Analysis of Urban Economy GrandRapids MI

8/13/2019 Analysis of Urban Economy GrandRapids MI

1/21

JohnPMaxwell

AdvancedPolicyEconomics: EconomicsofUrbanandRegionalPolicy

Fall2013

October30,2013

1

AnAnalysisofanUrbanEconomy:GrandRapids,Michigan,19702000


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ExecutiveSummaryWhenthinkingabouttheeconomyoftheUnitedStatesfrom19702000,someofthetrendsthat

cometomindarethedeclineinmanufacturingemploymentandthestagnationoftheincomeofthe

middleclass.Astransportationcostsdeclinedandglobalizationtookholdthroughouttheworld,

manufacturingintheUnitedStatesmovedtoChinaandelsewhereinAsia.Nowhereisthistrendmore

symbolizedthaninthestateofMichiganandthedeclineinautomotivemanufacturing.However,there

weretrendsinmanufacturingthatwerebeneaththeheadlineswhichtellaninterestingstoryabout

anotherareainMichiganwhichstrengtheneditsmanufacturingsectorinrelationtotherestofthe

country.InGrandRapids,manufacturingemploymenthasstayedabovethenationalaveragein

employment.Thethreemanufacturingsubsectorsthathaveoutperformedthenationaleconomyare:

Furnituremanufacturing:11percentagepointsgreater(4%USAto15%GRMSA)o Also~11percentagepointsgreaterthanthestateofMichiganindicatingthatGrand

Rapidsisafurnitureclusterwithconcentrationseeminglyindependentofboththestate

andnationaltrends

Machinerymanufacturing:8percentagepointsgreater(8%USAto16%GRMSA) Transportationequipmentmanufacturing:4percentagepointsgreater(11%USAto15%GR

MSA)

GrandRapids,whichhasbeenknownastheFurnitureCitysincethelate1800s,hastakenthat

organicgrowthoffurniturebuildingskillsandtransformedthatareaoftheeconomybetween1970

2000intoacomparativeadvantageinproducingofficefurniture.Furnituremanufacturinghasalso


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providedstrongpayrollsupportfortheGrandRapidsareaasthefurnituresectorhadthehighest

payrollperemployee($53,471)andhighestpayrollperestablishment($12.0million)intheyear2000.

ManufacturingandfurnitureinparticularhaskeptGrandRapidsafloatasmanufacturingintheUnited

Stateshasbeenonaprecipitousdeclineformanyyears.

InterpretativeEconomicHistoryLocatedinthewesternpartofthestateofMichigan,GrandRapidsandthesurroundingareaarea

criticalpartoftheeconomyofMichiganandhavebeenanimportantpiecetoestablishinganeconomic

reboundwithinthestate.TheGrandRapidsWyomingmetropolitanstatisticalarea(MSA)ismadeup

offourcounties:Barry,Ionia,KentandNewaygo.ThisMSAat1,005,6481people(asof2013)isthe2nd

largestregioninthestateofMichiganbehindtheDetroitMSA.KentCountydominatesintermsof

populationandemploymentwithintheMSA.KentCountyiswherethetwoprincipalcitiesofGrand

RapidsandWyomingarelocated.Fromthe1960sthroughthepresent,KentCountyhasmadeup

about80%ofthetotalMSApopulationand80%ofthetotalemployment.

GrandRapidsgetsitsnamefromitslocationonthebanksoftheGrandRiverwhichinfactdidhave

areaswherethegradeoftheriverdroppedsteeplycreatingtherapids.2Theindustrialagemadeits

imprintontothecitythoughastheriverisnowconfinedwithinconcretewalls,itsrapidscontrolledby

damsandtheformerdreadedfloodslimitedtotheinvasionofafewsubbasementsinthedowntown

areaGrandRapidsistheanchorcityfortheareaandisknowncolloquiallyasTheFurnitureCity.

ThecityiscomparabletootherMidwesternandNortheasternurbanareasinthatthedowntowncore

1Dewey

2Ransom


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ofthecityhadamanufacturingcenter(furnitureinthecaseofGrandRapids)surroundedbythe

commercialcenterofthecity.3Thedevelopmentofthefurnitureindustrycanbetraceddownseveral

pathswhichincludeskilledlabor(mainlyduetoimmigrationfromNorthernEurope),locationtoraw

materialinputstothefurnitureindustryandlocationneartransportationnetworks(initiallytheGreat

Lakeswaterwaysandsubsequentlytheexpansionofrailroadnetworks).4 Lookingbackatsomeofthe

earlywritingsonGrandRapids,a1899tradepublicationdescribestheadvantagesthatGrandRapids

demonstratedtoearnthetitleofFurnitureCity.5

whenitismadeknownthatGrandRapidsstandsfirstinthequantityofproduction,firstininventionofartisticdesign,firstonsuperior

qualityofconstructionandfinishtheverymagnitudeofitsmanufacturingestablishmentsmakesitanecessitytoemploythemost

accomplisheddraughtsmanandmakeuseofthehighestgradeofappliedmachineryThegrandcooperationofthemostperfectmechanical

devices,intelligentlabor,skilledcarversandwoodworkers,andartistsspeciallydevotedtodesigningcreationsinthisparticularindustryhas

broughttheprincipalmanufactureofGrandRapidstosuchvolumeandcharacter

ThelocationofthelumberindustryinMichigan,whichbeganwiththeFrenchexplorersand

missionaries,but

exploded

in

the

1880s

when

the

state

produced

as

much

lumber

as

the

next

largest

threestatescombined.6ThelocationofGrandRapids,though25milesinlandfromLakeMichigan,was

proximatetothelumberindustrywhichallowedfortherawmaterialstobetransportedrelatively

easierandcheaperthantoothercities.Inaddition,atightcooperationandastrategicorganization

betweenthefurniturefirmownersandthelocalbankersallowedforGrandRapids,whichwasa

relativelysmallUpperMidwestcity,topunchaboveitseconomicweight.Kleiman1986notesthat7

thereweretwoadvantagesgainedabyaclosecoordinationbetweenbusinessmenandbankers.The

3Bratt

4Gupta&Subramanian

5GrandRapidsBoardofTrade

6VariousAuthors

7Kleiman


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firstwasthattheinterlockingrelationshipspermittedthebusinessleaderstohaveagreaterdegree

ofcontrolofthefirmsandenterintomarketsinwhichlargercitiesusuallydominatedwithahigher

degreeofeconomicdiversityandalargercapitalnetwork.Secondly,andperhapsmoreimportantly

wasthatduetothesingleindustryimpactsofthewagesandsavingsfromfurniturebuilding,capital

andlaborhadasynergisticrelationshipwhichremovedtheincentiveforlaborunrestinthecity.8

AsGrandRapidsbecameknownastheFurnitureCity,therehavebeenseveralattemptstoexplain

howthisareaoftradebecamethisregionsexportindustryforthegreaterGrandRapidsarea.Gupta&

Subramanian2008usedthePorterDiamondModelascriteriatoanalyzethiscluster.Porteruses

fourfactorsforanalyzingclusters:1.firmstrategy/structure,2.rivalryanddemandconditions,3.

relatedandsupportingindustries,and4.factorconditions.9 GrandRapidsmovedfromthefurniture

industryhavingascaleadvantageduetofactorendowmentsandproducinggoodslocallytotoday

utilizingcheaperglobaltransportationnetworkstofocusingoninnovationinthefurnitureareawitha

heavyfocusontheofficefurnitureareatoachieveanadvantage.10

Today,GrandRapids,likemostotherRustbeltcitiesisnolongeranindustrialchampion.Thecityis

notturningoutthemassproducedfurnitureitemslikeitoncedid,butthereareencouragingsignsthat

allowtheGrandRapidsMSAtohaveanadvantageintheareaofmanufacturingespeciallyinniche

highervalueareas.SomeofthemanufacturingcompaniesthatarelocatedinGrandRapidsinclude

furniture,(Steelcase,AmericanSeating),industrialpartsmanufacturing(Pridgeon&Clay),andlumber

processingservices(UniversalForestProducts).HermanMillerwhichisanofficefurniturecompanyis

8Ibid

9Gupta&Subramanian

10Ibid


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locatedinZeeland,MIwhichisoutsidetheGrandRapidsMSA(GRMSA),butiscontainedwithinthe

combinedstatisticalarea.11

escriptionofGrandRapidsEconomyLikemostotherMidwesternstatesandcities,GrandRapidshasseenitspopulationgrowthslowedin

recentyears.Itdidhowever,postpositivepopulationgrowthfactorsinrecentdecadesunlikethe

overallstateofMichigan(whichwastheonlystatetolosepopulationfrom20002010).Butinearlier

timeperiods,suchas19801990,thepopulationofMichiganonlygrewatarateof0.4%whereasthe

GrandRapidsWyomingMSAgrewatarateof~12%.[SeeFigure1]

Figure1:PopulationGrowthRates,19102010,StateofMichiganandGrandRapidsMSA12

11GrandRapidsChamberofCommerce

12U.S.CensusBureau

10%

0%

10%

20%

30%

40%

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

PopulationGrowthRates

Michigan GRMSA


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ThiswasdrivenmainlybypopulationgrowthinKentCountywhichgrewfromjustover400,000people

in1970tonearly600,000by2000.TheGrandRapidsWyomingMSAwentfrom5.9%oftheentire

populationofMichigantonearly7.5%ofthepopulationofMichigan.Inadditiontothepopulation

growingwithintheMSA,therewereincreasesintheeducationalattainmentofthepeopleintheMSA.

Fortheentirestudyperiod,theGRMSAhadalowerpercentageofresidentswhohadlessthanahigh

schooleducationthanboththeStateofMichiganandtheUnitedStates.[SeeFigure6]

Thepercentageofpeoplewhohadcollegedegreesincreasedsubstantiallyfrom5.5%in1970to15.4%

in2000.WhilethispercentageoutpacedtheStateofMichiganitwasjustslightlylowerthanthe

nationalpercentageofpeoplewithcollegedegrees,15.5%,butthe9.9percentagepointincreasewas

alargerincreasethanthenationalincreaseof9.4points.[SeeFigure7]

Thenextsectionofthepaperwillfocusoneconomictrendsinthetimeperiodbetween1970and2000

forpointsofcomparisons.Becauseofdatalimitations,thestudyperiodisconstrainedto19702000for

employmentsectorchangesandto2000onlyforadeepdiveintothemanufacturingsector.

Inadditiontostrongpopulationgrowth,thegrowthinemploymentinGrandRapidsbetween1970and

2000wasbetterthanthestateofMichiganaswell.TheGrandRapidsMSAwentfromapproximately

194,000employedpeopleovertheageof16in1970toapproximately364,000employedpeoplein

2000.Thiswasanincreaseofabout187.5%inemployedpeople.TheGrandRapidsMSAsurpassedthe

stateaswellasthecountryinemploymentgrowthoverthistimeperiodastheUnitedStatesgrew

169.5%inemployedpeopleandthestateofMichigangrew142.5%inemployedpeople.


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InanothermeasureoftherelativeeconomicsuccessoftheGrandRapidsMSAinrelationtotherestof

thecountry,intermsofpercapitaincomebetweentheMSAandtheUnitedStates,between1970

2000theGrandRapidsMSApercapitaincomewasbetween135%and115%oftheUSAoveralland

averaged122%oftheUSApercapitaincome.[SeeFigure2]

Figure2:RatioofPerCapitaIncomesGRMSAtoUSA13

TounderstandthereasonsforthesuccessoftheGRMSAduringthistimeperiod,theemployment

datamustbeanalyzedatanindustrylevel.OnemethodthatisusedtoexaminetheGrandRapidsMSA

dataisthelocationquotient(LQ)tool.TheanalysisofusingtheLQfor19702000showsthatthe

manufacturingsector

employment

increased

from

1970

through

2000.

Manufacturing

has

been

the

leadingsectorforemploymentfrom1970through2000. TheMSAhasbeendominatedby

13U.S.CensusBureau

1.05

1.1

1.15

1.2

1.25

1.3

1.35

1.4

1/1/1969 1/1/1979 1/1/1989 1/1/1999

RatioofAvg.GrandRapidsMSAPCItoUnitedStatesPCI

($2005)


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manufacturinginKentCountyasthecountyhashad~80%ofallmanufacturingemploymentfrom1970

through2000.[SeeFigure3]

Figure3:ManufacturingEmploymentinGrandRapidsMSA14

ThoughmanufacturingmadeupadecliningshareoftheGrandRapidseconomyfrom1970through

2000(from33.5%to24.6%),thedeclineinmanufacturingnationwidewasslightlylarger,from26.0%in

1970to14.1%in2000.InGrandRapids,therewere~65,000manufacturingjobsin1970andthere

were~90,000

manufacturing

jobs

in

2000

which

fell

as

an

overall

percentage

as

the

amount

of

personalserviceandbusinessservicesincreased.[SeeTable1]However,theGRMSAasawhole

relativetothecountry,hadalowerpercentageofpeopleengagedinbothpersonalandbusiness

14U.S.CensusBureau

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

BarryCounty IoniaCounty KentCounty NewaygoCounty

ManufacturingJobsGrandRapidsMSA1970

2000

12/31/1970 12/31/1980 12/31/1990 12/31/2000


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servicesin2000(22%(GRMSA)vs.24%(USA) inpersonalservicesand7.2%(GRMSA)vs.9.3%in

businessservices(USA)).[SeeTable2]

Thedatashowthatthoughmanufacturingoverallwasalessershareofemployment,theGRMSA

improvedfrom19702000inprovidingexportopportunitiesfromthemanufacturingsector.In

explainingsomeoftheotherchangesinemployment,theGRMSAhadaloweremployment

percentageinbothFIREandPublicAdministrationrelativetotherestofthecountryinbothtime

periods.InthePublicAdministrationarea,thecountrystayedfairlyconstantatabout13%ofthetotal

whereastheGRMSAstayedconstantaswellatabout10%.FortheFIREarea,theGRMSAwaslower

thanthenationaswell.[SeeFigure8]

Anothertoolthatcanbeusedtofocusinontheareaswhereregionsexcelatistheshiftshareanalysis

(SSA)whichcanprovideinsightintotheareasofeconomicconcentration.WhencontrastingtheGR

MSAtotheUnitedStatesthroughtheSSA,thereweresimilareffectsobservedinthemanufacturing

sectorthathadbeenobservedthroughtheLQanalysis.ManufacturingintheGRMSAhadgainedin

relativetermstotherestofthecountryfrom19702000.Thoughallbutthetransportationindustry

hadpositivemeasureswhenitcametothecompetitivepositionmeasureoftheshiftshare,the

manufacturingsectorsawanincreaseofabout~30,000jobs.Sincethecompetitivepositionindicator

explainshowmuchofthechangeinagivenindustryisowedtosomeexclusivecompetitiveadvantage

thattheregionretains,theGRMSAperformedstrongrelativetotheUnitedStateseconomyoverthe


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GrandRapidsislocated.Takentogether,theNAICScodesof333,336and337represented11%ofthe

totalemploymentintheMSAintheyear2000.

WhencomparingthemanufacturingsectorinGrandRapidstotheUnitedStatesasawhole,some

arraysofemploymentemergeastowhereGrandRapidshasexcelledinrelationtotherestofthe

country.ThebestperformerinrelationtotheUSAwasfurnituremanufacturing.Thissubsectorin

manufacturinghadbeenastrongperformerasitoutperformedthenationaleconomyby11

percentagepoints(4%USAto15%GRMSA).Theothertwostrongareas,machineryand

transportationequipmentmanufacturingalsooutperformedthenationalaverage,butthesetwoareas

aremorelikelyduetothestrengthoftheautomotiveindustryinMichiganratherthananyspecific

organicfeatureoftheGRMSA.AnalyzingthesectorstotryandisolatetheGRMSAstrength,theState

ofMichiganhad32%shareofmanufacturingjobsinNAICS336vs.16%intheGRMSAand11.4%inthe

countryoverall.TheGRMSAdoesoutperformbothMichiganandUSAinmachinerymanufacturing

(16%GRMSAvs.12.4%MIvs.8.4%USA)buttheclearestadvantageappearsinthefurnituresector

relativetoMichiganoverallaswell.Michigansshareoffurnituremanufacturingjobsis4.2%whichis

nearthenationalnumber,makingthefurnitureindustryaclearcomparativeadvantagefortheGR

MSA.

Thefurnituremanufacturingwasconcentratedinofficefurnituremanufacturing,whichin2000made

up83%ofthefurnituremanufacturingemployment.Sinceofficefurnituremakesupthevastmajority

ofthefurnituresectorandthefurnituresectorhasbeenthebestperformingmanufacturingarea

relativetotherestofthecountry,thecomparativeadvantagefortheGRMSAin2000wasinoffice

furniture.TheofficefurnitureclusterdeliveredaneconomicundergirdtotheMSAintheformof


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strongemployment,firmsandpayroll.Thefurnitureindustrywasthesecondhighestinannualpayroll

with$676millionin2000.Also,forsectorswithgreaterthan50firms,thefurnituresectorhadthe

highestpayrollperemployee($53,471)andhighestpayrollperestablishment($12.0million).

Figure4:

Payroll

(000s)

per

employee

in

Manufacturing

sector

Grand

Rapids

MSA

Year

200016

16U.S.CensusBureau2000CountyBusinessPatterns

0

30

60

Payroll$in000's

GRMSAManufacturingpayrollperemployee


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Figure5:Payroll(000,000s)perfirminManufacturingsectorGrandRapidsMSAYear200017

ThetransformationofGrandRapidsovertimehasbeenaninterestingstorytotell.GrandRapidshas

beenknownastheFurnitureCityformanyyears,butthismonikerwasbasedonthefactthatGrand

Rapidshadbuiltresidentialandhouseholdfurniture.Theendowmentfactorsforthecitysuchasfrom

timber,proximity

to

demand

in

Chicago

and

Detroit,

and

access

to

transportation

to

these

demand

centersledGrandRapidstobuildaclusteraroundfurnitureandgaveanadvantageinthatindustry

thatpersistedformanydecades.InfactthenameofabookaboutGrandRapids,TheCityBuilton

Wood,18501950givesasenseonhowthecityanditsgrowthweretiedtotheprocessingofwood

intohighervalueproductssuchasfurniture.Bythetimethestudyperiodbegan,theprocessingof

woodhad

begun

to

decline.

In

fact,

by

the

year

2000,

wood

processing

was

only

1.5%

of

manufacturing

employmentwhichwasnearly2fullpercentagepointslessthanthenationalnumber.Themarketfor

residentialfurniturewasdominatedbyfirmslocatedinareaswithcheaplaborratherthanlocation

17U.S.CensusBureau2000CountyBusinessPatterns

0

5

10

15

Payroll$inmil

GRMSA2000Manufacturingpayrollperfirm


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nearrawmaterialsasGrandRapidshadbeeninthepast.Withfallingworldtransportcosts,laborcosts

weretheconstraintonproduction.SeekinganareaofgrowthwithintheindustrythatGrandRapids

hadbeenafrontrunner,thecityturnedtobuildingofficefurniture.GrandRapidsin2000wasstillthe

FurnitureCity,butitthesobriquetshouldhavebeenmodifiedtoOfficeFurnitureCity.Office

furniturerequiresmoredurablemanufacturingprocessingaswellasmetalworkingwhicharedifferent

skillsetsthanthewoodfurnitureprocessingofdecadespast.TheabilityoftheGrandRapidsMSAto

modifyitselfandcreateacomparativeadvantageinaseparatebutsimilarareaofmanufacturingisa

testamenttotheabilityoffirmsandworkerstochange.Theinvestmentsthatcompaniesputinto

secureofficefurnitureaswellastheweightofthemetallendsadvantagetodomesticallyproduced

durablegoodsandasaresult,GrandRapidshasbeenatthetopoftheindustryforofficefurniture.

ThisisaninterestingexampleoftheSchumpeterianforcesofcreativedestructionbybuildingan

advantagefromanareathatmayhaveseemedtobeonaterminaldownwardpath,buthasbeen

redeployedinto

new

growth

opportunities.


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AdditionalFigures:

Figure6:HighSchoolEducation=>distributioninGRMSA,MI,andUSA1970200018

Figure7:PercentageofCollegeDegreeAttainmentbetween1970200019

18U.S.CensusBureau

0%

20%

40%

60%

80%

100%

1970 1980 1990 2000

PercentageofPopulationw/HighSchoolDegreeorgreater

GrandRapidsMSA Michigan UnitedStates

0.0%

5.0%

10.0%

GrandRapidsMSA Michigan UnitedStates

CollegeDegreePercentagePointincrease19702000


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Figure8:LocationQuotientsforSectorsinGrandRapidsMSA1970200020

19U.S.CensusBureau

20U.S.CensusBureau

0.5

7 0.8

3

1.2

9

0.7

7

1.3

4

1.0

5

0.8

30.9

7

0.8

8

0.7

31.0

61.1

5

1.0

3

0.9

2

1.3

8

1.0

4

0.9

8

0.8

9 1.0

5

0.8

6

0.6

3 0.8

1

1.5

3

0.6

5

1.2

3

1.1

0

0.9

0

0.8

6

0.8

1

0.7

7

0.5

8 0

.89

1.7

5

0.6

5

1.3

9

1.0

8

0.7

80.9

1

0.8

5

0.7

7

LOCATION QUOTIENT FACTORS GRAND RAPIDS MSA

19702010

1970 1980 1990 2000


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Tables:

[Table13,LocationQuotientAnalysis]

Table1

Table2

BASE DATA

Sector 1970 1980 1990 2000 1970 1980 1990 2000

Agriculture & Mining 5,000 5,513 6,478 3,921 3,471,276 77,040 3,838,795 2,426,053

Construction 9,604 11,976 15,567 22,082 4,572,235 155,332 7,214,763 8,801,507

Manufacturing 65,155 78,749 83,684 89,637 19,837,208 1,136,271 20,462,078 18,286,005

Transportat ion 10,073 13,233 14,239 19,476 5,186,101 214,546 8,205,062 10,736,666

Wholesale Trade 10,668 12,665 16,601 18,196 3,133,382 136,785 5,071,026 4,666,757

Retail Trade 32,639 43,334 57,264 46,365 12,239,498 618,831 19,485,666 15,221,716

Business Services 6,822 17,891 31,947 26,394 3,248,701 271,575 13,259,522 12,061,865

Services 27,099 26,128 34,559 78,988 11,010,643 437,242 14,987,840 31,002,750

FIRE 8,571 12,988 17,339 21,303 3,838,387 183,830 7,984,870 8,934,972

Public Administration 18,675 30,081 31,301 37,968 10,016,168 519,280 15,171,580 17,583,221

Total 194,306 252,558 308,979 364,330 76,553,599 3,750,732 115,681,202 129,721,512

Grand Rapids MSA United States

LOCATION QUOTIENT

A. Shares

Matrix=employment by sector in region/total employment in region

Sector 1970 1980 1990 2000 1970 1980 1990 2000Agriculture & Mining 2.6% 2.2% 2.1% 1.1% 4.5% 2.1% 3.3% 1.9%

Construction 4.9% 4.7% 5.0% 6.1% 6.0% 4.1% 6.2% 6.8%

Manufacturing 33.5% 31.2% 27.1% 24.6% 25.9% 30.3% 17.7% 14.1%

Transportation 5.2% 5.2% 4.6% 5.3% 6.8% 5.7% 7.1% 8.3%

Wholesale Trade 5.5% 5.0% 5.4% 5.0% 4.1% 3.6% 4.4% 3.6%

Retail Trade 16.8% 17.2% 18.5% 12.7% 16.0% 16.5% 16.8% 11.7%

Business Services 3.5% 7.1% 10.3% 7.2% 4.2% 7.2% 11.5% 9.3%

Personal Services 13.9% 10.3% 11.2% 21.7% 14.4% 11.7% 13.0% 23.9%

FIRE 4.4% 5.1% 5.6% 5.8% 5.0% 4.9% 6.9% 6.9%

Public Administration 9.6% 11.9% 10.1% 10.4% 13.1% 13.8% 13.1% 13.6%

Region's Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

United StatesGrand Rapids MSA


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Table3

B. Location Quotient

Matrix=Percentage by sector in region/United States Percentage for that Industry

Sector 1970 1980 1990 2000

Agriculture & Mining 0.57 1.06 0.63 0.58

Construction 0.83 1.15 0.81 0.89

Manufacturing 1.29 1.03 1.53 1.75

Transportation 0.77 0.92 0.65 0.65

Wholesale Trade 1.34 1.38 1.23 1.39

Retail Trade 1.05 1.04 1.10 1.08

Business Services 0.83 0.98 0.90 0.78

Personal Services 0.97 0.89 0.86 0.91

FIRE 0.88 1.05 0.81 0.85

Public Administration 0.73 0.86 0.77 0.77

LQ>1.0Relative Specialization in Sector/Region

LQ


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[Table45,ShiftshareAnalysis]

Table4

Table5

TOTAL EMPLOYMENT IN 2000/TOTAL EMPLOYMENT IN 1970

Sector

Employment Change

2000-1970 Grand Rapids United States

Agriculture & Mining -1,079 0.78 0.70

Construction 12,478 2.30 1.92

Manufacturing 24,482 1.38 0.92

Transportation 9,403 1.93 2.07

Wholesale Trade 7,528 1.71 1.49

Retail Trade 13,726 1.42 1.24

Business Services 19,572 3.87 3.71Personal Services 51,889 2.91 2.82

FIRE 12,732 2.49 2.33

Public Administration 19,293 2.03 1.76

Total Employment 170,024 1.88 1.69

SHIFT-SHARE ANALYSIS-GrandRapids MSA compared to the United States

Sector National Share1

Industrial Mix2

Competitive

Position3

Agriculture & Mining 3,473 4,978 427

Construction 6,670 2,213 3,594

Manufacturing 45,251 50,346 29,577

Transportation 6,996 3,785 1,378

Wholesale Trade 7,409 2,189 2,307

Retail Trade 22,668 14,716 5,773

Business Services 4,738 13,769 1,065

Personal Services 18,821 30,383 2,685

FIRE 5,953 5,428 1,351

Public Administration 12,970 1,139 5,184Total Change 134,949 15,512 50,587


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WorksCited:

Authors,Various."ABriefHistoryofLumberinginMichigan."MichiganEducationPortalforInteractive

Content(MI

EPIC).

Web.

Bratt,PeterA."RenewingaGrandCenter:PostwarPlanninginGrandRapids,Michigan:1949to1959."

MichiganHistoricalReview36.2(2010):12658.Print.

Bureau,U.S.Census."HistoricalIncomeTables:People."Online.

Bureau,U.S.Census."CountyBusinessPatterns,Barry,Ionia,Kent,Newaygo,Michigan,UnitedStates

19702000"Online.

Dewey,Charlsie."MetroGrandRapidsPopulationPasses1Million."GrandRapidsBusinessJournal

(2013).Web.

Grand,Rapids.GrandRapids,Michigan,UnitedStatesofAmerica.GrandRapids,Mich.:Dickinson

Bros.,1899.Print.

Grand

Rapids

Chamber

of

Commerce,

http://www.grandrapids.org/facts

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RapidsOfficeFurnitureCity."InternationalBusinessReview17.4(2008):37184.Print.

Kleiman,Jeffrey."TheRulefromAbove:Businessmen,Bankers,andtheDrivetoOrganizeinGrand

Rapids,18901906."MichiganHistoricalReview12.2(1986):4568.Print.

Ransom,FrankEdward.TheCityBuiltonWood:AHistoryoftheFurnitureIndustryinGrandRapids,

Michigan,18501950.AnnArbor,Mich.:EdwardsBrothers,1955.Print.

Sentz,Rob."UnderstandingShiftShare." (2011).Web.

Documents

Analysis of Urban Economy GrandRapids MI