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?

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.

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.

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

5

Industry and occupation

Note: Label includes cluster name, LQ 2014, and Employment 2014; NAICS 2012 definitions

Industry cluster bubble chart

Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors).

Mature Star Transforming Emerging

‐70%

Glass & Ceramics, 0.11, 15

Note: Glass & Ceramics cluster has too few jobs.

6

Industry and occupation

Note: Label includes cluster name, LQ 2014, and Employment 2014; NAICS 2012 definition

Manufacturing sub-cluster bubble chart

Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). Note: Computer & Electronic Product Manufacturing sub-cluster has too few jobs.

Mature

Transforming

Star Emerging

Measuring Region’s Performance

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

8 Source: EMSI Class of Worker 2015.4 (QCEW, non-QCEW, self-employed and extended proprietors).

Agribusiness, Food Processing and Technology Cluster

Industries Jobs 2014 National Trend, 2009- 2014 Industry Trend, 2009- 2014 Cumulative Expected Growth Actual Job Growth, 2009-2014 Regional Performance, 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 1 1 42 41 Confectionery Manufacturing from Purchased Chocolate 46 2

• 1

1 21 20 Farm and Garden Machinery and Equipment Merchant Wholesalers 44 3 3

• 2
• 5

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 1 1 32 31 Retail Bakeries 29 1 5 6 11 5 Soft Drink Manufacturing 27 2

• 3
• 1
• 2
• 1

Breweries 27 1 1 27 26 Farm Supplies Merchant Wholesalers 18 2 2

• 10
• 12

Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour 16 16 16

Shift-Share Analysis by Top Industry Sectors

Note: Upward arrow ( ) indicates regional competitiveness. EMSI does not show sufficient data for Cheese Manufacturing.

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)

10 10

Industries Estimated Input ($ Millions), 2013 % In-Region % Out of Region

Crop Production $15.83 12% 88% Animal Production and Aquaculture $13.00 5% 95% Other Animal Food Manufacturing ** $8.79 0% 100% Corporate, Subsidiary, and Regional Managing Offices $5.83 1% 99% Wholesale Trade Agents and Brokers $3.00 11% 89% Farm Labor Contractors and Crew Leaders $2.77 5% 95% Plastics Bottle Manufacturing ** $2.64 0% 100% Pesticide and Other Agricultural Chemical Manufacturing ** $2.21 0% 100% Wet Corn Milling ** $1.71 0% 100% Flour Milling ** $1.63 0% 100% Flavoring Syrup and Concentrate Manufacturing ** $1.53 0% 100% 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%

Top 15 Inputs by Dollars

Note: ** industry sector is not present in the region .

Agribusiness, Food Processing and Technology Cluster

Source: EMSI Class of Worker 2015.4 (QCEW, non-QCEW, self-employed and extended proprietors).

11 11

Agribusiness, Food Processing and Technology Cluster

Top 15 Inputs by Dollars

Source: EMSI Class of Worker 2015.4 (QCEW, non-QCEW, self-employed and extended proprietors).

Note: ** industry sector is not present in the region.

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
• utside 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
• ccurring?
• If no, what are the resources needed to help

promote the creation, expansion, retention

• r attraction of businesses to supply inputs?

14 14

Agribusiness, Food Processing and Technology Cluster

Occupations Jobs 2014 % Change, 2009-2014 Median Hourly Earnings Entry Level Education

Farmers, Ranchers, and Other Agricultural Managers 920

• 4%

$12.9 High school diploma or equivalent Farmworkers and Laborers, Crop, Nursery, and Greenhouse 158 41% $10.8 Less than high school 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, Except Technical and Scientific Products 24 9% $22.0 High school diploma or equivalent 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, Hand 14 0% $12.9 Less than high school 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

Top Occupations

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).

Workforce Needs

• What types of occupations are needed to fulfill this cluster?
• What is the expected educational attainment for these jobs?
• 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?

(Bottom box on worksheet)

Approaches for S trengthening Clusters

C.A.R.E. Model

Source: Barta, et al (2010) CARE Model

Foundation

• f Economic Growth

Creation Attraction Retention Expansion

Foundation

• f Economic Growth

S tarting from a S

• lid Foundation
• Workforce development
• Healthcare
• Public policy
• Physical infrastructure
• Sufficient housing
• Adequate transportation systems
• Broadband access
• Water & energy

Creation Attraction Retention Expansion

Attraction

C.A.R.E.

• 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?

Foundation

• f Economic Growth

Creation Retention Expansion

Attraction

C.A.R.E

• 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?

Foundation

• f Economic Growth

Creation Retention Expansion

Retention

C.A.R.E.

• 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?

Foundation

• f Economic Growth

Creation Attraction Expansion

Retention

C.A.R.E.

• Could existing businesses expand to fulfill the needs of the

cluster?

• What incentives or resources are needed to help these

businesses expand?

Foundation

• f Economic Growth

Creation Attraction Expansion

C.A.R.E.: Agriculture, Food Processing & Technology Cluster

FOUNDATION

Online marketplace for local food buyers and sellers Refrigerated transportation available to/from Food Hub aggregation site

CREATE: Farmer Apprentice Program to create new farmers & serve local food demand ATTRACT: Malting facility based on expanding brewery industry & local malting barley production RETENTION: Educational workshops for farmers that improve profitability EXPANSION: Bakery via support for marketing and

• nline sales

training to yield national distribution

Decision-Making S weet S pot

Publically Acceptable Financially Viable Scientifically Compatible Technically Feasible Environmentally Responsible Politically/ Legally Aligned

Prioritizing Opportunities

Paired Comparison via Turning Point

Consider:

• How much opportunity exists to develop this cluster?
• How much would development of this cluster impact the

region?

Based on everything you know now… Which Cluster would you rather move forward with?

Priority

1. Agribusiness, Food Processing & Technology Cluster 2. Arts, Entertainment, Recreation and Visitor Industries Cluster

Priority

1. Agribusiness, Food Processing & Technology Cluster 2. Education and Knowledge Creation Cluster

Priority

1. Agribusiness, Food Processing & Technology Cluster 2. Energy (Fossil & Renewables) Cluster

Priority

1. Agribusiness, Food Processing & Technology Cluster 2. Transportation Equipment Manufacturing Cluster

Priority

1. Agribusiness, Food Processing & Technology Cluster 2. Fabricated Metal Product Manufacturing Cluster

Priority

1. Arts, Entertainment, Recreation and Visitor Industries Cluster 2. Education and Knowledge Creation Cluster

Priority

1. Arts, Entertainment, Recreation and Visitor Industries Cluster 2. Energy (Fossil & Renewables) Cluster

Priority

1. Arts, Entertainment, Recreation and Visitor Industries Cluster 2. Transportation Equipment Manufacturing Cluster

Priority

1. Arts, Entertainment, Recreation and Visitor Industries Cluster 2. Fabricated Metal Product Manufacturing Cluster

Priority

1. Education and Knowledge Creation Cluster 2. Energy (Fossil & Renewables) Cluster

Priority

1. Education and Knowledge Creation Cluster 2. Transportation Equipment Manufacturing Cluster

Priority

1. Education and Knowledge Creation Cluster 2. Fabricated Metal Product Manufacturing Cluster

Priority

1. Energy (Fossil & Renewables) Cluster 2. Transportation Equipment Manufacturing Cluster

Priority

1. Energy (Fossil & Renewables) Cluster 2. Fabricated Metal Product Manufacturing Cluster

Priority

1. Transportation Equipment Manufacturing Cluster 2. Fabricated Metal Product Manufacturing Cluster

1 2 3 4

Agribusiness, Food Processing & Technology Cluster Arts, Entertainment, Recreation and Visitor Industries Cluster Education and Knowledge Creation Cluster Energy (Fossil & Renewables) Cluster Transportation Equipment Manufacturing Cluster Fabricated Metal Product Manufacturing Cluster

Agribusiness, Food Processing & Technology Cluster Arts, Entertainment, Recreation and Visitor Industries Cluster Education and Knowledge Creation Cluster Energy (Fossil & Renewables) Cluster Transportation Equipment Manufacturing Cluster Fabricated Metal Product Manufacturing Cluster

S haping the Path

• Focused modules
• Additional information
• Other?

Actions: Begin Writing the Plan

• Summarize key strengths and

challenges based on the data

• Describe the selected clusters:
• Why were these clusters selected for

further exploration?

• What are the strengths and challenges

associated with the selected clusters?

• Which suggested opportunities are

associated with each selected cluster?

Brad Neumann, AICP

Government & Public Policy Educator Michigan State University Extension 906‐475‐5731 neuman36@anr.msu.edu

Valarie Handy

State Community Development Specialist U.S. Department of Agriculture‐Rural Development 231‐941‐0951 ext: 102 valarie.handy@mi.usda.gov

Please direct questions to: Emma DeGan, Assistant Planner

edegan@ cuppad.org

906-786-9234