Forest Country Region, Texas Regional Data SnapShot Target Industry Clusters SET Session 2

Overview Table of contents Target Industry Clusters 03 Industry Cluster Comparison

01 overview ​ Forest Country Region, TX ​

4 Overview section 01 Forest Country Region The Forest Country Region is comprised of 12 Texas counties. State Highway 59 connects the region to I-69 and Houston to the south, while State Highway 190 connects the region to I-45 to the west.  Angelina  Houston  Jasper  Nacogdoches  Newton  Polk  Sabine  San Augustine  San Jacinto  Shelby  Trinity  Tyler

02 target industry clusters Advanced Materials Arts, Entertainment, Recreation and Visitor Industries Forest and Wood Products

Regional Job Growth: Three Key Components of the Shift-Share Analysis National Growth Effect Industrial Mix Effect Regional Competitive Effect Source: EMSI website: Share of regional industry growth explained by the growth of the specific industry sector at the national level Explains how much of the regional industry’s growth is explained by the overall growth of the national economy Explains how much of the change in a given industry is due to some unique competitive advantage that the region possesses Expected Change The sum of the industrial mix and the national growth effects Note: The calculations ensure no double counting of job change effects from national to regional levels

7 section 02 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Advanced Materials Industries Jobs 2014 National Trend, Industry Trend, Cumulative Expected Growth Actual Job Growth, Regional Performance, ABC=A+BDD-C Machine Shops Iron Foundries Gasket, Packing, and Sealing Device Manufacturing Electroplating, Plating, Polishing, Anodizing, and Coloring Other Fabricated Wire Product Manufacturing Plastics Material and Resin Manufacturing Testing Laboratories Aluminum Sheet, Plate, and Foil Manufacturing Paper Bag and Coated and Treated Paper Manufacturing Aluminum Foundries (except Die-Casting) All Other Basic Organic Chemical Manufacturing Polystyrene Foam Product Manufacturing Adhesive Manufacturing Shift-Share Analysis (Regional Performance) by Top Industry Sectors Note: Upward arrow ( ) indicates regional competitiveness.

8 section 02 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Advanced Materials Regional Performance Shift-Share Analysis Industries that Outperformed Machine Shops Gasket, Packing, and Sealing Device Manufacturing Electroplating, Plating, Polishing, Anodizing, and Coloring Testing Laboratories Aluminum Sheet, Plate, and Foil Manufacturing Paper Bag and Coated and Treated Paper Manufacturing Aluminum Foundries (except Die-Casting) All Other Basic Organic Chemical Manufacturing Polystyrene Foam Product Manufacturing Adhesive Manufacturing Industries that Underperformed Other Fabricated Wire Product Manufacturing Plastics Material and Resin Manufacturing Iron Foundries

9 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Advanced Materials Industries Exports 2013 ($ Millions) Jobs 2013 Export per job 2013 ($) LQ 2014 Machine Shops$ $97, Iron Foundries$ $238, Gasket, Packing, and Sealing Device Manufacturing$ $245, Electroplating, Plating, Polishing, Anodizing, and Coloring $10.655$190, Other Fabricated Wire Product Manufacturing$ $154, Plastics Material and Resin Manufacturing$62.479$791, Testing Laboratories$7.883$93, Aluminum Sheet, Plate, and Foil Manufacturing$36.846$805, Paper Bag and Coated and Treated Paper Manufacturing $17.966$270, Aluminum Foundries (except Die-Casting)$9.546$205, All Other Basic Organic Chemical Manufacturing$ $2,898, Polystyrene Foam Product Manufacturing$19.851$392, Adhesive Manufacturing$12.927$479, Top Industry Sectors section 02 Note: Sorted similarly as the shift-share analysis slide

10 Industries Estimated Input ($ Millions), 2013 % In-Region% Out of Region Petrochemical Manufacturing$ %100.0% Corporate, Subsidiary, and Regional Managing Offices$ %91.7% All Other Basic Organic Chemical Manufacturing$ %84.1% Iron and Steel Mills and Ferroalloy Manufacturing$ %99.8% Crop Production$ %89.8% Petroleum Refineries$ %100.0% Plastics Material and Resin Manufacturing$ %91.9% Machine Shops$ %90.3% Rail transportation$ %77.2% Wholesale Trade Agents and Brokers$ %93.3% Secondary Smelting and Alloying of Aluminum$ %100.0% Alumina Refining and Primary Aluminum Production$ %100.0% Ethyl Alcohol Manufacturing$ %100.0% Other Basic Inorganic Chemical Manufacturing$ %100.0% Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) $ %84.4% Top 15 Inputs by Dollars Note: ** industry sector is not present in the region. Advanced Materials ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). section 02

11 Advanced Materials Top 15 Inputs by Dollars ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Note: ** industry sector is not present in the region. section 02

12 Advanced Materials OccupationsJobs 2014 % Change, Median Hourly Earnings Entry Level Education Machinists14344%$17.9High school diploma or equivalent First-Line Supervisors of Production and Operating Workers 855%$23.8Postsecondary non-degree award Foundry Mold and Coremakers818%$14.3High school diploma or equivalent Inspectors, Testers, Sorters, Samplers, and Weighers 7913%$13.8High school diploma or equivalent Team Assemblers67-8%$12.7High school diploma or equivalent Welders, Cutters, Solderers, and Brazers60-35%$17.4High school diploma or equivalent Office Clerks, General5727%$12.7High school diploma or equivalent General and Operations Managers5415%$33.9Bachelor's degree Maintenance and Repair Workers, General5318%$14.3High school diploma or equivalent Managers, All Other506%$16.2High school diploma or equivalent Helpers--Production Workers5016%$10.8Less than high school Computer-Controlled Machine Tool Operators, Metal and Plastic 4944%$17.5High school diploma or equivalent Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 4911%$24.2High school diploma or equivalent Lathe and Turning Machine Tool Setters, Operators, and Tenders, Metal and Plastic 4752%$16.0High school diploma or equivalent Pourers and Casters, Metal4114%$13.5High school diploma or equivalent Top Occupations Note: SOC (Standard Occupation Classification) 5-digit occupations are included by jobs in Extended proprietors include estimates for underreported self employment, proprietorships, trusts, partnerships and cooperatives. ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). section 02

13 section 02 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Arts and Entertainment, Recreation and Visitor Industries Industries Jobs 2014 National Trend, Industry Trend, Cumulative Expected Growth Actual Job Growth, Regional Performance, ABC=A+BDD-C Hotels (except Casino Hotels) and Motels Independent Artists, Writers, and Performers Golf Courses and Country Clubs Fitness and Recreational Sports Centers Recreational and Vacation Camps (except Campgrounds) RV (Recreational Vehicle) Parks and Campgrounds All Other Amusement and Recreation Industries Other Spectator Sports Radio Stations Television Broadcasting Motion Picture Theaters (except Drive-Ins) Bowling Centers Musical Groups and Artists Shift-Share Analysis (Regional Performance) by Top Industry Sectors Note: Upward arrow ( ) indicates regional competitiveness.

14 section 02 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Arts and Entertainment, Recreation and Visitor Industries Regional Performance Shift-Share Analysis Industries that Outperformed Golf Courses and Country Clubs Recreational and Vacation Camps (except Campgrounds) RV (Recreational Vehicle) Parks and Campgrounds Television Broadcasting Motion Picture Theaters (except Drive-Ins) Bowling Centers Musical Groups and Artists Industries that Underperformed Hotels (except Casino Hotels) and Motels Independent Artists, Writers, and Performers Fitness and Recreational Sports Centers All Other Amusement and Recreation Industries Other Spectator Sports Radio Stations

15 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Arts and Entertainment, Recreation and Visitor Industries Industries Exports 2013 ($ Millions) Jobs 2013 Export per job 2013 ($) LQ 2014 Hotels (except Casino Hotels) and Motels$ $23, Independent Artists, Writers, and Performers$7.6397$19, Golf Courses and Country Clubs$ $39, Fitness and Recreational Sports Centers$4.8275$17, Recreational and Vacation Camps (except Campgrounds) $ $75, RV (Recreational Vehicle) Parks and Campgrounds$8.5169$50, All Other Amusement and Recreation Industries$0.7138$4, Other Spectator Sports$0.782$8, Radio Stations$2.251$42, Television Broadcasting$1.253$23, Motion Picture Theaters (except Drive-Ins)$2.053$37, Bowling Centers$0.858$13, Musical Groups and Artists$1.038$26, Top Industry Sectors section 02 Note: Sorted similarly as the shift-share analysis slide

16 Industries Estimated Input ($ Millions), 2013 % In-Region% Out of Region Corporate, Subsidiary, and Regional Managing Offices$ %95.6% Motion Picture and Video Production$ %98.3% Cable and Other Subscription Programming$ %60.8% Lessors of Residential Buildings and Dwellings$ %66.6% Independent Artists, Writers, and Performers$ %75.3% Lessors of Nonresidential Buildings (except Miniwarehouses) $ %75.4% Offices of Real Estate Agents and Brokers$ %66.3% Sports Teams and Clubs$ %91.8% Television Broadcasting$ %78.6% Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) $ %87.6% Offices of Lawyers$ %81.6% Advertising Agencies$ %90.4% Other Activities Related to Real Estate$ %63.9% Petroleum Refineries$ %100.0% Internet Publishing and Broadcasting and Web Search Portals $ %99.5% Top 15 Inputs by Dollars Note: ** industry sector is not present in the region. Arts and Entertainment, Recreation and Visitor Industries ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). section 02

17 Arts and Entertainment, Recreation and Visitor Industries Top 15 Inputs by Dollars ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Note: ** industry sector is not present in the region. section 02

18 Arts and Entertainment, Recreation and Visitor Industries OccupationsJobs 2014 % Change, Median Hourly Earnings Entry Level Education Maids and Housekeeping Cleaners %$8.6Less than high school Lodging Managers %$14.3High school diploma or equivalent Hotel, Motel, and Resort Desk Clerks %$8.5High school diploma or equivalent Fitness Trainers and Aerobics Instructors %$13.8High school diploma or equivalent Musicians and Singers %$16.8High school diploma or equivalent Writers and Authors %$17.6Bachelor's degree Maintenance and Repair Workers, General %$14.3High school diploma or equivalent Landscaping and Groundskeeping Workers %$9.4Less than high school Waiters and Waitresses %$9.1Less than high school Tour Guides and Escorts %$14.5High school diploma or equivalent Fine Artists, Including Painters, Sculptors, and Illustrators 691.5%$8.5High school diploma or equivalent Coaches and Scouts %$17.5Bachelor's degree Janitors and Cleaners, Except Maids and Housekeeping Cleaners %$10.1Less than high school Managers, All Other %$16.2High school diploma or equivalent Recreation Workers %$9.8Bachelor's degree Top Occupations Note: SOC (Standard Occupation Classification) 5-digit occupations are included by jobs in Extended proprietors include estimates for underreported self employment, proprietorships, trusts, partnerships and cooperatives. ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). section 02

19 section 02 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Forest and Wood Products Industries Jobs 2014 National Trend, Industry Trend, Cumulative Expected Growth Actual Job Growth, Regional Performance, ABC=A+BDD-C Logging1, Sawmills1, Softwood Veneer and Plywood Manufacturing Paperboard Mills Finish Carpentry Contractors Reconstituted Wood Product Manufacturing Wood Preservation Timber Tract Operations Roofing Contractors Support Activities for Forestry Other Millwork (including Flooring) Framing Contractors Flooring Contractors Shift-Share Analysis (Regional Performance) by Top Industry Sectors Note: Upward arrow ( ) indicates regional competitiveness.

20 section 02 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Forest and Wood Products Regional Performance Shift-Share Analysis Industries that Outperformed Reconstituted Wood Product Manufacturing Wood Preservation Roofing Contractors Framing Contractors Industries that Underperformed Logging Sawmills Softwood Veneer and Plywood Manufacturing Paperboard Mills Finish Carpentry Contractors Timber Tract Operations Support Activities for Forestry Other Millwork (including Flooring) Flooring Contractors

21 ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Forest and Wood Products Industries Exports 2013 ($ Millions) Jobs 2013 Export per job 2013 ($) LQ 2014 Logging$98.41,591$61, Sawmills$240.61,239$194, Softwood Veneer and Plywood Manufacturing$347.31,146$303, Paperboard Mills$ $955, Finish Carpentry Contractors$8.4334$25, Reconstituted Wood Product Manufacturing$ $325, Wood Preservation$ $324, Timber Tract Operations$ $149, Roofing Contractors$6.9164$42, Support Activities for Forestry$8.7168$51, Other Millwork (including Flooring)$ $268, Framing Contractors$6.7142$47, Flooring Contractors$4.0131$30, Top Industry Sectors section 02 Note: Sorted similarly as the shift-share analysis slide

22 Industries Estimated Input ($ Millions), 2013 % In-Region% Out of Region Sawmills$ %29.4% Logging$ %68.4% Corporate, Subsidiary, and Regional Managing Offices$ %96.6% Petroleum Refineries$ %100.0% Wholesale Trade Agents and Brokers$ %95.0% Natural Gas Distribution$ %88.2% Rail transportation$ %79.6% Wood Preservation$ %37.6% Plastics Material and Resin Manufacturing$ %97.3% Farm Labor Contractors and Crew Leaders$ %71.9% Crop Production$ %91.7% Timber Tract Operations$ %5.6% Other Basic Inorganic Chemical Manufacturing$ %100.0% General Freight Trucking, Long-Distance, Truckload$ %78.2% Adhesive Manufacturing$ %92.3% Top 15 Inputs by Dollars Note: ** industry sector is not present in the region. Forest and Wood Products ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). section 02

23 Forest and Wood Products Top 15 Inputs by Dollars ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). Note: ** industry sector is not present in the region. section 02

24 Forest and Wood Products OccupationsJobs 2014 % Change, Median Hourly Earnings Entry Level Education Logging Equipment Operators855-4%$15.1High school diploma or equivalent Sawing Machine Setters, Operators, and Tenders, Wood795-7%$10.7High school diploma or equivalent Heavy and Tractor-Trailer Truck Drivers315-7%$16.5Postsecondary non-degree award Industrial Truck and Tractor Operators278-16%$14.8Less than high school Laborers and Freight, Stock, and Material Movers, Hand228-16%$11.7Less than high school Fallers200-13%$17.3High school diploma or equivalent Paper Goods Machine Setters, Operators, and Tenders178-24%$18.1High school diploma or equivalent Helpers--Production Workers173-16%$10.8Less than high school Carpenters167-20%$13.8High school diploma or equivalent First-Line Supervisors of Farming, Fishing, and Forestry Workers %$22.0High school diploma or equivalent Construction Laborers1555%$12.8Less than high school Woodworking Machine Setters, Operators, and Tenders, Except Sawing %$11.4High school diploma or equivalent Team Assemblers143-26%$12.7High school diploma or equivalent First-Line Supervisors of Production and Operating Workers %$23.8Postsecondary non-degree award Machine Feeders and Offbearers125-12%$14.4Less than High school Top Occupations Note: SOC (Standard Occupation Classification) 5-digit occupations are included by jobs in Extended proprietors include estimates for underreported self employment, proprietorships, trusts, partnerships and cooperatives. ​ Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors). section 02

03 Cluster Comparisons Advanced Materials Arts, Entertainment, Recreation and Visitor Industries Forest and Wood Products

26 Advanced Materials: Contribution by Counties (Jobs 2014) ​ Source: EMSI (QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors); Industry cluster definitions by PCRD section 03

27 Arts, Entertainment, Recreation, and Visitor Industries: Contribution by Counties (Jobs 2014) ​ Source: EMSI (QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors); Industry cluster definitions by PCRD section 03

28 Forest and Wood Products: Contribution by Counties (Jobs 2014) ​ Source: EMSI (QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors); Industry cluster definitions by PCRD section 03

29 Industry Clusters: Components to Assess ​ Source: EMSI (QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors); Industry cluster definitions by PCRD section 03 Advanced Materials Arts, Entertainment, Recreation and Visitor Industries Forest & Wood Products Regional Performance, (Shift-share analysis) -25 (negative value) -381 (negative value) -1,520 (negative value) Export value, 2013 $689,815,497$142,629,912$1,768,558,210 Leakage, 2013 $363,474,743$78,461,826$885,144,548 Number of establishments Contribution by counties912 Business input Seek input from businesses on how they can strengthen their connections to the key clusters, especially providing products and services now being imported from outside the region. Resident’s valueReview Civic Forum Input from Residents