section | 5
Texas Regional
Location Quotient
Matrix Analysis
Where will the jobs come from?
Where are the Texas comparative advantages?
I
n previous sections of this analysis we examined the question of the role of small and
new businesses in Texas job creation. In the final section of this monograph we present a
variation of this theme by exploring the importance of regional comparative advantage in
job creation. It is beyond the scope of this paper to show data on small business job creation
by industry sector or in various regional economies. But no discussion would be complete
without exploring the role of regional comparative advantage in job creation. Every region
of Texas has its own unique industry structure. Job creation, whether it comes from new or
existing businesses, is most likely to be linked to the economic strengths or growth poles of
each region.
In fact, in the short and medium term, most future jobs will come from the same
industries they came from yesterday.
The composition and magnitude of job growth could change based on a number of
factors, but many of these phenomena are beyond our ability to forecast them. Here are
four key ways that job growth patterns might change in a regional economy:
a) Change in regional comparative advantage; e.g. discovery of oil shale deposits,
water depletion, etc. For example, a railroad spur could allow freight in and out
of a community, or a new highway project expands access to a local industrial
park. Changes in infrastructure and regional comparative advantage can alter the
composition and trajectory of employment growth. A current illustration of this is the
discovery of shale oil in the area south of San Antonio referred to as the Eagle Ford
Shale region, which has already proven to be an economic boon to an otherwise poor,
rural area that will significantly affect regional job growth.
b) Positive or negative externalities; e.g. weather related natural disaster. The
2011 drought in Texas not only hurt farmers and ranchers, but negatively affected
companies throughout the agribusiness supply chain. Hurricanes, tornados and other
catastrophic weather events often reshape the economies of entire regions.
c) Major change in regulatory climate or government policy; e.g. requirement for
federal auto fuel economy or emissions standards, renewable energy stimulus. Not
every industry is equally affected by government regulation, but government policies,
standards and investments can have a major influence on local job growth.
d) Major facility relocation (in or out) or layoffs. Major dislocations are especially
impactful in smaller communities. A plant closing that utilizes many local suppliers
may have an even larger ripple effect in a local economy.
40 |
SECTION 5
Moreover, there are specific reasons why each regional economy has a unique industry
mix. In addition to population growth, many of these root causes relate to distinctive
natural resource endowments, location advantages, such as access to a deep water port or
a highway crossroad, availability of a highly skilled labor force or perceptions of quality of
life. Unless there is an erosion or depletion of these comparative advantages, future job
growth is likely to be driven by these same advantages.
Texas Has a Competitive Advantage
Texas is expected to experience employment growth due to competitive advantages
in both the number of growth industries and the growing numbers of skilled workers in
the state, according to a team of economists at banking giant Wells Fargo. In an April
2011 report titled “Employment Dynamics and State Competitiveness,” the Wells Fargo
economic researchers analyzed U.S. Department of Labor data to identify which industries
nationwide had been adding jobs from 1990 to 2010. The researchers then identified which
states had job growth in the growth industries. Texas made the list in reference to several
identified growth industries. The Wells Fargo economic researchers stated in their report:
“States with a large number of high-growth industries that also have a large skilled
workforce will be at a greater competitive advantage. This would tend to favor states, such
as Georgia, North Carolina, Arizona, Virginia and Texas, which not only have a large
supply of skilled workers but have also been successful at attracting such workers from
other parts of the nation.”
The Wells Fargo team concluded that the major industries that posted the best job
growth and had a growing share of the total employment in the United States over the past
two decades were:
“States with a
large number
of high-growth
industries that
also have a large
skilled workforce
will be at a greater
competitive
advantage.
1) Health care and social assistance
2) Professional and technical services
3) Finance and insurance
4) Administrative and waste services
These same industries are also adding jobs in Texas. According to the Wells Fargo
team, this should translate into future overall job growth in the state.
Job Growth Will Be Concentrated in Metro Areas
Texas will continue to add jobs but almost all of that job growth will come in the largest
metropolitan areas, say economists at IHS Global Insight. The IHS Global Insight team
states that major metropolitan areas in Texas have demonstrated above-average job growth
in recent years. IHS Global Insight analysts and economists say they expect that job growth
in the metro areas should continue to expand at a faster rate than the rural areas of Texas.
In an April 2011 report, IHS Global Insight economists projected that the Austin-Round
Rock-San Marcos metropolitan area should experience annual employment growth from
2012 to 2015 of 3.2%, which would be the second fastest growth rate in the country. In
addition, the report predicted that both the Dallas-Fort Worth-Arlington metro area and
the Houston-Sugar Land-Baytown metro area each would post annual employment growth
rates of 2.7%, which would rank those two metro regions #11 and #12 for fastest growth
rates in the nation.
TEXAS REGIONAL LOCATION QUOTIENT
| 41
Comparative Advantages Using The New Identifier
For Texas and its Regions
Within this context of job creation and job elimination data, there are new ways of
looking at industries that are best positioned in a state or region for adding jobs due to a
comparative advantage. The LMCI researchers in the Texas Workforce Commission have
calculated Location Quotients to identify the high and low concentrations of workers in
specific industries inside each of the state’s 28 Local Workforce Development Areas. (See
www.lmci.state.tx.us/LQbubblecharts for detailed matrix maps for each regional workforce
development area in Texas.)
To show these competitive advantages around concentrations of workers in an industry,
the LMCI team has created the following Texas Location Quotient Matrix maps for
several key regions of the state. The matrix shows four different labor market dimensions
to trigger the thinking of Texas business and workforce policy makers relative to economic
development. The following explanation lays the groundwork for understanding these new
Texas Location Quotient Matrixes.
1) Location Quotient
Location quotient measurement is shown with the X axis. A location quotient
identifies the concentration of workers in an industry for a state or region compared with
the nation. Industries on the right side of the matrix have an especially high concentration
of workers relative to the United States. And industries on the left side of the matrix have
especially low concentrations of workers relative to the rest of the nation. The matrix shows
the industries with the highest and lowest comparative concentrations, i.e. showing which
sectors in Texas have a comparative advantage or disadvantage.
The vertical line inside the matrix indicates average location quotient. While
the average location quotient score is a 1.0, this matrix is measuring the location quotient
scores logarithmically to illustrate the difference. So industries to the right of the vertical
line have especially high concentrations of workers. In essence, large location quotient =
comparative advantage.
2) Average Weekly Wage
Wages are shown with the Y axis. The Y axis measures the average weekly wage
for workers in an industry. So industries in the top part of the matrix pay workers higher
wages. Industries in the lower part of the matrix pay lower wages.
The horizontal line inside the matrix is the average weekly wage across all
industries. So any industry above the horizonal line has above average wages.
3) Size of Industry Employment
Employment size of an industry is shown by the size of that industry’s bubble.
The size of the bubble indicates the total employment as of first quarter 2011, so the
larger the bubble the more workers are in that industry. Bubbles also illustrate where key
industries show up in the matrix.
4) Employment Change Within An Industry
Change in the number of workers in an industry is shown by the color of the
bubble. Colors of the bubbles indicate employment growth or shrinkage in Texas. This
total industry employment growth or shrinkage change was measured from just before and
just after the Great Recession (first quarter 2006 to first quarter 2011). To illustrate the
change in an industry’s net employment across the Great Recession, shades of blue are used
in the bubble. (see explanation on the next page)
42 |
SECTION 5
Selected Texas Industries by Location Quotient
and Average Weekly Wage, 1Q 2011
The Texas Location Quotient Matrix (sample with selected industries)
How To Interpret
The quadrants of the
matrix are labeled to
help identify strengths
and opportunities for
decision makers in a
state or a region. In the
matrix map illustration,
the LMCI team has
$5,000
also designated each
quadrant for better
understanding using
the following labels.
2) Attractive – this quadrant is for industries with
high wages yet relatively low concentrations of
workers. While these industries are not dominant
in a state or region, these are job sectors that
are still providing high wages and are critical to a
state’s or region’s wealth creation, which makes
them enticing to economic developers.
Attractive
1 ) Dominant – this quadrant is
for industries that have a strong
concentration of workers as well as
high-paying jobs. These industries
tend to be growth poles in a state
or region.
Dominant
Oil & Gas Extraction
Average Weekly Wage (AWW)
$4,000
$3,000
Basic Chemical
Manufacturing
$2,000
4) Ordinary – this quadrant
is for industries with low 1,000
concentrations of workers
earning lower pay. These
can often be common or
service industries and
due to their low pay and
lack of dominance they $0
offer little comparative
advantage and are often
last to receive economic
development attention.
Pharmaceutical &
Medicine Manufacturing
Colleges and
Universities
Medical Equipment
& Supplies
Manufacturing
Motion
Pictures
Ordinary
− 1 .0
Shades of blue in the bubbles indicate
employment growth or shrinkage in Texas
Vocational
Rehabilitation
Services
− 0 .5
Significant
0 .0
1 .5
1 .0
LLocation
ocatio
o Quotient (logarithmic)
hmicc)
JJob
o Growth Q12006-Q12011
industry had net employment growth of more than 10%.
Net job growth > 10%
industry had net employment growth of 2-10%.
Net job growth 2-10%
industry growth was neutral so that employment
was within +/-2% over the time period.
0 .5
Regional Average Weekly
Wage (All Industries):
$935
Net job growth/loss < 2%
industry had net employment loss of 2-10%.
Net job loss 2-10%
industry had net employment loss of more than 10%.
Net job loss > 10%
220,000
2 .0
3) Significant – this
quadrant is for
industries with a
high concentration
of workers yet at
lower pay. These
industries tend
to be significant
contributors to a
region’s employment
base and offer the
potential to become
quick job creators.
30,000
10,000
TEXAS REGIONAL LOCATION QUOTIENT
| 43
Selected Texas Industries by Location Quotient
and Average Weekly Wage, 1Q 2011
$5,000
Attractive
Dominant
Oil & Gas Extraction
Average Weekly Wage (AWW)
$4,000
$3,000
Basic Chemical
Manufacturing
$2,000
Pharmaceutical &
Medicine Manufacturing
Colleges and
Universities
Medical Equipment
& Supplies
Manufacturing
1,000
Motion
Pictures
Ordinary
$0
− 1 .0
Vocational
Rehabilitation
Services
− 0 .5
Significant
0 .0
0 .5
Regional Average Weekly
Wage (All Industries):
$935
1 .5
1 .0
LLocation
occatio
o Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
44 |
SECTION 5
10,000
2 .0
To make the Texas Location Quotient Matrix more understandable,
some specific industries are used below to explain how the matrix
can be interpreted.
What does it mean? Looking at specific
industry examples may help readers grasp
this new matrix.
Oil & Gas Extraction – This industry is in
the Dominant quadrant for a couple reasons.
First, the oil & gas extraction industry has an
especially high concentration of workers in
Texas so it has a high location quotient, which
would put it on the right side of the matrix.
Second, the oil & gas extraction industry has
average weekly wages well above the state
average of $935, which would put it high in
the upper half of the matrix. Also, the oil &
gas extraction industry employs many workers
in Texas, hence it has the larger bubble. And
that bubble is dark blue because the oil & gas
extraction industry added a lot of workers
(16,347 more jobs or a 24% increase from first
quarter 2006 to first quarter 2011) in Texas
through the Great Recession.
Basic Chemical Manufacturing – This
industry is also in the Dominant quadrant
because it has above average wages (top half)
and high concentration of workers (so high
location quotient to put it on the right half of
the matrix). The medium size bubble indicates
the relative size of the industry in Texas based
on the number of workers employed. Also, the
basic chemical manufacturing industry bubble
is colored light blue because that industry lost
workers in Texas during the Great Recession.
Vocational Rehabilitation Services –
This industry is in the Ordinary quadrant
because it has below average wages and low
concentrations of workers. This industry has a
small location quotient so its bubble is located
on the left side of the matrix – hence Texas
does not have a strong comparative advantage
in the vocational rehabilitation services
field. Also important is that the vocational
rehabilitation services industry has a medium
blue bubble as this industry lost a lot of jobs in
Texas during the Great Recession.
Motion Pictures – Texas has a modest movie
making industry but it is smaller than most
other states so it has a low location quotient
and its bubble is on the left side of this matrix.
The Texas motion picture industry also has
low pay, which is why its bubble is located so
far below the average weekly wage line. All
of those reasons are why the Texas motion
picture industry is located in the Ordinary
quadrant on this matrix. Also, the Texas motion
picture industry’s bubble is white, indicating
the employment level was neutral and didn’t
experience much hiring nor many layoffs
during the Great Recession.
Pharmaceutical and Medicine
Manufacturing – This industry has a relatively
small number of workers in Texas (small
bubble), has above average wages (bubble
located above average wage line in upper half of
matrix), and does not have high concentrations
of workers compared with the rest of the
country (bubble located on left side of matrix).
The high wages but lack of dominance for the
pharmaceutical and medicine manufacturing
industry in Texas puts this industry in the
Attractive quadrant. Texas does not have a
comparative advantage with this industry but
its high wages make it enticing to economic
developers. Also, this industry did not grow but
did not shrink employment in Texas during the
Great Recession resulting in a white bubble.
Colleges and Universities – This industry
employs a lot of people in Texas – hence the
giant bubble. Yet Texas is at the national
average for concentration of workers in this
industry, which means that Texas does not
have a comparative advantage in the higher
education field but nor is Texas weak in this
field. The college and universities bubble is
dark blue because this industry added a lot
of jobs in Texas during the Great Recession.
This is an example of how the Texas Location
Quotient Matrix can stimulate thinking and
discussion as observers can readily realize that
the data do not show that Texas has strong
advantages in the field of higher education and
that Texas colleges and universities recently
have stopped adding workers.
TEXAS REGIONAL LOCATION QUOTIENT
| 45
MATRIX 1 Texas Statewide Location Quotient Matrix 1Q 2011
Attractive
Dominant
Oil & Gas Extraction
Pipeline Transportation
of Natural Gas
$4,000
Petroleum & Coal
Products Manufacturing
Petroleum
Merchant
Wholesalers
$3,000
Management of
Companies &
Enterprises
Basic Chemical
Manufacturing
Management & Technical
Consulting Services
$2,000
Ag., Construction &
Mining Machinery
Heavy Civil
Engineering
Construction
Support Activities
for Mining
Pharmaceutical
& Medicine
Manufacturing
Scientific R&D
Services
$1,000
Office Administrative
Services
Metal & Mineral
Merchant Wholesalers
Electronic
Shopping &
Mail-Order
Houses
Outpatient
Care Ctrs
Nonresidential
Building Construction
Medical Equipment
& Supplies Mfg
Motor
Vehicle Parts
Manufacturing
Individual &
Family
Services
$0
Residential Mental
Health Facilities
−1.0
Utility System
Construction
Specialty
Hospitals
Machinery &
Equipment
Rental & Leasing
Vocational
Rehab
Services
Colleges &
Universities
Support Activities for
Crop Production
Motion Pictures
Home Health
Care Services
Significant
Ordinary
−0.5
Texas AWW
$935
0.0
1.0
0.5
Location
Loc
catio Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
46 |
SECTION 5
10,000
1.5
2.0
Matrix 1 shows the top dozen industries statewide in Texas with the highest location
quotients (those bubbles on the right side of the graph). Matrix 1 is a more complete matrix
than the earlier example. Matrix 1 also shows the dozen industries with the lowest location
quotient (those bubbles on the left side of the graph). These new Texas Location Quotient
Matrixes are designed to help Workforce Development Area board members and local
economic developers better understand the dynamics of their regional economy. Location
quotients also show the “core competencies” of a region’s workforce.
And like most business matrixes, the upper right quadrant is the sweet spot.
The upper right quadrant is where the high-paying and high-concentration jobs are
for a region. Some localized Texas Location Quotient Matrixes follow for specific Local
Workforce Areas.
Only industries that had at least 0.09% of the employment in the state or in the related
workforce development area were selected for the matrix ranking. This filtered out the
tiniest industries.
Not surprisingly, Matrix 1 shows that Texas has concentrations of workers in the growth
areas of oil & gas extraction, natural gas pipelines and support services for the oil & gas
industry (all in the upper right quadrant) – which also are all higher paying industries.
Meanwhile, Texas has low relative concentrations of workers in shrinking industries
like motor vehicle parts manufacturing, medical equipment making, scientific research,
vocational rehabilitation services and movie making.
The following matrix graphs show the strong and weak industries for 5 of the local
workforce development areas across Texas. Each matrix shows the location quotient
analysis to identify which industries have high and low concentrations of trained workers
since 2006 and which of those industries has been adding or losing jobs since that time. In
other words, each matrix shows the industries that have a comparative advantage and the
corresponding job creation trend since just before the Great Recession in Texas.
Workforce Development Areas
Dallam
ShermanHansfordOchiltree
Hartley
Moore Hutchinson Roberts
Hemphill
Oldham
Potter
Carson Gray
Wheeler
1
Deaf Smith
Randall Armstrong Donley
Collingsworth
Parmer Castro
Bailey Lamb
Lipscomb
Swisher Briscoe Hall
Hale
Floyd
Childress
Cochran Hockley Lubbock
Crosby Dickens King
2
Yoakum Terry
Culberson
Loving
Reeves
Winkler
Ward
Martin
Ector
11
Fisher
Howard Mitchell Nolan
MidlandGlasscock
SterlingCoke
Crane Upton
Jones
9
Taylor
Jack
Wise
Denton
Sutton
Terrell
Coryell
McCulloch San
Saba
15
Medina
27
Middle Rio Grande-27
North Central Texas-4
North East Texas-7
North Texas-3
Panhandle-1
Permian Basin-11
Rural Capital Area-15
Southeast Texas-18
South Plains-2
South Texas-21
Tarrant Co.-5
Robertson
Bexar
Bastrop
16
Walker
Brazos
Grimes
Austin
Atascosa
19
22
21
Brazoria
Middle Rio Grande-27
North Central Texas-4
North East Texas-7
North Texas-3
Panhandle-1
Permian Basin-11
Rural Capital Area-15
Southeast Texas-18
South Plains-2
South Texas-21
Tarrant Co.-5
Texoma-25
Upper Rio Grande-10
West Central Texas-9
Webb
Goliad
Calhoun
Refugio
San
Patricio
Duval
18
Chambers
Galveston
Wharton
Orange
Jefferson
Harris
Fort Bend
Lavaca
Live Oak
Webb
Hardin
Alamo-20
Brazos-16
Cameron Co.-24
Capital Area-14
Central Texas-26
Coastal Bend-22
Concho Valley-12
Dallas-6
Deep East Texas-17
East Texas-8
Golden Crescent-19
Gulf Coast-28
Heart of Texas-13
Lower Rio Grande-23
Jackson
Victoria
Matagorda
Karnes
Bee
LaSalle McMullen
17
San
Jacinto
28
Sabine
Polk Tyler Jasper
Montgomery Liberty
Colorado
Gonzales
Wilson
DeWitt
Frio
Angelina
Trinity
Madison
Washington
Fayette
Guadalupe
20
Shelby
Lee
Caldwell
Comal
Bandera
Panola
Houston
Leon
Falls
Waller
Hays
Kendall
Real
Rusk
Nacogdoches
Burleson
14
Harrison
Gregg
8
Anderson
Milam
Williamson
Cass
Cherokee
Lime- Freestone
McLennan stone
Blanco Travis
Kerr
Titus
Camp
Smith
Henderson
Bowie
Upshur Marion
KaufmanVan Zandt
Navarro
Bell
Burnet
Kimble
Dimmit
Delta
7
Hopkins
26
Lampasas
Menard
Red River
RockwallRains Wood
13
Hamilton
Mills
Maverick Zavala
Hunt
5 6
Concho
Uvalde
Collin
4
Somervell
Hill
Bosque
Gillespie
Kinney
Fannin
Parker Tarrant Dallas
RunnelsColeman
Brown
Edwards
Lamar
25
Newton
Schleicher
Grayson
Callahan Eastland Erath Hood Johnson Ellis
Mason Llano
Val Verde
Alamo-20
Brazos-16
Cameron Co.-24
Capital Area-14
Central Texas-26
Coastal Bend-22
Concho Valley-12
Dallas-6
Deep East Texas-17
East Texas-8
Golden Crescent-19
Cooke
San Augustine
12
Crockett
10
Brewster
Dimmit
Montague
3
Shackel-StephensPalo
Pinto
ford
Tom Green
Reagan
Pecos
Presidio
Archer
Comanche
Irion
Jeff Davis
Baylor
Morris
Hudspeth
Wilbarger
Wichita Clay
Knox
Stonewall Haskell Throck- Young
morton
Kent
Dawson Borden
Scurry
Andrews
El Paso
Garza
Foard
Franklin
Gaines
Lynn
Hardeman
Motley Cottle
Jim
Wells
Nueces
Prepared by the Labor Market Information Department, TWC
Aransas
Kleberg
Zapata Jim
Hogg
Starr
Brooks
Kenedy
23
Willacy
Hidalgo
Cameron
24
TEXAS REGIONAL LOCATION QUOTION
| 47
MATRIX 2 Austin-Capitol Area WDA LQM
Attractive
Dominant
Support Activities
for Mining
Communications
Equipment
Manufacturing
$3,000
Computers & Peripheral
Equipment
Land
Subdivision
Software
Publishers
Computer Systems
Design Services
Power Generation & Supply
Plastics Product
Manufacturing
$1,000
Warehousing
& Storage
Air Passenger
& Cargo Carriers
General Freight
Trucking
Management of
Companies & Enterprises
State Government
Technical &
Trade Schools
Bakeries & Tortilla
Manufacturing
Significant
−1
Office Administrative
Services
Colleges &
Universities
Ordinary
−2
Commercial Goods
Merchant Wholesalers
Wireless
Telecommunications
Carriers
Architectural &
Structural
Metals Mfg
Nursing Care
Facilities
$0
Architectural
and Engineering
Services
Other Ambulatory
Health Care
Services
Miscellaneous
Nondurable Goods
Wholesalers
Semiconductor &
Electronic Components
Industrial
Machinery
Manufacturing
$2,000
Insurance & Employee
Benefit Funds
Electronic Equipment
Repair/Maintenance
Drinking Places
(Alcoholic Beverages)
1
0
2
LLocation
occatio Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
This analysis of wages, concentration of industry workers,
and employment level changes shows that the Austin
community has key strengths in the areas of:
sÈ /FFICEÈADMINISTRATIONÈANDÈBACKÈOFFICEÈSERVICES
sÈ #OMPUTERÈDESIGN
sÈ !RCHITECTURALÈANDÈENGINEERINGÈSERVICES
sÈ %DUCATION
sÈ 3TATEÈGOVERNMENT
48 |
SECTION 5
10,000
Meanwhile, the Austin area is relatively weak in and has
been losing jobs in the following industries:
sÈ 0LASTICÈPRODUCTÈPRODUCTION
sÈ 7AREHOUSINGÈANDÈSTORAGE
sÈ #OMMUNICATIONÈEQUIPMENTÈMANUFACTURING
sÈ 3UPPORTÈSERVICESÈFORÈMINING
MATRIX 3 San Antonio-Alamo Area WDA LQM
Attractive
Dominant
Investment
Funds
$4,000
$3,000
Security & Commodity
Investment Activity
Insurance
Carriers
Data Processing &
Related Services
Scheduled Air
Transportation
$2,000
Electric Goods
Merchant
Wholesalers
Semiconductor
& Electronic
Components Mfg
Banking &
Credit Unions
Computer
Systems Design
Federal
Government
Power Generation
& Supply
Support Activities
for Mining
Warehousing
& Storage
Plastics
Product
Mfg
$1,000
Heavy Civil
Engineering
Construction
Facilities Support
Services
Advertising & PR
Machine Shops
& Threaded
Products Mfg
State
Government
Bakeries & Tortilla
Manufacturing
General Freight
Trucking
Automotive Equipment
Rental and Leasing
Other Office
Support Services
$0
Gasoline
Stations
Ordinary
− 1 .5
− 1 .0
Support Activities
for Air Transport
Beverage
Manufacturing
Significant
− 0 .5
0 .0
0 .5
Amusement
Parks & Arcades
Home Health
Care Services
1 .0
1 .5
LLocation
occatio
o Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
This analysis of wages, concentration of industry workers,
and employment level changes shows that the San Antonio
metro area has key strengths in the areas of:
sÈ $ATAÈPROCESSINGÈANDÈDATAÈCENTERS
sÈ )NSURANCEÈCARRIERS
sÈ "UILDINGÈANDÈFACILITIESÈSUPPORTÈSERVICES
sÈ (EAVYÈCIVILÈENGINEERINGÈSERVICES
sÈ "ANKINGÈANDÈCREDITÈUNIONS
10,000
The San Antonio area is relatively weak in and has been
losing jobs in the following industries:
sÈ !DVERTISINGÈANDÈPUBLICÈRELATIONSÈSERVICES
sÈ 0LASTICÈPRODUCTSÈPRODUCTION
sÈ !IRÈCARRIERS
sÈ !IRPORTÈANDÈAIRLINEÈSUPPORTÈSERVICES
TEXAS REGIONAL LOCATION QUOTION
| 49
MATRIX 4 Gulf Coast WDA Location Quotient Matrix
Attractive
Dominant
Oil and Gas
Extraction
Petroleum Merchant
Wholesalers
$5,000
Pipeline Transportation
of Natural Gas
$4,000
$3,000
Pipeline
Transportation
of Crude Oil
Petroleum & Coal
Products Manufacturing
Support Activities
for Mining
Semiconductor and
Electronic Components
Basic Chemical
Manufacturing
Other Heavy
Construction
Software
Publishers
Ag., Construction, and
Mining Machinery
Insurance Carriers
$2,000
Nonresidential Building
Construction
Federal
Government
Newspaper,
Book, &
Directory
Publishers
$1,000
Medical Equipment
& Supplies Mfg
Inland Water
Transportation
Other Hospitals
Advertising
& Related Svc
Metal and Mineral
Merchant Wholesalers
Individual &
Family Svc
Motion Picture
and Video
$0
Support Activities for
Water Transport
Utility System
Construction
Automotive Repair
and Maintenance
Nursing Care
Facilities
Residential Mental
Health Facilities Ordinary
Vocational
Rehab
Services
−1
Nonscheduled Air
Transportation
Significant
0
1
2
3
LLocation
occatio
o Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
This analysis of wages, concentration of industry
workers, and employment level changes shows that
THEÈ(OUSTONÈMETROÈAREAÈANDÈTHEÈ'ULFÈ#OASTÈ7ORKFORCEÈ
Development Area have key strengths in the areas of:
sÈ /ILÈANDÈGASÈEXTRACTION
sÈ /ILÈPIPELINEÈSERVICES
sÈ .ATURALÈGASÈPIPELINEÈSERVICES
sÈ 7ATERÈTRANSPORTATION
50 |
SECTION 5
10,000
sÈ !GRICULTUREÈCONSTRUCTIONÈANDÈMININGÈMACHINERYÈ
manufacturing
4HEÈ(OUSTONÈMETROÈAREAÈANDÈTHEÈ'ULFÈ#OASTÈ7ORKFORCEÈ
Development Area is relatively weak in and has been
losing jobs in the following industries:
sÈ 3OFTWAREÈPROGRAMMING
sÈ !DVERTISINGÈANDÈPUBLICÈRELATIONSÈSERVICES
sÈ )NSURANCEÈCARRIERS
MATRIX 5 Tarrant County WDA Location Quotient Matrix
Attractive
Dominant
Oil & Gas Extraction
4,000
Pharmaceutical &
Medicine Manufacturing
$3,000
Power Generation & Supply
$2,000
Aerospace Product &
Parts Manufacturing
Computer Systems
Design Services
Scientific R&D
Services
Ag., Construction &
Mining Machinery
Insurance
Carriers
Alcoholic
Beverage
Wholesalers
Management of
Companies & Enterprises
Electronic Instrument
Manufacturing
$1,000
Warehousing
& Storage
Medical Equipment &
Supplies Manufacturing
Cement & Concrete
Product Manufacturing
Vocational
Rehabilitation
Services
Gasoline
Stations
Residential
Mental
Health
Facilities
Ordinary
−1
Electric Goods
Merchant Wholesalers
Office Furniture
Manufacturing
Electronic Equipment
Repair & Maintenance
Lumber &
Supply
Wholesalers
Individual &
Family Services
−2
Support
Activities
for Air
Transport
Freight
Transportation
Arrangement
Data Processing
Services
State
Government
$0
Nondepository Credit
Intermediation
Scheduled Air
Passenger &
Cargo Transport
Couriers
Household &
Institutional
Furniture
Manufacturing
Significant
1
0
Performing Arts &
Sports Promoters
2
Location
Loc
catio Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
This analysis of wages, concentration of industry workers, and
employment level changes shows that Fort Worth and the Tarrant
County Workforce Development Area have key strengths in the areas of:
sÈ /ILÈÈGASÈEXTRACTION
sÈ 3UPPORTÈACTIVITIESÈFORÈAIRÈTRANSPORTATION
sÈ #REDITÈCARDSÈANDÈOTHERÈNONDEPOSITORYÈCREDITÈINTERMEDIATIONÈ
sÈ 0ERFORMINGÈARTSÈANDÈSPORTS
sÈ -ANUFACTURINGÈOFÈAGRICULTUREÈCONSTRUCTIONÈÈMININGÈMACHINERY
sÈ 7AREHOUSINGÈANDÈSTORAGE
10,000
The Fort Worth area and its Tarrant County Workforce Development
Area has been relatively weak and losing jobs in the following
industries:
sÈ $ATAÈPROCESSING
sÈ &URNITUREÈMANUFACTURING
sÈ -EDICALÈEQUIPMENTÈANDÈSUPPLYÈMANUFACTURING
TEXAS REGIONAL LOCATION QUOTION
| 51
Dallas
WDAWDA
Location
Quotients
1Q 2011
MATRIX 6 Dallas
County
Location
Quotient
Matrix
$6,000
Attractive
Dominant
Oil & Gas Extraction
$5,000
$4,000
Semiconductor &
Electronic Components
Wired Telecommunications
Carriers
$3,000
Communications
Equipment
Manufacturing
Electric Goods
Wholesalers
Support Activities
for Mining
$2,000
$1,000
State
Gov't
Scientific R&D
Services
Professional
Organizations
Other General Purpose
Machinery Manufacturing
Motor Vehicle
Parts Manufacturing
Machine Shops
& Threaded
Products
Outpatient
Care Centers
Land Subdivision
Federal Bank
Nonscheduled Air
Transportation
Cleaning Compound &
Toiletry Manufacturing
Nondepository
Finance &
Lending
Paint, Coating, &
Adhesive
Manufacturing
Residential Mental
Health Facilities
$0
Individual & Family
Social Services
Animal
Slaughtering
& Processing
−2
Nursing Care
Facilities
Social
Advocacy
Organizations
Commercial
Goods Wholesalers
Office
Administrative Services
Pharmaceutical
Products Wholesalers
Clay Product &
Refractory Manufacturing
Financial Brokers &
Clearinghouses
Warehousing & Storage
Vocational
Rehab &
Worker
Training
Full−Service Restaurants
Significant
Ordinary
−1
1
0
2
LLocation
occatio
o Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
This analysis of wages, concentration of industry workers, and
employment level changes shows that the Dallas Workforce
Development Area has key strengths in the areas of:
sÈ 3UPPORTÈSERVICESÈFORÈMININGÈOILÈANDÈNATURALÈGASÈEXTRACTION
sÈ 3EMICONDUCTORÈANDÈELECTRONICÈCOMPONENTÈMANUFACTURING
sÈ /FFICEÈANDÈBACKÈOFFICEÈADMINISTRATIONÈSERVICES
sÈ 3CIENTIFICÈRESEARCH
52 |
SECTION 5
10,000
sÈ 3PECIALIZEÈBANKINGÈSERVICESÈINCLUDINGÈCREDITÈINTERMEDIATION
sÈ &INANCIALÈBROKERSÈANDÈCLEARINGÈHOUSES
The Dallas Workforce Development Area is both relatively weak
in and has been losing jobs in:
sÈ -OTORÈVEHICLEÈPARTSÈMANUFACTURING
sÈ 6OCATIONALÈREHABILITATIONÈANDÈJOBÈTRAININGÈSERVICES
sÈ !NIMALÈSLAUGHTERINGÈANDÈPROCESSING
Coastal Bend
WDA (Corpus
Christi)
Location
Quotients
1Q 2011
MATRIX
7 Coastal
Bend WDA
Location
Quotient
Matrix
Attractive
Dominant
Security & Commodity
Investing
$3,000
Pipeline Transportation
of Natural Gas
$2,500
Petroleum & Coal Products
Manufacturing
Management of
Companies
& Enterprises
$2,000
Oil & Gas Extraction
Support Activities
for Mining
$1,500
Warehousing
& Storage
Insurance
Carriers
Computer Systems
Design Services
$1,000
Commercial
Goods
Merchant
Wholesalers
Commercial Machinery
Repair/Maintenance
Ship Building
Couriers
Printing
Activities
−3
−2
Other Heavy Civil
Engineering
Construction
Nonresidential
Building Construction
Specialty Crop
Farming
Full−Service
Restaurants
Ordinary
Utility System
Construction
Cattle Ranching
& Farming
$500
$0
Airport
Services
Petroleum
Merchant
Wholesalers
Technical &
Trade Schools
Office Admin
Services
Auto
Dealers
Electronic Markets
Investing Agents/Brokers
Machinery &
Equipment
Leasing Services
General
Rental
Centers
Management &
Technical
Consulting
Services
Home Health
Care Services
Significant
−1
0
1
2
3
LLocation
occatio
o Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
This analysis of wages, concentration of industry workers, and
employment level changes shows that the Corpus Christi metro
AREAÈANDÈTHEÈ#OASTALÈ"ENDÈ7ORKFORCEÈ$EVELOPMENTÈ!REAÈHAVEÈ
key strengths in:
sÈ 5TILITYÈCONSTRUCTION
sÈ !IRPORTÈSERVICES
sÈ 3UPPORTÈACTIVITIESÈFORÈMININGÈOILÈANDÈGASÈEXTRACTION
10,000
sÈ .ATURALÈGASÈPIPELINEÈSERVICES
sÈ -ACHINERYÈANDÈHEAVYÈEQUIPMENTÈLEASINGÈSERVICES
4HEÈ#ORPUSÈ#HRISTIÈAREAÈANDÈTHEÈ#OASTALÈ"ENDÈ7ORKFORCEÈ
Development Area are relatively weak in and has been losing
jobs in the following industries:
sÈ #OMMERCIALÈGOODSÈWHOLESALERS
sÈ !UTOMOBILEÈDEALERSÈ
TEXAS REGIONAL LOCATION QUOTION
| 53
MATRIX 8 Upper Rio Grande WDA Location Quotient Matrix
Attractive
Dominant
Scheduled Air
Transportation
$1,200
Federal Government
Management of Companies
& Enterprises
Computer Systems
Design Services
Wireless Telecommunications
Carriers
Electronic Markets
and Agents/Brokers
$1,000
Management & Technical
Consulting Services
Office Administrative
Services
Radio & TV
Broadcasting
Motor Vehicle Parts
Manufacturing
$800
Insurance Carriers
Cut & Sew Apparel
Manufacturing
Warehousing and Storage
$600
Freight Forwarding &
Transportation Arrangement
Nonresidential
Building Construction
Nursing Care
Facilities
Professional
Organizations
Cement & Concrete
Product Mfg.
Junior
Colleges
Misc. Durable
Goods Wholesalers
Electronic Instrument
Manufacturing
Business Support Services
(including call centers)
Residential Mental
Health Facilities
$400
Other Crop
Farming (including algae)
Shoe Stores
Vocational
Rehab
Services
Motion Pictures
Employment Services
Other General Merchandise
Stores (incl warehouse clubs)
$200
Footwear
Manufacturing
General Freight Trucking
Specialized
Freight
Trucking
Home Health
Care Services
Drinking Places (Alcoholic Beverages)
Ordinary
−2
Significant
−1
2
1
0
3
4
LLocation
ocatio Quotient (logarithmic)
hmicc)
Job Growth Q12006-Q12011
220,000
Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
30,000
Net job loss 2-10%
Net job loss > 10%
This analysis of wages, concentration of industry workers, and
employment level changes shows the Upper Rio Grande Workforce
$EVELOPMENTÈ!REAÈINCLUDINGÈ%LÈ0ASOÈHASÈKEYÈSTRENGTHSÈIN
sÈ /FFICEÈANDÈBACKÈOFFICEÈADMINISTRATIVEÈSERVICES
sÈ 4ECHNICALÈCONSULTINGÈSERVICES
sÈ 7IRELESSÈPHONEÈCARRIERS
sÈ .ONRESIDENTIALÈCONSTRUCTION
sÈ #EMENTÈANDÈCONCRETEÈMANUFACTURING
54 |
SECTION 5
10,000
The Rural Capital Workforce Development Area is relatively weak
in and has been losing jobs in:
sÈ -OTORÈVEHICLEÈPARTSÈMANUFACTURING
sÈ 3PECIALIZEDÈFREIGHTÈTRUCKING
sÈ %MPLOYMENTÈSERVICESÈ