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

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

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)

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

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

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

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

4 Florida Industries

• Rubber (nondurable)

• Food (nondurable)

• Medical (service)

• Miscellaneous Manufacturing (durable)

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

Occupational Access Productivity:Metal & Plastic Workers

Labor Access Index: Rubber

Relative Cost of Production: Rubber

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

Employment: Rubber

Delivered Price: Rubber

Commodity Access Index: Rubber

Relative Composite Price: Rubber

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

Occupational Access Productivity:Food Processing Occupations

Labor Access Index: Food

Relative Cost of Production: Food

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

Employment: Food

Delivered Price: Food

Commodity Access Index: Food

Relative Composite Price: Food

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

Occupational Access Productivity:Health Diagnosing & Treating Prac

Occupational Access Productivity:Other Health Professionals & Tech

Labor Access Index: Medical

Relative Cost of Production: Medical

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

Employment: Medical

Delivered Price: Medical

Commodity Access Index: Medical

Relative Composite Price: Medical

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

Occupational Access Productivity: Electrical & Electronic Equip Occ

Occupational Access Productivity:Other Production Occupations

Labor Access Index: Misc Manufacturing

Relative Cost of Production:Misc Manufacturing

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

Employment: Misc Manufacturing

Delivered Price: Misc Manufacturing

Commodity Access Index:Misc Manufacturing

Relative Composite Price:Misc Manufacturing