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East Central Indiana Regional
Partnership (ECIRP)
REGIONAL
SNAPSHOT
Overview
01
Demography
02
Human capital
03
Labor force
04
Industry and occupation
05
Conclusions
06
Table of contents
01
overview
ECIRP Indiana Region
What is a regional
snapshot?
4
Overview
section 01
The ECIRP Region is located in
east-central Indiana and Ohio.
Two interstates, I-69 and I-70,
cross ...
5
Overview
section 01
What is a regional snapshot?
What is the snapshot?
This regional snapshot is a demographic and
econo...
02
demograph
y
Population change
Population pyramids
Income and poverty
7
Demography
section 02
Population change
In 2013, the population of the ECIRP Region,
including three Ohio counties, was ...
8
Demography
section 02
Components of population change
ECIRP region had a decrease in total
population from 2002 to 2013....
9
Population pyramids
Population pyramids are visual representations of the age distribution of the population by
gender.
...
10
Income and poverty
Demography
section 02
Source: U.S. Census Bureau – Small Area Income and Poverty Estimates (SAIPE) a...
03
human
capital
Educational attainment
Graduation rates
Patents
12
Human capital
section 03
Educational attainment
Educational attainment is one important
indicator of the human capital ...
13
Human capital
section 03
Four-year high school graduation rates*
In 2010, 84.3 percent of students in
the ECIRP Region ...
14
section 03
Average patents* (2001 to 2013)
Source: U.S. Patent and Trademark Office
Human capital
The number of patents...
04
labor force
Unemployment rates
Earnings per worker
Laborshed and
commuteshed
16
Labor force
section 04
Unemployment rates
The ECIRP Region’s unemployment
rate was 8.1 percent in 2013.
Between 2000 an...
17
Labor force
section 04
Real earnings per worker
Real earnings* per worker were
constructed by averaging earnings
for al...
18
Labor force
section 04
Laborshed in 2011
Source: LEHD, OTM, U.S. Census Bureau
A region’s laborshed is
the geographic a...
19
Laborshed in 2011
Labor force
Source: U.S. Census Bureau, OTM, LEHD, PCRD
The ECIRP Region draws its labor force
largel...
20
Labor force
section 04
Commuteshed in 2011
Source: LEHD, OTM, U.S. Census Bureau
*most recent data available
A region’s...
21
Commuteshed in
2011
Labor force
Source: U.S. Census Bureau, OTM, LEHD, PCRD
The ECIRP Region’s commuting pattern
involv...
05
industry
and
occupation
Establishments
Employment by industry
Cluster analysis
Top occupations
STEM occupations
23
Industry and occupation
section 05
Establishments
Source: National Establishment Time Series (NETS) – 2012 Database
Num...
24
Industry and occupation
section 05
Establishments component change
Source: National Establishment Time Series (NETS) – ...
25
Establishments’ total sales decreased between
2000 and 2011 in the ECIRP IN Region.
All establishment stages, except St...
26
Industry and occupation
section 05
Top five industries’ employment growth
NAICS Description 2008 Jobs 2013 Jobs Change ...
27
Industry and occupation
section 05
Top five industries’ employment decline
NAICS Description 2008 Jobs 2013 Jobs Change...
28
How to interpret a bubble chart
The graph’s four quadrants tell a different story for each cluster.
Industry and occupa...
Industry and occupation
section 05Note: Label includes cluster name, LQ 2013, and Employment 2013
Industry cluster bubble ...
30
Industry and occupation
section 05
Manufacturing supercluster bubble chart
Source: Economic Modeling Specialists Intern...
31
Bubble chart results
Industry and occupation
section 05
Stars
 Advanced Materials
 Agribusiness, Food Processing & Te...
32
Bubble chart interpretation
Industry and occupation
section 05
Mature Industries
Few industry clusters in the ECIRP Reg...
33
All Other
Occupations, 50%
Sales and Related
Occupations, 12%
Office and
Administrative
Support
Occupations, 12%
Produc...
34
Industry and occupation
section 05
STEM and STEM-related occupations
STEM (Science,Technology, Engineering and
Math) jo...
06
conclusions
36
The ECIRP Region: Key opportunities
Conclusions
section 06
The Data Snapshot of the ECIRP Region Data highlights a vari...
37
Report contributors
This report was prepared by the Purdue Center for Regional Development in partnership with
Purdue U...
For more information,
please contact:
Dr. Bo Beaulieu,
PCRD Director:
ljb@purdue.edu
Or
765-494-7273
The Purdue Center for...
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East Central Indiana Regional Snapshot

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East Central Indiana Regional Snapshot

  1. 1. East Central Indiana Regional Partnership (ECIRP) REGIONAL SNAPSHOT
  2. 2. Overview 01 Demography 02 Human capital 03 Labor force 04 Industry and occupation 05 Conclusions 06 Table of contents
  3. 3. 01 overview ECIRP Indiana Region What is a regional snapshot?
  4. 4. 4 Overview section 01 The ECIRP Region is located in east-central Indiana and Ohio. Two interstates, I-69 and I-70, cross through the region.The 13 counties in the region include:  Blackford, IN  Darke, OH  Delaware, IN  Fayette, IN  Grant, IN  Henry, IN  Jay, IN  Madison, IN  Mercer, OH  Preble, OH  Randolph, IN  Rush, IN  Wayne, IN ECIRP Indiana Region
  5. 5. 5 Overview section 01 What is a regional snapshot? What is the snapshot? This regional snapshot is a demographic and economic assessment of the ECIRP Region in Indiana. Using county-level data, PCRD analyzed a number of indicators to gauge the overall economic performance of the ECIRP Indiana Region. What is its purpose? The snapshot is intended to inform ECIRP 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 the 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 andOccupation 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 state on a variety of important metrics.
  6. 6. 02 demograph y Population change Population pyramids Income and poverty
  7. 7. 7 Demography section 02 Population change In 2013, the population of the ECIRP Region, including three Ohio counties, was equivalent to 10.2 percent of Indiana’s overall population, compared to 11 percent in 2002. If this trend holds, the ECIRP Region’s population is expected to be equivalent to 9.6 percent of Indiana’s population by 2020. The region experienced a population decline of 2.4 percent between 2002 and 2013, while the rest of Indiana grew by almost 7.7 percent. Source: U.S. Census Bureau: Population Estimates, STATS Indiana It is estimated that the ECIRP Region’s population will decrease by 1.4 percent over the 2013 to 2020 period.The rest of Indiana is expected to grow by 289,903 people (4.8 percent growth) over that period of time. Over the past decade, the ECIRP Region has suffered population declines, which differs from the population growth experienced by the rest of Indiana.This trend is likely to continue through 2020. 685,577 669,135 660,018 2013-20202002-20132002 Total population projections ECIRP Region Rest of Indiana - 2.4% 6,036,570 6,326,473 5,606,831 - 1.4% + 7.7% + 4.8%
  8. 8. 8 Demography section 02 Components of population change ECIRP region had a decrease in total population from 2002 to 2013. Natural increase (births minus deaths over that period) made a positive contribution by adding a net population growth of over 10,000 persons. Domestic migration (the difference between the number of people moving in the region versus moving out) shows that out-migration outpaced in-migration, resulting in a net loss of 38,797 persons. On the other hand, international migration resulted in a net increase of 4,084 persons, indicating that the region experienced an influx of new people from outside the U.S. Source: U.S. Census Bureau Components of Population Change, 2002- 2013 Total Change -28,006* Natural Increase 10,234 International Migration 4,084 Domestic Migration -38,797 *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 ECIRP Region suffered population losses primarily from out- migration, which outpaced population growth linked to natural increase and international migration.
  9. 9. 9 Population pyramids Population pyramids are visual representations of the age distribution of the population by gender. Demography section 02 In 2013, males outnumbered females in age categories for minors (0 to 19 years) and those of prime working age (20 to 49 years) in the ECIRP Region.The number of residents at least 50 years old in the region was 37 percent of the overall population (249,632 people).This figure was 4 percent larger than the rest of Indiana where residents 50 years old and over accounted for 33 percent of the population. The two oldest cohorts (70 to 79 and 80+ years old) comprised nearly 12 percent of the ECIRP Region’s population, compared to 9.2 percent of the population for the rest of Indiana. These results suggest that the ECIRP Region is becoming relatively older than the rest of the Indiana.The region may want to give attention to the mix of services and amenities needed by an aging population. Source: U.S. Census Bureau: Population Estimates 6.1% 6.9% 6.7% 5.7% 6.5% 7.0% 5.5% 3.2% 1.7% 5.8% 6.6% 6.6% 5.5% 6.3% 7.1% 6.0% 3.9% 2.9% 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 ECIRP- 2013 Male Female 6.8% 7.1% 6.9% 6.3% 6.5% 6.9% 4.9% 2.5% 1.3% 6.5% 6.8% 6.8% 6.3% 6.6% 7.1% 5.3% 3.1% 2.3% 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 Female
  10. 10. 10 Income and poverty Demography section 02 Source: U.S. Census Bureau – Small Area Income and Poverty Estimates (SAIPE) and U.S. Bureau of Economic Analysis – Regional Personal Income Summary 2002 2008 2013 Total Population in Poverty 10.4% 14.1% 18.6% Minors (Age 0-17) in Poverty 12.9% 20.0% 26.0% Average Real Median Income($2013)* $39,847 $38,115 $33,645 Real Per Capita Income ($2013) $32,559 $32,762 $34,325 The average real median income among ECIRP counties decreased consistently from 2002 to 2013, with a loss of over $6,200. But real per capita income grew almost $1,800 over the same 12 year period. The percentage of the total population classified as poor increased steadily from 2002 to 2013, as did the proportion of minors in poverty. Nearly 19 percent of residents and 26 percent of minors were impoverished in the region in 2013. The decreasing median income and increasing per person income indicates increasing degree of income inequality in the region. .*Weighted real median income, weighted by county population
  11. 11. 03 human capital Educational attainment Graduation rates Patents
  12. 12. 12 Human capital section 03 Educational attainment Educational attainment is one important indicator of the human capital attributes and skills of a population. In 2013, 42 percent of ECIRP residents (25 years of age or higher) had earned a high school degree only, 6 percentage points higher than in the rest of Indiana. The proportion of adults with a bachelor’s degree or more was lower in the ECIRP Region than in the remainder of Indiana (16 percent versus 23 percent).On the other hand, the percentage of adults with an associate’s degree was similar in both regions (8 percent). In general, the ECIRP Region may not be able to attract high quality jobs in light of the sizable number of adults (56 percent of the population) with a high school education or less. Associate’s degree Bachelor’s degree Graduate degree No high school Some high school High school Some college Source: 2013 ACS 5-year estimates 4% 10% 42% 20% 8% 10% 6% ECIRP Region - 2013 4% 9% 36% 21% 8% 15% 8% Rest of Indiana - 2013
  13. 13. 13 Human capital section 03 Four-year high school graduation rates* In 2010, 84.3 percent of students in the ECIRP Region successfully graduated from high school within a four year period.This was 1 percentage point lower than in the rest of Indiana. The rate for four-year high school graduates rose to 93.9 percent in the ECIRP Region by 2014, which exceeds the rate for the remainder of Indiana.This was due to a 9.6 percentage point increase (almost double the growth in the rest of Indiana) over the 2010-2014 time period. In 2014, the ECIRP Region outperformed the rest of Indiana with respect to the four-year high school graduation rates. Source: datacenter.kidscount.org *The results exclude three Ohio counties from the ECIRP Region due to lack of numerical data for 2010-2014 periods. 84.3% 93.9% 85.5% 90.6% 78.0% 80.0% 82.0% 84.0% 86.0% 88.0% 90.0% 92.0% 94.0% 96.0% 2010 2014 Region Rest of Indiana Rest of Indiana Region
  14. 14. 14 section 03 Average patents* (2001 to 2013) Source: U.S. Patent and Trademark Office Human capital The number of patents issued is 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 ECIRP Region was awarded, on average, 2.9 patents per 10,000 jobs each year from 2001 to 2013. The region was issued, on average, one fewer patent per 10,000 jobs and residents than the rest of Indiana.The data indicate that the ECIRP Region needs to expand its efforts to foster a culture of innovation. Region, 0.29Rest of Indian… Region, 0.13 Rest of Indiana, 0.22 *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, ECIRP counties were issued patents at a rate of 2.9 patents per 10,000 jobs, while the remainder of Indiana garnered 3.8 patents per 10,000 jobs. Average patents per 1,000 residents, 2001-2013 From 2001 to 2013, 1.3 patents per 10,000 residents were issued in ECIRP counties.The rest of Indiana garnered 2.2 patents per 10,000 residents.
  15. 15. 04 labor force Unemployment rates Earnings per worker Laborshed and commuteshed
  16. 16. 16 Labor force section 04 Unemployment rates The ECIRP Region’s unemployment rate was 8.1 percent in 2013. Between 2000 and 2013, it remained above the rate for the rest of Indiana. In 2000, the unemployment rate in the ECIRP region was 3.5 percent. After the start of the Great Recession in 2007, the unemployment rate peaked at 11.4 percent by 2009, which was 1.2 percentage point higher than what the rest of Indiana experienced at that time. From its high in 2009, the gap in unemployment rates between the region and the rest of Indiana decreased to 0.7 percentage points by 2013. Source: U.S. Bureau of Labor Statistics – Local Area Unemployment Statistics 3.5% 6.5% 5.6% 11.4% 8.1% 2.9% 5.2% 4.5% 10.2% 7.4% 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 Region Rest of Indiana Rest of Indiana ECIRP Region
  17. 17. 17 Labor force section 04 Real earnings per worker Real earnings* per worker were constructed by averaging earnings for all industries in the ECIRP region and the rest of Indiana. Real earnings per worker (in 2013 dollars) increased by approximately 1 percent from 2008 to 2013 in both the ECIRP Region and the rest of Indiana. Despite a $280 growth in earnings in the ECIRP Region since 2008, real earnings per worker in 2013 remain $8,000 below the amount captured by workers in the rest of Indiana. ECIRP Region Rest of Indiana 2008 2013 *Earnings include wages and salaries, supplements and other proprietorship incomes Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors), industrycluster definitions by PCRD $37,885 $38,165 $45,817 $46,181 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
  18. 18. 18 Labor force section 04 Laborshed in 2011 Source: LEHD, OTM, U.S. Census Bureau A region’s laborshed is the geographic area from which it draws employees. In 2011, the ECIRP Region was home to a total of 221,492 jobs. Almost 30 percent of individuals working in ECIRP counties at that time traveled from surrounding counties to work in the region. On the other hand, 70 percent of jobs in the region were held by individuals living in the ECIRP region. Thus, the lion’s share of the region's labor force is comprised of people who both live and work in the ECIRP Region. Population 2011 Jobs* Proportio n Employed in ECIRP 221,492 100% Employed in ECIRP but LivingOutside 65,702 30% Employed and Living in ECIRP 155,790 70% In-Commuters Same Work/Home *most recent data available 65,702 155,790
  19. 19. 19 Laborshed in 2011 Labor force Source: U.S. Census Bureau, OTM, LEHD, PCRD The ECIRP Region draws its labor force largely from its own counties and surrounding metropolitan areas. Seventy-five percent of the region’s workers live in ECIRP counties or in Hamilton and Marion Counties in Indiana (Indianapolis MSA). Although Rush County is part of the ECIRP Region, it is not part of the core laborshed. Central counties in the FortWayne (Allen County, Indiana), Kokomo (HowardCounty, Indiana) and Dayton (Montgomery County,Ohio) metropolitan areas are included in the laborshed when the threshold is extended to 80 percent. AdjacentVanWert,Auglaize, Shelby and Miami Counties in Ohio are all part of the 85 percent laborshed region, while the Indiana counties included in the 85 percent laborshed region are more scattered. section 04
  20. 20. 20 Labor force section 04 Commuteshed in 2011 Source: LEHD, OTM, U.S. Census Bureau *most recent data available A region’s commuteshed is the geographic area where its residents work. Nearly 42 percent of employed residents in the ECIRP Region commute to jobs located outside of the region.The remaining 58 percent of the region’s workforce both live and work in the ECIRP region. Out-Commuters Same Work/Home 113,390 155,790 Population 2011 Jobs* Proportion Employed ECIRP Residents 269,180 100% Living in ECIRP and Employed Outside 113,390 42% Living and Employed in ECIRP 155,790 58%
  21. 21. 21 Commuteshed in 2011 Labor force Source: U.S. Census Bureau, OTM, LEHD, PCRD The ECIRP Region’s commuting pattern involves counties close to and far from the region. Approximately 75 percent of employed ECIRP residents commute to jobs in 17 counties.These work destinations include 11 ECIRP counties and the Fort Wayne (Allen County, Indiana), Indianapolis (Marion, Hancock, and Hamilton Counties in Indiana) and Dayton (Montgomery County,Ohio) metropolitan areas. Increasing the commuteshed threshold to 80 percent includes the two remaining ECIRP counties, Blackford and Rush Counties in Indiana, as well as Auglaize County and part of the Cincinnati metropolitan area (Butler and Hamilton Counties) in Ohio. At the 85 percent threshold, then 10 more counties are added, which include two counties from Ohio and eight counties from Indiana. section 04
  22. 22. 05 industry and occupation Establishments Employment by industry Cluster analysis Top occupations STEM occupations
  23. 23. 23 Industry and occupation section 05 Establishments Source: National Establishment Time Series (NETS) – 2012 Database Number of Establishments by Employment Size Year 2000 2011 Stage 0 9,522 15,463 Stage 1 17,296 25,608 Stage 2 4,813 4,499 Stage 3 397 353 Stage 4 52 40* Total 32,080 45,963 The number of establishments in the ECIRP Region grew by 43 percent between 2000 and 2011, resulting in more than 13,800 new establishments by 2011.This growth occurred in Stage 0 and Stage 1 establishments. In particular,Stage 0 establishments grew by 62 percent, while Stage 1 establishments expanded by 48 percent. The number of Stage 2, Stage 3 and Stage 4 establishments declined in the region over the same time period. Stage 2 establishments fell by more than 6 percent, Stage 3 establishments dipped by 11 percent and Stage 4 establishments dropped by over 23 percent. 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 *The most recent data from ReferenceUSA shows 51 Stage 4 establishments for the ECIRP Region in 2015, compared to 40 establishments from NETS database in 2011.
  24. 24. 24 Industry and occupation section 05 Establishments component change Source: National Establishment Time Series (NETS) – 2012 Database The ECIRP Region gained 13,883 new establishments between 2000 and 2011. Most of the gains came from natural change (births minus deaths of establishments). Births surpassed deaths by 13,655 establishments. More establishments migrated into the ECIRP Region than migrated out to locations in non-ECIRP counties.The result is a net gain of 228 establishments due to migration. Components of Change for Establishments Total Change (2000-11) 13,883 Natural Change (births minus deaths) 13,655 Net Migration 228
  25. 25. 25 Establishments’ total sales decreased between 2000 and 2011 in the ECIRP IN Region. All establishment stages, except Stage 1 (+2.1 percent), experienced a decline in sales over the past decade. Sales by Stage 4 establishments fell the most, with a 63 percent decline. Both Stage 2 and Stage 3 establishments lost slightly more than a quarter of their 2000 sales by 2011.Overall, sales in the ECIRP Region decreased from $35.8 billion to $25.8 billion over the time period. Industry and occupation section 05 Establishments Source: National Establishment Time Series (NETS) – 2012 Database Number of Jobs by Establishment Stages Year 2000 2011 Stage 0 8,194 13,460 Stage 1 54,432 68,611 Stage 2 105,649 98,770 Stage 3 56,135 50,708 Stage 4 50,847 32,063 Total 275,257 263,612 From 2000 to 2011, total jobs declined, largely as a result of jobs losses from Stage 4 establishments. Self-employed (Stage 0) and Stage 1 establishments experienced impressive gains in jobs between 2000 and 2011. Stage 2 establishments had a 6 percent drop in jobs, which is less than the 10 percent decrease in jobs in Stage 3 establishments.The largest establishments in the ECIRP Region (Stage 4) experienced an employment decline of nearly 37 percent.This pattern of job growth and decline by establishment stage corresponds to the growth and decline in the number of establishments highlighted previously. Aggregate Sales (2013 US$) by Establishment Stages Year 2000 2011 Stage 0 $ 1,007,917,611 $ 955,503,508 Stage 1 $ 6,897,888,560 $ 7,043,889,526 Stage 2 $ 13,025,108,991 $ 9,611,631,738 Stage 3 $ 7,593,656,019 $ 5,528,653,814 Stage 4 $ 7,320,662,372 $ 2,660,729,153 Total $ 35,845,233,553 $ 25,800,407,739
  26. 26. 26 Industry and occupation section 05 Top five industries’ employment growth NAICS Description 2008 Jobs 2013 Jobs Change Change (%) ECIRP IN Region 62 Health Care and Social Assistance 36,595 38,298 1,703 5% 53 Real Estate Rental and Leasing 8,228 9,226 998 12% 52 Finance and Insurance 10,708 11,180 472 4% 48 Transportation and Warehousing 10,787 11,104 317 3% 55 Management of Companies and Enterprises 1,739 1,883 144 8% Rest of Indiana 62 Health Care and Social Assistance 340,918 374,831 33,913 10% 56 Administrative and Support and Waste Management and Remediation Services 178,866 202,143 23,277 13% 72 Accommodation and Food Services 229,783 244,395 14,612 6% 52 Finance and Insurance 131,797 142,316 10,519 8% 53 Real Estate Rental and Leasing 109,811 120,127 10,316 9% On the basis of total employment, the HealthCare and Social Assistance added the most number of jobs in the ECIRP Region between 2008 and 2013. However, the highest rate of growth occurred in the Real Estate Rental and Leasing sector, with a 12 percent growth in jobs. In the rest of Indiana, the largest increase of almost 34,000 jobs occurred in HealthCare and Social Assistance, and the highest rate of 13 percent job growth occurred in the 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)
  27. 27. 27 Industry and occupation section 05 Top five industries’ employment decline NAICS Description 2008 Jobs 2013 Jobs Change Change (%) ECIRP IN Region 90 Government 44,593 42,392 -2,201 -5% 23 Construction 16,008 14,232 -1,776 -11% 31 Manufacturing 44,518 42,902 -1,616 -4% 54 Professional, Scientific, and Technical Services 9,193 8,521 -672 -7% 42 Wholesale Trade 8,324 7,801 -523 -6% Rest of Indiana 23 Construction 197,782 171,253 -26,529 -13% 31 Manufacturing 501,075 476,134 -24,941 -5% 90 Government 419,362 405,085 -14,277 -3% 42 Wholesale Trade 114,502 109,709 -4,793 -4% 54 Professional, Scientific, and Technical Services 147,799 145,286 -2,513 -2% Government,Construction, and Manufacturing were the top industry sectors that suffered the largest numerical losses in jobs between 2008 and 2013 in the ECIRP Region. Construction, Manufacturing, and Government were also the three industry sectors that experienced the highest jobs losses in the rest of Indiana. Of the five industries with the maximum losses in jobs between 2008 and 2013, Construction lost the largest share of jobs in both in the ECIRP region (11 percent) and the rest of Indiana (13 percent). Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors)
  28. 28. 28 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.
  29. 29. Industry and occupation section 05Note: Label includes cluster name, LQ 2013, and Employment 2013 Industry cluster bubble chart Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors), industrycluster definitions by PCRD Advanced Materials, 1.67, 14,896 Agri.& Food Process., 2.21, 19,739 Apparel And Textiles, 0.63, 1,393 Arts & Ent., 0.60, 7,269 Biomedical/Biotechnical , 1.25, 29,157 Business & Financial Services, 0.50, 19,520 Chemicals, 1.65, 5,931 Defense & Security, 0.49, 6,239 Education & Knowledge, 1.08, 7,365 Energy, 0.62, 9,890 Forest &Wood Prod., 1.84, 7,792 Glass &Ceramics, 3.01, 1,508 IT & Telecomm., 0.36, 4,194 Mfg Supercluster, 2.22, 22,315 Mining, 0.87, 752 Printing & Publishing, 0.72, 3,667 Transportation &Logistics, 1.20, 11,058 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 -30% -20% -10% 0% 10% 20% 30% 40% 50% Stars Emerging Mature Transforming LQ,2013 LQ % Change, 2008-2013
  30. 30. 30 Industry and occupation section 05 Manufacturing supercluster bubble chart Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors), industrycluster definitions by PCRD Electrical Equip, Appliance & Component Mfg, 1.36, 886 Fabricated Metal Product Mfg, 2.16, 5,222 Machinery Mfg, 2.9, 5,628 Primary Metal Mfg, 2.93, 1,978 Transportation Equipment Mfg, 3.3, 8,455 0 0.5 1 1.5 2 2.5 3 3.5 4 -40% -30% -20% -10% 0% 10% 20% Stars Emerging Mature Transforming Note: Label includes cluster name, LQ 2013, and Employment 2013
  31. 31. 31 Bubble chart results Industry and occupation section 05 Stars  Advanced Materials  Agribusiness, Food Processing & Technology  Biomedical/Biotechnical (Life Sciences)  Chemicals & Chemical Based Products  Forest & Wood Products  Glass & Ceramics  Manufacturing Supercluster  Transportation Equipment  Fabricated Metal Product  Machinery  Transportation & Logistics Emerging  Apparel & Textiles  Arts, Entertainment, Recreation & Visitor Industries  Business & Financial Services Transforming  Defense & Security  Energy (Fossil & Renewable)  Information Technology & Telecommunications  Mining  Printing & Publishing Mature  Education & Knowledge Creation  Manufacturing Supercluster  Electrical Equip, Appliance & Comp. Manufacturing  Primary Metal Percent Growth in Specialization LevelofSpecialization Source: Economic Modeling Specialists International (EMSI) 2014.3 Class of Worker, industry cluster definitions by PCRD
  32. 32. 32 Bubble chart interpretation Industry and occupation section 05 Mature Industries Few industry clusters in the ECIRP Region are in the Mature stage (three).These industries are relatively concentrated, but their growth is trending downward. Education and Knowledge Creation, Primary Metal and Electrical Equipment, Appliance and Component are in this stage. 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 future economy of the region. Transforming Industries Transforming industry clusters are relatively small and declining. In the ECIRP Region, Defense and Security, InformationTechnology andTelecommunications and Mining and Energy are among the fiveTransforming industry clusters. Spurring growth in these industries would require relatively large investments. Star Industries The most highly concentrated Star industry cluster in the region is Primary Metal Manufacturing, with a location quotient (LQ) of 3.3 and 8,500 jobs.This indicates that Primary Metal Manufacturing jobs are three times more concentrated in the region than the United States as a whole. Star industry clusters are relatively prolific in the ECIRP Region and include 10 industries, almost as much as the other three classifications combined.This indicates a diversified regional economy that is set up for growth in the future. Matching the needs of these Star 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 ECIRP Region, three industry clusters are Emerging.They gained strength between 2008 and 2013 and may emerge as important regional economic forces in the future.The Business and Finance industry cluster is one of these Emerging industries.
  33. 33. 33 All Other Occupations, 50% Sales and Related Occupations, 12% Office and Administrative Support Occupations, 12% Production Occupations, 10% Food Preparation and Serving Related Occupations, 8% Management Occupations, 8% Industry and occupation section 05 Top five occupations in 2013 The top five occupations in the ECIRP Region account for half of all jobs. Sales and Related (37,376 jobs) is the top occupation classification, but it is closely followed by Office and Administrative Support (37,285 jobs). Combined, the two occupations represent nearly one in four jobs in the region. Rounding out the top occupations in the region are Production occupations with 10 percent of jobs, Food Preparation and Serving occupations, and Management occupations. Each of the latter occupations provide 8 percent of all jobs in the ECIRP Region. Source: Economic Modeling Specialists International (EMSI) – 2014.3 Class of Worker
  34. 34. 34 Industry and occupation section 05 STEM and STEM-related occupations STEM (Science,Technology, Engineering and Math) jobs decreased in both the ECIRP Region and in the rest of Indiana during the post- recession recovery period, though the job losses were more dramatic in the ECIRP Region. Declines in STEM occupations were linked to job losses in Management,Architecture, Engineering,Computer and Mathematical occupations between 2008 and 2013. 5,635 5,224 -7% Change20132008 Job change in STEM occupations ECIRP Region Rest of Indiana 103,186 -1% 103,782 Between 2008 and 2013, STEM jobs in the ECIRP Region fell by 7 percent, compared to only a 1 percent loss in the rest of the state. Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors)
  35. 35. 06 conclusions
  36. 36. 36 The ECIRP Region: Key opportunities Conclusions section 06 The Data Snapshot of the ECIRP Region Data 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 • With a higher share of adults 60 years of age or older relative to the rest of Indiana, the ECIRP region should consider ways to address the needs of an aging population. • The region has a smaller percentage of people of prime working age. Examine if the issue is due to the lack of jobs, the limited stock of good housing for workers or other key factors. • The poverty rate for individuals is on the upswing, especially among children under 18 years old. This is an issue that the region might examine more thoroughly. Human Capital • 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 terms of retaining or attracting more highly educated residents. Economic Development • Take stock of the human capital attributes of workers who commute to jobs outside of the region.Those endowed with medium or high level skills may represent a prime source of labor for new or expanding companies in the region. • Give attention to the needs and opportunities of Stage 1 and Stage 2 establishments, since they are key sources of jobs and sales in the region.These establishments may serve as generators of new jobs in the region. Restoring jobs that were lost by Stage 3 and Stage 4 firms is worth exploring, although many of the Stage 4 jobs may be hard to re-capture. • 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. Star industries are plentiful in the ECIRP and might represent growth opportunities for the region. Contact Us: The Purdue Center for Regional Development is available to assist with more in-depth data or program support to the ECIRP Region, as needed.Contact information is available on the next slide.
  37. 37. 37 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.”
  38. 38. 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. July 2015

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