1. JUNE 23, 2006

2. AGENDA  Welcome, Introductions, and Project Overview  Review/Refine Targets of Opportunity  Next Steps: Employer Consultations  Adjourn (3:00 p.m.)

3. Project Overview  Regional Dataset (1990-2004 employment, change in firms with and without employees)  Clusters of Opportunity Training and Product  Targets of Opportunity Revisions, Coaching on Base Cluster Update, and Occupational Patterns by Target Area  Employer Consultations/Further Refinements  Summary Document and Presentations

4. Cluster or “Target” of Opportunity

5. How You Created Initial Targets of Opportunity  Focused on industry sectors that are highly-concentrated and/or have been growing in employment, concentration, or wages.  Grouped them according to similar and related types of industries, products, and services. Used your knowledge about the regional economy and consulted the NAICS manual. Can use other cluster studies to understand how firms are related.  Considered the following components as you assembled targets of opportunity: o Export-oriented sectors: sectors that sell products or services primarily outside the region o Population-serving sectors: sectors that sell products or services primarily inside the region o Support sectors: sectors selling goods and services to the either the export- oriented or population-serving sectors.  Create Target of Opportunity Tables by assembling a list of NAICS codes and summarizing employment, wage, and concentration (location quotient) data by individual NAICS code and for the group as a whole

6. Targets of Opportunity Revisions

7. Target of Opportunity Criteria CRITERIAINTERPRETATION Expanding Opportunity Job Growth Shows how various industries have weathered market forces and their subsequent employment generation Firm Growth Growth in firms can indicate a change in organization of an industry, a surge in local entrepreneurship, or attraction of outside investment to the region Growing Quality Job Quality High average payroll per employee relative to the regional average indicates a sector with relatively high productivity per employee. Additionally, pay is a reflection of job quality and indicates the amount of training and skill required to perform the job Improving Competitiveness Strong and/or Growing Regional Specialization A concentration of greater than 1 indicates that employment in the region is more specialized in the industry compared with U.S. or California. Specialization generally reflects competitiveness and outward orientation. Career Potential Occupational Distribution and Dynamics Occupational opportunities spread across higher, mid, and lower- levels, suggesting possible pathways for upward mobility. Occupations that are highly-concentrated and/or fast-growing are of particular interest. Key Linkages Important Relationships and Common Needs Related to other sectors in important buyer-supplier or complementary partnering relationships. Share a common workforce, markets, or others.

9. Cluster Sectors in Target of Opportunity

10. Most Initial Target Areas Carried Forward  Most of “Finance” became the core of investment support services  All of “Innovation Services” carried forward  Most of “Specialty Manufacturing” became the core of “Niche Manufacturing”  All of “Agriculture” included in “Specialty Agriculture, Food, and Beverages”  All of “Health” carried forward

11. What Was Very Low on Key Criteria or Was Shifted to Other Target Areas Very Low on Key Criteria  Most of North Coast Experience (very low wage)  Education (very low wage & concentration outside of government) Shifted to Other Areas  Some North Coast Experience shifted to Specialty Agriculture, Food, and Beverages  Some of Information Technology shifted to Management and Innovation Services

12. Six Targets of Opportunity  28% of total regional employment—up from 22% in 1990.  Some are larger with concentrations greater than one (Specialty Ag/Food/Bev, Diversified Health, and Buildings & Systems Construction and Maintenance)  Some are smaller with fast growth rates (Niche Mfg, Mgt and Innovation Services)  Investment Support Services is in the middle

13. North Coast Region Base Clusters

14. NORTH COAST REGION BASE CLUSTERS AND TARGETS OF OPPORTUNITY

15. Targets of Opportunity Review  Overview of target area  Questions about overall definition or specific industry sectors included in target area  Suggestions for revisions to target area  Suggestions for possible employer consultations

16. Diversified Health Care

17. 33% 28% 39%

18. Investment Support Services

19. 38% 22% 40%

20. Management & Innovation Services

21. 83% <1% 17%

22. Building & Systems Construction & Maintenance

23. 31% 20% 49%

24. Specialty Agriculture, Food and Beverages

25. 6% 64% 30%

26. Niche Manufacturing

27. 20% 30% 50%

28. Project Schedule  Regional Dataset (1990-2004 employment, change in firms with and without employees)  Clusters of Opportunity Training and Product  Targets of Opportunity Revisions, Coaching on Base Cluster Update, and Occupational Patterns by Target Area  Employer Consultations/Further Refinements  Summary Document and Presentations