Cluster Analysis Process & Economic Geography

1. Cluster Analysis Process &Economic Geography • Development & Planning Process • Coherent Resources • Florida Database Overview • The Florida Experience • Primer on Concepts: A Quick Chalk Talk • 4 Florida Industries

2. Development & Planning Process • Regional development & cluster potential • Work force development planning • Project eligibility & grant funding • Do the work: Inducements & Local Growth • Grant compliance & benefits reporting

3. Database Overview &The Florida Experience • I-O table, trade shares & trade flows, occupations • Relative production cost: inputs, labor, capital • Employment: durables, nondurables, all nonmanufacturing; services; demand sources • Gross regional product: demand sources; sectors • Demographics & economic migrants • Florida interests (history & forecast) • Florida regional issues (research & simulations)

4. Definitions of Concepts • Occupational Access Productivity: Measures each of 94 occupational productivities due to regional labor market size, relative to the nation: • ability of firms to hire appropriate labor • ability of workers to select best firms • Labor Access Index: Build by sector by region by weighing occupational access productivities by: • sector usage of labor occupations • sector activity in a region • Composite Wage Rate: Relative wage rate divided by labor access index

5. Definitions of Concepts (Cont) • Commodity Access Productivity (Commodity Access Index):Measures intermediate input productivity due to the regional commodity market size, relative to the nation • ability of firms to buy appropriate inputs • ability of suppliers to find best customers • consumer ability to buy desired goods & services • reflects market share changes due to delivered price changes (price elasticity) • Delivered Price: Measures, relative to the nation • production cost at every source location • plus transportation cost to the place of use

6. Definitions of Concepts (Cont) • Composite Price: • The delivered price divided by the commodity access index (an increase in the index represents a region’s increased ability to access a sector’s outputs). • The composite price by industry reflects a sector’s price and variety of choice by region, relative to the nation, based on: • weighted average production cost across every supplying region • weighted average effective distance to those regions • relative ability in the region to access the variety of output from the industry

7. Definitions of Concepts (Cont) • Relative Cost of Production: Measures the combined cost of labor, capital, intermediate inputs, and fuel by industry, relative to the nation. • includes intermediate inputs from all sectors & locations, taking into account the productivity of the inputs • local production cost captures intermediate input composite prices; composite labor cost; and capital and fuel costs

8. 4 Florida Industries • Rubber (nondurable) • Food (nondurable) • Medical (service) • Miscellaneous Manufacturing (durable)

9. Rubber (I-O Recap) Year 2001 • SubTotal (Intermediate Inputs) / Output 0.52642 Value Added (excl. fuel) / Output: • Labor 0.34829 • Capital 0.12526 • SubTotal (Value Added) 0.47355 • Total 1

10. Occupational Access Productivity:Metal & Plastic Workers

11. Labor Access Index: Rubber

12. Relative Cost of Production: Rubber

13. Average Annual Wage Rate(1000s Nom $): Rubber

14. Employment: Rubber

15. Delivered Price: Rubber

16. Commodity Access Index: Rubber

17. Relative Composite Price: Rubber

18. Food (I-O Recap) Year 2001 • SubTotal (Intermediate Inputs) / Output 0.67015 Value Added (excl. fuel) / Output: • Labor 0.17085 • Capital 0.15897 • SubTotal (Value Added) 0.32982 • Total 1

19. Occupational Access Productivity:Food Processing Occupations

20. Labor Access Index: Food

21. Relative Cost of Production: Food

22. Average Annual Wage Rate(1000s Nom $): Food

23. Employment: Food

24. Delivered Price: Food

25. Commodity Access Index: Food

26. Relative Composite Price: Food

27. Medical (I-O Recap) Year 2001 • SubTotal (Intermediate Inputs) / Output 0.31715 Value Added (excl. fuel) / Output: • Labor 0.54386 • Capital 0.13904 • SubTotal (Value Added) 0.6829 • Total 1

28. Occupational Access Productivity:Health Diagnosing & Treating Prac

29. Occupational Access Productivity:Other Health Professionals & Tech

30. Labor Access Index: Medical

31. Relative Cost of Production: Medical

32. Average Annual Wage Rate(1000s Nom $): Medical

33. Employment: Medical

34. Delivered Price: Medical

35. Commodity Access Index: Medical

36. Relative Composite Price: Medical

37. Misc Manufacturing (I-O Recap) Year 2001 • SubTotal (Intermediate Inputs) / Output 0.53875 Value Added (excl. fuel) / Output: • Labor 0.26873 • Capital 0.19253 • SubTotal (Value Added) 0.46126 • Total 1

38. Occupational Access Productivity: Electrical & Electronic Equip Occ

39. Occupational Access Productivity:Other Production Occupations

40. Labor Access Index: Misc Manufacturing

41. Relative Cost of Production:Misc Manufacturing

42. Average Annual Wage Rate(1000s Nom $): Misc Manufacturing

43. Employment: Misc Manufacturing

44. Delivered Price: Misc Manufacturing

45. Commodity Access Index:Misc Manufacturing

46. Relative Composite Price:Misc Manufacturing