manufacturing decline within la county: using cluster analysis to understand the trends and...
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Manufacturing Decline Within LA County:
Using Cluster Analysis to Understand the Trends and Potential Policy Approaches
GIS: UP206aErin Coleman3/14/2011
INTRODUCTION:
Manufacturing as a whole has declined dramatically within the U.S., California, and LA County between 1998 and 2008. In 1998, manufacturing contributed about 18% of the total annual payroll within the U.S. By 2008, it contributed only 12 percent. Within California, in 1998, manufacturing also contributed about 18% of the annual payroll to the state. By 2008, it contributed about 11 percent.
In terms of establishment counts, we see that the greatest number decline between 1998 and 2008 within California has occurred within LA County.
What has this decline looked like in the county and how can cluster analysis provide insights into policies which can aid the local economy?
Decline in Number of MNFN Establishments between 1998 and 2008 throughout California Counties
By: Erin Coleman, Source: U.S. Census County Business Patterns
Manufacturing Professional, scientific & technical services
Health care and social assistance
Finance & insurance
Wholesale trade
Information
Retail trade
Admin, support, waste mgt, remediation services
Management of companies & enterprisesTransportation & warehousingConstruction
Arts, entertainment & recreation
Accommodation & food services
Other services (except public administration)
Real estate & rental & leasing
Educational services
Auxiliaries (exc corporate, subsidiary & regional mgt)
Mining
Unclassified establishments
0%
10%
20%
1998 Percentage Breakdown of Annual Payroll within LA County:
Professional, scientific, and technical servicesHealth care and social assistance
Manufacturing
Finance and insurance
Information
Wholesale trade
Retail trade
Administrative and Support and Waste Mang and Remediation Srvs
Management of companies and enterprisesConstructionTransportation and warehousing
Arts, entertainment, and recreation
Accommodation and food services
Other services (except public administration)
Real estate and rental and leasing
Educational services
Mining, quarrying, and oil and gas extraction
Industries not classified
Forestry, fishing, hunting, and Agriculture Support
0%
10%
20%
2008 Percentage Breakdown of Establishments within LA County:
2008 Percentage Breakdown of Annual Payroll within LA County:
Retail trade Professional, scientific & technical services
Health care and social assistance
Wholesale trade
Other services (except public administration)
Manufacturing
Accommodation & food services
Construction
Real estate & rental & leasing
Admin, support, waste mgt, remediation servicesFinance & insuranceInformation
Arts, entertainment & recreation
Transportation & warehousing
Educational services
Unclassified establishments
Management of companies & enterprises
Auxiliaries (exc corporate, subsidiary & regional mgt)
Utilities
Mining
Forestry, fishing, hunting, and agriculture support
0%
10%
20%
1998 Percentage Breakdown of Establishments within LA County:
Professional, scientific, and technical servicesRetail trade
Health care and social assistance
Wholesale trade
Other services (except public administration)
Accommodation and food services
Manufacturing
Construction
Finance and insurance
Real estate and rental and leasingArts, entertainment, and recreationAdministrative and Support and Waste Mang and Remediation Srvs
Information
Transportation and warehousing
Educational services
Management of companies and enterprises
Industries not classified
Utilities
Mining, quarrying, and oil and gas extraction
Forestry, fishing, hunting, and Agriculture Support
0%
10%
20%
MANUFACTURING DECLINE WITHIN LA COUNTY
SELECTION OF APPAREL INDUSTRIES: 315232 and 315212
Within LA County, the apparel industries 315232, Women’s & Girls’ Apparel Manufacturing, and 315212, Cut and Sew Apparel Contractors ranked among the top 7 between 1998 and 2008 in terms of employee counts, establishment counts, and total annual payroll contributed to the county.
315232In 1998, Los Angeles county had over 80 percent of the state's share of the 315232 industry. In 2008, this share increased to just under 90 percent. Due to this, Los Angeles County is used as the baseline for which to compare overall change.
315212For the Industry 315212, this data shows that in 1998, 77% of all establishments within all counties in CA were located within La County. In 2008, this figure increased to 83 percent. Due to these findings, my baseline measure for comparing change in establishment counts, size, and employee counts is LA County as a whole, rather than the state at large or even the 5 county metropolitan area.
SUNRISE BRANDSEmployees: 100-249 801 S FIGUEROA ST # 2500, 90017323-780-8250
Los Angeles
ONE CLOTHINGEmployees: 100-2492121 E 37TH ST, 90058323-846-5700 JUST FOR WRAPS
Employees: 100-249 5815 SMITHWAY ST, 90040323-585-6878
CARESSE LINGERIEEmployees: 100- 2492313 S SANTA FE AVE. 90058213-239-0503
WOW KNIT INCEmployees: 100-2491115 E 14TH ST 90021213-688-0404
315232 Women & Girls Apparel ManufacturingLocation of Largest Establishments by employee size according to EDD
Employee Names and Contact information sourced from EDD
Hot Spot Analysis Cluster Index: Calculated with Raster Calculator Variables Included:
1. 232empch: shows the percentage change in average employee counts between 1998 and 2008 – included because places with high levels of employee growth might indicate clustering
2. 232essc: shows the percentage change in average establishment size (by employee) between 1998 and 2008 – included because places with increase in average establishment size might indicate clustering
3. 232lsemp: shows the percentage change of average employee counts between 1998 and 2008 within each zip divided by the change in employee counts during this time span within LA County at large – included because zip codes with a lower level of decline than the county might show signs of agglomeration/ local resilience.
4. 232lqest: shows the percentage change in number of establishments between 1998 and 2008 within each zip divided by the change in establishment counts during this time span within LA County at large- included because zip codes with a lower level of decline than the county might show signs of agglomeration/local resilience.
The four variables at right were given equal weighting in this index
SkillsModelingMetadataMeasurement: Using graphics features to display distanceOriginal dataHotspot analysisInset MapGeoprocessing: Clipping , Dissolve: (zip code field)Select by attribute: (Location quotients)Radar chartsHotspot analysis index: using raster calculatorRasterizing and reclassifying layersProjecting dataPoint graduated symbols