Target Industry Cluster Analysis Kerr-Tar Regional Economic Development, North Carolina Table of contents 01 02 03 Overview Industry Cluster Analysis Target Industry Cluster 01 overview Kerr-Tar Region, NC Overview Kerr-Tar Region The Kerr-Tar Region is comprised of three North Carolina counties. Interstate I-85 passes through the central part of the region connecting to I-40 to the south. Franklin Granville Person Vance Warren section 01 4 02 industry cluster analysis Kerr-Tar Region, NC Industry cluster analysis How to interpret cluster data results The graph’s four quadrants tell a different story for each cluster. 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. Mature Top left (strong but declining) Transforming 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. 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 Top right can be expected to become more dominant over time. (strong and Stars advancing) Emerging Contains clusters that are under-represented in the Bottom right region but are growing, often (weak but quickly. If growth trends advancing) continue, these clusters will eventually move into the top right quadrant. Clusters in this quadrant are considered emerging strengths for the region. section 02 Modified from: http://www.charlestonregionaldata.com/bubble-chart-explanation/ 6 Industry and occupation Industry cluster bubble chart Mature Star Transforming Emerging Note: Mining cluster has too few jobs section 02 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). Note: Label includes cluster name, LQ 2014, and Employment 2014; NAICS 2012 definitions 7 Industry and occupation Manufacturing sub-cluster bubble chart Star Mature Transforming Emerging Note: Electrical Equipment, Appliance & Component Manufacturing cluster has too few jobs section 02 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). Note: Label includes cluster name, LQ 2014, and Employment 2014; NAICS 2012 definition 8 Industry cluster analysis Star Clusters Mature Clusters Glass & Ceramics (4.38; 617) Forest & Wood Products (2.11; 2,488) Apparel & Textiles (1.84; 1,116) NOTE: The first number after each cluster represents its location quotient while the second number represents the number of total jobs (full and part time jobs by place of work) in that cluster in the region. The clusters are sorted in decreasing order by location quotient. Level of Specialization Chemicals/Chemical-based Products (3.81; 3,800) Advanced Materials (1.66; 4,065) Agribusiness, Food Processing & Tech (1.37; 3,339) Transportation Equipment Mfg. (1.25; 904) Machinery Manufacturing (1.08; 587) Percent Growth in Specialization Transforming Clusters Biomed/Biotechnical (Life Science) (0.91; 5,843) Computer & Electronic Product Mfg. (0.82; 401) Printing & Publishing (0.39; 552) Mining (0.28; 70) Electrical Equipment, App & Comp Mfg. (0.18; 32) Emerging Clusters Manufacturing Supercluster (0.96; 2,669) Fabricated Metal Product Mfg. (0.94; 631) Transportation & Logistics (0.93; 2,426) Energy(Fossil & Renewable) (0.88; 3,928) Information Technology & Telecom. (0.65; 2,119) Defense & Security (0.61; 2,141) Primary Metal Manufacturing (0.61; 114) Business & Financial Services (0.56; 6,169) Education & Knowledge Creation (0.48; 924) Arts, Ent, Recreation. & Visitor Industries (0.47; 1,601) Note: Electrical Equipment, Appliance & Component Manufacturing and Mining clusters have too few jobs section 02 * Numbers in parenthesis include location quotient and employment in 2014. 9 Industry and occupation Bubble chart interpretation Mature Industries Star Industries Three industry clusters in the Kerr-Tar Region are in the Maturing stage: Chemicals/Chemical-based Products, Forest & Wood Products, and Apparel & Textiles. These industries are relatively concentrated, but their growth is trending downward. It is worth noting, however, that the Kerr-Tar Region may find it worthwhile to invest in efforts to shore up the concentration of these industries. Star industry clusters are highly concentrated, exporting and still experiencing growth in the region. The most highly concentrated of the Star industry clusters in the Kerr-Tar Region is Glass & Ceramics. Its location quotient is 4.38, indicating that the cluster is 4 times more concentrated in the region compared to the U.S. The other strong clusters in the region are Advanced Materials, Agribusiness, Food Processing & Technology, Transportation Equipment Manufacturing, and Machinery Manufacturing. Transforming Industries Transforming clusters capture the mix of industries that are experiencing relative decline and limited export capability. In the Kerr-Tar Region, Biomed/Biotechnical (Life Science), Computer & Electronic Product Mfg., Printing & Publishing, Mining, and Electrical Equipment, App & Comp Manufacturing, are all Transforming clusters. Any amount of growth in these industries would require relatively large investments. section 02 Emerging Industries Industry clusters that may be poised for future growth are classified as “Emerging.” There are ten Emerging clusters in the Kerr-Tar Region. Top three that have the highest LQ are Manufacturing Supercluster, Fabricated Metal Product Manufacturing, and Transportation & Logistics. Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 10 03 target industry cluster Agribusiness, Food Processing and Technology Advanced Materials Manufacturing Supercluster Shift-Share Analysis by Top Industry Sectors: Kerr-Tar Region, NC Agribusiness, Food Processing and Technology Cluster Industries National Industry Cumulative Actual Job Regional Jobs 2014 Trend, 2009- Trend, 2009- Expected Growth, Performance 2014 2014 Growth 2009-2014 , 2009-2014 A B C=A+B D D-C Crop Production Animal Production Farm Labor Contractors and Crew Leaders Dog and Cat Food Manufacturing Tobacco Manufacturing Farm Supplies Merchant Wholesalers Other Farm Product Raw Material Merchant Wholesalers Farm and Garden Machinery and Equipment Merchant Wholesalers Rendering and Meat Byproduct Processing Roasted Nuts and Peanut Butter Manufacturing Flour Milling Soil Preparation, Planting, and Cultivating Wineries Farm Machinery and Equipment Manufacturing Farm Management Services 1,652 524 244 168 162 138 145 25 16 11 0 8 -130 -31 14 4 0 0 15 -6 30 15 0 8 -255 200 30 18 162 35 -270 206 0 3 162 27 122 9 1 10 7 -3 50 7 0 7 -45 -52 45 0 0 0 45 45 38 0 0 0 33 33 33 26 21 3 1 0 -2 2 0 1 3 0 -2 9 19 -3 6 19 18 0 0 0 14 14 16 1 1 2 8 6 Note: Upward arrow ( ) indicates regional competitiveness. section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 12 Top 15 Inputs by Dollars: Kerr-Tar Region, NC Agribusiness, Food Processing and Technology Cluster Estimated Input ($ Millions), 2013 Industries % In-Region % Out of Region Crop Production $47.74 16% 84% Animal Production and Aquaculture $27.13 4% 96% Corporate, Subsidiary, and Regional Managing Offices $14.01 6% 94% Animal (except Poultry) Slaughtering * $10.87 0% 100% Meat Processed from Carcasses $9.80 12% 88% Metal Can Manufacturing ** $9.76 0% 100% Other Animal Food Manufacturing * $9.67 3% 97% Tobacco Manufacturing $8.30 96% 4% Wholesale Trade Agents and Brokers $6.15 12% 88% Other Metal Container Manufacturing $5.42 47% 53% Wet Corn Milling ** $4.95 0% 100% Farm Labor Contractors and Crew Leaders $4.89 33% 67% Pesticide and Other Agricultural Chemical Manufacturing ** $4.78 0% 100% Rail transportation $4.41 7% 93% Lessors of Residential Buildings and Dwellings $4.40 24% 76% Note: * industry sector has less than 10 jobs as calculated by EMSI; ** industry sector is not present in the region . section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 13 Top 15 Inputs by Dollars: Kerr-Tar Region, NC Agribusiness, Food Processing and Technology Cluster Leakage Analysis, 2013 Crop Production Animal Production and Aquaculture Corporate, Subsidiary, and Regional Managing Offices Top Input Sectors Animal (except Poultry) Slaughtering Meat Processed from Carcasses Metal Can Manufacturing ** Other Animal Food Manufacturing Tobacco Manufacturing Wholesale Trade Agents and Brokers Other Metal Container Manufacturing Wet Corn Milling ** Farm Labor Contractors and Crew Leaders Pesticide and Other Agricultural Chemical Mfg ** Rail transportation Within Region Lessors of Residential Buildings and Dwellings $0 $12 $24 Outside of Region $36 $48 $ Millions Note: ** industry sector is not present in the region section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 14 Top Occupations: Kerr-Tar Region, NC Agribusiness, Food Processing and Technology Cluster Occupations Jobs 2014 Farmers, Ranchers, and Other Agricultural Managers % Change, Median Hourly 2009-2014 Earnings, 2014 Entry Level Education 1,592 -6% $10.9 459 12% $9.2 Less than high school 67 22% $10.9 Less than high school 57 0% $22.2 High school diploma or equivalent 52 16% $16.3 Postsecondary non-degree award 47 57% $13.7 High school diploma or equivalent 46 37 21% 54% $8.9 $12.1 Less than high school Less than high school 36 9% $15.8 Less than high school 34 -3% $14.9 High school diploma or equivalent 33 32% $12.7 High school diploma or equivalent 32 28 28 28% -33% 27% $10.5 $12.5 $46.3 Less than high school Less than high school Bachelor's degree 27 93% $23.4 High school diploma or equivalent Farmworkers and Laborers, Crop, Nursery, and Greenhouse Laborers and Freight, Stock, and Material Movers, Hand Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products Heavy and Tractor-Trailer Truck Drivers Packaging and Filling Machine Operators and Tenders Agricultural Equipment Operators Industrial Truck and Tractor Operators Farmworkers, Farm, Ranch, and Aquacultural Animals Bookkeeping, Accounting, and Auditing Clerks Mixing and Blending Machine Setters, Operators, and Tenders Packers and Packagers, Hand Slaughterers and Meat Packers General and Operations Managers Separating, Filtering, Clarifying, Precipitating, and Still Machine Setters, Operators, and Tenders High school diploma or equivalent Note: SOC (Standard Occupation Classification) 5-digit occupations are included by jobs in 2014. section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 15 Shift-Share Analysis by Top Industry Sectors: Kerr-Tar Region, NC Advanced Materials Cluster Industries National Industry Cumulative Actual Job Regional Jobs 2014 Trend, 2009- Trend, 2009- Expected Growth, Performance 2014 2014 Growth 2009-2014 , 2009-2014 A B C=A+B D D-C Toilet Preparation Manufacturing All Other Basic Organic Chemical Mfg Sheet Metal Work Manufacturing Surgical and Medical Instrument Mfg Pottery, Ceramics, and Plumbing Fixture Manufacturing Bare Printed Circuit Board Manufacturing Other Motor Vehicle Parts Manufacturing Plate Work Manufacturing Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing All Other Miscellaneous Fabricated Metal Product Manufacturing Polystyrene Foam Product Manufacturing Other Commercial and Service Industry Machinery Manufacturing Surgical Appliance and Supplies Mfg Machine Shops Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) 1,485 419 185 184 130 32 1 18 104 8 0 -13 234 40 1 5 -225 -7 178 -54 -459 -47 177 -59 180 6 8 14 107 93 166 146 140 3 16 3 -13 45 1 -10 61 4 120 -60 104 130 -121 100 133 0 0 0 133 133 113 1 0 1 104 103 90 3 -1 2 45 43 85 0 0 0 85 85 77 73 17 4 -16 8 1 12 -151 19 -152 7 70 2 -1 1 42 41 Note: Upward arrow ( ) indicates regional competitiveness. section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 16 Top 15 Inputs by Dollars: Kerr-Tar Region, NC Advanced Materials Cluster Estimated Input ($ Millions), 2013 Industries % In-Region % Out of Region Petrochemical Manufacturing * $215.40 1% 99% All Other Basic Organic Chemical Manufacturing $111.91 62% 38% Corporate, Subsidiary, and Regional Managing Offices $105.27 2% 98% Crop Production $43.43 12% 88% Plastics Material and Resin Manufacturing $34.63 2% 98% Rail transportation $28.01 4% 96% Iron and Steel Mills and Ferroalloy Manufacturing $27.69 8% 92% Ethyl Alcohol Manufacturing $24.71 20% 80% Wholesale Trade Agents and Brokers $22.14 12% 88% Other Basic Inorganic Chemical Manufacturing $20.22 3% 97% All Other Plastics Product Manufacturing $16.32 2% 98% Fats and Oils Refining and Blending ** $15.68 0% 100% Natural Gas Distribution $14.14 6% 94% Machine Shops $12.68 3% 97% Toilet Preparation Manufacturing $12.40 94% 6% Note: * industry sector has less than 10 jobs as calculated by EMSI; ** industry sector is not present in the region. section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 17 Top 15 Inputs by Dollars: Kerr-Tar Region, NC Advanced Materials Cluster Leakage Analysis, 2013 Petrochemical Manufacturing All Other Basic Organic Chemical Manufacturing Corporate, Subsidiary, and Regional Managing Offices Top Input Sectors Crop Production Plastics Material and Resin Manufacturing Rail transportation Iron and Steel Mills and Ferroalloy Manufacturing Ethyl Alcohol Manufacturing Wholesale Trade Agents and Brokers Other Basic Inorganic Chemical Manufacturing All Other Plastics Product Manufacturing Fats and Oils Refining and Blending ** Natural Gas Distribution Machine Shops Within Region Toilet Preparation Manufacturing $0 $60 $120 Outside of Region $180 $240 $ Millions Note: ** industry sector is not present in the region section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 18 Top Occupations: Kerr-Tar Region, NC Advanced Materials Cluster Occupations Jobs 2014 % Change, Median Hourly 2009-2014 Earnings, 2014 Entry Level Education Team Assemblers 214 0% $12.0 High school diploma or equivalent Packaging and Filling Machine Operators and Tenders 213 -12% $13.7 High school diploma or equivalent Mixing and Blending Machine Setters, Operators, and Tenders 200 -6% $12.7 High school diploma or equivalent First-Line Supervisors of Production and Operating Workers 165 9% $24.0 Postsecondary non-degree award Helpers--Production Workers Inspectors, Testers, Sorters, Samplers, and Weighers 140 134 14% -3% $10.7 $15.7 Less than high school High school diploma or equivalent Laborers and Freight, Stock, and Material Movers, Hand 112 8% $10.9 Less than high school Maintenance and Repair Workers, General 97 8% $17.2 High school diploma or equivalent Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 84 17% $22.2 High school diploma or equivalent Shipping, Receiving, and Traffic Clerks 82 0% $13.6 High school diploma or equivalent Machinists Industrial Truck and Tractor Operators Chemical Equipment Operators and Tenders Packers and Packagers, Hand Industrial Machinery Mechanics 81 80 79 77 73 21% 5% -2% 0% 11% $16.8 $12.1 $22.2 $10.5 $20.2 High school diploma or equivalent Less than high school High school diploma or equivalent Less than high school High school diploma or equivalent Note: SOC (Standard Occupation Classification) 5-digit occupations are included by jobs in 2014. section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 19 Shift-Share Analysis by Top Industry Sectors: Kerr-Tar Region, NC Manufacturing Supercluster Industries National Industry Cumulative Actual Job Regional Jobs 2014 Trend, 2009- Trend, 2009- Expected Growth, Performance 2014 2014 Growth 2009-2014 , 2009-2014 A B C=A+B D D-C Motor Vehicle Transmission and Power Train Parts Manufacturing Construction Machinery Manufacturing Sheet Metal Work Manufacturing Analytical Laboratory Instrument Mfg Bare Printed Circuit Board Manufacturing Motor Vehicle Metal Stamping Other Motor Vehicle Parts Manufacturing Plate Work Manufacturing All Other Miscellaneous Fabricated Metal Product Manufacturing Industrial and Commercial Fan and Blower and Air Purification Equipment Mfg Other Commercial and Service Industry Machinery Manufacturing Machine Shops Other Metal Container Manufacturing Aluminum Sheet, Plate, and Foil Mfg Iron and Steel Mills and Ferroalloy Mfg 541 31 128 159 137 -22 341 185 182 166 157 146 140 21 1 12 3 2 16 3 14 0 -2 -13 7 45 1 35 1 10 -10 9 61 4 61 178 27 120 137 -60 104 26 177 17 130 128 -121 100 113 1 0 1 104 103 105 15 13 28 -99 -127 85 0 0 0 85 85 73 72 57 57 4 2 0 0 8 -2 0 0 12 0 0 0 19 44 57 54 7 44 57 54 Note: Upward arrow ( ) indicates regional competitiveness. section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 20 Top 15 Inputs by Dollars: Kerr-Tar Region, NC Manufacturing Supercluster Estimated Input ($ Millions), 2013 Industries % In-Region % Out of Region Iron and Steel Mills and Ferroalloy Manufacturing $52.39 5% 95% Corporate, Subsidiary, and Regional Managing Offices $44.31 4% 96% Machine Shops $17.68 3% 97% Custom Roll Forming ** $14.76 0% 100% Motor Vehicle Metal Stamping $11.34 4% 96% Wholesale Trade Agents and Brokers $9.16 8% 92% Iron Foundries ** $9.05 0% 100% Nonferrous Metal Die-Casting Foundries ** $7.10 0% 100% Other Aluminum Rolling, Drawing, and Extruding ** $7.04 0% 100% Bolt, Nut, Screw, Rivet, and Washer Manufacturing ** $5.93 0% 100% Aluminum Sheet, Plate, and Foil Manufacturing $5.67 58% 42% Secondary Smelting and Alloying of Aluminum ** $5.40 0% 100% Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) * $5.38 0% 100% Precision Turned Product Manufacturing ** $5.31 0% 100% Other Motor Vehicle Parts Manufacturing $5.26 28% 72% Note: * industry sector has less than 10 jobs as calculated by EMSI; ** industry sector is not present in the region. section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 21 Top 15 Inputs by Dollars: Kerr-Tar Region, NC Manufacturing Supercluster Leakage Analysis, 2013 Iron and Steel Mills and Ferroalloy Manufacturing Corporate, Subsidiary, and Regional Managing Offices Machine Shops Custom Roll Forming ** Top Input Sectors Motor Vehicle Metal Stamping Wholesale Trade Agents and Brokers Iron Foundries ** Nonferrous Metal Die-Casting Foundries ** Other Aluminum Rolling, Drawing, and Extruding ** Bolt, Nut, Screw, Rivet, and Washer Mfg ** Aluminum Sheet, Plate, and Foil Manufacturing Secondary Smelting and Alloying of Aluminum ** Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Precision Turned Product Manufacturing ** Within Region Outside of Region Other Motor Vehicle Parts Manufacturing $0 $15 $30 $45 $60 $ Millions Note: ** industry sector is not present in the region . section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 22 Top Occupations: Kerr-Tar Region, NC Manufacturing Supercluster Occupations Jobs 2014 % Change, Median Hourly 2009-2014 Earnings, $ 2014 Entry Level Education Team Assemblers 309 14% $12.0 High school diploma or equivalent Cutting, Punching, and Press Machine Setters, Operators, and Tenders, Metal and Plastic 113 9% $10.1 High school diploma or equivalent Machinists 108 30% $16.8 High school diploma or equivalent First-Line Supervisors of Production and Operating Workers 99 16% $24.0 Postsecondary non-degree award Inspectors, Testers, Sorters, Samplers, and Weighers 95 9% $15.7 High school diploma or equivalent Welders, Cutters, Solderers, and Brazers 77 8% $15.0 High school diploma or equivalent Electrical and Electronic Equipment Assemblers Helpers--Production Workers Computer-Controlled Machine Tool Operators, Metal and Plastic Welding, Soldering, and Brazing Machine Setters, Operators, and Tenders Laborers and Freight, Stock, and Material Movers, Hand Industrial Engineers Shipping, Receiving, and Traffic Clerks 69 66 -26% 22% $12.2 $10.7 High school diploma or equivalent Less than high school 61 27% $16.1 High school diploma or equivalent 56 44% $15.6 High school diploma or equivalent 55 25% $10.9 Less than high school 53 49 4% 17% $35.1 $13.6 Bachelor's degree High school diploma or equivalent Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 47 24% $22.2 High school diploma or equivalent Maintenance and Repair Workers, General 45 25% $17.2 High school diploma or equivalent Note: SOC (Standard Occupation Classification) 5-digit occupations are included by jobs in 2014. section 03 Source: EMSI Class of Worker 2014.4 (QCEW, non-QCEW, self-employed and extended proprietors). 23 Report Contributors This report was prepared by the Purdue Center for Regional Development, in partnership with the Southern Rural Development Center and USDA Rural Development, in support of the Stronger Economies Together program. Report Authors Data Analysis Report Design Bo Beaulieu, PhD Indraneel Kumar, PhD Andrey Zhalnin, PhD Ayoung Kim Francisco Scott Tyler Wright This report was supported, in part, by grant from the USDA Rural Development through the auspices of the Southern Rural Development Center. It was produced in support of the Stronger Economies Together (SET) program. 24 For more information, please contact: The Purdue Center for Regional Development (PCRD) seeks to pioneer new ideas and strategies that contribute to regional collaboration, innovation and prosperity. Dr. Bo Beaulieu, PCRD Director: ljb@purdue.edu Or 765-494-7273 September 2015