1. Bo Beaulieu & Michael Wilcox Purdue Center for Regional Development & Extension Community Development Program Exploring Your Local and Regional Economy – Clinton County September 26, 2014 Presented at the Industry/Business Leaders Luncheon Series -- Frankfort, IN

2. Something to Ponder The literature on job creation has frequently found that most jobs are created from existing employers, yet many local economic development organizations continue to emphasize new industry recruitment. Daniel Davis The Federal Reserve Bank of St. Louis. May 2011

3. Focus of Today’s Program Examine the economic resources and opportunities that exist in your county/region (but are often overlooked) o The stages of your local establishments o Regional competitive assets Discuss together ways to build on your local & regional assets Highlight some of the Purdue programs that might be of value to you

4. A Look at the Five Establishment Stages Clinton County Business Establishments

5. Data Source: NETS 2011, Edward Lowe, IEGC, PCRD Definition of company stages Stage 0 (self-employed) Stage 1 (2-9 employees) Stage 2 (10-99 employees) Stage 3 (100 to 499 employees) Stage 4 (500+ employees) This table is based on the National Establishment Time Series (NETS) database The definitions for stages are based on research by the Edward Lowe Foundation A firm can have more than one establishment within the same county Establishments in Clinton County: The Five Stages

6. Data Source: NETS 2011, Edward Lowe, IEGC, PCRD Top Five Sales Establishments by Company Stage, 2011

7. A Look at Your Working Labor Force

9. VariableJob Counts, 2011% Share Employed in Clinton County9,919100 Employed in county but living outside 4,95850.0 Employed and living in county 4,96150.0 Living in Clinton County12,103100 Living in county but employed outside 7,14259.0 Living and employed in county 4,96141.0 o Based on strong commuting ties, Clinton County is linked to Tippecanoe, Boone and Howard, IN o Cluster analysis is performed for the 4-county region Source: OTM, LEHD, U.S. Census Bureau 4,958 4,961 7,142 Clinton County’s Laborshed and Commuteshed

10. Data Source: EMSI 2013.2 & Census Key Data on the Region

11. A Word About Industry Clusters Industry clusters are groups of similar and related firms in a defined geographic area that share common markets, technologies, worker skill needs, and which are often linked by buyer-seller relationships. Firms and workers in an industry cluster draw competitive advantage from their proximity to competitors, to a skilled workforce, to specialized suppliers and a shared base of sophisticated knowledge about their industry.

12. Note: Label includes cluster name, LQ 2012 and Employment 2012 Data Source: EMSI 2013.2, industry cluster definitions by PCRD Mature Star Transforming Emerging

13. 13 How to interpret a bubble chart The graph’s four quadrants tell a different story for each cluster. ​ Modified from: http://www.charlestonregionaldata.com/bubble-chart-explanation/ Emerging Bottom right (weak but emerging) 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 community stand out from the competition. Small, high-growth clusters can be expected to become more dominant over time. 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. 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. 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.

14. Note: Label includes cluster name, LQ 2012 and Employment 2012 Data Source: EMSI 2013.2, industry cluster definitions by PCRD Mature StarTransforming Emerging

15. P e r c e n t G r o w t h i n S p e c i a l i z a t i o n L e v e l o f S p e c i a l i z a t i o n Transforming Stars Mature Emerging Clinton County Region, Industry Cluster Analysis, 2007-12 Apparel & Textiles Biomedical/Biotechnical (Life Sciences) Business & Financial Services Defense & Security Fabricated Metal Product Manufacturing Forest & Wood Products Transportation & Logistics Advanced Materials Agribusiness, Food Processing & Technology Manufacturing Supercluster o Transportation Equipment Manufacturing o Electrical Equipment, Appliance & Component Manufacturing Machinery Manufacturing Primary Metal Manufacturing Arts, Entertainment, Recreation & Visitor Industries Chemicals & Chemical Based Prod. Computer & Electronic Prod Mfg Education & Knowledge Creation Energy (Fossil & Renewable) Glass & Ceramics IT & Telecommunications Mining Printing & Publishing

16. Data Source: EMSI 2013.2, industry cluster definitions by PCRD Red numbers in parenthesis are negatives Cluster Name2012 Jobs2012 LQ Percent Change LQ, 2007-2012 2013 EPW Competitive Effect(Shift-share), 2007-2012 Manufacturing Supercluster 22,6483.50 (5%)$89,366 (717) Business & Financial Services 14,9850.623%$38,830757 Biomedical/Biotechnical (Life Sciences) 13,9240.932%$48,621561 Transportation Equipment Manufacturing 13,8018.58 (8%)$95,349 (890) Advanced Materials 9,4251.70 (24%)$88,692 (2,699) Transportation & Logistics 5,2670.903%$49,376286 Energy (Fossil & Renewable) 4,8430.59 (11%)$55,055 (481) Arts, Entertainment, Recreation & Visitor Industries 4,4690.58 (12%)$18,880 (502) Information Technology & Telecommunications 4,1120.60 (3%)$61,794 (68) Machinery Manufacturing 3,9473.1710%$91,274437 Agribusiness, Food Processing & Technology 3,7231.29 (7%)$57,784 (185) Defense & Security 3,3300.5710%$47,721341 Primary Metal Manufacturing 2,1644.954%$90,397133 Education & Knowledge Creation 2,1350.47 (4%)$14,541 (20) Printing & Publishing 2,0240.60 (10%)$36,710 (201) Chemicals & Chemical Based Products 1,4750.65 (30%)$88,336 (593) Forest & Wood Products 1,4100.8516%$45,661212 Fabricated Metal Product Manufacturing 1,3470.887%$55,319118 Electrical Equipment, Appliance & Component Mfg 7481.77 (3%)$51,596 (9) Computer & Electronic Product Manufacturing 6410.52 (20%)$63,977 (134) Apparel & Textiles 4520.317%$34,06734 Mining 2800.50 (12%)$77,103 (35) Glass & Ceramics 1740.55 (48%)$46,063 (150) The Region’s Industry Clusters -- Some Highlights

17. Note : ** presents “Star clusters in 2012” Data Source: EMSI 2013.2, industry cluster definitions by PCRD

18. Food for Thought What is being done to focus on establishments that are in stages 0, 1 or 2? Should anything be targeted specifically to these establishments? How about goods and services purchased from outside the region? What possibility exists in terms of supplying these inputs regionally?

19. Purdue Programs  Economic Gardening (targeted to second stage firms)  Business Retention and Expansion program  Creating a Regional Entrepreneurial System Together

20. Purdue Center for Regional Development Purdue University Gerald D. and Edna E. Mann Hall, Suite 266 203 Martin Jischke Drive West Lafayette, IN 47907-2057 https://pcrd.purdue.edu/