River Hills Indiana Regional Snapshot

River Hills Indiana Region

REGIONAL SNAPSHOT

Overview01Demography02Human capital03

Labor force04Industry and occupation05Conclusions06

Table of contents

01overview River Hills Indiana region What is a regional snapshot?

4

Overview

section 01

The River Hills Region is located in south-central Indiana and borders Kentucky along the Ohio River. Two interstates, theI-64 and I-65 corridors, pass through the region. The five Indiana counties that comprise the region are:

Clark Floyd Harrison Scott Washington

All five River Hills counties are part of the Louisville metropolitan statistical area.

River Hills Indiana Region

5

Overview

section 01

About the regional snapshotWhat is the snapshot?The regional snapshot is a demographic and economic assessment of the River Hills Region in Indiana. Using county-level data, PCRD analyzed a number of indicators to gauge the overall economic performance of the River Hills Indiana Region.

What is its purpose?The snapshot is intended to inform River Hills leaders, organizations and residents of the key attributes of the region’s population and economy. In particular, it takes stock of the region’s important assets and challenges. With such data in hand, regional leaders and organizations are in a better position to invest in a mix of strategies that will spur the growth of the economy and provide a higher quality of life for residents of the region.

What are its focus areas?PCRD secured and analyzed recent data from both public and private sources to generate the snapshot. In order to build a more comprehensive picture of the region, the report presents information under four key categories:

Demography Human Capital Labor force Industry and occupation

When appropriate or relevant, the report compares information on the region with data on the remainder of the state of Indiana. By so doing, the region is better able to determine how well it is performing relative to the rest of the state on a variety of important metrics.

02demography Population change

Population pyramids

Income and poverty

7

Demography

section 02

Population change

In 2013, the population in the River Hills Region represented 4.2 percent of the overall population of Indiana, compared to 4.3 percent in 2002. If current trends hold, by 2020 the region’s population will have increased to 4.4 percent of Indiana’s population.The population of the River Hills Region increased by 9.5 percent from 2002 to 2013, while the rest of the state grew at a slower pace, namely, 6.6 percent during that same period.

Source: U.S. Census Bureau: Population Estimates, STATS Indiana

255,794 280,097

298,391

2013-2020

2002-2013

2002

Total population projections

River Hills RegionRest of Indiana

+9.5% 6,290,805

6,553,7305,900,17

3+6.5%

+ 6.6%

+ 4.2%

It is estimated that the River Hills Region’s population will increase by 6.5 percent (or around 18,000 individuals) from 2013 to 2020. The rest of Indiana is expected to grow by 262,925 people (4.2 percent) over that same time period.

The River Hills Region experienced substantial population growth over the past decade. These gains were proportionally larger than that witnessed by the rest of Indiana.

8

Demography

section 02

Components of population changeThe total population of the River Hills Region increased by over 23,000 people from 2002 to 2013. Domestic migration and natural increase were the main drivers of this change.Natural increase (births minus deaths over that time period) positively contributed to population change, with a net growth of 10,017 persons. Data on domestic migration (the number of people moving into the region versus the number moving out) show that in-migration outpaced out-migration by 12,398 people. On the other hand, net international migration increased by only 2,006 individuals, indicating that the region experienced a moderate influx of new people from outside the U.S.

Source: U.S. Census Bureau

Components of Population Change, 2002-2013Total Change 23,252*

Natural Increase 10,017

International Migration 2,006

Domestic Migration 12,398*Components of population extracted from Components of Population Change 2010 (CO-EST-2010) and Components of Population Change (PEPCOMP 2013). Estimation residuals lead to differences between total change and total population.

Over the past decade, the River Hills Region experienced population gains, primarily due to domestic in-migration and natural increase of its population.

9

Population pyramidsPopulation pyramids are visual representations of the age distribution of the population by gender.

Demography

section 02

Men (36,564 people) outnumbered women (34,689 people) in most of the young age cohorts (0 to 19 and 30 to 49 years) of the River Hills Region in 2013. As for the rest of Indiana, men (2,111,504 people) outpaced women (2,063,259 people) in all young age cohorts (0 to 49 years) in that year. Conversely, women are the predominant gender in the older age cohorts of both areas.The share of River Hills’ population 50 years of age or older represented 36 percent (99,836 people) of the overall population in 2013. This figure is 2 percentage points larger

than the rest of the state, in which residents 50 years of age or older accounted for 34 percent of the population (more than 2 million people). However, the two oldest cohorts (70 to 79 and 80 years and older) were nearly 9 percent of the population in both the River Hills Region and the rest of Indiana.These results suggest that the population of the River Hills Region was slightly older than the rest of the Indiana in 2013. It may make sense for the region to devote attention to the mix of services and amenities that may be needed by an aging population.

Source: U.S. Census Bureau: Population Estimates

00-0910-1920-2930-3940-4950-5960-6970-79

80+

9 6 3 0 3 6 96.3%6.7%6.1%6.5%7.0%7.4%5.3%2.7%1.2%

6.1%6.3%6.1%6.4%6.9%7.7%5.9%3.3%2.2%

River Hills - 2013

Percentage of Population

Age

Coho

rt

00-0910-1920-2930-3940-4950-5960-6970-79

80+

9 6 3 0 3 6 96.8%7.1%6.9%6.3%6.5%6.9%4.9%2.6%1.3%

6.4%6.8%6.8%6.3%6.5%7.1%5.4%3.1%2.4%

Rest of Indiana - 2013

Percentage of Population

Age

Coho

rt

Male MaleFemale

Female

10

Income and povertyDemography

section 02Source: U.S. Census Bureau – Small Area Income and Poverty Estimates (SAIPE)

2002 2008 2013

Total Population in Poverty 9.1% 11.6% 13.1%

Minors (Age 0-17) in Poverty 11.6% 17% 19.2%

Average Real Median Household Income ($ 2013)*

$ 52,084 $ 51,890 $ 50,615

Real Personal Per Capita Income ($ 2013)

$ 35,022 $ 36,028 $ 37,116

The average real median income among River Hills counties decreased from 2002 to 2013, with a loss of almost $1,500. However, real per capita income grew almost $2,000 over the same 12 year period.

The total population in poverty increased by 4 percentage points from 2002 to 2013, while the proportion of minors in poverty rose by twice that amount, 8 percentage points. By 2013, 13 percent of residents and 19 percent of minors in the River Hills Region were impoverished.

The decreasing median income coupled with increasing per person income and increasing poverty would suggest that income inequality is increasing in the region.

* Weighted real median income, weighted by county population

03 human capital Educational attainment

Graduation rates

Patents

12

Human capital

section 03

Educational attainment

Associate’s degreeBachelor’s degreeGraduate degree

No high schoolSome high schoolHigh schoolSome college

Source: 2013 ACS 5-year estimates

5%10%

38%

22%

8%

12%

6%

River Hills Region - 2013

4%9%

35%

21%

8%

15%

8%

Rest of Indiana

Educational attainment is one important indicator of the human capital attributes and skills of a population.

Fifteen percent of River Hills residents (25 years of age or higher) had less than a high school education in 2013, compared to 13 percentage for residents in the rest of the state. However, the percentage of individuals with only a high school education was 3 percentage points higher in the River Hills Region than in the rest of Indiana (38 percent versus 35 percent).

Both the River Hills Region and remainder of the state had the same proportion of adults with an associate’s degree (8 percent), but the proportion of adults with a bachelor’s degree or more was lower in the region when contrasted to the rest of the state (18 percent versus 23 percent).

The River Hills Region may be challenged in its ability to have available a highly- skilled pool of workers in light of the sizable number of adults (53 percent) with a high school education or less.

13

Human capital

section 03

Four-year high school graduation ratesApproximately 82 percent of students in the River Hills Region successfully graduated from high school within a four-year period in 2009. This was 0.7 percentage points lower than in the rest of Indiana. However, the four-year graduation rate swelled to 92 percent in the River Hills Region by 2013, surpassing the rate for the remainder of the state. The River Hills Region outperformed the rest of Indiana in 2013 with respect to the four-year high school graduation rates.

Source: datacenter.kidscount.org

2009 201376.0%

78.0%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

81.9%

91.8%

82.6%

88.8%

River Hills

Rest of Indiana

River Hills

Rest of Indiana

14

section 03

Average Patents* (2001-2013)

Source: U.S. Patent and Trademark Office

Human capital

Note: Patent origin is determined by the residence of the first-named inventor. Since many workers commute into the region, the number of patents produced in the region could behigh. However, among residents of the region, patent production is relatively low.

*Average patents refers to the average patent rate overtime, either patents per jobs or patents per residents.

Average Patents per 1,000 jobs

2001-2013From 2001 to 2013, River Hills

counties were issued patents at a rate of 1.6 per 10,000 jobs,

while the remaining Indiana counties garnered 3.8 patents

per 10,000 jobs.

Average Patents per 1,000 residents2001-2013From 2001 to 2013, 0.8 patents per 10,000 residents were issued in River Hills counties. The rest of Indiana amassed 2.1 patents per 10,000 residents.

Patenting trends are an important indicator of the level of innovation in a region. Success in commercializing these innovations can lead to long-term growth for a region.The River Hills Region was awarded, on average, 1.6 patents per 10,000 jobs each year from 2001 to 2013.The region was issued, on average, two fewer patents per 10,000 jobs and residents than the rest of Indiana. The data indicate that the River Hills Region may need to consider ways to foster a culture of innovation.

Region, 1.560046703

73881

Rest of Indi-ana,

3.79527077232302

Region, 0.755449994

820373

Rest of Indi-ana,

2.11489139278012

04labor force Unemployment rates

Earnings per worker

Labor shed andcommuter shed

16

Labor force

section 04

Unemployment ratesThe River Hills Region’s unemployment rate was 7.2 percent in 2013. Since 2007, the region’s rate has remained below the rate in the rest of Indiana.In 2000, the unemployment rate in the River Hills Region stood at 3.4 percent, slightly higher than the rest of Indiana. The unemployment rates for the region and the rest of Indiana were fairly similar until the onset of the economic recession around 2007. Since 2007, the unemployment rate in the region has fared better than the rest of the state. At the peak of the recession in 2009, the unemployment in the rest of the state was 1 percentage point higher than the Rivers Hills Region. While the gap has narrowed in recent years, the region is still enjoying a lower unemployment rate (as of 2013) than both the rest of the Indiana and the nation as a whole.

Source: U.S. Bureau of Labor Statistics – Local Area Unemployment Statistics

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

3.4%

5.5%4.5%

9.4%

7.2%

2.9%

5.4% 4.6%

10.4%

7.5%

3.8%5.2%

4.5%

9.0%

7.5%

Riverhills Rest of Indiana U.S. Total

17

Labor force

section 04

Real earnings per workerReal earnings* per worker is constructed by averaging earnings for all industries in the ECIRP region and the rest of Indiana.Real earnings per worker (in 2013 dollars) remained constant in the River Hills Region between 2008 and 2013, while they increased by approximately 1 percent in the rest of Indiana. For both the years 2008 and 2013, real earnings in the River Hills Region remained more than $6,000 below the amount captured by workers in the rest of Indiana.

River HillsRegion

Rest of Indiana

2008 2013

Source: Economic Modeling Specialists International – 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors), PCRD industry cluster definitions

$36,000

$38,000

$40,000

$42,000

$44,000

$46,000

$48,000

$39,364 $39,433

$45,524 $45,885

*Earnings include wages and salaries, supplements and other proprietorship incomes

18

Labor force

section 04

Labor shed

Source: LEHD, OTM, U.S. Census Bureau

A region’s laborshed is the geographic area from which it draws employees.River Hills Region was home to a total of 99,441 jobs in 2013. More than 32 percent of individuals working in River Hills counties at that time traveled from surrounding counties to work in the region. On the other hand, almost 68 percent of jobs in the region were held by River Hills residents.

Thus, more than two-thirds of the region’s labor force is comprised of people who both live and work in the River Hills Region.

Population 2013 Jobs*

Proportion

Employed in River Hills 99,441 100%Employed in River Hills but Living Outside 32,065 32%

Employed and Living in River Hills 67,376 68%

In-Commuters Same Work/Home

*most recent data available

32,065 67,376

19

Labor shed in 2013Labor force

Source: U.S. Census Bureau, OTM, LEHD, PCRD

The River Hills Region draws its labor force largely from its own counties and adjacent counties.Seventy-five percent of the region’s workers live in River Hills counties or in Jefferson County in Kentucky (Louisville MSA).

Only one additional county is included in the labor shed when extending the threshold to 80 percent: Scott County, Indiana.

Adjacent Crawford and Jackson Counties in Indiana and Oldham and Bullitt Counties in Kentucky are part of the 85 percent labor shed, as well as two metropolitan areas, Columbus Indiana (Bartholomew County, Indiana) and Indianapolis (Marion County, Indiana).

section 04

20

Labor force

section 04

Commuter shed

Source: LEHD, OTM, U.S. Census Bureau

*most recent data available

A region’s commuter shed is the geographic area where its residents work.Half of employed residents in the River Hills Region commute to jobs located outside of the region. The other half of the region’s workforce both live and work in the River Hills Region.

Out-Commuters Same Work/Home

67,421 67,376

Population 2013 Jobs*

Proportion

Employed River Hills Residents 134,797 100%Living in River Hills and Employed Outside 67,421 50%

Living and Employed in River Hills 67,376 50%

21

Commuter shed in 2013Labor force

Source: U.S. Census Bureau, OTM, LEHD, PCRD

section 04

The River Hills Region commuting pattern involves its own counties and surrounding metropolitan areas. Seventy-five percent of employed River Hills residents commute to Clark, Floyd or Harrison Counties in the region or the Louisville (Jefferson County, Kentucky) or Indianapolis (Marion County, Indiana) metropolitan areas. In fact, Jefferson County in Kentucky is the largest employment location for River Hills residents.

Increasing the commuter shed threshold to 80 percent results in the inclusion of Scott County, Indiana. At the 85 percent threshold, Jackson and Washington Counties in Indiana, as well as parts of the Evansville (Vanderburgh County, Indiana), Bloomington (Monroe County, Indiana), Columbus (Bartholomew County, Indiana), and Lexington-Fayette (Fayette County, Kentucky) metropolitan areas are added to the River Hills commuter shed.

05industry and occupation

Establishments

Employment by industry

Cluster analysis

Top occupations

STEM occupations

23

Industry and occupation

section 05

Establishments

Source: National Establishment Time Series (NETS) – 2012 Database

The number of establishments in River Hills Region increased 86 percent from 2000 to 2011. The River Hills Region gained 9,128 new establishments between 2000 and 2011. Most of the gain came from natural change (births minus deaths of establishments). Births surpassed deaths by 8,689 establishments.More establishments moved into the River Hills Region than migrated out to locations in non-River Hills counties. The result is a net gain of 439 establishments due to migration.

An establishment is a physical business

location. Branches, standalones

and headquarters are all considered types of

establishments.

Definition of Company Stages0 12 3

4

Self-employed

2-9 employees

10-99employees

100-499employees

500+employees

Components of Change for EstablishmentsTotal Change (2000-11) 9,128

Natural Change (births minus deaths) 8,689

Net Migration 439

24


section 05

Establishments


The number of establishments in the River Hills Region nearly doubled between 2000 and 2011. This growth occurred primarily in Stage 0 and Stage 1 establishments, which grew 65 percent and 53 percent, respectively. The number of Stage 3 establishments also increased by 19 percent.

Number of Establishments by Employment Size

2000 2011Stage Establishme

nts Proportion Establishments Proportion

Stage 0 2,746 26.0% 6,323 32.1%Stage 1 5,855 55.4% 11,410 57.9%Stage 2 1,811 17.1% 1,785 9.1%Stage 3 139 1.3% 166 0.8%Stage 4 20 0.2% 15* 0.1%Total 10,571 100% 19,699 100.0%The number of Stage 2 and Stage 4

establishments declined in the region over the same time period. Stage 2 establishments fell by only 1 percent (loss of 26 establishments). At the same time, Stage 4 establishments declined by 5 establishments, a 25 percent decline since 2000.

*The most recent data from ReferenceUSA shows 18 Stage 4 establishments for the River Hills Region in 2014, compared to 15 establishments from the NETS database in 2011.

25

Establishments’ total sales decreased between 2000 and 2011 in the River Hills

Region. Despite an overall decline in sales in the River Hills Region from $15.6 billion to $13.7 billion,

two establishment stages experienced an increase in sales over the past decade. Stage 0

experienced the largest growth, 35 percent, while Stage 3 sales grew by a modest 5

percent. Sales by Stage 4 establishments fell the most with a 53 percent decline. However, Stage 1 and Stage 2 sales had much smaller

declines at 3 percent and 13 percent, respectively.


section 05

Establishments


Number of Jobs by Establishment StagesYear 2000 2011Stage 0 2,746 6,323 Stage 1 21,857 34,111 Stage 2 46,345 47,521 Stage 3 25,490 27,732 Stage 4 16,417 13,710 Total 112,855 129,397

Aggregate Sales (2013 US$) by Establishment StagesYear 2000 2011Stage 0 $ 394,300,353 $ 532,299,057 Stage 1 $ 3,001,864,696 $

2,911,296,802 Stage 2 $ 5,793,901,269 $

5,031,227,399 Stage 3 $ 3,799,133,042 $

3,981,169,962 Stage 4 $ 2,682,501,448 $

1,253,943,740 Total $ 15,671,700,808 $

13,709,936,960

From 2000 to 2011, total jobs declined, largely the result of jobs losses from Stage 4 establishments.Self-employed (Stage 0) and Stage 1 establishments experienced impressive gains in jobs between 2000 and 2011, with 130 percent and 56 percent growth, respectively. Stage 2 jobs grew by 3 percent, despite losing establishments, indicating that job growth did occur among the remaining establishments. Stage 3 establishments witnessed a slightly larger 9 percent increase in jobs. The largest establishments in the River Hills Region (Stage 4) suffered an employment decline of over 16 percent.

26


section 05

Establishments: major employers

Source: Hoosiers by the Numbers, Reference USA

Major Employers in River Hills Region (according to Reference USA)

Clark Stage Floyd Stag

e Harrison Stage Scott Stag

e Washington Stage

1. Clark Memorial Hospital(Jeffersonville)

41. Floyd Memorial Hospital(New Albany)

41. Horseshoe Southern Indiana(Elizabeth)

41. Walmart Supercenter(Scottsburg)

31. Kimball Office Furniture(Salem)

3

2. AFGE Local 1438 (Jeffersonville)

42. Beach Mold & Tool, Inc.(New Albany)

42. Tyson Foods, Inc.(Corydon)

42. Morgan Foods, Inc.(Austin)

3 2. Peerless Gear(Salem) 3

3. Jeffboat, LLC(Jeffersonville) 4

3. Indiana University Southeast(New Albany)

43. Physician Referral Services(Corydon)

43. Scott Memorial Hospital(Scottsburg)

33. GKN Sinter Metals(Salem)

3

4. National Distributors Leasing(Sellersburg)

3 4. Samtec, Inc.(New Albany) 4

4. Walmart Supercenter(Corydon)

34. Austin Tri-Hawk Automotive, Inc.(Austin)

34. St. Vincent Salem Hospital(Salem)

3

5. Ivy Tech Community College(Sellersburg)

35. Hitachi Cable Indiana, Inc.(New Albany)

45. Blue River Services Housing(Corydon)

35. ILPEA Industries, Inc.(Scottsburg)

35. Net Shape Technologies, Inc.(Campbellsburg)

3

*Establishment size was extracted from Reference USA. The number of employees was aggregate to obtain a company employment total. This analysis considers the company as a whole, while the previous analysis using NETS considers individual establishments. One company may be comprised of several establishments.

27


section 05

Top five industries’ employment growth

NAICS Description 2008

Jobs2013 Jobs

Change

Change (%)

River Hills Region62 Health Care and Social Assistance 10,414 11,545 1,131 11%90 Government 19,639 20,600 961 5%72 Accommodation and Food Services 9,873 10,808 935 9%53 Real Estate and Rental and Leasing 4,072 4,499 427 10%52 Finance and Insurance 4,971 5,365 394 8%

Rest of Indiana62 Health Care and Social Assistance 361,840 395,602 33,762 9%56 Administrative and Support and Waste Management and

Remediation Services 183,918 206,802 22,884 12%

72 Accommodation and Food Services 238,018 251,202 13,184 6%53 Real Estate and Rental and Leasing 112,028 122,514 10,486 9%52 Finance and Insurance 135,094 145,429 10,335 8%

Health Care and Social Assistance was the top growth industry in the River Hills Region between 2008 and 2013, both in total jobs (+1,131) and in growth rate (+11 percent). However, Real Estate and Rental and Leasing also had a high growth rate with a 10 percent rise in jobs.

In the rest of Indiana, Health Care and Social Assistance had the largest total increase in jobs (+33,762), but the highest growth rate (+12 percent) was in Administrative and Support and Waste Management and Remediation Services.

Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors)

28


section 05

Top five industries’ employment decline

NAICS Description 2008

Jobs2013 Jobs

Change

Change (%)

River Hills Region31 Manufacturing 19,885 18,551 -1,334 -7%23 Construction 8,592 7,419 -1,173 -14%48 Transportation and Warehousing 7,358 6,253 -1,105 -15%71 Arts, Entertainment, and Recreation 3,960 3,493 -467 -12%54 Professional, Scientific, and Technical Services 4,642 4,418 -224 -5%

Rest of Indiana23 Construction 200,938 174,050 -26,888 -13%31 Manufacturing 512,942 486,757 -26,185 -5%90 Government 436,935 419,738 -17,197 -4%42 Wholesale Trade 117,860 112,979 -4,881 -4%54 Professional, Scientific, and Technical Services 150,566 147,693 -2,873 -2%

In the River Hills Region, the Manufacturing, Construction, and Transportation and Warehousing industries suffered the largest numerical job losses between 2008 and 2013. Construction and Manufacturing were also the top two industry sectors suffering job losses in the rest of Indiana. Of the top job

loss industries in the River Hills Region between 2008 and 2013, Transportation and Warehousing (-15 percent), Construction (-14 percent) and Arts, Entertainment and Recreation (-12 percent) lost similar proportions of jobs. Construction (-13 percent) was the only industry in the rest of Indiana that experienced a comparable proportional loss.

Source: Economic Modeling Specialists International (EMSI) – EMSI 2014.3 Class of Worker Data (QCEW, non-QCEW, self-employed and extended proprietors)

29

How to interpret a bubble chartThe graph’s four quadrants tell a different story for each cluster.


section 05 Modified from: http://www.charlestonregionaldata.com/bubble-chart-explanation/

EmergingBottom right(weak but advancing)

StarsTop right (strong and advancing)

MatureTop left

(strong but declining)

TransformingBottom 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 anticipatea future need. In general, clusters in this quadrant show a lack of competitiveness.

http://www.charlestonregionaldata.com/bubble-chart-explanation/

Mature Star

Transforming Emerging

-40% -30% -20% -10% 0% 10% 20% 30% 40%

-1

0

1

2

3

4

Biomedical/Biotech, [Y VALUE], [BUBBLE SIZE]

Business&FinancialService, [Y VALUE], [BUBBLE

SIZE]

Energy(Fossil & Re-newable), [Y VALUE],

[BUBBLE SIZE]

Mfg Supercluster, [Y VALUE], [BUBBLE SIZE]

Advanced Materials, [Y VALUE], [BUBBLE SIZE]

Transportation & Logis-tics, [Y VALUE], [BUBBLE

SIZE]Arts & Ent., [Y VALUE],

[BUBBLE SIZE]

IT & Telecomm., [Y VALUE], [BUBBLE SIZE]

Agri. & Food Process., [Y VALUE], [BUBBLE SIZE]

Glass & Ceramics, [Y VALUE], [BUBBLE SIZE]

Chemicals&Chemical Based, [Y VALUE],

[BUBBLE SIZE]Mining, [Y VALUE],

[BUBBLE SIZE]

Defense & Security, [Y VALUE], [BUBBLE SIZE]

Forest & Wood Prod., [Y VALUE], [BUBBLE SIZE]

Apparel & Textiles, [Y VALUE], [BUBBLE SIZE]

Edu. & Knowledge, [Y VALUE], [BUBBLE SIZE]

Printing & Publishing, [Y VALUE], [BUBBLE SIZE]

% Change in LQ, 2008-2013

LQ, 2

013


Industry cluster bubble chart

section 05 Note: Label includes cluster name, LQ 2013, and Employment 2013

Source: Economic Modeling Specialists International (EMSI) 2014.3 Class of Worker, industry cluster definitions by PCRD

31

-40% -30% -20% -10% 0% 10% 20% 30% 40%

-1

0

1

2

3

4

Fab. Metal Prod. Mfg, [Y VALUE], [BUBBLE SIZE]

Comp. & Electrn. Prod. Mfg, [Y VALUE], [BUBBLE

SIZE]

Transportation Equip. Mfg, [Y VALUE], [BUBBLE SIZE]

Elec.Equip,App. & Comp. Mfg, [Y VALUE], [BUBBLE

SIZE]

Primary Metal Mfg, [Y VALUE], [BUBBLE SIZE]

Machinery Mfg, [Y VALUE], [BUBBLE SIZE]

% Change in LQ, 2008-2013

LQ, 2

013

Stars


section 05

Manufacturing sub-cluster bubble chart


Note: Label includes cluster name, LQ 2013, and Employment 2013

Mature

Transforming Emerging

32

Bubble chart resultsIndustry and occupation

section 05

Stars Advanced Materials Chemical & Chemical Based Products Forest and Wood Products Manufacturing Sub-Cluster

Computer & Electronic products Machinery Manufacturing

Emerging Biomedical/Biotech (Life Sciences) IT & Telecommunications Manufacturing Sub-Cluster

Primary Metal Manufacturing

Transforming Apparel & Textiles Arts, Enter, Rec & Visitor Industry Business & Financial Services Defense & Security Education & Knowledge Creation Energy (Fossil & Renewable) Manufacturing Sub-Cluster

Electrical Equip, Appliance & Computer Manufacturing

Mature Agribusiness, Food Processing and

Technology Glass & Ceramics Mining Printing and Publishing Transportation & Logistics Manufacturing Sub-Cluster

Fabricated Metal Product Transportation Equipment

Percent Growth in Specialization

Leve

l of S

peci

aliza

tion


33

Bubble chart interpretationIndustry and occupation

section 05

Mature IndustriesA number of industry clusters in the River Hills Region are in the Mature stage (seven). These industries are relatively concentrated, but their growth is trending downward. Among those are natural resource-based production clusters (e.g., Mining, Glass and Ceramics), the Transportation and Logistics cluster and two of the manufacturing sub-clusters. It is worth noting, however, that the region may find it worthwhile to invest in efforts to shore up the concentration of some of these industries, if they are deemed important to the region.

Transforming IndustriesTransforming industry clusters are relatively small and declining. In the River Hills Region, Apparel and Textiles, Defense and Security, Energy and Business and Financial Services are among the seven Transforming industry clusters. Spurring growth in these industries would require relatively large investments.

STAR cluster industriesThe most highly concentrated star industry cluster in River Hills Region is Forest and Wood Products, with a location quotient of 2.67 and 4,935 jobs. This indicates that Forest and Wood Products jobs are almost three times more concentrated in the region than in U.S. as a whole. Other strong clusters in the region include the Chemical and Chemical Based Products as well as Advanced Materials. These Star industries are important drivers of the region’s economy, and matching the needs of these industries may be a good strategy for the region.

Emerging IndustriesIndustry clusters that may be poised for growth are classified as “Emerging.” In the River Hills Region, three industry clusters are Emerging: Biomedical, Primary Metal Manufacturing, and IT and Telecommunications. They gained strength between 2008 and 2013 and may emerge as important regional economic forces in the future.

34


section 05

Top five occupations in 2013

Source: Economic Modeling Specialists International (EMSI) – 2014.3 Class of Worker

All Other Occupations, 50%

Sales and Related , 13%

Office and Admin-istrative Support,

12%

Production, 9%

Food Preparation and Serving Re-

lated, 9%

Transportation and Material Moving, 8%

The top five occupations in River Hills Region account for 51 percent of jobs. Sales and Related (17,590 jobs) is the top occupation classification, with 13 percent of all jobs in the region. It is closely followed by Office and Administrative Support (15,580 jobs) at 12 percent. Combined, the two occupations represent one in four jobs in the River Hills Region. Rounding out the top occupations in the region are Production occupations and Food Preparation and Serving related occupations with 9 percent of jobs, as well as Transportation and Material Moving occupations with 8 percent of all jobs. Together, these three occupations represent another quarter of the jobs in the River Hills Region.

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section 05

STEM and STEM-related occupations

Source: Economic Modeling Specialists International (EMSI) – 2014.3 Class of Worker

Job Change in STEM Occupations

Year 2008 Jobs 2013 Jobs Percent Change,2008-2013

Clark County, IN 1,273 1,444 13%

Floyd County, IN 839 820 -2%

Harrison County, IN 215 163 -24%Washington County, IN 182 152 -16%

Scott County, IN 143 167 17%

River Hills 2,652 2,747 4%

STEM (Science, Technology, Engineering and Math) jobs increased in the River Hills Region during the post-recession recovery period. This overall growth was driven by two counties: Clark County (+13 percent and 171 jobs) and Scott County (+17 percent and 24 jobs).

Harrison County experienced the largest loss in STEM jobs (-52 jobs), a 24 percent decline.

Between 2008 and 2013, STEM jobs in the River Hills Region fell by 4 percent.

06conclusions

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Conclusions

section 06

River Hills Region: Key opportunitiesThe River Hills Region Data SnapShot highlights a variety of data that paint a picture of the present state of the region. The information offers local leaders, organizations, agencies and residents food for thought in how to build on the existing and emerging assets of the region. Demography• Population growth in the region is occurring

at a higher rate than in the rest of Indiana. Additionally, he region has a larger share of older residents than the rest of Indiana. The region could explore ways to ensure it is addressing the needs of an aging population.

Human Capital• Assess the human capital and workforce

needs of existing firms in the region. Although the high school graduation rate is higher than in the rest of Indiana, the region still lags behind in highly-educated residents. Explore how to attract and retain highly- educated residents.

• Patent rates are much lower than the rates in the rest of Indiana. Explore ways to expand and foster a culture of innovation.

Economic Development• Assess the human capital attributes of

residents who commute to work outside of the region. Those endowed with high-to-medium level skills may represent a prime source of labor for new or expanding companies in the region.

• Focus attention on the needs and opportunities of Stage 1, Stage 2 and Stage 3 establishments, since they are key sources of jobs and sales in the region. They may serve as generators of new jobs. Restoring jobs lost by Stage 4 establishments is worth exploring, although many of these jobs may be unrecoverable.

• Consider investing in the Star and Emerging industry clusters that align with the long-term goals of the region. These are industries in which the region has a competitive economic edge relative to the country as a whole and may be growth opportunities for the region.

Contact Us:The Purdue Center for Regional Development stands ready to assist with more in-depth data or program support to the River Hills Indiana Region, as needed. Please check the back panel of this report for contact information.

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Report ContributorsThis report was prepared by the Purdue Center for Regional Development in partnership with Purdue University Extension.

Data AnalysisIndraneel Kumar, Ph.D.Ayoung Kim

Report AuthorsFrancisco ScottBo Beaulieu, Ph.D.

Report DesignTyler Wright

This report was supported, in part, by grant #00048765 from the Economic Development Administration as part of its investment in the Purdue University’s EDA University Center project titled “Align, Link and Leverage University Assets to Build Regional Economic Ecosystems that Support High-Growth Entrepreneurship.”

For more information, please contact:

Dr. Bo Beaulieu, PCRD Director: [email protected]

Or

765-494-7273

The Purdue Center for Regional Development (PCRD) seeks to pioneer new ideas and strategies that contribute to regional

collaboration, innovation and prosperity.

October 2015

River Hills Indiana Regional Snapshot

Data & Analytics

Transcript of River Hills Indiana Regional Snapshot