Exploring Your Local and Regional Economy – Clinton County September 26, 2014

1. Bo Beaulieu & Michael WilcoxPurdue 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) • The stages of your local establishments • 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. Establishments in Clinton County: The Five Stages • 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 Data Source: NETS 2011, Edward Lowe, IEGC, PCRD

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

7. A Look at Your Working Labor Force

9. Clinton County’s Laborshed and Commuteshed • Based on strong commuting ties, Clinton County is linked to Tippecanoe, Boone and Howard, IN • Cluster analysis is performed for the 4-county region 4,958 7,142 4,961 Source: OTM, LEHD, U.S. Census Bureau

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

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

13. How to interpret a bubble chartThe graph’s four quadrants tell a different story for each cluster. 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. Mature Top left (strong but declining) Stars Top right (strong and advancing) Emerging Bottom right (weak but emerging) Transforming Bottom left (weak and declining) 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. • Modified from:http://www.charlestonregionaldata.com/bubble-chart-explanation/

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

15. Clinton County Region, Industry Cluster Analysis, 2007-12 L e v e l o f S p e c i a l i z a t i o n Stars Mature • Machinery Manufacturing • Primary Metal Manufacturing • Advanced Materials • Agribusiness, Food Processing & Technology • Manufacturing Supercluster • Transportation Equipment Manufacturing • Electrical Equipment, Appliance & Component Manufacturing 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 Transforming Emerging • 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 • Apparel & Textiles • Biomedical/Biotechnical (Life Sciences) • Business & Financial Services • Defense & Security • Fabricated Metal Product Manufacturing • Forest & Wood Products • Transportation & Logistics

16. The Region’s Industry Clusters -- Some Highlights Data Source: EMSI 2013.2, industry cluster definitions by PCRD Red numbers in parenthesis are negatives

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/