1. Industry Cluster Analysis Project Overview Wande Reweta Colorado Department of Labor and Employment

2. 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

3. 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.

4. 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

5. Geography Clusters must be identified by more than locality Regional concentration versus global dispersion Cross boundary linkages Study order: Linkage/economic logic Geographic concentrations

6. 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

7. Work Components Report Data Software Analyst Knowledge & Skills References

8. General Flow of Work Policymakers Policy Goals Cluster Definition Value-added I-O Employment Skills Growth Rates Basic Data Composition State Data Analysis National/State Cluster Synthesis Sub-state Data Analysis Composite Report Generation Benchmark I-O Accounts of U.S. Transactions Accounts IMPLAN Mathematical Methods Previous Studies, Texts, & Consultation SWOT Analysis Separate Report

9. The Report Basic information rather than more encompassing analysis Cluster Identification Industry Information Employment Wages Occupation employment Regional Comparison

10. Goals versus Reality Identification of Colorado industry clusters Analysis of clusters Employment Wages Value Added or Tax Revenue Export Value Comparison with National clusters Cluster state evaluation Mature Emerging Potential Regional comparison Denver Rural region (NWRR) Identification of Colorado industry clusters Analysis of clusters Employment Wages Occupation Employment Regional comparison (reduced)

11. 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

12. 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.

13. Cluster Employment

14. Colorado Cluster Wages Ranges

15. Occupations Occurring in Ten or More Clusters

16. Occupation Wage Comparison by Region (Occupations Occurring in at least 15 Clusters)

17. Projected Occupation Growth 2000-2010

18. 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.

19. 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.

20. Top Occurring Occupations SOCOccupational TitleClusters Average Hourly Wage StateDenver MetroN orthwest & Rural Resort 11-1011General and Operations Managers 20$39.50 $42.66 $35.56 13-2011Accountants and Auditors 20$26.41$27.67$26.24 43-3031Bookkeeping, Accounting, and Auditing Clerks 20$14.42 $15.24 $15.07 41-4012Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 19$24.19 $25.43 $21.37 51-1011First-Line Supervisors/Managers of Production and Operating Workers 19$22.14 $22.44 $22.22 49-9042Maintenance and Repair Workers, General 19$14.62 $15.35 $15.71 43-9061Office Clerks, General 18$12.37 $12.96 $11.92 43-5071Shipping, Receiving, and Traffic Clerks 18$12.20 $12.54 $13.53 11-3051Industrial Production Managers 18$34.21 $34.94 $33.36 53-3033Truck Drivers, Light or Delivery Services 17$13.45 $13.47 $14.64 43-1011First-Line Supervisors/Managers of Office and Administrative Support Workers 17$20.96 $22.17 $20.18 53-7062Laborers and Freight, Stock, and Material Movers, Hand 16$10.80 $11.27 $11.72 43-6014Secretaries, Except Legal, Medical, and Executive 16$13.32 $14.47 $12.72 37-2011Janitors & Cleaners, Except Maids & Hskpg. Cleaners 16$9.53 $9.74 $10.77 11-3031Financial Managers 15$38.17 $40.26 $34.36 53-3032Truck Drivers, Heavy and Tractor-Trailer 15$16.03 $16.89 $17.44 43-5061Production, Planning, and Expediting Clerks 14$17.42 $18.17 $20.17 49-1011 First-Line Supervisors/Managers of Mechanics, Installers, and Repairers 14$24.64 $26.16 $25.96 43-5081Stock Clerks and Order Fillers 13$11.97 $12.41 $12.58 43-4051Customer Service Representatives 13$13.51 $14.26 $14.05 43-6011Executive Secretaries and Administrative Assistants 13$17.69 $18.22 $17.72 11-9199Managers, All Other 13$34.99 $36.71 $26.60 13-1023Purchasing Agents, Except Wholesale, Retail, and Farm Products 13$23.47 $24.11 $21.24