Multi-State Advanced Manufacturing

Consortium 

US DOL SPONSORED TAACCCT GRANT: TC23767

RELEASE DATE 08/18/2015

VERSION v 001

PAGE 1 of 39

MULTI-STATEADVANCED MANUFACTURING

CONSORTIUM20150618_v001_m-samc_webinar_03_using_data_grant_applications found in Resources by the M-SAMC Multi-State Advanced Manufacturing Consortium www.msamc.org is licensed under a 

Creative Commons Attribution 4.0 International License.

US DEPARTMENT OF LABOR

MULTI-STATE ADVANCED MANUFACTURING

CONSORTIUM

Using Data to Develop

Compelling Grant Applications

ABOUT US

CENTER FOR REGIONAL ECONOMIC COMPETITIVENESS

• 501(C)(3) NON-PROFIT ORGANIZATION; ARLINGTON, VA

• 15 STAFF; 5 RESEARCH FELLOWS (16 DOCTORAL & MASTER’S DEGREES)

• DATA-DRIVEN POLICY ANALYSIS:

• Economic development• Workforce development• Higher education

• PROFESSIONAL ASSOCIATION MANAGEMENT

LABOR MARKET INFORMATION INSTITUTE

• ESTABLISHED BY THE US DEPT. OF LABOR IN 1994

• NATIONAL MEMBERSHIP NETWORK OF STATE & OTHER LMI PROFESSIONALS

• WORK PROGRAM:• Technical training• Research• LMI system support• Partnership facilitation

OUR PROJECT OBJECTIVES

• TO HELP COLLEGE STAFF AND FACULTY MEET THE INFORMATION NEEDS OF THEIR CUSTOMERS

• College staff and faculty include student advisors, placement counselors, curriculum planners, grant writers, etc.

• TO EQUIP COLLEGE STAFF AND FACULTY WITH THE DATA RESOURCES AND ANALYTICAL CAPACITY TO:1. Answer their key questions, and2. Support their external customers (e.g.,

students, businesses, funders).

College Customer

College Faculty and Staff Roles

Key Customer Questions Analytical or Data Need

College Customer Purpose

Students (and Parents)

Student Advisors

How can I help students make more informed career and educational choices?

Career options and requirements

Students or parents forming opinions or making career choices

Students Placement Counselors

How can I help graduates quickly find jobs in their preferred fields?

Immediate jobs available

Students searching for work

Businesses Workforce & Corporate Training Coordinators

How can I proactively contact companies likely to need training or education services? How can I more effectively target my outreach efforts?

Identifying companies that are adding or replacing talent

Selecting outreach targets, responding to requests, or planning company visits

College Boards, Legislators, Businesses, Students

Curriculum Planners

How can I better assess future demand, and make more informed decision about program investments?

Current and future labor market demands (including job/skill requirements)

Conducting program reviews or making major investments

College Boards, Legislators

Institutional Researchers & College Executives

How can I assess how the college is doing in delivering well-prepared talent to our community?

Graduate outcomes (e.g., employment, earnings) and future needs

Setting the college’s strategic direction and making key investments

Federal, state, local, foundation funders

College grant writers

How can I make a compelling case that the college needs resources to meet student demand, business ed. & training needs?

Current demographic, labor market, and economic trends/ projections

Seeking resources from funders

PURPOSE

• THESE WEBINARS ARE INTENDED TO INTRODUCE COLLEGE FACULTY AND STAFF TO SEVERAL PUBLIC DATA TOOLS AND RESOURCES TO HELP THEM DO THEIR JOBS BETTER.

• MAKE YOU AWARE OF WHAT PUBLIC DATA RESOURCES CAN OFFER YOU, AS WELL AS THEIR SHORTCOMINGS.

• THIS WEBINAR WILL FOCUS ON TOOLS THAT CAN HELP COLLEGE GRANT WRITERS WEIGH OPTIONS ABOUT:

• Making compelling statements of economic need• Connecting to sector-based strategies• Better competing for potential funding sources

AGENDA• THE STRUCTURE OF INDUSTRY-RELATED DATA

• TOOLS FOR DEVELOPING COMPELLING GRANT APPLICATIONS BY ANSWERING KEY QUESTIONS:

• How is my economy structured?

• What industries are responsible for creating jobs?

• Does my region have any unique competitive strengths?

• Is my economy healthy?

• DATA TOOLS WE ARE WORKING ON FOR M-SAMC COLLEGES

• WHAT’S NEXT

• Q&A

TOPICS

• INDUSTRY STRUCTURE• North American Industry Classification System (NAICS)

• GDP data• Basic versus non-basic employment

• INDUSTRY ANALYSIS• QCEW data• Location quotients• County Business Patterns

• COOL TOOLS

NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS)

• PRONOUNCED “NAKES”• www.census.gov/eos/www/naics/

• GROUPS ESTABLISHMENTS INTO INDUSTRIES BASED ON THE SIMILARITY OF THEIR PRODUCTION PROCESSES.

• 20 sectors• 1,065 industries

• REVISED EVERY 5 YEARS TO KEEP UP WITH CHANGING ECONOMY

• Current version is 2012• Some employment data started in 2011

• JOINTLY DEVELOPED ACROSS NORTH AMERICA

• REPLACED THE STANDARD INDUSTRIAL CLASSIFICATION (SIC)

NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS)

2012

9

NAICS level Example #1 Example #2

NAICS code Description NAICS code Description

Sector 31-33 Manufacturing 51 Information

Subsector 311 Food Manufacturing 517 Telecommunications

Industry group

3115 Dairy Product Manufacturing

5172 Wireless Telecommunications Carriers, (except Satellite)

Industry 31151 Dairy Product (except Frozen) Manufacturing

51721 Wireless Telecommunications Carriers, (except Satellite)

U.S. Industry 311513 Cheese Manufacturing 517210 Wireless Telecommunications Carriers, (except Satellite)

Unique to country; standardization ends at 5-digit code.

11- Agriculture, Forestry, Fishing 53- Real Estate, Rental & Leasing

21- Mining & Extraction 54- Professional, Scientific & Technical

22- Utilities 55- Management of Companies

23- Construction 56- Admin., Waste & Remediation

31-33- Manufacturing 61- Education

42- Wholesale Trade 62- Health Care & Social Assistance

44-45- Retail Trade 71- Arts, Entertainment, & Recreation

48-49- Transportation & Warehousing 72- Accommodation & Food

51- Information 81- Other Services (Private)

52- Finance & Insurance 92- Public Administration

NAICS SECTORS

http://www.census.gov/eos/www/naics

NAICS LOOKUP

FIND THE INDUSTRY GROUP DESCRIPTION FOR THE

FOLLOWING NAICS:TEXTILE MILLS

NUCLEAR POWER PLANTSAUTOMOTIVE MANUFACTURING

http://www.census.gov/eos/www/naics

NAICS LOOKUP

FIND THE INDUSTRY GROUP DESCRIPTION FOR THE FOLLOWING

NAICS:TEXTILE MILLS (3132)

NUCLEAR POWER PLANTS (2211)

AUTO MANUFACTURING (3361)

BENEFITS OF NAICS

Relevance… identifies new, emerging, & advanced technology industries; more meaningful sectors--especially in the service-producing segments .

Comparability …provides for comparable statistics among the three NAFTA trading partners.

Consistency … consistent principle: businesses that use similar production processes are grouped together.

Adaptability … reviewed every 5 years, to keep up with our changing economy.

NAICS – THINGS TO WATCH OUT FOR

• NAICS REVISIONS WHEN COMPARING DATA OVER TIME

• OWNERSHIP IS NOT AN INDUSTRY• Employment data often separates private and

government• Most NAICS sectors apply to private and government

• NAICS 92 – Public Administration is the exemption

• SPECIALIZED SECTOR ROLLUPS EXIST• Goods producing – mfg., const., natural resources &

mining• Service providing – everything else• Trade, transportation, and utilities• What about educational services?

• HOW TO DEFINE SOME OF THE “CATCHY” INDUSTRIES OF THE DAY

• Green Building• Advanced Manufacturing• Life Sciences

• LACK OF DETAIL FOR SOME INDUSTRIES

• Software development• Engineering

NAICS – THINGS TO WATCH OUT FOR

WHAT DATA GIVE ME SOME INDICATION ABOUT THE

STRUCTURE OF MY REGIONAL ECONOMY?

• HOW MUCH WEALTH IS BEING CREATED IN MY REGIONAL ECONOMY?

• Regional GDP trends

• HOW WEALTHY (OR NOT) ARE THE REGION’S PEOPLE?

• How does the region’s wages/income compare to the Nation or State?

• WHAT INDUSTRIES ACCOUNT FOR THE JOBS IN MY REGION

• Which industries are adding jobs?• Which industries are showing decreasing employment?

GROSS DOMESTIC PRODUCT (GDP)

• BROADEST MEASURE OF AN ECONOMY

• GROSS DOMESTIC PRODUCT (GDP)• Equal to Output sold to Final Users:

Consumption + Investment + Gov. Spending + Net Exports

• Equal to Value Add or Gross Domestic Income:Wages + Net Interest + Rents + Profits + Indirect Taxes

• Relates to Personal Income:Wages + Interest/Dividends/Rents + Net Transfer Payments

• TELLS BIG SECTORS IN REGIONAL ECONOMY

• BUREAU OF ECONOMIC ANALYSIS – NIPA

BUREAU OF ECONOMIC ANALYSISWWW.BEA.GOV

MANUFACTURING ACCOUNTS FOR $0.16 OUT OF EVERY $1.00 DOLLAR

PRODUCED IN SC

19

0%

5%

10%

15%

20%

25%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

MFG

as

a Pe

rcen

t of T

otal

GD

P (2

005

chai

ned

dolla

rs)

Manufacturing as a Percent of Total State Gross Domestic Product

North Carolina

South Carolina

Tennessee

Mississippi

Alabama

United States

Georgia

Virginia

Source: US Bureau of Economic Analysis

COVERED EMPLOYMENT DATA

• “COVERED” JOBS DATA• Workers in jobs covered in the unemployment insurance

program• Quarterly Census of Employment and Wages (QCEW)

• Used to be called ES-202 data• Called quarterly, but employment data is for each month

• Jobs, payroll, and establishments• Establishments by size class

• Organized by ownership and NAICS• Available for all counties, MSAs, states, and the U.S.

• ISSUES• Data availability takes about 6 months• Some industries are suppressed to protect employer

confidentiality• Laws affecting unemployment insurance coverage vary by state• QCEW is not a time series. Old data are not revised for

consistency.

BUREAU OF LABOR STATISTICS

www.bls.gov/cew/apps/data_views/data_views.htm#tab=Tables

BUREAU OF LABOR STATISTICS

http://beta.bls.gov/maps/cew/us

BASIC/NON-BASIC THEORY

•BASIC INDUSTRY - THOSE INDUSTRIES THAT PRODUCE GOODS AND SERVICES ULTIMATELY SOLD TO CONSUMERS OUTSIDE THE REGION.

•NON-BASIC INDUSTRY - THOSE INDUSTRIES THAT PRODUCE GOODS AND SERVICES THAT ARE CONSUMED LOCALLY.

BASIC ECONOMIC MODEL

Export or ‘base’ activity (new $s)

Non-basic activity (recycled $s)

Examples:

•Manufacturing

•Tourism

•Some hospitals

•Regional shopping malls

•Social Security income

Examples:

•Auto repair services

•Small convenience retail

•Outpatient medical

•Personal services like barber shops

•Print and copy shops

LOCATION QUOTIENTS (LQS)

• A REGULARLY USED METHOD FOR REGIONAL ANALYSIS

• LQS MEASURE THE RELATIVE CONCENTRATION OF A GIVEN INDUSTRY IN A GIVEN PLACE.

• Often relative to the nation, but can also calculate state LQs

• CALCULATED BY DIVIDING THE PROPORTION OF THE REGION’S ECONOMIC ACTIVITY IN AN INDUSTRY, BY THE PROPORTION OF THE NATION’S ECONOMIC ACTIVITY IN THAT SAME INDUSTRY.

• INDUSTRY EMPLOYMENT IS THE MOST COMMONLY USED VARIABLE, BUT COULD ALSO GENERATE LQS FROM OTHER VARIABLES.

• E.g., occupational employment, industrial output, revenue, etc.

LOCATION QUOTIENTS

Total

Total

Industry

Industry

Reg

ion

Natio

n

FORMULA

100 Total Jobs

1,000,000 Total Jobs

20 MFG jobs

100,000 MFG Jobs

Reg

ion

Natio

n

5 MFG jobs10 MFG jobs

Example LQ

20.51

INTERPRETING LQS

• IF ALL LOCATION QUOTIENTS NEAR OR AT A 1.0, WILL SEE THE REGION RESEMBLING THE NATIONAL ECONOMY

• Region may be sufficiently diversified• CAN USE LOCATION QUOTIENT TO GET A SENSE OF

THE SPECIALIZATION OF REGIONAL INDUSTRIES• General rules of thumb

• LQs of 1.2 or higher indicates some degree of specialization• LQs of 0.8 to 1.2 indicate normal distribution of industry within the region• LQs of less than 0.8 may indicate that the region may be deficient

• Depends on size of region, nature of industry• Smaller regions may have larger LQs• Not industries are appropriate for all places

BUREAU OF LABOR STATISTICS

data.bls.gov/location_quotient/ControllerServlet

INTERPRETING LOCATION QUOTIENTS

Loc

atio

n Q

uot

ien

t

Employment Growth

Important industries that may require attention

High

High

Low

Low

Important growth industries

Industries of little promise to local economy

Potential emerging industries

Interpretation • HIGH IS NOT

ALWAYS GOOD, LOW IS NOT ALWAYS BAD

• ITS BEST NOT TO INTERPRET LQS IN A VACUUM

• CHANGE IN LQ IS ANOTHER IMPORTANT CONSIDERATION

US CENSUS

COUNTY BUSINESS PATTERNS

http://www.census.gov/econ/cbp/index.html

OTHER RESOURCES

Key data aggregators•Stats America•US Cluster Mapping•Measure of America•Mapping America's Future (Demographics Trends and Projections)•NACo County Explorer

Economic trends in your state and county•County Business Patterns: Interactive map of county business and demographic data•Economic Census: Industry Snapshots•Local Area Unemployment Statistics: Employment and unemployment data•BEARFACTS: Fact Sheets about your state, metro, and county's personal income and gross domestic product

RECAPPING WHAT WE COVERED

• Exposure to the structure of industry data along with data sources & tools.

• Ways that data can be used to help make stronger cases for funding college programs and special initiatives.

• How the information can help grant writers emphasize their college’s unique position to answer industry demand for skilled workers.

• Limitations with the data.

• The necessity to supplement data sources with good local knowledge and industry relationships.

OUR EFFORTS TO HELP YOU

M-SAMC DATA DASHBOARD

PERFORMANCE-BASED OBJECTIVES DATABASE

SHORT INSTRUCTIONAL VIDEOS

ADDITIONAL TRAINING

M-SAMC DATA DASHBOARD

• A SINGLE WEB ENTRY POINT FOR USERS LOOKING TO ANSWER SOME COMMON QUESTIONS.

• Demographic• Industry• Workforce

• DATA RELEVANT TO THE INDIVIDUAL COLLEGE SERVICE AREAS, AND COMPARISONS TO THE STATE AND NATION.

• Help with the “Compared to what?” questions

• DIRECT LINKS TO A WIDE VARIETY OF PUBLICALLY AVAILABLE DATA AND INFORMATION.

OTHER M-SAMC RESOURCES

• INSTRUCTIONAL VIDEOS• Short videos that will show college staff how to quickly find key pieces of information (e.g., average wages).

COMPETENCY-BASED WORKFORCE INTELLIGENCE TRAINING PROGRAM

FULL COURSE

• USING LABOR MARKET INTELLIGENCE TO ENGAGE INDUSTRY PARTNERS

• Corporate College Representatives

• In-person training locations (confirmed):

• Gadsden State (June 24)

• Spartanburg - (August 20-21)

• Henry Ford – (September 16)

• BridgeValley – (TBD)

WEBINAR SERIES

• USING DATA TO HELP STUDENTS STRATEGICALLY SELECT COURSES & LAUNCH SUCCESSFUL CAREERS (JUNE 18, 2 PM)

• USING DATA TO DEVELOP NEW & ADAPT EXISTING CURRICULUM (JULY 21, 2 PM)

• USING DATA TO DEVELOP COMPELLING GRANT APPLICATIONS (AUGUST 18, 2 PM)

• DETERMINING THE IMPACT OF DEMOGRAPHIC TRENDS ON COLLEGES (SEPTEMBER 15, 2 PM)

• LMI TOOL DEMONSTRATION WEBINARS (TBD)

Questions?Martin Romittimromitti@crec.net

SAFETY DISCLAIMER:M-SAMC educational resources are in no way meant to be a substitute for occupational safety and health

standards. No guarantee is made to resource thoroughness, statutory or regulatory compliance, and related media may depict situations that are not in compliance with OSHA and other safety requirements. It is the responsibility of educators/employers and their students/employees, or anybody using our resources, to comply fully with all pertinent OSHA, and any other, rules and regulations in any jurisdiction in which they learn/work. M-SAMC will

not be liable for any damages or other claims and demands arising out of the use of these educational resources. By using these resources, the user releases the Multi-State Advanced Manufacturing Consortium and participating

educational institutions and their respective Boards, individual trustees, employees, contractors, and sub-contractors from any liability for injuries resulting from the use of the educational resources.

DOL DISCLAIMER:This product was funded by a grant awarded by the U.S. Department of Labor’s Employment and Training

Administration. The product was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but

not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership.

RELEVANCY REMINDER:M-SAMC resources reflect a shared understanding of grant partners at the time of development. In keeping with our industry and college partner requirements, our products are continuously improved. Updated versions of our

work can be found at the M-SAMC website: http://www.msamc.org.

20150618_v001_m-samc_webinar_01_using_data_to_help_students found in Events by the M-SAMC Multi-State Advanced Manufacturing Consortium www.msamc.org is licensed under a 

Creative Commons Attribution 4.0 International License.