economic Growth Source: Barta, et al (2010) CARE Model

S tarting from a S olid Foundation C reation A ttraction R etention E xpansion Foundation of Economic Growth • Workforce development • Physical infrastructure • Sufficient housing • Healthcare • Adequate transportation systems • Public policy • Broadband access • Water & energy

C.A.R.E. C reation A ttraction R etention E xpansion Foundation of Economic Growth • Are there individuals in the region interested in starting a new business? • Are there entrepreneurship training programs in place to build capacity? • Are there channels for accessing capital?

C.A.R.E C reation A ttraction R etention E xpansion Foundation of Economic Growth • Are there specific types of firms the region could attract to fill the leakage gap? • What strategies are in place to target these specific industries? • What do these industries need to be lured to the region?

C.A.R.E. C reation A ttraction R etention E xpansion Foundation of Economic Growth • What firms are currently contributing to the cluster? • Are these firms facing any common threats to survival in the region? • Do these firms need any particular programs, resources, policies in order to continue operation in the region?

C.A.R.E. C reation A ttraction R etention E xpansion Foundation of Economic Growth • Could existing businesses expand to fulfill the needs of the cluster? • What incentives or resources are needed to help these businesses expand?