state road 429 cluster study
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Luis Nieves-Ruiz, AICP
Principal Planner
Orange County Planning Division
September 14, 2011
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Economic Corridor Study
SR 429 Initiative
Economic Analysis
Cluster Study
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Economic Corridor Study
SR 429 Initiative
Economic Analysis
Cluster Study
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Partnership between Orange County, Apopka, Ocoee, and Winter Garden
Use the expansion of SR 429 as a catalyst to create economic development opportunities in the area
SR 429 Group
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Jurisdictions assets presentations
Established contact with University of Florida for assistance with economic impact projects
EDA Grant Application
Economic Cluster Study
Achievements/Projects
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Economic Corridor Study
SR 429 Initiative
Economic Analysis
Cluster Study
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Economic Structure Analysis
There are two types of businesses:
Basic Industries (export)
Drive economic growth
High multiplier effect
Link between local companies
Non-Basic Industries (local consumption)
Regional economies specialize in products and services they are most competitive
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Location Quotient
Ratio between the local economy and reference economy
Measures regional economic specialization
Easy to understand
LQ < 1
LQ = 1
LQ > 1
Regional employment proportion is less than national proportion
Regional employment proportion is same as national proportion
Regional employment proportion is greater than national proportion
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LQ Assumptions
A high location quotient implies economic competitiveness
The excess capacity in a particular industry translates into export potential
Not meant to put a value on specific industries
Should not discourage economic diversification efforts
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Economic Data Structure
NAICS Industry classification system
20 industrial sectors
6-digit level of complexity
Natural Resources and Mining
11 Agriculture, Forestry, Fishing & Hunting
114 Fishing, Hunting, and Trapping
1141 Fishing
114111 Finfish Fishing
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Highest Location Quotients in Orange County
NAICS Code Industry and Description Location Quotient
713110 Amusement and Theme Parks 60.12
711190 Other Performing Arts Companies 14.48
561590 Other Travel Arrangement Services 13.04
561520 Tour Operators 8.42
111310 Orange Groves 8.19
561920 Convention and Trade Show Organizers 7.58
33331 Commercial and Service Industry Machinery 6.42
485510 Charter Bus Industry 5.93
448320 Luggage and Leather Goods Stores 5.68
238192 Other Nonresidential Exterior Contractors 5.59
721110 Hotels and Motels, Except Casino Hotels 5.30
485999 All Other Ground Passenger Transportation 5.07
Source: BLS Location Quotient Calculator (2009 employment data)
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Economic Geography
• Firms often agglomerate within an area to increase competitiveness
• These agglomerations are often called “clusters”
• Not every agglomeration is a cluster
• A cluster is comprised of interrelated exporting firms, as well as a network of materials and services suppliers
Red = Main Establishments Purple= Supporting Industries
Leisure and Hospitality agglomerations
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State Road 429 Industry Study
State Road 429 Initiative
Economic Structure Analysis
Cluster Study
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Definition of Study Area SR 429 interchanges were used
as central points to define study area
Created 3 mile buffers from most of the interchanges
Buffers were combined to create one polygon
Study area also includes 2 additional buffers north of the last interchange
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Technology and Data Sources
ArcGIS Software
Produce buffers
Query Establishments by Location and Type
InfoUSA Data Layer
BLS Location Quotient Calculator
Google searches
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Preliminary Study Findings
Total of 3,990 businesses within the study area
Comprised of 471 industry classifications
Over 60 percent of all establishments have less than 5 employees
Most businesses are non-basic industries
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Number of Establishments by Industry
NAICS Code
Industry Description
Number of Establishments
722110 Full-Service Restaurants 193
813110 Religious Organizations 160
621111 Offices Of Physicians Except Mental Health 105
236115 New Single Family General Contractors 103
531210 Offices Of Real Estate Agents & Brokers 94
444220 Nursery Garden & Farm Supply Stores 77
424930 Nursery & Florist Merchant Whls 73
812112 Beauty Salons 68
561730 Landscaping Svcs 64
524210 Insurance Agencies & Brokerages 59
Source: INFOUSA, 2010
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Industry Agglomeration Characteristics
There are six significant industry agglomerations
High location quotients (LQ)
High number of establishments
- Unrelated establishments were taken off the list
Relative proximity between establishments
Presence of supporting firms such as suppliers and other related industries
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Building and Real Estate
NAICS Code
Industry Description#
FirmsLQ
236115New Single-Family General
Contractors99 0.5
531210Offices Of Real Estate Agents &
Brokers92 2.53
236220 Commercial Building Construction 41 0.7
238220 Plumbing & Hvac Contractors 39 0.83
238320 Paint & Wall Covering Contractors 29 0.94
444190 Other Building Material Dealers 28 0.59
238910 Site Preparation Contractors 22 0.58
238210 Electrical Contractors 22 0.85
236118 Residential Remodelers 21 0.5
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Nursery and Floriculture
NAICS Code
Industry Description#
FirmsLQ
444220 Nursery Garden & Farm Supply Stores
76 0.4
424930 Nursery & Florist Merchant Wholesalers
72 1.77
561730Landscaping Services 64 1.27
111421Nursery and Tree Production 12 ND
424910 Farm Supplies Merchant Wholesalers
8 0.08
423820 Farm & Garden Equipment Merchant Wholesalers
7 0.19
325311 Nitrogenous Fertilizer Manufacturing
2 3.12*
325314 Fertilizer, Mixing Only, Manufacturing
1 3.12*
111422Floriculture Production 1 4.71
*Based on 5 digit NAICS
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Tourism Support and Entertainment
NAICS Code Industry Description
# Firms LQ
512110Motion Picture & Video
Production11 0.61
711510Independent Artists,Writers & Performers
10 1.4
561520 Tour Operators 7 8.42
711190Other Performing Arts
Companies5 14.48
485510 Charter Bus Industry 2 5.93
334512Automatic Environmental
Control Manufacturing1 0.63
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Information Technology
NAICS Code Industry Description
# Firms LQ
518210 Data Processing & Related Services 9 1.78
541512 Computer Systems Design Services 9 0.8
541511Custom Computer Programming
Services8 0.93
443120 Computer & Software Stores 5 0.87
541614Process & Logistics Consulting
Services2 0.67
541330 Engineering Services 1 1.34
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Health CareNAICS Code Industry Description
# Firms LQ
621111Offices Of Physicians Except
Mental Health104 0.95
621210 Offices Of Dentists 36 0.54
621310 Offices Of Chiropractors 21 0.83
621399Offices Of Misc Health
Practitioners12 1.62
621340 Offices Of Specialty Therapists 12 0.71
621493Freestanding Emergency Medical
Centers10 1.36
621999Miscellaneous Ambulatory
Health Care Services9 ND
423450 Medical Equip Merchant Whls 7 0.91
621511 Medical Laboratories 6 0.99
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Metallurgy and Die Tools
NAICS Code Industry Description
# Firms LQ
332212 Hand & Edge Tool Manufacturing 6 ND
423510 Metal Merchant Wholesalers 4 0.47
423840Industrial Supplies Merchant
Wholesalers4 0.28
332312Fabricated Structural Metal
Manufacturing3 0.44
311421 Fruit & Vegetable Canning 2 ND
332710 Machine Shops 2 ND
332812Metal Coating & Non-Precious
Engraving2 0.03
332311Prefabricated Metal Buildings &
Components1 0.62
332322 Sheet Metal Work Manufacturing 1 0.48
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Conclusions
Largest Number of Firms - Building and Real Estate
Most Mature - Nursery and Floriculture
Solid Agglomerations - Tourism Support and Health Care
Promising Agglomerations - IT and Metallurgy
Industry linkages need further study to devise an economic strategy for the SR 429 Corridor
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For more information, check the Planning Division’s Economic Outlook publications or contact Luis Nieves-
Ruiz at [email protected]