1. Regional Data Snapshot
Industry Cluster Analysis
SET Session 1
Southern Indiana Development Commission, Indiana

2. 03 01 04 02 Overview Industry Cluster Analysis Industry and Occupation
Table of Contents 03 01
Overview
Industry Cluster Analysis 04 02
Industry and Occupation
Occupations

3. Southern Indiana Development Commission, IN01
overview

4. Southern Indiana Development Commission
Overview
Southern Indiana Development Commission
The Southern Indiana Development Commission (SIDC) Region is comprised of 5 Indiana counties. Interstate 69 connects the region to Bloomington and Indianapolis in the north, and to Interstate 64 and Evansville in the south. Once completed, Interstate 69 would connect Michigan to Texas and the international border in Mexico. Martin County is home to Crane Division, Naval Surface Warfare Center.
Daviess
Greene
Knox
Lawrence
Martin
section 01

5. Establishments
Employment by industry 02
industry
and occupation

6. Components of changes in Jobs
Industry and occupation
Components of changes in Jobs
How to Interpret the Accompanying Table
New Startups: A completely new business from births/openings without any affiliation to an existing business.
Spinoffs: New businesses that were spun-off from existing businesses.
Expansions: Existing businesses that have expanded in jobs.
In-migration: Businesses that have moved-in from outside of the county.
Closings: Closure of existing businesses.
Contractions: Existing businesses that have shed/reduced jobs.
Out-migration: Businesses that have moved-out from the county.
Changes in Jobs ( )
Gained by
New Startups
+17,824
Spinoffs
+5,385
Expansion
+9,689
In-migration
+843
Lost by
Closings
-23,535
Contractions
-7,692
Out-migration
-532
Net change
+1,982
Table: Excel 2-1
section 02
Source: YourEconomy.org
Note: YourEconomy has changed its data source from NETS to InfoUSA on August, Based on the data available, we can only estimate churn based on jobs and not establishments.

7. Establishment Distribution by Stages
Economy
Company stages
An establishment is a physical business location. Branches, standalones and headquarters are all considered types of establishments.
Definition of Company Stages
Self-employed
2-9 employees 3
10-99
employees
employees 4
500+
employees
Establishment Distribution by Stages
Indiana, 2015
section 03
Note: Based on Edward Lowe’s research,
Source: Pyramid graphics is courtesy of Nancy Duarte,
Source: YourEconomy.org

8. Number of Establishments by Company Stages
Industry and occupation
Establishments
Number of Establishments by Company Stages
2009
2015
Stage
Establishments
Proportion
Stage 0
967
15%
981
14%
Stage 1
4,128
66%
4,847
69%
Stage 2
1,065
17%
1,115
16%
Stage 3 79 1% 78
Stage 4 9
0.1% 7
Total
6,248
100%
7,028
Table: Excel 2-1
Questions:
What stage businesses have shaped the region’s economic growth in the last 6 years?
Which ones are growing or declining the most?
Which stage of establishments are likely to shape the region’s future economic growth?
section 02
Source: Youreconomy.org database

9. Jobs and Sales Industry and occupation Questions
What establishments are the most numerous based on company stages?
What stages have experienced the largest growth? The greatest decline?
What company stage employs the largest number of people?
What stage captures the most sales?
Which ones have experienced the greatest percentage loss over the period?
Number of Jobs by Company Stages
Year
2009
2015
% Change
Stage 0
967
1,017
5.2%
Stage 1
15,884
18,684
17.6%
Stage 2
26,820
26,052
-2.9%
Stage 3
12,475
13,061
4.7%
Stage 4
14406
13,720
-4.8%
Total
70,552
72,534
2.8%
Sales ($Billion, 2015) by Company Stages
Year
2009
2015
% Change
Stage 0
0.19
0.2
-12%
Stage 1
3.42
4.2
23%
Stage 2
4.80
6.0
25%
Stage 3
2.83
2.4
-14%
Stage 4
2.05
0.7
-65.6%
Total
13.29
13.54 2%
Table: Excel 2-1
section 02
Source: Youreconomy.org database

10. Top ten industry sector employment growth
Industry and occupation
Top ten industry sector employment growth
NAICS
Description
2009 Jobs
2015 Jobs
Change
Change (%)
State Change (%) 31
Manufacturing
6,376
8,111
1,735
27%
18% 21
Mining, Quarrying, and Oil and Gas Extraction
1,821
2,262
441
24%
36% 55
Management of Companies and Enterprises
145
179 34
23%
20% 22
Utilities
401
493 92
-9% 53
Real Estate and Rental and Leasing
1,665
1,857
192
12% 5% 11
Crop and Animal Production
4,151
4,561
410
10% 2% 56
Administrative and Support and Waste Management and Remediation Services
2,007
2,204
197
25% 23
Construction
4,680
5,020
340 7% 72
Accommodation and Food Services
4,425
4,721
296
11% 62
Health Care and Social Assistance
6,704
7,068
364 9%
Table: Excel 2-2
Questions:
What regional industry sectors have seen the greatest growth?
Did they grow at the same rate as the state?
What factors are causing the growth?
section 02
Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors)

11. Seven industry sector employment decline
Industry and occupation
Seven industry sector employment decline
NAICS
Description
2009 Jobs
2015 Jobs
Change
Change (%)
State Change (%) 51
Information
620
503
-117
-19%
-7% 54
Professional, Scientific, and Technical Services
3,538
2,980
-558
-16% 9% 52
Finance and Insurance
2,309
2,128
-181
-8% 1% 71
Arts, Entertainment, and Recreation
651
608
-43 42
Wholesale Trade
1,743
1,655
-88
-5% 3% 90
Government
16,289
15,858
-431
-3% 81
Other Services (except Public Administration)
4,691
4,650
-41
-1% 5%
Questions:
How does the industry sector make-up of the region compare to the rest of the state?
Which industry sectors are growing and declining the most in employment?
Table: Excel 2-2
section 02
Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors)

12. Industry cluster analysis03
Industry cluster analysis
Southern Indiana Development Commission, IN

13. List of Clusters Industry cluster analysis Advanced Materials
Fabricated Metal Product Manufacturing
Agribusiness, Food Processing & Technology
Energy (Fossil & Renewable)
Forest & Wood Products
Apparel & Textiles
Glass & Ceramics
Arts, Entertainment, Recreation & Visitor Industries
Information Technology & Telecommunications
Biomedical/Biotechnical (Life Sciences)
Machinery Manufacturing
Business & Financial Services
Mining
Chemicals
Primary Metal Manufacturing
Computer & Electronic Product Manufacturing
Printing & Publishing
Transportation & Logistics
Defense & Security
Transportation Equipment Manufacturing
Education & Knowledge Creation
Electrical Equip, Appliance & Component Manufacturing
Goal: To provide a list of the clusters used in the data
This slide lists the overarching clusters used in the data. These are not mutually exclusive.
Note that the Manufacturing Super-cluster contains the following:
Primary Metals
Fabricated Metal Products
Machinery
Computer and Electronic Products
Electrical Equipment, Appliance and Components
Transportation Equipment
Time: 5 minutes
section 03

14. 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.
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 region
stand out from the competition.
Small, high-growth clusters
can be expected to become
more dominant over time.
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.
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.
section 03
Modified from:

15. Level of Specialization
Industry cluster analysis
Mature Clusters
Glass & Ceramics (3.91; 482)
Mining (1.69; 381)
Energy (Fossil & Renewable) (1.3; 5,326)
Transportation & Logistics (1.02; 2,482)
Star Clusters
Primary Metal Manufacturing (4.66; 757)
Agribusiness, Food Processing & Tech. (2.96; 6,604)
Transportation Equipment Mfg. (1.91; 1,265)
Forest & Wood Products (1.76; 1,970)
Chemicals & Chemical Based Products (1.72; 1,556)
Advanced Materials (1.27; 2,796)
Fabricated Metal Product Mfg. (1.21; 729)
Level of Specialization
Percent Growth in Specialization
Transforming Clusters
Biomedical/Biotechnical (0.82; 4,780)
Business & Financial Services (0.49; 4,676)
Apparel & Textiles (0.47; 267)
Defense & Security (0.47; 1,489)
Education & Knowledge Creation (0.38; 672)
Arts, Ent, Rec & Visitor Industries (0.37; 1,130)
IT & Telecommunications (0.29; 884)
Computer & Electronic Product Mfg. (0.15; 65)
Emerging Clusters
Machinery Manufacturing (0.92; 443)
Printing & Publishing (0.43; 545)
Electrical Equip, App & Comp Mfg. (0.02; 3)
Table: Excel 3-1
section 03
NOTE: The first number after each cluster represents the number of total jobs (full and part time jobs by place of work) in that cluster in the region in The clusters are sorted in decreasing order by location quotient as shown in the bubble chart.

16. Bubble Chart: What to Look at First
Quadrant Location
Size of Location Quotient
Percentage Change in Last 5 Years
Number of Employees
Bubble Chart: What to Look at First
Start with clusters located in the STARS quadrant
See if the MATURING clusters might have a good chance of growing again
Determine if EMERGING clusters are likely to grow in strength
Avoid clusters that are “TRANSFORMING”
Focus on clusters with an LQ of 1.2 or higher
Clusters with high LQs represent economic activities in which the region is competitive relative to the U.S.
REMEMBER: Clusters only capture industries that have the likelihood of exporting goods and services.
The horizontal line (the x-axis) shows the percentage growth or decline of a cluster over a five-year period.
Make sure to examine the SIZE and DIRECTION of that change.
Dramatic declines in a cluster with a an LQ of 1.2 or higher could be a difficult one to resurrect.
The size of the bubble refers to the number of people employed in that cluster.
It may be worthwhile to focus on clusters that are both competitive and that employ a good number of people.
Goal: To better understand how to interpret the bubble chart
Use this slide to interpret the bubble chart handout of all of the possible clusters in the region (Page 7 of the Targeted Industry Cluster Handout). Have the team ensure that the industries listed as stars, emerging, mature, and transforming, align with the handout. Have the team identify those clusters with larger Location Quotients (LQ) as well as those clusters with large employment.
Time: 4 minutes
section 03

17. Industry cluster bubble chart
Industry and occupation
Industry cluster bubble chart
Star
Mature
Emerging
Transforming
Table: Excel 3-1
Note: Label includes cluster name, LQ in 2015, and Employment in 2015.
section 03
Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors)

18. The Manufacturing Super-Cluster
Please note that this is not a cluster that a SET region should select. Rather, focus on the manufacturing sub-clusters that are important to that super-cluster.
Manufacturing Super-Cluster
Computer & Electronic Product Manufacturing
Electric Equipment, Appliances & Component Manufacturing
Fabricated Metal Product Manufacturing
Machinery Manufacturing
Primary Metal Manufacturing
Transportation Equipment Manufacturing

19. Transportation Equip Mfg. 1.91, 1,265
Industry and occupation
Manufacturing sub-cluster bubble chart
Transportation Equip Mfg. 1.91, 1,265
220%
240%
Mature
Star ≈
Table: Excel 3-1
Transforming
Emerging
Note: Label includes cluster name, LQ in 2015, and Employment in Electrical Equipment Cluster is nonexistent.
section 03
Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors)

20. For your region Industry and occupation Mature Industries
Four industry clusters in the SIDC region is in the Matured stage: Glass & Ceramics; Mining; Energy; and Transportation & Logistics. The mature industries are relatively concentrated, but its growth is trending downward. It is worth noting, however, that the Region may find it worthwhile to invest in efforts to shore up the concentration of these industries.
Transforming Industries
Transforming clusters capture the mix of industries that are experiencing relative decline and limited export capability. In the Region, Biomedical; Business & Financial Services; Apparel & Textiles; Defense & Security; Education & Knowledge Creation; Arts, Ent, Rec & Visitor Industries; IT & Telecom; and Computer & Electronic Prod Mfg., eight industry clusters are Transforming clusters. Any amount of growth in these industries would require relatively large investments.
Star Industries
Star industry clusters are highly concentrated, exporting and still experiencing growth in the region. Seven Star industry clusters in the SIDC region are Primary Metal Mfg.; Agribusiness, Food Processing & Technology; Transportation Equipment Mfg.; Forest & Wood Products; Chemicals; Advanced Materials; and Fabricated Metal Product Mfg. These clusters indicate that they have higher jobs concentration in the region compared to the U.S.
Emerging Industries
Industry clusters that may be poised for future growth are classified as “Emerging.” There are three Emerging clusters in total in the SIDC region: Machinery Manufacturing; Printing & Publishing; and Electrical Equipment, Appliance & Component Mfg.
section 03
Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors)

21. Top occupations
STEM occupations 04
occupations

22. Top five occupations in 2015
Industry and occupation
Top five occupations in 2015
Questions:
What are the education and skill requirements for these occupations?
Do the emerging and star clusters align with the top occupations?
What type salaries do these occupations typically provide?
Chart: Excel 3-1
section 04
Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors)

23. Science, Technology, Engineering & Math
Industry and occupation
Science, Technology, Engineering & Math
2,713
2,587
-4.6%
Change
2015
2009
Job change in STEM occupations
SIDC, IN
Rest of Indiana
108,663
11.1%
97,839
Questions:
How do STEM jobs compare to the state?
What has been the trend of STEM jobs over time?
How important are STEM jobs to the region’s Star and Emerging clusters?
section 04
*Note: STEM and STEM-related occupation definitions from BLS (2010)
Source: EMSI Class of Worker (QCEW, non-QCEW, self-employed and extended proprietors)

24. 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
Bo Beaulieu, PhD
Indraneel Kumar, PhD
Data Analysis
Ayoung Kim
Andrey Zhalnin, PhD
Indraneel Kumar, PhD
Report Design
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.

25. May 2017 For more information, please contact: Dr. Bo Beaulieu,
PCRD Director: Or
The Purdue Center for Regional Development (PCRD) seeks to pioneer new ideas and strategies that contribute to regional collaboration, innovation and prosperity.
May 2017