Industry Cluster Analysis
Project Overview
Wande Reweta
Colorado Department of Labor and
Employment
Industry Cluster Analysis
• What are Industry Clusters?
• Groupings of firms, involving various industries, that
have mutual affinity or reliance
• Three critical conceptual dimensions
• Linkage
• Interdependence between businesses/industries/sectors
• Stage of development
• Clusters may be existing, emerging, or potential
• Geography
Linkage
• The heart of cluster analysis
• May be formal or informal
• Sources
•
•
•
•
common value (e.g. production, market) chains
similar labor skill requirements
shared or similar technologies
or knowledge and/or innovation exchange
• Choice of study linkage determined, at least
in part, from policy goals.
Stage of Development
• Offers different cluster types for study focus,
depending on goals
• Existing stage
• Existing clusters are those that have reached a
critical mass in size and/or diversity of operation
• Existing clusters may be expanding or contracting
at any given point in time
• Emerging
• Emerging clusters are likely to achieve critical
mass, given current trends
• Potential
• Potential clusters are those with potential, but
uncertain growth environment and possibly have
only a few related industries
Geography
• Clusters must be identified by more than
locality
• Regional concentration versus global
dispersion
• Cross boundary linkages
• Study order:
Linkage/economic logic
Geographic
concentrations
Required Resources and Tools
For This Study
• Resources
•
•
•
•
Benchmark Input-Output Accounts of the U.S.
Staffing Patterns Matrix
Industry X Industry Transactions Matrix
Reference Literature
• Analytical Tools
• IMPLAN
• Programmable statistical software (SPSS)
• Excel spreadsheets
Work Components
Data
References
Report
Analyst Knowledge
& Skills
Software
General Flow of Work
Policymakers
Policy Goals
Cluster
Definition
Value-added
I-O
Employment
Skills
Growth Rates
Basic Data Composition
Previous
Studies, Texts,
&
Consultation
Benchmark I-O Accounts of U.S.
Transactions Accounts
IMPLAN
Mathematical Methods
State Data Analysis
National/State Cluster
Synthesis
Composite
Report
Generation
SWOT Analysis
Sub-state Data Analysis
Separate
Report
The Report
• Basic information rather than more
encompassing analysis
• Cluster Identification
• Industry Information
• Employment
• Wages
• Occupation employment
• Regional Comparison
Goals versus Reality
•
•
Identification of Colorado
industry clusters
Analysis of clusters
•
•
•
•
•
•
Comparison with National
clusters
Cluster state evaluation
•
•
•
•
Employment
Wages
Value Added or Tax Revenue
Export Value
Mature
Emerging
Potential
Regional comparison
•
•
Denver
Rural region (NWRR)
•
•
Identification of Colorado
industry clusters
Analysis of clusters
•
•
•
•
Employment
Wages
Occupation Employment
Regional comparison (reduced)
The Clusters
•
•
•
•
•
•
•
•
•
•
Aerospace
Agricultural and Resource
Production
Construction
Consumer Products
Dairy Products
Electronic Components and
Devices
Fabricated Materials
Ferrous Metal and Mineral
Mining
Food Processing and
Packaging
Gas and Oil Refining and
Related Products
•
•
•
•
•
•
•
•
•
•
•
Gas and Oil Well Maintenance
and Repair
General Manufacturing
Leather and Animal Products
Logging and Wood Products
Meat Production
Motor Vehicles and Parts
Manufacturing and Repair
Non-ferrous Metal Mining
Non-metallic Mineral Products
Pharmaceuticals
Plastics and Allied Chemicals
Public Utilities
Selected Highlights of State Data
•
•
•
•
The industries studied were in
manufacturing and a few other
basic industries
Almost 28% of total cluster
employment was in the
Construction cluster, the largest
of the clusters.
Over 76% of total cluster
employment was in the top 6
clusters and 92% by the top 9.
The highest annual wages were
provided by Gas & Oil Refining
and Related Products and also
Non-Ferrous Metal Mining
clusters (both over $90,000).
•
•
•
•
The lowest annual wages were
in the Meat Packing (around
$25,000) and Fabricated
Materials (over $30,000)
clusters.
A total of 324 occupations are
represented in the study.
Three occupations occurred in
20 different clusters.
Fifty-two occupations occur in
one cluster.
Logging and Wood Products
Leather and Animal Products
Non-Ferrous Metal Mining
Dairy Products
Food Processing and Packaging
Pharmaceuticals
Meat Production
Motor Vehicles and Parts Manufacturing and Repair
Ferrous Metal and Mineral Mining
Plastics and Allied Chemicals
Gas and Oil Well Maintanence and Repair
Gas and Oil Refining and Related Products
Fabricated Materials
Consumer Products
Agricultural and Resource Production
Non-Metallic Mineral Products
Electric Components and Devices
Aerospace
General Manufacturing
Public Utilities
Construction
Employment
200,000
$100,000
180,000
$90,000
160,000
$80,000
140,000
$70,000
120,000
$60,000
100,000
$50,000
80,000
$40,000
60,000
$30,000
40,000
$20,000
20,000
$10,000
$0
Wage
Cluster Employment
Employment
2001
Average Wages
Maximum Wage
Minimum Wage
Average Wage
$14,878
$28,862
$41,649
$106,229
$83,129
$8,291$29,058 $60,519
$28,578
$35,545
$43,799
$15,674$39,292
$39,710
Agr & Rsrc Prdn & Distr
Avg Wage
$2,245
$21,729$44,653
Fabr Mtrls Avg Wage
Meat Prdn Avg Wage
Construction Avg Wage
Non-Metallic Minerals
Products Avg Wage
$51,325
$15,740 $42,149 $73,522
General Components Avg
Wage
$1,348
Cnsmr Prd Avg Wage
$15,740
$54,631
$100,630
$213,848
$213,848
$200,000
Pub Utilities Avg Wage
$14,878
$0
Aerospace Avg Wage
$50,000
$24,803 $56,684
$100,000
Electr Cmpn & Dvc Avg
Wage
Colorado Cluster Wages Ranges
$250,000
Wage Ranges for the Top 10 Clusters by Employment
$150,000
Cluster Repeats
0
Helpers--Production
Workers
Machinists
Welders, Cutters,
Solderers, and Brazers
Industrial Truck and
Tractor Operators
Receptionists and
Information Clerks
Mechanical Engineers
Business Operations
Specialists, All Other
Purchasing Agents,
Except Wholesale,
Executive Secretaries
and Administrative
Stock Clerks and
Order Fillers
15
Production, Planning,
and Expediting Clerks
Financial Managers
Secretaries, Except
Legal, Medical, and
First-Line
Supervisors/Managers
Industrial Production
Managers
Office Clerks, General
20
First-Line
Supervisors/Managers
Bookkeeping,
Accounting, and
General and
Operations Managers
Occupations Occurring in Ten or
More Clusters
25
20 20 20
19 19 19
18 18 18
17 17
16 16 16
15 15
14 14
13 13 13 13 13 13
12 12
11 11 11 11 11
10
10 10 10 10 10 10 10
5
$0.00
Entry Hourly Wage CO
Entry Hourly Wage DM
Entry Hourly Wage NWRR
Experienced Hourly Wage CO
Experienced Hourly Wage DM
Experienced Hourly Wage NWRR
Truck Drivers, Heavy
and Tractor-Trailer
Financial Managers
Janitors and Cleaners,
Except Maids and
Housekeeping
Secretaries, Except
Legal, Medical, and
Executive
Laborers and Freight,
Stock, and Material
Movers, Hand
Truck Drivers, Light or
Delivery Services
First-Line
Supervisors/Managers
of Office and
Office Clerks, General
Shipping, Receiving,
and Traffic Clerks
Industrial Production
Managers
Bookkeeping,
Accounting, and
Auditing Clerks
Sales
Representatives,
Wholesale and
Maintenance and
Repair Workers,
General
First-Line
Supervisors/Managers
of Production and
Accountants and
Auditors
General and
Operations Managers
Count or Wage
Occupation Wage Comparison by Region
(Occupations Occurring in at least 15 Clusters)
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
0
2.5%
Laborers and Freight, Stock, and Material Movers, Hand
9,360
9,590
10,670
8,660
8,000
8,240
8,430
4.6%
Bookkeeping, Accounting, and Auditing Clerks
3.1%
6.4%
Truck Drivers, Heavy and Tractor-Trailer
3.1%
Janitors and Cleaners, Except Maids and Housekeeping
Cleaners
4.5%
4.9%
Security Guards
12,000
11,320
6.1%
First-Line Supervisors/Managers of Construction
Trades and Extraction Workers
12,820
7.9%
Sales and Related Workers, All Other
13,500
14,140
12.4%
General and Operations Managers
Computer Software Engineers, Systems Software
18,230
18,730
15,470
12,830
7.1%
Computer Systems Analysts
5.7%
Construction Laborers
Carpenters
3.0%
Combined Food Preparation and Serving Workers,
Including Fast Food
3.2%
14,850
15,000
Waiters and Waitresses
Cashiers
2.9%
Computer Software Engineers, Applications
10,000
Office Clerks, General
20,290
19,940
20,000
Customer Service Representatives
5,000
Computer Support Specialists
25,000
13.7%
12.5%
12.0%
10.0%
8.0%
3.5%
2.2%
6.0%
2.8%
4.0%
2.0%
0.0%
Percentage Growht
24,770
30,000
Retail Salespersons
Absolute Growth
Projected Occupation Growth
2000-2010
16.0%
14.0%
Review of Selected Features
• Provides insight into
organization of the State
economy, useful for
policymaking and job
seekers.
• Groups manufacturing
industry interactions based
on business transactions,
thus demonstrating natural
relationships that go beyond
simple output classifications.
• Shows occupations that
occur across many
manufacturing industry
clusters
•
•
Provides a geographic
comparison of both employment
and wages for the State of
Colorado, the Northwest &
Rural Resort region, and the
Denver Metro region.
Projections of employment by
cluster, using results of the
2000-2010 Long-term Industry
projections. These projections
assume cluster make-up will be
unchanged.
Some Limitations
• Not a dynamic representation of the economy.
• Study’s method is not the only way of analyzing
•
•
•
•
clusters.
Should be used with other materials for career
analysis.
Does not differentiate between emerging, mature,
and declining clusters.
Study does not signify career path development
advantages.
Some analysis distortion possible due to the use of
different employment data years in different segment
of the study.
Top Occurring Occupations
SOC
11-1011
13-2011
43-3031
41-4012
51-1011
49-9042
43-9061
43-5071
11-3051
53-3033
43-1011
53-7062
43-6014
37-2011
11-3031
53-3032
43-5061
49-1011
43-5081
43-4051
43-6011
11-9199
13-1023
Occupational Title
General and Operations Managers
Accountants and Auditors
Bookkeeping, Accounting, and Auditing Clerks
Sales Representatives, Wholesale and Manufacturing,
Except Technical and Scientific Products
First-Line Supervisors/Managers of Production and
Operating Workers
Maintenance and Repair Workers, General
Office Clerks, General
Shipping, Receiving, and Traffic Clerks
Industrial Production Managers
Truck Drivers, Light or Delivery Services
First-Line Supervisors/Managers of Office and
Administrative Support Workers
Laborers and Freight, Stock, and Material
Movers, Hand
Secretaries, Except Legal, Medical, and Executive
Janitors & Cleaners, Except Maids & Hskpg. Cleaners
Financial Managers
Truck Drivers, Heavy and Tractor-Trailer
Production, Planning, and Expediting Clerks
First-Line Supervisors/Managers of Mechanics,
Installers, and Repairers
Stock Clerks and Order Fillers
Customer Service Representatives
Executive Secretaries and Administrative Assistants
Managers, All Other
Purchasing Agents, Except Wholesale, Retail,
and Farm Products
Clusters
Average Hourly Wage
Denver Metro
$42.66
$27.67
$15.24
Northwest & Rural Resort
$35.56
$26.24
$15.07
20
20
20
State
$39.50
$26.41
$14.42
19
$24.19
$25.43
$21.37
19
19
18
18
18
17
$22.14
$14.62
$12.37
$12.20
$34.21
$13.45
$22.44
$15.35
$12.96
$12.54
$34.94
$13.47
$22.22
$15.71
$11.92
$13.53
$33.36
$14.64
17
$20.96
$22.17
$20.18
16
16
16
15
15
14
$10.80
$13.32
$9.53
$38.17
$16.03
$17.42
$11.27
$14.47
$9.74
$40.26
$16.89
$18.17
$11.72
$12.72
$10.77
$34.36
$17.44
$20.17
14
13
13
13
13
$24.64
$11.97
$13.51
$17.69
$34.99
$26.16
$12.41
$14.26
$18.22
$36.71
$25.96
$12.58
$14.05
$17.72
$26.60
13
$23.47
$24.11
$21.24