An original and important investigation of the economic sectors producing rapid growth in the Bangor region. The presentation proceeds from broad economic sectors to the niche categories at the 6 digit NAICS level.

1. Uncovering the Bangor
Region’s Competitive
Economic Sectors
Bangor Region Development Alliance
In cooperation with
Action Committee of 50 and
Eastern Maine Development Corp.
February 5, 2015

2. What Drives the Regional Economy?
Exports.
BRDA’s role: Recruit Exporters

3. But Exports Come in Two Flavors
Exports:
Sales that bring $$
into the Region
Goods &
services sold
outside of
Region
Non-residents
spending $$ in
the Region
$$

4. Also a Service Component of Economy
Service:
Sales that re-
circulate or keep $$
in the Region
These businesses
prevent $$ from leaking
out of Region

5. Major Finding #1:
Bangor’s Greatest Strengths
EXPORT
BUSINESSES
Bring New $$
into the Region
Producing for
Sale or Use
OUTSIDE of
Region
Selling to Non-
Residents
WITHIN the
Region
SERVICE
BUSINESSES
Re-circulate $$
within the Region
Selling to Non-
Residents
WITHIN the
Region
SERVICE
BUSINESSES
Re-circulate $$
within the Region

6. How do we know? Specialization Ratios
A Specialization Ratio well >1 implies
• competitive advantage and
• significant net exporting (or little leakage)
Calculated for ~500
business sectors.
A bit like an X-Ray
of the Economy.

7. Our Broad Export Sectors with High SRs
and Growing Are All in 2nd Category:
• Higher Education
• Health Services
• Comparison Goods Retail Stores
For Example:
SR v Maine/US Growing?
4-Yr Colleges & Universities 3.0/3.2
General & Surgical Hospitals 1.2/1.6
Psychiatric & Subst. Abuse Hospitals 5.0/7.1
Medical & Diagnostic Labs 2.9/3.2
General Merchandise Stores 1.4/1.3
“Other” Motor Vehicle Stores 1.3/2.6

8. And Moving Up Fast
• Some Arts, Entertainment Sectors
• Travel Accommodations and Food Service
For Example:
Spec Ratio ME/US Growing?
Gambling Industries 4.7/3.5
Promoters – Perf. Arts and Sports 1.1/1.7
Hotels 0.9/1.2
Full Service Restaurants 1.0/1.0
Limited Service Restaurants 1.2/1.0

9. What About Exports Out of Region?
EXPORT
BUSINESSES
Bring New $$
into the Region
Producing for
Sale or Use
OUTSIDE of
Region
Selling to Non-
Residents
WITHIN the
Region
SERVICE
BUSINESSES
Re-circulate $$
within the Region
Producing for
Sale OUTSIDE
of Region

10. Major Finding #2
The Bangor Metro Area does not specialize in
broad industrial sectors that produce goods
and services for sale out of the region.
E.g, not a Manufacturing Center or a
Professional & Technical Services Center

11. Specialization & Growth Rates
(at the Broadest Level of Industries)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
-40% -20% 0% 20% 40% 60% 80% 100%
SpecializationRatio
Growth Rate 2005-2013
Health Care & Social Assistance
Retail Trade
Utilities
Accommodation & Food
Ag, Forest, Fish & Hunting
Information
Other
Services
Real Estate
Construction
Public Administration
Manufacturing
Management of Companies
Arts, Entertainment, & Recreation
Educational Services
Admin Support & Waste Management
Transportation &
Warehousing
Wholesale Trade
Professional & Technical
Services
Finance & Insurance
3 Broad Categories that Include
Exporters of Goods and Services

12. But Dig Deeper into Sub-Sectors
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
-150.0% -100.0% -50.0% 0.0% 50.0% 100.0% 150.0%
Growth Rate, 2005-13
SpecializationRatio
A number of these are
significant exporters

13. Major Finding #3
Region hosts a number of sub-sectors with high SRs
that produce goods and services for export:
• Several manufacturing sub-sectors
• Forestry support activities
• Specialty construction trades
• Long-distance freight trucking
• Elec power generation – esp. renewables
• Contract telemarketing & admin. services
Some sub-sectors in structural decline, but many are
growing

14. Manufacturing
Spec Ratio ME/US Growing?
Food-related Products
• Frozen Pastries 7.8/48.3
• Frozen Specialty Foods 1.9/9.2
Forest & Wood-related Products
• Pulp Mills 3.7/79.8
• Specialty Wood Products 1.8/16.1
• Wood Cabinet & Countertops 2.1/1.0
Boat Building 1.3/11.4
Turbine Unit Manufacturing 9.4/34.0

15. Manufacturing, cont’d.
Spec Ratio ME/US Growing?
Plate Work & Fab. Structural Metals 2.2/2.1
• Note related truck body manufacturing
Cement, Concrete, Asphalt Products
• Asphalt Paving Mix & Blocks 5.0/30.1
• Other Concrete Products 2.7/2.8
Motor Vehicle Parts 7.4/0.5

16. Emerging Manufacturing?
Forest-related Bioproducts (fuel, chemicals)
Sensor Technology Products
Composites-related Products (marine, defense,
bridges, boats, etc.)
Water Filtration Technologies
Microbreweries

17. Forestry, Surveying & Mapping
Spec Ratio ME/US Growing?
Forestry Support Activities 4.2/12.3
Logging 0.9/9.5
Timber Tract Operations 2.8/6.9
Surveying & Mapping Services 3.4/6.7

18. Construction and Energy
Spec Ratio ME/US Growing?
Construction
• Structure & Exterior Bldg Contractors 1.2/0.9
• HVAC Contractors 1.1/1.2
• Other Bldg. Equipment Contractors 2.7/3.6
Energy
• Biomass Electric Power Generation 4.0/118.7
• Hydropower Generation 1.2/2.4
• Fossil Fuel Elec. Power Generation 1.6/0.4
?
?

19. Admin. & Support Services
Spec Ratio ME/US Growing?
Telemarketing & Contact Centers 1.1/3.1
Contract Office Admin. Services 2.3/2.8

20. Key Questions:
Can We Trace These Export Sectors
Back to Regional Competitive
Advantages?
And can we build on these
advantages to fill in supply
chains, enhance clusters?
In cooperation with EMDC,
Action Committee of 50 and others

21. Competitive Advantages Suggested
by These Sectors
Proximity to Northern Forest*
Proximity to Gulf of Maine*
Transportation Infrastructure
Outdoor Recreational Brand*
Higher Ed Center/Flagship University*
Center for Comprehensive Health Care*
Heritage of Skilled Artisan Workforce
* High level of confidence

22. A Few Illustrations of How We
Might Connect the Dots:

23. Spec. & grew
2005-13
Spec. but did
not grow
2005-13
Not spec. but
growing
Not spec., not
growing
Emerging?
Forest
Conserv
Areas 6
Wood
Prod
Mfg 3
Elec
Power
Gen 4
Out-
door
Rec. 6
Forestry
3
Pulp &
Paper
Mfg 4
Boat
Bldg 6
Truck
Transp
3
Amuse
- ment
& Rec
Ind 3
Advanced
structures
Scien-
tific
R&D
Serv. 4
Ware-
hous.
3
Misc
Wood
Prod
Mfg 6
Hydro-
power
6
Bio-
mass 6
Log-
ging 4
Forestry
Support
4
Timber
Tract
Ops 4
Wood
Chem
Mfg 6
Higher
Ed
Center
Prof, Sci
& Tech
Serv 3
Survey
& Map-
ping 6
Forest Bio-
products Transp
Hub
Composites
Recreat.
Resource
How dense the network?
How many connections to
dark blue?
How many connections to
broad sectors (#3 or #4?)
How many connections to
other competitive
advantages?

24. Higher
Ed
Center
Spec. & grew
2005-13
Spec. but did
not grow
2005-13
Not spec. but
growing
Not spec., not
growing
Emerging?
Coll &
Univ 4
Jr &
Tech
Colleges
4
Tech &
Trade
Schools
4
Skilled
Special
Trades
Prof,
SciTech
Services
2
Forestry
Support
4
Forestry
3
Scien-
tific
R&D
Serv. 4Start-
ups
Ag
Support
4
Soft
ware
Publish
4
Infor-
mation
3
Pulp &
Paper
Mfg 4
Forest
Anim
Prod &
Aquacul
3
Cattle
Farming
4
Aqua-
Culture
4
Gulf of
Me
Emerg
sectors
Gen
Med &
Surg
Hosp 4
Health
Care
Center
Engin-
eering
6

25. Skilled
Artisans
Spec. & grew
2005-13
Spec. but did
not grow
2005-13
Not spec. but
growing
Not spec., not
growing
Emerging?
Arch &
Struct
Metals
4
Boat
Bldg 6
Fndtn
&Struct
Contr. 4
Bldg
Equip
Contr 4
Turbine
Mfg. 4
Fab
Struct
Metals
6
Plate
Work 6
Prefab
Metal
Bldgs 6
Motor
Vehicle
Body
Mfg 4
Higher
Ed
Center
Transp
Hub
HVAC
Contr 6
Other
Bldg
Equip 6
Sheet metal
?
Misc.
Wood
Prod
Mfg 6

26. Industry Roundtables
• BRDA and EMDC will organize roundtables
over next 6 months
• And target our recruitment and marketing of
the region around the supply chain and cluster
analyses that come out of them.
STAY TUNED!

27. Now to Our Panelists
1. What is driving growth in your
business/organization/industry, and
2. What assets in the Bangor Region/Eastern
Maine are especially important to your
business’s/organization’s success here?