4. 4
Overview
section 01
The River Hills Region is
located in south-central
Indiana and borders
Kentucky along the Ohio
River.Two interstates, the
I-64 and I-65 corridors, pass
through the region.The five
Indiana counties that
comprise the region are:
Clark
Floyd
Harrison
Scott
Washington
All five River Hills counties
are part of the Louisville
metropolitan statistical area.
River Hills Indiana Region
5. 5
Overview
section 01
About the regional snapshot
What is the snapshot?
The regional snapshot is a demographic and
economic assessment of the River Hills Region in
Indiana. Using county-level data, PCRD analyzed
a number of indicators to gauge the overall
economic performance of the River Hills Indiana
Region.
What is its purpose?
The snapshot is intended to inform River Hills
leaders, organizations and residents of the key
attributes of the region’s population and
economy. In particular, it takes stock of the
region’s important assets and challenges. With
such data in hand, regional leaders and
organizations are in a better position to invest in a
mix of strategies that will spur the growth of the
economy and provide a higher quality of life for
residents of the region.
What are its focus areas?
PCRD secured and analyzed recent data from both
public and private sources to generate the snapshot.
In order to build a more comprehensive picture of
the region, the report presents information under
four key categories:
Demography
Human Capital
Labor force
Industry and occupation
When appropriate or relevant, the report compares
information on the region with data on the
remainder of the state of Indiana. By so doing, the
region is better able to determine how well it is
performing relative to the rest of the state on a
variety of important metrics.
7. 7
Demography
section 02
Population change
In 2013, the population in the River Hills Region
represented 4.2 percent of the overall population
of Indiana, compared to 4.3 percent in 2002. If
current trends hold, by 2020 the region’s
population will have increased to 4.4 percent of
Indiana’s population.
The population of the River Hills Region increased
by 9.5 percent from 2002 to 2013, while the rest of
the state grew at a slower pace, namely, 6.6
percent during that same period.
Source: U.S. Census Bureau: Population Estimates, STATS Indiana
255,794
280,097
298,391
2013-20202002-20132002
Total population
projections
River Hills
Region
Rest of
Indiana
+9.5%
6,290,805
6,553,730
5,900,173 +6.5%
+ 6.6%
+ 4.2%
It is estimated that the River Hills Region’s population
will increase by 6.5 percent (or around 18,000
individuals) from 2013 to 2020.The rest of Indiana is
expected to grow by 262,925 people (4.2 percent)
over that same time period.
The River Hills Region experienced substantial
population growth over the past decade. These
gains were proportionally larger than that
witnessed by the rest of Indiana.
8. 8
Demography
section 02
Components of population change
The total population of the River Hills Region
increased by over 23,000 people from 2002 to
2013. Domestic migration and natural increase
were the main drivers of this change.
Natural increase (births minus deaths over that
time period) positively contributed to
population change, with a net growth of 10,017
persons.
Data on domestic migration (the number of
people moving into the region versus the
number moving out) show that in-migration
outpaced out-migration by 12,398 people. On
the other hand, net international migration
increased by only 2,006 individuals, indicating
that the region experienced a moderate influx
of new people from outside the U.S.
Source: U.S. Census Bureau
Components of Population Change, 2002-
2013
TotalChange 23,252*
Natural Increase 10,017
International Migration 2,006
Domestic Migration 12,398
*Components of population extracted from Components of Population Change 2010 (CO-
EST-2010) and Components of Population Change (PEPCOMP 2013). Estimation
residuals lead to differences between total change and total population.
Over the past decade, the River Hills
Region experienced population gains,
primarily due to domestic in-migration and
natural increase of its population.
9. 9
Population pyramids
Population pyramids are visual representations of the age distribution of the population by
gender.
Demography
section 02
Men (36,564 people) outnumbered women (34,689 people) in
most of the young age cohorts (0 to 19 and 30 to 49 years) of the
River Hills Region in 2013. As for the rest of Indiana, men
(2,111,504 people) outpaced women (2,063,259 people) in all
young age cohorts (0 to 49 years) in that year. Conversely,
women are the predominant gender in the older age cohorts of
both areas.
The share of River Hills’ population 50 years of age or older
represented 36 percent (99,836 people) of the overall population
in 2013. This figure is 2 percentage points larger
than the rest of the state, in which residents 50 years of age or
older accounted for 34 percent of the population (more than 2
million people). However, the two oldest cohorts (70 to 79 and 80
years and older) were nearly 9 percent of the population in both
the River Hills Region and the rest of Indiana.
These results suggest that the population of the River Hills Region
was slightly older than the rest of the Indiana in 2013. It may make
sense for the region to devote attention to the mix of services and
amenities that may be needed by an aging population.
Source: U.S. Census Bureau: Population Estimates
6.3%
6.7%
6.1%
6.5%
7.0%
7.4%
5.3%
2.7%
1.2%
6.1%
6.3%
6.1%
6.4%
6.9%
7.7%
5.9%
3.3%
2.2%
9 6 3 0 3 6 9
00-09
10-19
20-29
30-39
40-49
50-59
60-69
70-79
80+
Percentage of Population
AgeCohort
River Hills - 2013
6.8%
7.1%
6.9%
6.3%
6.5%
6.9%
4.9%
2.6%
1.3%
6.4%
6.8%
6.8%
6.3%
6.5%
7.1%
5.4%
3.1%
2.4%
9 6 3 0 3 6 9
00-09
10-19
20-29
30-39
40-49
50-59
60-69
70-79
80+
Percentage of Population
AgeCohort
Rest of Indiana - 2013
Male MaleFemale Female
10. 10
Income and poverty
Demography
section 02
Source: U.S. Census Bureau – Small Area Income and Poverty Estimates (SAIPE)
2002 2008 2013
Total Population in
Poverty
9.1% 11.6% 13.1%
Minors (Age 0-17) in
Poverty
11.6% 17% 19.2%
Average Real
Median Household
Income ($ 2013)*
$ 52,084 $ 51,890 $ 50,615
Real Personal Per
Capita Income
($ 2013)
$ 35,022 $ 36,028 $ 37,116
The average real median income among
River Hills counties decreased from 2002
to 2013, with a loss of almost $1,500.
However, real per capita income grew
almost $2,000 over the same 12 year
period.
The total population in poverty increased
by 4 percentage points from 2002 to
2013, while the proportion of minors in
poverty rose by twice that amount, 8
percentage points. By 2013, 13 percent of
residents and 19 percent of minors in the
River Hills Region were impoverished.
The decreasing median income
coupled with increasing per person
income and increasing poverty
would suggest that income
inequality is increasing in the
region.
* Weighted real median income, weighted by county population
12. 12
Human capital
section 03
Educational attainment
Associate’s degree
Bachelor’s degree
Graduate degree
No high school
Some high school
High school
Some college
Source: 2013 ACS 5-year estimates
5%
10%
38%
22%
8%
12%
6%
River Hills Region - 2013
4%
9%
35%
21%
8%
15%
8%
Rest of Indiana
Educational attainment is one important
indicator of the human capital attributes and
skills of a population.
Fifteen percent of River Hills residents (25 years
of age or higher) had less than a high school
education in 2013, compared to 13 percentage
for residents in the rest of the state. However,
the percentage of individuals with only a high
school education was 3 percentage points
higher in the River Hills Region than in the rest
of Indiana (38 percent versus 35 percent).
Both the River Hills Region and remainder of
the state had the same proportion of adults
with an associate’s degree (8 percent), but the
proportion of adults with a bachelor’s degree or
more was lower in the region when contrasted
to the rest of the state (18 percent versus 23
percent).
The River Hills Region may be challenged in
its ability to have available a highly- skilled
pool of workers in light of the sizable
number of adults (53 percent) with a high
school education or less.
13. 13
Human capital
section 03
Four-year high school graduation rates
Approximately 82 percent of
students in the River Hills Region
successfully graduated from high
school within a four-year period in
2009.This was 0.7 percentage
points lower than in the rest of
Indiana.
However, the four-year graduation
rate swelled to 92 percent in the
River Hills Region by 2013,
surpassing the rate for the
remainder of the state.
The River Hills Region
outperformed the rest of Indiana
in 2013 with respect to the four-
year high school graduation rates.
Source: datacenter.kidscount.org
81.9%
91.8%
82.6%
88.8%
76.0%
78.0%
80.0%
82.0%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
2009 2013
River
Hills
Rest of
Indiana
River
Hills
Rest of
Indiana
14. 14
section 03
Average Patents* (2001-2013)
Source: U.S. Patent and Trademark Office
Human capital
Note: Patent origin is determined by the residence of the first-named inventor. Since many
workers commute into the region, the number of patents produced in the region could be
high. However, among residents of the region, patent production is relatively low.
*Average patents refers to the average patent rate over
time, either patents per jobs or patents per residents.
Average Patents per
1,000 jobs
2001-2013
From 2001 to 2013, River Hills counties
were issued patents at a rate of 1.6 per
10,000 jobs, while the remaining
Indiana counties garnered 3.8 patents
per 10,000 jobs.
Average Patents per
1,000 residents
2001-2013
From 2001 to 2013, 0.8 patents per
10,000 residents were issued in River
Hills counties.The rest of Indiana
amassed 2.1 patents per 10,000
residents.
Patenting trends are an
important indicator of the level
of innovation in a region.
Success in commercializing
these innovations can lead to
long-term growth for a region.
The River Hills Region was
awarded, on average, 1.6
patents per 10,000 jobs
each year from 2001 to
2013.
The region was issued, on
average, two fewer patents per
10,000 jobs and residents than
the rest of Indiana.The data
indicate that the River Hills
Region may need to consider
ways to foster a culture of
innovation.
Region, 1.6
Rest of
Indiana, 3.8
Region, 0.8
Rest of
Indiana, 2.1
16. 16
Labor force
section 04
Unemployment rates
The River Hills Region’s
unemployment rate was 7.2
percent in 2013. Since 2007, the
region’s rate has remained below
the rate in the rest of Indiana.
In 2000, the unemployment rate in the
River Hills Region stood at 3.4 percent,
slightly higher than the rest of Indiana.
The unemployment rates for the region
and the rest of Indiana were fairly similar
until the onset of the economic recession
around 2007.
Since 2007, the unemployment rate in
the region has fared better than the rest
of the state. At the peak of the recession
in 2009, the unemployment in the rest of
the state was 1 percentage point higher
than the Rivers Hills Region. While the
gap has narrowed in recent years, the
region is still enjoying a lower
unemployment rate (as of 2013) than
both the rest of the Indiana and the
nation as a whole.
Source: U.S. Bureau of Labor Statistics – Local Area Unemployment Statistics
3.4%
5.5%
4.5%
9.4%
7.2%
2.9%
5.4%
4.6%
10.4%
7.5%
3.8%
5.2%
4.5%
9.0%
7.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Riverhills Rest of Indiana U.S. Total
17. 17
Labor force
section 04
Real earnings per worker
Real earnings* per worker is
constructed by averaging
earnings for all industries in the
ECIRP region and the rest of
Indiana.
Real earnings per worker (in 2013
dollars) remained constant in the
River Hills Region between 2008
and 2013, while they increased by
approximately 1 percent in the
rest of Indiana.
For both the years 2008 and 2013,
real earnings in the River Hills
Region remained more than
$6,000 below the amount
captured by workers in the rest of
Indiana.
River Hills
Region
Rest of
Indiana
2008 2013
Source: Economic Modeling Specialists International – 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors), PCRDindustry cluster definitions
$39,364 $39,433
$45,524
$45,885
$36,000
$38,000
$40,000
$42,000
$44,000
$46,000
$48,000
*Earnings include wages and salaries, supplements and other proprietorship incomes
18. 18
Labor force
section 04
Labor shed
Source: LEHD, OTM, U.S. Census Bureau
A region’s laborshed is
the geographic area
from which it draws
employees.
River Hills Region was home to a
total of 99,441 jobs in 2013. More
than 32 percent of individuals
working in River Hills counties at
that time traveled from
surrounding counties to work in
the region. On the other hand,
almost 68 percent of jobs in the
region were held by River Hills
residents.
Thus, more than two-thirds of
the region’s labor force is
comprised of people who both
live and work in the River Hills
Region.
Population 2013 Jobs*
Proportio
n
Employed in River Hills 99,441 100%
Employed in River Hills but Living
Outside
32,065 32%
Employed and Living in River Hills 67,376 68%
In-Commuters Same Work/Home
*most recent data available
32,065 67,376
19. 19
Labor shed in 2013
Labor force
Source: U.S. Census Bureau, OTM, LEHD, PCRD
The River Hills Region draws its labor
force largely from its own counties and
adjacent counties.
Seventy-five percent of the region’s workers live in
River Hills counties or in Jefferson County in
Kentucky (Louisville MSA).
Only one additional county is included in the labor
shed when extending the threshold to 80 percent:
Scott County, Indiana.
AdjacentCrawford and Jackson Counties in Indiana
and Oldham and Bullitt Counties in Kentucky are
part of the 85 percent labor shed, as well as two
metropolitan areas, Columbus Indiana
(Bartholomew County, Indiana) and Indianapolis
(Marion County, Indiana).
section 04
20. 20
Labor force
section 04
Commuter shed
Source: LEHD, OTM, U.S. Census Bureau
*most recent data available
A region’s commuter
shed is the geographic
area where its residents
work.
Half of employed residents in
the River Hills Region
commute to jobs located
outside of the region.The
other half of the region’s
workforce both live and work
in the River Hills Region.
Out-Commuters Same Work/Home
67,421 67,376
Population 2013 Jobs*
Proportio
n
Employed River Hills Residents 134,797 100%
Living in River Hills and Employed
Outside
67,421 50%
Living and Employed in River Hills 67,376 50%
21. 21
Commuter shed in 2013
Labor force
Source: U.S. Census Bureau, OTM, LEHD, PCRD
section 04
The River Hills Region commuting
pattern involves its own counties and
surrounding metropolitan areas.
Seventy-five percent of employed River Hills residents
commute toClark, Floyd or Harrison Counties in the
region or the Louisville (Jefferson County, Kentucky) or
Indianapolis (Marion County, Indiana) metropolitan
areas. In fact, Jefferson County in Kentucky is the
largest employment location for River Hills residents.
Increasing the commuter shed threshold to 80 percent
results in the inclusion of Scott County, Indiana.At the
85 percent threshold, Jackson andWashington
Counties in Indiana, as well as parts of the Evansville
(VanderburghCounty, Indiana), Bloomington (Monroe
County, Indiana), Columbus (Bartholomew County,
Indiana), and Lexington-Fayette (FayetteCounty,
Kentucky) metropolitan areas are added to the River
Hills commuter shed.
23. 23
Industry and occupation
section 05
Establishments
Source: National Establishment Time Series (NETS) – 2012 Database
The number of establishments in River Hills Region
increased 86 percent from 2000 to 2011.
The River Hills Region gained 9,128 new establishments
between 2000 and 2011. Most of the gain came from natural
change (births minus deaths of establishments). Births
surpassed deaths by 8,689 establishments.
More establishments moved into the River Hills Region than
migrated out to locations in non-River Hills counties.The
result is a net gain of 439 establishments due to migration.
An establishment is a
physical business location.
Branches, standalones
and headquarters are all
considered types of
establishments.
Definition of Company
Stages
0 1
2 3
4
Self-
employed
2-9
employees
10-99
employees
100-499
employees
500+
employees
Components of Changefor Establishments
TotalChange (2000-11) 9,128
NaturalChange (births minus
deaths)
8,689
Net Migration 439
24. 24
Industry and occupation
section 05
Establishments
Source: National Establishment Time Series (NETS) – 2012 Database
The number of establishments in the River Hills Region
nearly doubled between 2000 and 2011.This growth
occurred primarily in Stage 0 and Stage 1 establishments,
which grew 65 percent and 53 percent, respectively.The
number of Stage 3 establishments also increased by 19
percent.
Number of Establishments by Employment Size
2000 2011
Stage Establishments Proportion Establishments Proportion
Stage 0 2,746 26.0% 6,323 32.1%
Stage 1 5,855 55.4% 11,410 57.9%
Stage 2 1,811 17.1% 1,785 9.1%
Stage 3 139 1.3% 166 0.8%
Stage 4 20 0.2% 15* 0.1%
Total 10,571 100% 19,699 100.0%
The number of Stage 2 and Stage 4 establishments declined
in the region over the same time period. Stage 2
establishments fell by only 1 percent (loss of 26
establishments). At the same time, Stage 4 establishments
declined by 5 establishments, a 25 percent decline since
2000.
*The most recent data from ReferenceUSA shows 18 Stage 4 establishments for the River
Hills Region in 2014, compared to 15 establishments from the NETS database in 2011.
25. 25
Establishments’ total sales decreased between
2000 and 2011 in the River Hills Region.
Despite an overall decline in sales in the River Hills Region
from $15.6 billion to $13.7 billion, two establishment stages
experienced an increase in sales over the past decade.
Stage 0 experienced the largest growth, 35 percent, while
Stage 3 sales grew by a modest 5 percent. Sales by Stage 4
establishments fell the most with a 53 percent decline.
However, Stage 1 and Stage 2 sales had much smaller
declines at
3 percent and 13 percent, respectively.
Industry and occupation
section 05
Establishments
Source: National Establishment Time Series (NETS) – 2012 Database
Number of Jobs by Establishment
Stages
Year 2000 2011
Stage 0 2,746 6,323
Stage 1 21,857 34,111
Stage 2 46,345 47,521
Stage 3 25,490 27,732
Stage 4 16,417 13,710
Total 112,855 129,397
Aggregate Sales (2013 US$) by Establishment
Stages
Year 2000 2011
Stage 0 $ 394,300,353 $ 532,299,057
Stage 1 $ 3,001,864,696 $ 2,911,296,802
Stage 2 $ 5,793,901,269 $ 5,031,227,399
Stage 3 $ 3,799,133,042 $ 3,981,169,962
Stage 4 $ 2,682,501,448 $ 1,253,943,740
Total $ 15,671,700,808 $ 13,709,936,960
From 2000 to 2011, total jobs declined, largely the result
of jobs losses from Stage 4 establishments.
Self-employed (Stage 0) and Stage 1 establishments experienced
impressive gains in jobs between 2000 and 2011, with 130 percent
and 56 percent growth, respectively.Stage 2 jobs grew by 3
percent, despite losing establishments, indicating that job growth
did occur among the remaining establishments. Stage 3
establishments witnessed a slightly larger 9 percent increase in
jobs.The largest establishments in the River Hills Region (Stage 4)
suffered an employment decline of over 16 percent.
26. 26
Industry and occupation
section 05
Establishments: major employers
Source: Hoosiers by the Numbers, Reference USA
Major Employers in River Hills Region (according to Reference USA)
Clark Stage Floyd Stage Harrison Stage Scott Stage Washington Stage
1. Clark Memorial
Hospital
(Jeffersonville)
4
1. Floyd Memorial
Hospital
(New Albany)
4
1. Horseshoe
Southern Indiana
(Elizabeth)
4
1. Walmart
Supercenter
(Scottsburg)
3
1. Kimball Office
Furniture
(Salem)
3
2. AFGE Local 1438
(Jeffersonville)
4
2. Beach Mold & Tool,
Inc.
(New Albany)
4
2. Tyson Foods, Inc.
(Corydon)
4
2. Morgan Foods, Inc.
(Austin)
3
2. Peerless Gear
(Salem)
3
3. Jeffboat, LLC
(Jeffersonville)
4
3. Indiana University
Southeast
(New Albany)
4
3. Physician Referral
Services
(Corydon)
4
3. Scott Memorial
Hospital
(Scottsburg)
3
3. GKN Sinter Metals
(Salem)
3
4. National
Distributors Leasing
(Sellersburg)
3
4. Samtec, Inc.
(New Albany)
4
4. Walmart
Supercenter
(Corydon)
3
4. Austin Tri-Hawk
Automotive, Inc.
(Austin)
3
4. St. Vincent Salem
Hospital
(Salem)
3
5. Ivy Tech
Community College
(Sellersburg)
3
5. Hitachi Cable
Indiana, Inc.
(New Albany)
4
5. Blue River Services
Housing
(Corydon)
3
5. ILPEA Industries,
Inc.
(Scottsburg)
3
5. Net Shape
Technologies, Inc.
(Campbellsburg)
3
*Establishment size was extracted from Reference USA. The number of employees was aggregate to obtain a company
employment total. This analysis considers the company as a whole, while the previous analysis using NETS considers
individual establishments. One company may be comprised of several establishments.
27. 27
Industry and occupation
section 05
Top five industries’ employment growth
NAICS Description 2008 Jobs 2013 Jobs Change Change (%)
River Hills Region
62 Health Care and Social Assistance 10,414 11,545 1,131 11%
90 Government 19,639 20,600 961 5%
72 Accommodation and Food Services 9,873 10,808 935 9%
53 Real Estate and Rental and Leasing 4,072 4,499 427 10%
52 Finance and Insurance 4,971 5,365 394 8%
Rest of Indiana
62 Health Care and Social Assistance 361,840 395,602 33,762 9%
56
Administrative and Support and Waste Management and Remediation
Services
183,918 206,802 22,884 12%
72 Accommodation and Food Services 238,018 251,202 13,184 6%
53 Real Estate and Rental and Leasing 112,028 122,514 10,486 9%
52 Finance and Insurance 135,094 145,429 10,335 8%
Health Care and SocialAssistance was the top growth
industry in the River Hills Region between 2008 and 2013,
both in total jobs (+1,131) and in growth rate (+11 percent).
However, Real Estate and Rental and Leasing also had a
high growth rate with a 10 percent rise in jobs.
In the rest of Indiana, HealthCare and SocialAssistance
had the largest total increase in jobs (+33,762), but the
highest growth rate (+12 percent) was in Administrative
and Support andWaste Management and Remediation
Services.
Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors)
28. 28
Industry and occupation
section 05
Top five industries’ employment decline
NAICS Description 2008 Jobs 2013 Jobs Change Change (%)
River Hills Region
31 Manufacturing 19,885 18,551 -1,334 -7%
23 Construction 8,592 7,419 -1,173 -14%
48 Transportation and Warehousing 7,358 6,253 -1,105 -15%
71 Arts, Entertainment, and Recreation 3,960 3,493 -467 -12%
54 Professional, Scientific, and Technical Services 4,642 4,418 -224 -5%
Rest of Indiana
23 Construction 200,938 174,050 -26,888 -13%
31 Manufacturing 512,942 486,757 -26,185 -5%
90 Government 436,935 419,738 -17,197 -4%
42 Wholesale Trade 117,860 112,979 -4,881 -4%
54 Professional, Scientific, and Technical Services 150,566 147,693 -2,873 -2%
In the River Hills Region, the Manufacturing,Construction,
andTransportation andWarehousing industries suffered
the largest numerical job losses between 2008 and 2013.
Construction and Manufacturing were also the top two
industry sectors suffering job losses in the rest of Indiana.
Of the top job
loss industries in the River Hills Region between 2008 and 2013,
Transportation andWarehousing (-15 percent),Construction (-
14 percent) and Arts, Entertainment and Recreation (-12
percent) lost similar proportions of jobs.Construction (-13
percent) was the only industry in the rest
of Indiana that experienced a comparable proportional loss.
Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors)
29. 29
How to interpret a bubble chart
The graph’s four quadrants tell a different story for each cluster.
Industry and occupation
section 05
Modified from: http://www.charlestonregionaldata.com/bubble-chart-explanation/
Emerging
Bottom right
(weak but
advancing)
Stars
Top right
(strong and
advancing)
Mature
Top left
(strong but
declining)
Transforming
Bottom 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 anticipate
a future need. In general, clusters in this
quadrant show a lack of competitiveness.
30. Mature Star
Transforming Emerging
Biomedical/Biotech, 0.65, 6,661
Business&FinancialService, 0.64,…
Energy(Fossil & Renewable),
0.52, 3,626
Mfg Supercluster, 1.47, 6,432
Advanced Materials, 1.78, 6,904
Transportation & Logistics, 1.51,
6,089
Arts & Ent., 0.87, 4,641
IT & Telecomm., 0.54, 2,771
Agri. & Food Process., 1.51,
5,883
Glass & Ceramics, 2.11, 461
Chemicals&Chemical Based,
2.44, 3,814
Mining, 1.75, 658
Defense & Security, 0.59, 3,263
Forest & Wood Prod., 2.67, 4,935
Apparel & Textiles, 0.52, 500
Edu. & Knowledge, 0.33, 975
Printing & Publishing, 1.03, 2,278
-1
0
1
2
3
4
-40% -30% -20% -10% 0% 10% 20% 30% 40%
LQ,2013
% Change in LQ, 2008-2013
Industry and occupation
Industry cluster bubble chart
section 05Note: Label includes cluster name, LQ 2013, and Employment 2013
Source: Economic Modeling Specialists International (EMSI) 2014.3 Class of Worker, industry cluster definitions by PCRD
31. 31
Fab. Metal Prod. Mfg, 1.58,
1,664
Comp. & Electrn. Prod. Mfg,
1.56, 1,229
Transportation Equip. Mfg, 1.33, 1,483
Elec.Equip,App. & Comp. Mfg,
0.18, 51
Primary Metal Mfg, 0.98, 289
Machinery Mfg, 2.03, 1,716
-1
0
1
2
3
4
-40% -30% -20% -10% 0% 10% 20% 30% 40%
LQ,2013
% Change in LQ, 2008-2013
Stars
Industry and occupation
section 05
Manufacturing sub-cluster bubble chart
Source: Economic Modeling Specialists International (EMSI) 2014.3 Class of Worker, industry cluster definitions by PCRD
Note: Label includes cluster name, LQ 2013, and Employment 2013
Mature
Transforming Emerging
32. 32
Bubble chart results
Industry and occupation
section 05
Stars
Advanced Materials
Chemical & Chemical Based Products
Forest andWood Products
Manufacturing Sub-Cluster
Computer & Electronic products
Machinery Manufacturing
Emerging
Biomedical/Biotech (Life Sciences)
IT &Telecommunications
Manufacturing Sub-Cluster
Primary Metal Manufacturing
Transforming
Apparel &Textiles
Arts, Enter, Rec &Visitor Industry
Business & Financial Services
Defense & Security
Education & KnowledgeCreation
Energy (Fossil & Renewable)
Manufacturing Sub-Cluster
Electrical Equip, Appliance & Computer
Manufacturing
Mature
Agribusiness, Food Processing andTechnology
Glass & Ceramics
Mining
Printing and Publishing
Transportation & Logistics
Manufacturing Sub-Cluster
Fabricated Metal Product
Transportation Equipment
Percent Growth in Specialization
LevelofSpecialization
Source: Economic Modeling Specialists International (EMSI) 2014.3 Class of Worker, industry cluster definitions by PCRD
33. 33
Bubble chart interpretation
Industry and occupation
section 05
Mature Industries
A number of industry clusters in the River Hills Region
are in the Mature stage (seven).These industries are
relatively concentrated, but their growth is trending
downward. Among those are natural resource-based
production clusters (e.g., Mining, Glass and Ceramics),
theTransportation and Logistics cluster and two of the
manufacturing sub-clusters. It is worth noting,
however, that the region may find it worthwhile to
invest in efforts to shore up the concentration of some
of these industries, if they are deemed important to
the region.
Transforming Industries
Transforming industry clusters are relatively small and
declining. In the River Hills Region, Apparel and
Textiles, Defense and Security, Energy and Business
and Financial Services are among the seven
Transforming industry clusters. Spurring growth in
these industries would require relatively large
investments.
STAR cluster industries
The most highly concentrated star industry cluster in
River Hills Region is Forest and Wood Products, with a
location quotient of 2.67 and 4,935 jobs.This indicates
that Forest and Wood Products jobs are almost three
times more concentrated in the region than in U.S. as a
whole. Other strong clusters in the region include the
Chemical and Chemical Based Products as well as
Advanced Materials.These Star industries are important
drivers of the region’s economy, and matching the needs
of these industries may be a good strategy for the
region.
Emerging Industries
Industry clusters that may be poised for growth are
classified as “Emerging.” In the River Hills Region, three
industry clusters are Emerging: Biomedical, Primary
Metal Manufacturing, and IT andTelecommunications.
They gained strength between 2008 and 2013 and may
emerge as important regional economic forces in the
future.
34. 34
Industry and occupation
section 05
Top five occupations in 2013
Source: Economic Modeling Specialists International (EMSI) – 2014.3 Class of Worker
All Other Occupations,
49%
Sales and Related , 13%
Office and Administrative
Support, 12%
Production, 9%
Food Preparation and
Serving Related, 9%
Transportation and
Material Moving, 8%
The top five occupations in River Hills
Region account for 51 percent of jobs.
Sales and Related (17,590 jobs) is the top
occupation classification, with 13 percent of all jobs
in the region. It is closely followed by Office and
Administrative Support (15,580 jobs) at 12 percent.
Combined, the two occupations represent one in
four jobs in the River Hills Region.
Rounding out the top occupations in the region are
Production occupations and Food Preparation and
Serving related occupations with 9 percent of jobs,
as well asTransportation and Material Moving
occupations with 8 percent of all jobs.Together,
these three occupations represent another quarter
of the jobs in the River Hills Region.
35. 35
Industry and occupation
section 05
STEM and STEM-related occupations
Source: Economic Modeling Specialists International (EMSI) – 2014.3 Class of Worker
Job Change in STEM Occupations
Year 2008 Jobs 2013 Jobs
Percent Change,
2008-2013
Clark County, IN 1,273 1,444 13%
Floyd County, IN 839 820 -2%
Harrison County, IN 215 163 -24%
Washington County, IN 182 152 -16%
Scott County, IN 143 167 17%
River Hills 2,652 2,747 4%
STEM (Science,Technology, Engineering and
Math) jobs increased in the River Hills Region
during the post-recession recovery period.This
overall growth was driven by two counties: Clark
County (+13 percent and 171 jobs) and Scott
County (+17 percent and 24 jobs).
Harrison County experienced the largest loss in
STEM jobs (-52 jobs), a 24 percent decline.
Between 2008 and 2013, STEM jobs in the
River Hills Region fell by 4 percent.
37. 37
Conclusions
section 06
River Hills Region: Key opportunities
The River Hills Region Data SnapShot highlights a variety of
data that paint a picture of the present state of the region.
The information offers local leaders, organizations,
agencies and residents food for thought in how to build on
the existing and emerging assets of the region.
Demography
• Population growth in the region is occurring at a higher
rate than in the rest of Indiana.Additionally, he region
has a larger share of older residents than the rest of
Indiana.The region could explore ways to ensure it is
addressing the needs of an aging population.
HumanCapital
• Assess the human capital and workforce needs of
existing firms in the region.Although the high school
graduation rate is higher than in the rest of Indiana, the
region still lags behind in highly-educated residents.
Explore how to attract and retain highly- educated
residents.
• Patent rates are much lower than the rates in the rest
of Indiana. Explore ways to expand and foster a culture
of innovation.
Economic Development
• Assess the human capital attributes of residents who
commute to work outside of the region.Those endowed
with high-to-medium level skills may represent a prime
source of labor for new or expanding companies in the
region.
• Focus attention on the needs and opportunities of Stage
1, Stage 2 and Stage 3 establishments, since they are key
sources of jobs and sales in the region.They may serve
as generators of new jobs. Restoring jobs lost by Stage 4
establishments is worth exploring, although many of
these jobs may be unrecoverable.
• Consider investing in the Star and Emerging industry
clusters that align with the long-term goals of the
region.These are industries in which the region has a
competitive economic edge relative to the country as a
whole and may be growth opportunities for the region.
Contact Us:
The Purdue Center for Regional Development stands ready
to assist with more in-depth data or program support to the
River Hills Indiana Region, as needed. Please check the back
panel of this report for contact information.
38. 38
Report Contributors
This report was prepared by the Purdue Center for Regional Development in partnership with
Purdue University Extension.
Data Analysis
Indraneel Kumar, Ph.D.
Ayoung Kim
Report Authors
Francisco Scott
Bo Beaulieu, Ph.D.
Report Design
Tyler Wright
This report was supported, in part, by grant #00048765 from the Economic Development Administration as part of its investment in the
Purdue University’s EDA University Center project titled “Align, Link and Leverage University Assets to Build Regional Economic Ecosystems
that Support High-Growth Entrepreneurship.”
39. For more information,
please contact:
Dr. Bo Beaulieu,
PCRD Director:
ljb@purdue.edu
Or
765-494-7273
The Purdue Center for Regional Development (PCRD) seeks to pioneer new
ideas and strategies that contribute to regional collaboration, innovation
and prosperity.
October 2015