section 5 texas regional location quotient matrix analysisthe matrix shows the industries with the...
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Texas Regional Location Quotient Matrix Analysis
section | 5
Where will the jobs come from?
Where are the Texas comparative advantages?
In previous sections of this analysis we examined the question of the role of small and new businesses in Texas job creation. In the final section of this monograph we present a variation of this theme by exploring the importance of regional comparative advantage in job creation. It is beyond the scope of this paper to show data on small business job creation by industry sector or in various regional economies. But no discussion would be complete without exploring the role of regional comparative advantage in job creation. Every region of Texas has its own unique industry structure. Job creation, whether it comes from new or existing businesses, is most likely to be linked to the economic strengths or growth poles of each region.
In fact, in the short and medium term, most future jobs will come from the same industries they came from yesterday.
The composition and magnitude of job growth could change based on a number of factors, but many of these phenomena are beyond our ability to forecast them. Here are four key ways that job growth patterns might change in a regional economy:
a) Change in regional comparative advantage; e.g. discovery of oil shale deposits, water depletion, etc. For example, a railroad spur could allow freight in and out of a community, or a new highway project expands access to a local industrial park. Changes in infrastructure and regional comparative advantage can alter the composition and trajectory of employment growth. A current illustration of this is the discovery of shale oil in the area south of San Antonio referred to as the Eagle Ford Shale region, which has already proven to be an economic boon to an otherwise poor, rural area that will significantly affect regional job growth.
b) Positive or negative externalities; e.g. weather related natural disaster. The 2011 drought in Texas not only hurt farmers and ranchers, but negatively affected companies throughout the agribusiness supply chain. Hurricanes, tornados and other catastrophic weather events often reshape the economies of entire regions.
c) Major change in regulatory climate or government policy; e.g. requirement for federal auto fuel economy or emissions standards, renewable energy stimulus. Not every industry is equally affected by government regulation, but government policies, standards and investments can have a major influence on local job growth.
d) Major facility relocation (in or out) or layoffs. Major dislocations are especially impactful in smaller communities. A plant closing that utilizes many local suppliers may have an even larger ripple effect in a local economy.
40 | SECTION 5
Moreover, there are specific reasons why each regional economy has a unique industry mix. In addition to population growth, many of these root causes relate to distinctive natural resource endowments, location advantages, such as access to a deep water port or a highway crossroad, availability of a highly skilled labor force or perceptions of quality of life. Unless there is an erosion or depletion of these comparative advantages, future job growth is likely to be driven by these same advantages.
Texas Has a Competitive AdvantageTexas is expected to experience employment growth due to competitive advantages
in both the number of growth industries and the growing numbers of skilled workers in the state, according to a team of economists at banking giant Wells Fargo. In an April 2011 report titled “Employment Dynamics and State Competitiveness,” the Wells Fargo economic researchers analyzed U.S. Department of Labor data to identify which industries nationwide had been adding jobs from 1990 to 2010. The researchers then identified which states had job growth in the growth industries. Texas made the list in reference to several identified growth industries. The Wells Fargo economic researchers stated in their report:
“States with a large number of high-growth industries that also have a large skilled workforce will be at a greater competitive advantage. This would tend to favor states, such as Georgia, North Carolina, Arizona, Virginia and Texas, which not only have a large supply of skilled workers but have also been successful at attracting such workers from other parts of the nation.”
The Wells Fargo team concluded that the major industries that posted the best job growth and had a growing share of the total employment in the United States over the past two decades were:
1) Health care and social assistance2) Professional and technical services3) Finance and insurance4) Administrative and waste services
These same industries are also adding jobs in Texas. According to the Wells Fargo team, this should translate into future overall job growth in the state.
Job Growth Will Be Concentrated in Metro Areas
Texas will continue to add jobs but almost all of that job growth will come in the largest metropolitan areas, say economists at IHS Global Insight. The IHS Global Insight team states that major metropolitan areas in Texas have demonstrated above-average job growth in recent years. IHS Global Insight analysts and economists say they expect that job growth in the metro areas should continue to expand at a faster rate than the rural areas of Texas.
In an April 2011 report, IHS Global Insight economists projected that the Austin-Round Rock-San Marcos metropolitan area should experience annual employment growth from 2012 to 2015 of 3.2%, which would be the second fastest growth rate in the country. In addition, the report predicted that both the Dallas-Fort Worth-Arlington metro area and the Houston-Sugar Land-Baytown metro area each would post annual employment growth rates of 2.7%, which would rank those two metro regions #11 and #12 for fastest growth rates in the nation.
“States with a
large number
of high-growth
industries that
also have a large
skilled workforce
will be at a greater
competitive
advantage.
TEXAS REGIONAL LOCATION QUOTIENT | 41
Comparative Advantages Using The New Identifier For Texas and its Regions
Within this context of job creation and job elimination data, there are new ways of looking at industries that are best positioned in a state or region for adding jobs due to a comparative advantage. The LMCI researchers in the Texas Workforce Commission have calculated Location Quotients to identify the high and low concentrations of workers in specific industries inside each of the state’s 28 Local Workforce Development Areas. (See www.lmci.state.tx.us/LQbubblecharts for detailed matrix maps for each regional workforce development area in Texas.)
To show these competitive advantages around concentrations of workers in an industry, the LMCI team has created the following Texas Location Quotient Matrix maps for several key regions of the state. The matrix shows four different labor market dimensions to trigger the thinking of Texas business and workforce policy makers relative to economic development. The following explanation lays the groundwork for understanding these new Texas Location Quotient Matrixes.
1) Location Quotient Location quotient measurement is shown with the X axis. A location quotient identifies the concentration of workers in an industry for a state or region compared with the nation. Industries on the right side of the matrix have an especially high concentration of workers relative to the United States. And industries on the left side of the matrix have especially low concentrations of workers relative to the rest of the nation. The matrix shows the industries with the highest and lowest comparative concentrations, i.e. showing which sectors in Texas have a comparative advantage or disadvantage.
The vertical line inside the matrix indicates average location quotient. While the average location quotient score is a 1.0, this matrix is measuring the location quotient scores logarithmically to illustrate the difference. So industries to the right of the vertical line have especially high concentrations of workers. In essence, large location quotient = comparative advantage.
2) Average Weekly Wage Wages are shown with the Y axis. The Y axis measures the average weekly wage for workers in an industry. So industries in the top part of the matrix pay workers higher wages. Industries in the lower part of the matrix pay lower wages.
The horizontal line inside the matrix is the average weekly wage across all industries. So any industry above the horizonal line has above average wages.
3) Size of Industry Employment Employment size of an industry is shown by the size of that industry’s bubble. The size of the bubble indicates the total employment as of first quarter 2011, so the larger the bubble the more workers are in that industry. Bubbles also illustrate where key industries show up in the matrix.
4) Employment Change Within An Industry Change in the number of workers in an industry is shown by the color of the bubble. Colors of the bubbles indicate employment growth or shrinkage in Texas. This total industry employment growth or shrinkage change was measured from just before and just after the Great Recession (first quarter 2006 to first quarter 2011). To illustrate the change in an industry’s net employment across the Great Recession, shades of blue are used in the bubble. (see explanation on the next page)
42 | SECTION 5
− 1 .0 − 0 .5 0 .0 0 .5 1 .0 1 .5 2 .0
$0
1,000
$2,000
$3,000
$4,000
$5,000
Oil & Gas Extraction
Colleges and Universities
Motion Pictures
Vocational Rehabilitation Services
Pharmaceutical & Medicine Manufacturing
Basic Chemical Manufacturing
Medical Equipment & Supplies Manufacturing
Location Quotient (logarithmic)LLooccatioo hmiccc)
Regional Average Weekly Wage (All Industries):
$935
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
Aver
age
Wee
kly
Wag
e (A
WW
)
Selected Texas Industries by Location Quotient and Average Weekly Wage, 1Q 2011
The Texas Location Quotient Matrix (sample with selected industries)
Attractive Dominant
Ordinary Significant
How To InterpretThe quadrants of the matrix are labeled to help identify strengths and opportunities for decision makers in a state or a region. In the matrix map illustration, the LMCI team has also designated each quadrant for better understanding using the following labels.
4) Ordinary – this quadrant is for industries with low concentrations of workers earning lower pay. These can often be common or service industries and due to their low pay and lack of dominance they offer little comparative advantage and are often last to receive economic development attention.
3) Significant – this quadrant is for industries with a high concentration of workers yet at lower pay. These industries tend to be significant contributors to a region’s employment base and offer the potential to become quick job creators.
1 ) Dominant – this quadrant is for industries that have a strong concentration of workers as well as high-paying jobs. These industries tend to be growth poles in a state or region.
2) Attractive – this quadrant is for industries with high wages yet relatively low concentrations of workers. While these industries are not dominant in a state or region, these are job sectors that are still providing high wages and are critical to a state’s or region’s wealth creation, which makes them enticing to economic developers.
JJJoooShades of blue in the bubbles indicate
employment growth or shrinkage in Texas industry had net employment growth of more than 10%.
industry had net employment growth of 2-10%.
TEXAS REGIONAL LOCATION QUOTIENT | 43
industry had net employment loss of 2-10%.
industry had net employment loss of more than 10%.
industry growth was neutral so that employment was within +/-2% over the time period.
Selected Texas Industries by Location Quotient and Average Weekly Wage, 1Q 2011
− 1 .0 − 0 .5 0 .0 0 .5 1 .0 1 .5 2 .0
$0
1,000
$2,000
$3,000
$4,000
$5,000
Oil & Gas Extraction
Colleges and Universities
Motion Pictures
Vocational Rehabilitation Services
Pharmaceutical & Medicine Manufacturing
Basic Chemical Manufacturing
Medical Equipment & Supplies Manufacturing
Location Quotient (logarithmic)LLoccatioo hmiccc)
Regional Average Weekly Wage (All Industries):
$935
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
Aver
age
Wee
kly
Wag
e (A
WW
)
Attractive Dominant
Ordinary Significant
44 | SECTION 5
To make the Texas Location Quotient Matrix more understandable, some specific industries are used below to explain how the matrix can be interpreted.
What does it mean? Looking at specific industry examples may help readers grasp this new matrix.
Oil & Gas Extraction – This industry is in the Dominant quadrant for a couple reasons. First, the oil & gas extraction industry has an especially high concentration of workers in Texas so it has a high location quotient, which would put it on the right side of the matrix. Second, the oil & gas extraction industry has average weekly wages well above the state average of $935, which would put it high in the upper half of the matrix. Also, the oil & gas extraction industry employs many workers in Texas, hence it has the larger bubble. And that bubble is dark blue because the oil & gas extraction industry added a lot of workers (16,347 more jobs or a 24% increase from first quarter 2006 to first quarter 2011) in Texas through the Great Recession.
Basic Chemical Manufacturing – This industry is also in the Dominant quadrant because it has above average wages (top half) and high concentration of workers (so high location quotient to put it on the right half of the matrix). The medium size bubble indicates the relative size of the industry in Texas based on the number of workers employed. Also, the basic chemical manufacturing industry bubble is colored light blue because that industry lost workers in Texas during the Great Recession.
Vocational Rehabilitation Services – This industry is in the Ordinary quadrant because it has below average wages and low concentrations of workers. This industry has a small location quotient so its bubble is located on the left side of the matrix – hence Texas does not have a strong comparative advantage in the vocational rehabilitation services field. Also important is that the vocational rehabilitation services industry has a medium blue bubble as this industry lost a lot of jobs in Texas during the Great Recession.
Motion Pictures – Texas has a modest movie making industry but it is smaller than most
other states so it has a low location quotient and its bubble is on the left side of this matrix. The Texas motion picture industry also has low pay, which is why its bubble is located so far below the average weekly wage line. All of those reasons are why the Texas motion picture industry is located in the Ordinary quadrant on this matrix. Also, the Texas motion picture industry’s bubble is white, indicating the employment level was neutral and didn’t experience much hiring nor many layoffs during the Great Recession.
Pharmaceutical and Medicine Manufacturing – This industry has a relatively small number of workers in Texas (small bubble), has above average wages (bubble located above average wage line in upper half of matrix), and does not have high concentrations of workers compared with the rest of the country (bubble located on left side of matrix). The high wages but lack of dominance for the pharmaceutical and medicine manufacturing industry in Texas puts this industry in the Attractive quadrant. Texas does not have a comparative advantage with this industry but its high wages make it enticing to economic developers. Also, this industry did not grow but did not shrink employment in Texas during the Great Recession resulting in a white bubble.
Colleges and Universities – This industry employs a lot of people in Texas – hence the giant bubble. Yet Texas is at the national average for concentration of workers in this industry, which means that Texas does not have a comparative advantage in the higher education field but nor is Texas weak in this field. The college and universities bubble is dark blue because this industry added a lot of jobs in Texas during the Great Recession. This is an example of how the Texas Location Quotient Matrix can stimulate thinking and discussion as observers can readily realize that the data do not show that Texas has strong advantages in the field of higher education and that Texas colleges and universities recently have stopped adding workers.
TEXAS REGIONAL LOCATION QUOTIENT | 45
−1.0 −0.5 0.0 0.5 1.0 1.5 2.0
$0
$1,000
$2,000
$3,000
$4,000
Oil & Gas Extraction
Pipeline Transportation of Natural Gas
Support Activities for Mining
Ag., Construction & Mining Machinery
Petroleum & Coal Products Manufacturing
Basic Chemical Manufacturing
Home Health Care Services
Utility System Construction
Heavy Civil Engineering Construction
Nonresidential Building Construction
Specialty Hospitals
Machinery & Equipment Rental & Leasing
Petroleum Merchant Wholesalers
Office AdministrativeServices
Metal & Mineral Merchant Wholesalers
Colleges & Universities
Vocational RehabServices
Electronic Shopping & Mail-Order HousesOutpatient
Care Ctrs
Motion Pictures
Support Activities for Crop Production
Management of Companies & Enterprises
Residential Mental Health Facilities
Individual & Family Services
Medical Equipment & Supplies Mfg
Scientific R&D Services
Pharmaceutical & Medicine Manufacturing
MotorVehicle Parts Manufacturing Texas AWW
$935
Management & Technical Consulting Services
Location Quotient (logarithmic)Loccatio hmiccc)
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
MATRIX 1 Texas Statewide Location Quotient Matrix 1Q 2011
Attractive Dominant
Ordinary Significant
46 | SECTION 5
Matrix 1 shows the top dozen industries statewide in Texas with the highest location quotients (those bubbles on the right side of the graph). Matrix 1 is a more complete matrix than the earlier example. Matrix 1 also shows the dozen industries with the lowest location quotient (those bubbles on the left side of the graph). These new Texas Location Quotient Matrixes are designed to help Workforce Development Area board members and local economic developers better understand the dynamics of their regional economy. Location quotients also show the “core competencies” of a region’s workforce.
And like most business matrixes, the upper right quadrant is the sweet spot.
The upper right quadrant is where the high-paying and high-concentration jobs are for a region. Some localized Texas Location Quotient Matrixes follow for specific Local Workforce Areas.
Only industries that had at least 0.09% of the employment in the state or in the related workforce development area were selected for the matrix ranking. This filtered out the tiniest industries.
Not surprisingly, Matrix 1 shows that Texas has concentrations of workers in the growth areas of oil & gas extraction, natural gas pipelines and support services for the oil & gas industry (all in the upper right quadrant) – which also are all higher paying industries. Meanwhile, Texas has low relative concentrations of workers in shrinking industries like motor vehicle parts manufacturing, medical equipment making, scientific research, vocational rehabilitation services and movie making.
The following matrix graphs show the strong and weak industries for 5 of the local workforce development areas across Texas. Each matrix shows the location quotient analysis to identify which industries have high and low concentrations of trained workers since 2006 and which of those industries has been adding or losing jobs since that time. In other words, each matrix shows the industries that have a comparative advantage and the corresponding job creation trend since just before the Great Recession in Texas.
Sabine
Shelby
San A
ugustine
Panola
Harrison
Marion
Cass
Bowie
Angelina
Nacog-doches
Morris
UpshurCamp
Red River
Titus
Smith
Rusk
Cherokee
Gregg
Hopkins
Wood
Franklin
LeonHouston
Anderson
Henderson
Rains
Van Zandt
Delta
LamarFannin
Freestone
Hunt
New
ton
Jasper
Orange
Jefferson
Hardin
Tyler
Liberty
Polk
Galveston
Chambers
San Jacinto
Trinity
Harris
Waller
Montgomery
Wharton
Matagorda
Brazoria
Fort Bend
Grimes
WalkerMadison
Colorado
Austin
Washington
Burleson
MilamBrazos
JacksonVictoria
CalhounGoliad
Aransas
Refugio
Fayette
Lee
Bastrop
Lavaca
Rockwall
Kaufman
Robertson
Lime-stone
Ellis
Dallas
Hill Navarro
Collin
Grayson
Denton
Falls
McLennan
Johnson
Tarrant
CookeMontague
Wise
Bosque
Somervell
Gonzales
DeWitt
JimWells
Live Oak SanPatricio
Kleberg
Nueces
Williamson
BellBurnet
Hidalgo
Cameron
Willacy
Karnes
Wilson
Bee
Guadalupe
CaldwellComal
Hays
Travis
KenedyBrooks
Atascosa
Bexar
Duval
Gillespie
Kendall
Blanco
McMullenLaSalle
JimHogg
Starr
Kimble
Mason Llano
Menard
Zapata
Medina
Frio
KerrEdwards
BanderaReal
Webb
Dimmit
Kinney Uvalde
ZavalaMaverick
Parker
Erath Hood
PaloPinto
Coryell
Lampasas
Hamilton
ComancheBrown
Mills
Eastland
Stephens
Callahan
Shackel- ford
Taylor
McCulloch
Concho
SanSaba
RunnelsColeman
JonesFisher
Tom Green
Coke
Scurry
Mitchell Nolan
Sutton
Val Verde
SchleicherCrockett
SterlingGlasscock
ReaganIrion
Howard
Dawson Borden
ClayWichita
Archer
Young Jack
Baylor
Wilbarger
Throck-morton
Childress
Hardeman
King
Foard
Knox
Stonewall Haskell
Hemphill
Wheeler
Collings- worth
Roberts
Lipscomb
CottleMotley
Dickens
OchiltreeHansford
Briscoe Hall
Donley
Gray
Hutchinson
Garza Kent
Crosby
Floyd
Potter
Randall
Carson
Armstrong
Moore
Sherman
Hale
Swisher
Lubbock
Castro
Bailey Lamb
Hartley
Dallam
Oldham
Deaf Smith
Parmer
Lynn
Martin
Midland
Upton
HockleyCochran
TerryYoakum
Terrell
Gaines
Andrews
Crane
Winkler Ector
Pecos
Culberson Loving
WardReeves
Brewster
Jeff Davis
Presidio
El Paso Hudspeth
Workforce Development Areas
1
2 3
45 6
725
89
10
11
12
27 20
2122
19
2814
15
26
13
16 17
18
23
24
Alamo-20Brazos-16Cameron Co.-24Capital Area-14Central Texas-26Coastal Bend-22Concho Valley-12Dallas-6Deep East Texas-17East Texas-8Golden Crescent-19
Middle Rio Grande-27North Central Texas-4North East Texas-7North Texas-3Panhandle-1Permian Basin-11Rural Capital Area-15Southeast Texas-18South Plains-2South Texas-21Tarrant Co.-5
Webb
Dimmit
Prepared by the Labor Market Information Department, TWC
Alamo-20Brazos-16Cameron Co.-24Capital Area-14Central Texas-26Coastal Bend-22Concho Valley-12Dallas-6Deep East Texas-17East Texas-8Golden Crescent-19Gulf Coast-28Heart of Texas-13Lower Rio Grande-23
Middle Rio Grande-27North Central Texas-4North East Texas-7North Texas-3Panhandle-1Permian Basin-11Rural Capital Area-15Southeast Texas-18South Plains-2South Texas-21Tarrant Co.-5Texoma-25Upper Rio Grande-10West Central Texas-9
TEXAS REGIONAL LOCATION QUOTION | 47
Computers & Peripheral Equipment
Semiconductor &Electronic Components
State Government
Software Publishers
Industrial Machinery
Manufacturing
Commercial Goods Merchant Wholesalers
Land Subdivision
Communications Equipment Manufacturing
Insurance & Employee Benefit Funds
Colleges & Universities
Office Administrative Services
Wireless Telecommunications Carriers
Drinking Places(Alcoholic Beverages)
Architectural and Engineering Services
Electronic Equipment Repair/Maintenance
Computer Systems Design Services
Technical & Trade Schools
Bakeries & Tortilla Manufacturing
Management of Companies & Enterprises
Architectural & Structural Metals Mfg
Other Ambulatory Health Care Services
Miscellaneous Nondurable Goods Wholesalers
Support Activities for Mining
Nursing Care Facilities
General Freight Trucking
Air Passenger & Cargo Carriers
Power Generation & Supply
Plastics Product Manufacturing
Warehousing & Storage
− 2 − 1 0 1 2
$0
$3,000
$2,000
$1,000
Location Quotient (logarithmic)LLoccatio hmiccc)
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
This analysis of wages, concentration of industry workers, and employment level changes shows that the Austin community has key strengths in the areas of:
Meanwhile, the Austin area is relatively weak in and has been losing jobs in the following industries:
Attractive Dominant
Ordinary Significant
MATRIX 2 Austin-Capitol Area WDA LQM
48 | SECTION 5
Location Quotient (logarithmic)LLoccatioo hmiccc)
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
− 1 .5 − 1 .0 − 0 .5 0 .0 0 .5 1 .0 1 .5
$0
$1,000
$2,000
$3,000
$4,000
Data Processing & Related Services
Amusement Parks & Arcades
Investment Funds
Home Health Care Services
Facilities Support Services
Federal Government
Insurance Carriers
Automotive Equipment Rental and Leasing
Bakeries & Tortilla Manufacturing
Heavy Civil Engineering Construction
Support Activities for Air Transport
Banking & Credit Unions
Beverage Manufacturing
Gasoline Stations
Warehousing& Storage
State Government General Freight
Trucking
Advertising & PR
Computer Systems Design
Support Activities for Mining
Electric Goods Merchant Wholesalers
Other Office Support Services
Scheduled Air Transportation
Semiconductor & Electronic Components Mfg
Security & Commodity Investment Activity
Plastics Product Mfg
Machine Shops & Threaded Products Mfg
Power Generation & Supply
This analysis of wages, concentration of industry workers, and employment level changes shows that the San Antonio metro area has key strengths in the areas of:
The San Antonio area is relatively weak in and has been losing jobs in the following industries:
Attractive Dominant
Ordinary Significant
MATRIX 3 San Antonio-Alamo Area WDA LQM
TEXAS REGIONAL LOCATION QUOTION | 49
−1 0 1 2 3
$0
$1,000
$2,000
$3,000
$4,000
$5,000
Pipeline Transportation
of Crude Oil
Oil and Gas Extraction
Pipeline Transportation of Natural Gas
Ag., Construction, and Mining Machinery
Basic Chemical Manufacturing
Support Activities for Mining
Petroleum & Coal Products Manufacturing
Support Activities for Water Transport
Inland Water Transportation
Other Hospitals
Metal and Mineral Merchant Wholesalers
Other Heavy Construction
Nonscheduled Air Transportation
Utility System Construction
Nonresidential Building Construction
Petroleum Merchant Wholesalers
Automotive Repairand Maintenance
Insurance Carriers
Nursing Care Facilities
Newspaper, Book, & Directory Publishers
Advertising & Related Svc
Federal Government
Software Publishers
Residential Mental Health Facilities
Semiconductor and Electronic Components
Individual & Family Svc
Vocational RehabServices
Medical Equipment & Supplies Mfg
Motion Picture and Video
Location Quotient (logarithmic)oLLoccatio hmiccc)
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
MATRIX 4 Gulf Coast WDA Location Quotient Matrix
This analysis of wages, concentration of industry workers, and employment level changes shows that
Development Area have key strengths in the areas of:
manufacturing
Development Area is relatively weak in and has been losing jobs in the following industries:
Attractive Dominant
Ordinary Significant
50 | SECTION 5
− 2 − 1 0 1 2
$0
$1,000
$2,000
$3,000
4,000
Scheduled Air Passenger & Cargo Transport
Aerospace Product & Parts Manufacturing
Oil & Gas Extraction
Support Activities for Air Transport
Nondepository Credit Intermediation
Performing Arts & Sports Promoters
Electric Goods Merchant Wholesalers
Pharmaceutical & Medicine Manufacturing
Warehousing & Storage
Office Furniture Manufacturing
Electronic Equipment Repair & Maintenance
Ag., Construction & Mining Machinery
Couriers
Alcoholic Beverage Wholesalers
Lumber & Supply Wholesalers
Freight Transportation Arrangement
Cement & Concrete Product Manufacturing
Data Processing Services
Computer Systems Design Services
Household & Institutional
Furniture Manufacturing
Gasoline Stations
Vocational Rehabilitation Services
Individual & Family Services
Power Generation & Supply
Management of Companies & Enterprises
Insurance Carriers
Medical Equipment & Supplies Manufacturing
State Government
Electronic Instrument Manufacturing
Scientific R&D Services
Residential Mental Health Facilities
Location Quotient (logarithmic)Loccatio hmiccc)
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
This analysis of wages, concentration of industry workers, and employment level changes shows that Fort Worth and the Tarrant County Workforce Development Area have key strengths in the areas of:
The Fort Worth area and its Tarrant County Workforce Development Area has been relatively weak and losing jobs in the following industries:
Attractive Dominant
Ordinary Significant
MATRIX 5 Tarrant County WDA Location Quotient Matrix
TEXAS REGIONAL LOCATION QUOTION | 51
− 2 − 1 0 1 2
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Dallas WDA Location Quotients 1Q 2011
Federal Bank
Semiconductor & Electronic Components
Communications Equipment Manufacturing
Nondepository Finance & Lending
Oil & Gas Extraction
Clay Product & Refractory Manufacturing
Financial Brokers & Clearinghouses
Nonscheduled Air Transportation
Office Administrative Services
Wired Telecommunications Carriers
Electric Goods Wholesalers
Cleaning Compound & Toiletry Manufacturing
Commercial Goods Wholesalers
Land Subdivision
Pharmaceutical Products Wholesalers
Paint, Coating, & Adhesive Manufacturing
Full−Service Restaurants
Warehousing & StorageVocational Rehab & Worker Training
Social Advocacy Organizations
Professional Organizations
Outpatient Care Centers
Nursing Care Facilities
Scientific R&D Services
Machine Shops & Threaded Products
Animal Slaughtering & Processing
Other General Purpose Machinery Manufacturing
Support Activities for Mining
Individual & Family Social Services
Residential Mental Health Facilities
Motor Vehicle Parts Manufacturing
State Gov't
Location Quotient (logarithmic)oLLoccatioo hmiccc)
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
MATRIX 6 Dallas County WDA Location Quotient Matrix
This analysis of wages, concentration of industry workers, and employment level changes shows that the Dallas Workforce Development Area has key strengths in the areas of: The Dallas Workforce Development Area is both relatively weak
in and has been losing jobs in:
Attractive Dominant
Ordinary Significant
52 | SECTION 5
Location Quotient (logarithmic)oLLoccatio hmiccc)
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
−3 −2 −1 0 1 2 3
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Coastal Bend WDA (Corpus Christi) Location Quotients 1Q 2011
Support Activities for Mining
Petroleum & Coal Products Manufacturing
Other Heavy Civil Engineering Construction
Home Health Care Services
Oil & Gas Extraction
Machinery & Equipment Leasing Services
Airport Services
Specialty Crop Farming
Pipeline Transportation of Natural Gas
Utility System Construction
Nonresidential Building Construction
Cattle Ranching & Farming
General Rental Centers
Technical & Trade Schools
Petroleum Merchant Wholesalers
Commercial Machinery Repair/Maintenance
Ship Building
Full−Service Restaurants
Auto Dealers
Management & Technical Consulting Services
Warehousing & Storage
Office AdminServices
Couriers
Insurance Carriers
Printing Activities
Security & Commodity Investing
CommercialGoods Merchant Wholesalers
Electronic Markets Investing Agents/Brokers
Management of Companies & Enterprises
Computer Systems Design Services
This analysis of wages, concentration of industry workers, and employment level changes shows that the Corpus Christi metro
key strengths in: Development Area are relatively weak in and has been losing jobs in the following industries:
Attractive Dominant
Ordinary Significant
MATRIX 7 Coastal Bend WDA Location Quotient Matrix
TEXAS REGIONAL LOCATION QUOTION | 53
−2 −1 0 1 2 3 4
$200
$400
$600
$800
$1,000
$1,200
Footwear Manufacturing
Business Support Services (including call centers)
Other Crop Farming (including algae)
Home Health Care Services
Cut & Sew Apparel Manufacturing
Shoe Stores
Wireless Telecommunications Carriers
Freight Forwarding & Transportation Arrangement
Vocational RehabServices
Federal Government
General Freight Trucking
Cement & Concrete Product Mfg.
Nonresidential Building Construction
Misc. Durable Goods Wholesalers
Other General Merchandise Stores (incl warehouse clubs)
Junior Colleges
Drinking Places (Alcoholic Beverages)
Office Administrative Services
Specialized Freight Trucking
Radio & TV Broadcasting
Employment Services
Warehousing and Storage
Residential Mental Health Facilities
Insurance Carriers
Electronic Markets and Agents/Brokers
Motion Pictures
Motor Vehicle Parts Manufacturing
Scheduled Air Transportation
Nursing Care Facilities
Management & Technical Consulting Services
Computer Systems Design Services
Professional Organizations
Electronic Instrument Manufacturing
Management of Companies & Enterprises
Location Quotient (logarithmic)LLooccatio hmiccc)
Job Growth Q12006-Q12011Net job growth > 10%
Net job growth 2-10%
Net job growth/loss < 2%
Net job loss 2-10%
Net job loss > 10% 10,000
30,000
220,000
This analysis of wages, concentration of industry workers, and employment level changes shows the Upper Rio Grande Workforce
The Rural Capital Workforce Development Area is relatively weak in and has been losing jobs in:
Ordinary Significant
Attractive Dominant
MATRIX 8 Upper Rio Grande WDA Location Quotient Matrix
54 | SECTION 5