LOCATIONAL PATTERNS OF INDUSTRY CLUSTERS IN INDIANA · The Business and Financial Services Cluster is the third-ranked cluster with a comparatively low employment share of only 5.4%,

Cordes, Kumar, Nolan, Conover, Rogers, and Waldorf 2006 Locational Patterns of Industry Clusters in Indiana MCRSA/IMPLAN Conference: Indianapolis, IN June 2006

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LOCATIONAL PATTERNS OF INDUSTRY CLUSTERS IN INDIANA Brigitte Waldorfb (Principal author) Samuel M. Cordes a,b, Indraneel Kumar a, Christine E. Nolan a, Jerry Conoverc, and Carol Rogersc

a Purdue Center for Regional Development, Purdue University, 1201 W. State Street, West Lafayette, IN 47907-2057

b Dept. of Agricultural Economics, Purdue University, Krannert Building 572, 403 W. State

Street, West Lafayette, IN 47907 c Indiana Business Research Center, Kelley School of Business, IUPUI Campus, 777 Indiana

Avenue, Suite 210, IN 46202

Paper presented at the:

MCRSA/IMPLAN CONFERENCE June 8-10, 2006

Indianapolis, Indiana


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Acknowledgements: This research was funded by EDA Grant 11.312-EDA-7-15-2005. The authors would like to thank Fred Byon and Eda Unal for their competent research assistance, and the Indiana Business Research Center (IBRC) for providing the data.


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1. Introduction Over the last decades, cluster analysis has emerged as a new way of looking at economic development, integrating regional differences in development and economic specialization (see, for example, Porter 1990, 2003; Sweeney and Feser 1998; Feser 2004, Cortright 2006). An increasing number of states and regions in the US and overseas have modified their economic development strategies to focus and capitalize on the business and industry clusters where they have, or would like to have, a competitive advantage (National Governors Association 2002). In adopting a cluster strategy, states and regions hope to maximize their competitive advantage in existing industries and to build new strengths in the emerging industries that will replace older, declining sectors. This paper explores the locational patterns and performance of 22 industry cluster in Indiana. At the state level, the focus is on classifying the industry clusters and evaluating their growth in comparison to their performance at the national level. At the county level, the paper identifies hot spots of specialization and investigates the relationship between cluster specialization, cluster performance, rurality, and metropolitan accessibility. The investigation is a first step in a broader, nationally-based analysis that will enhance our understanding of industry clusters and, in particular, provide a more nuanced perspective on the role of industry clusters in rural regions. The investigation is based on unsuppressed data for Indiana counties and utilizes a new and detailed (6-digit NAICS) typology of industry clusters. The paper is organized into four sections. Following the introduction, the background discussion explains the concept of industry clusters, and introduces the cluster definitions used in this research. The empirical analysis in the third section provides detailed cluster profiles at the county level, and evaluates the location patterns for each cluster within Indiana. The fourth section summarizes the results of the analysis and derives a set of policy-relevant conclusions and directions for future research. Finally, the paper also includes an appendix with a compilation of salient cluster characteristics and cluster location maps. 2. Background “There is surprisingly little disagreement over the formal definition of a ‘cluster.’ Most experts define it as a geographically bounded concentration of similar, related or complementary businesses, with active channels for business transactions, communications and dialogue, that share specialized infrastructure, labor markets and services, and that are faced with common opportunities and threats.” National Governors Association 2002. In fact, close geographic proximity to engagement in similar or related economic activities are the key issues. These two commonalities set the stage for formal and informal inter-firm information exchanges and thus foster learning, innovation, and ultimately economic growth. Knowledge spillovers are crucial in that they are a key driver of the spatial clustering and—at the same time—the mechanism that allows firms to benefit from the clustering. “When members of a cluster are located in close proximity, they can capture synergies that increase productivity, innovative capacity and new business formation.” (Porter 2001, p. xv). The linkages between spatial proximity and innovation potential are particularly important from a regional development perspective. In particular, supportive policies and a nurturing business environment may further strengthen the innovative milieu and thus enhance regional advantages.

Although Cortright (2006) rightfully points out that “clusters” are not a precisely defined term and should be understood as an umbrella concept, a national or state-wide analysis cannot


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be performed without a clear definition of which industries belong to a cluster. There are a number of very promising approaches to identifying clusters. For example, Porter (2004) distinguishes between 41 traded clusters. For this study, we were in the fortunate situation of being able to utilize unsuppressed county-level data for the State of Indiana. Based on this data, we defined 17 clusters at a very fine scale of 6-digit NAICS codes. One of those clusters is a large Manufacturing Supercluster that we subsequently disaggregated into six more specialized manufacturing clusters. This yielded a total of 23 clusters. The clusters are listed in Table 1.

Table 1. Clusters and Sub-clusters used in this Study

Cluster Sub-cluster Advanced Materials Arts, Entertainment, Recreation and Visitor Industries Defense and Security Energy Forest and Wood Products Mining Agribusiness, Food Processing and Technology Apparel and Textiles Biomedical / Biotechnical Life Sciences Business and Financial Services Chemicals and Chemical Based Products Education and Knowledge Creation Glass and Ceramics Information Technology and Communications Manufacturing Supercluster Printing and Publishing Transportation and Logistics

Electrical equipment, Appliance, and Component Mfg Primary Metal Manufacturing Computer and Electronic Product Manufacturing Fabricated Metal Product Manufacturing Machinery Manufacturing Transportation Equipment Manufacturing

At the national level, the top-three industry clusters (Figure 1) with the largest employment share are the Biomedical / Biotechnical Cluster (12.6%), the Business and Financial Services Cluster (8.4%), and the Defense and Security Cluster (5%). In Indiana, the number one is also the Biomedical / Biotechnical Cluster with a—compared to the nation—slightly higher employment share of 12.8%. However, the subsequent ranks no longer follow the national ranking. Number two in Indiana is the Advanced Materials Cluster (nationally ranked 5th) with an employment share of 8.1%. The Business and Financial Services Cluster is the third-ranked cluster with a comparatively low employment share of only 5.4%, and closely followed by the Transportation Equipment Manufacturing Cluster with 4.9% of Indiana employment. Note that the Transportation Equipment Manufacturing Cluster only ranks 14th in the national economy. Moreover, when combining the six specialized manufacturing clusters into one Manufacturing Supercluster it accounts for more than 11% of Indiana’s employment and thus even pushes ahead of the Advanced Materials Cluster in terms of employment share. In the national economy, the


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Manufacturing Supercluster only accounted for 5.1% of the total employment in 2004, placing it on rank 3 just ahead of the Defense and Security Cluster. Figure 1 also shows that Indiana’s economy is strongly specialized1 in just three clusters: Advanced Materials Cluster (LQ=1.9), Transportation Equipment Manufacturing Cluster (LQ=3.5) and Primary Metal Manufacturing Cluster (LQ=4.7). Among these three clusters, the Advanced Materials Cluster takes on a particularly prominent role in Indiana’s economy not only because its location quotient is greater than one but also because it is the second biggest cluster in the state. From a development point of view, the cluster also needs special attention because it has recently seen some drastic employment losses. At the national level, the Advanced Materials Cluster lost more than 12% of its employment during the three-year period from 2001 to 2004. In Indiana, its decline is slightly less pronounced, amounting to only 10.2%. Due to the differing rates of decline, the location quotient for the Advanced Materials Cluster actually increased between 2001 and 2004. Overall, this signals an increasing specialization in an overall declining cluster. However, within the Advanced Materials Cluster there are actually two industries that employ a large and substantially growing number of persons. These are “Surgical Appliance and Supplies Manufacturing” (over 6,000 employees and an average annual employment growth of 7%) and “Surgical and Medical Instrument Manufacturing” (over 7,000 employees and an average annual employment growth of about 5.5%). The Transportation Equipment Manufacturing Cluster also occupies a very prominent role in Indiana due to the combination of high location quotient and high employment share. Its high location quotient even grew by 10% from 3.2 to 3.5 during the three-year period from 2001 to 2004. This increase was due to an employment decline at the national level and a slight—less than ½ %—employment rise in Indiana. Almost 5% of Indiana’s employees are linked to the Transportation Equipment Manufacturing Cluster. The most promising industry within this cluster is the “Travel trailer and camper manufacturing” sector that employs almost 15,000 persons and had an average annual employment growth rate of 18%. Unlike the two clusters discussed above, the Primary Metal Manufacturing Cluster does have a relatively small employment share, thus being of somewhat lesser importance despite the high location quotient. Moreover, the share of employment in this cluster is also rapidly declining, both at the national and at the state level. However, the Primary Metal Manufacturing Cluster is a high-wage cluster and one of only three clusters in which Indiana wages exceed wages at the national level. In fact, while it accounted for only 1.7% of Indiana’s employment in 2004, it contributed 3% of total wages. Note that—among the six specialized manufacturing sectors—the Primary Metal Manufacturing Cluster has the highest location quotient.

1 Specialization is measured via the so-called location quotient (LQ), which is defined as the ratio of a cluster’s employment share in the state (numerator) and the cluster’s employment share in the nation. The state is specialized in a cluster if the cluster’s location quotient is greater than one.


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Figure 1. Location Quotients of Indiana Industry Clusters and their Employment Shares in Indiana and the U.S. A very useful way to organize the information about clusters and their development is to utilize the location quotients and their changes over time to assign industry clusters to four types. Each type takes on a different role in the local / regional economy and thus requires different sets of development policies.

• STARS: Star clusters are defined as industry clusters with a high location quotients (LQ >1) that is increasing over time. From a policy perspective, two approaches are typically recommended: “Leave the cluster alone – it’s fine!” or “Work with the cluster to maintain or even boost its growth.”

• MATURE: Clusters classified as ‘mature’ have a high (LQ>1) but decreasing location quotient. Development policy should bolster or support growth if the cluster is growing at the national level.

• EMERGING: These clusters have a low (LQ <1) but increasing location quotient. Development policies should maintain or boost growth if there is a competitive advantage in the region, and if the cluster is growing nationally.


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• TRANSFORMING: These are the clusters with a poorest performance, having a low (LQ < 1) and decreasing location quotient. Policies should either leave the cluster alone, especially if the cluster is shrinking at the national level; or boost the cluster if it is very important locally.

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Figure 2. Classification of Indiana Industry Clusters (note: circle size is proportional to employment size).

Table 2 and Figure 2 show the distribution of Indiana industry clusters across the four types. Eight of Indiana’s 22 industry clusters are classified as ‘Stars’. However, only one of the ‘Star’ clusters–the Biomedical/Biotechnical Cluster—has a sizable employment share and is growing at the national level.2 It accounted for 12.0% of total employment in 2001 and its share slightly increased to 12.8% in 2004. This growth in employment share was complemented by an absolute growth in employment by 20,120 employees or almost 6%. However, much of the employment is not in export industries, but instead is service oriented (general medical and surgical hospitals, offices of physicians, except mental health, nursing care facilities, offices of dentists). Moreover, the location quotient is only slightly greater than one, making it a “borderline” member of the group. All other ‘Star’ clusters show a decline in national employment, with some of the decreases being quite substantial.

2 The Advanced Materials Cluster is also a Star cluster with a sizeable employment share. But, it is a declining cluster at both the national and state level.


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Table 2. Classification of Indiana Industry Clusters, 2004.

Industry Clusters Employment Share LQ 2001 LQ 2004 % Change

2001-2004

Employment Change Nation

Stars Advanced Materials 8.1 1.899 1.952 2.82% –12.2 Biomedical / Biotechnical Life Sciences 12.8 1.037 1.038 0.09% +6.2 Chemicals and Chemical Based Products 3.4 1.733 1.833 5.77% –8.5 Forest and Wood Products 2.4 1.537 1.570 2.19% –9.1 Glass and Ceramics 0.5 1.756 1.920 9.31% –14.8 Fabricated Metal Product Manufacturing 2.1 1.788 1.841 2.96% –11.0 Machinery Manufacturing 1.5 1.672 1.743 4.22% –16.5 Transportation Equipment Manufacturing 4.9 3.204 3.525 10.00% –8.2 Mature Electrical equipment, Appliance, and Component Manufacturing 0.5 1.553 1.471 –5.26% –19.6

Primary Metal Manufacturing 1.7 4.788 4.695 –1.93% –18.2 Transportation and Logistics 3.6 1.216 1.215 –0.15% –3.3 Emerging Agribusiness, Food Processing and Technology 2.2 0.873 0.899 3.02% –3.2

Apparel and Textiles 0.6 0.449 0.558 24.18% –19.1 Business and Financial Services 5.4 0.642 0.645 0.55% –1.0 Defense and Security 3.2 0.629 0.635 1.06% –1.7 Education and Knowledge Creation 3.5 0.972 0.993 2.24% +4.3 Information Technology and Communications 2.3 0.586 0.588 0.47% –18.5 Mining 0.1 0.976 0.999 2.33% –4.8 Printing and Publishing 1.6 0.851 0.880 3.41% –9.5 Computer and Electronic Product Manufacturing 0.7 0.687 0.731 6.43% –24.8

Transforming Arts, Entertainment, Recreation and Visitor Industries 2.8 0.729 0.705 –3.30% +0.1

Energy (Fossil and Renewable) 3.4 0.801 0.795 –0.81% –6.1 Among the three mature clusters, the Transportation and Logistics Cluster emerges as the most important cluster. It has the largest employment share, its decline in location quotient is almost negligible, and the decline in national employment share is comparatively mild. Among the nine emerging industry clusters, the Education and Knowledge Cluster stands out prominently. Its increasing location quotient is only slightly below 1, it has a substantial employment share of 3.5% and it is growing at the national level. Finally, among the two transforming industry clusters, the Arts, Entertainment, Recreation and Visitor Industries Cluster deserves special attention as it is growing nationally and may be of pivotal importance at a smaller spatial scale. What will be the future trajectory of the Indiana economy? Will its composition resemble more that of the U.S. economy? Will it lose its current specializations? Will it become specialized in different clusters? Looking at the distribution of employment across the 22 industry clusters, Indiana and the nation have actually become more similar between 2001 and


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2004. As shown in Table 3, the dissimilarity index3 for the employment share distributions of Indiana and the nation slightly diminished from 12.81% to 12.02%, and employment shares in all but four clusters have become more similar between the state and nation. Interestingly, among the clusters with diverging employment shares between Indiana and the nation, two clusters—the Transportation Equipment Manufacturing Cluster and the Chemicals and Chemical-based Products Cluster—are ‘Star clusters’ that owe their ‘Star’ label to rapid employment losses at the national level. The divergence in the Arts, Entertainment, Recreation, and Visitors Industry Cluster is due to the cluster’s growing trajectory at the national level and declining trajectory at the state level. Finally, the increasing disparity between Indiana and the US in the Biomedical/Biotechnical Cluster is because the cluster’s employment share grew slightly more in Indiana than in the US. This may be a first hint towards the emergence of a new specialization that can replace Indiana’s traditional reliance on the manufacturing and advanced materials clusters.

Table 3. Employment Share Disparities between Indiana and the Nation for 22 Industry Clusters

Disparity [% pts, absolute] Industry Cluster 2001 2004

Convergence: Decreasing Disparity

Advanced Materials 4.23 3.95 Business and Financial Services 3.02 2.97 Information Technology and Communications 2.02 1.64 Defense and Security 1.89 1.83 Primary Metal Manufacturing 1.67 1.33 Fabricated Metal Product Manufacturing 0.99 0.94 Energy (Fossil and Renewable) 0.91 0.88 Forest and Wood Products 0.90 0.87 Apparel and Textiles 0.71 0.47 Machinery Manufacturing 0.71 0.65 Transportation and Logistics 0.67 0.64 Computer and Electronic Product Manufacturing 0.42 0.27 Agribusiness, Food Processing and Technology 0.31 0.24 Printing and Publishing 0.30 0.22 Electrical equipment, Appliance, and Component Manufacturing 0.24 0.16

Glass and Ceramics 0.23 0.24 Education and Knowledge Creation 0.10 0.02 Mining 0.00 0.00

Divergence: Increasing Disparity

Transportation Equipment Manufacturing 3.32 3.50 Chemicals and Chemical Based Products 1.49 1.56 Arts, Entertainment, Recreation &Visitor Industries 1.07 1.17 Biomedical / Biotechnical Life Sciences 0.43 0.47

3 The dissimilarity index is defined as one-half of the sum of employment share disparities and ranges between 0 (small disparity) and 100 (complete disparity).


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Dissimilarity Index 12.81 12.02 3. Empirical Analysis Indiana has 92 counties that are quite diverse, varying widely by population size, population characteristics, economic structure, topography, and environmental features. The population sizes of Indiana counties range from a low of less than 6,000 people (Ohio County in the southeastern corner of the State) to a high of over 800,000 in Marion County, which houses the State Capital, Indianapolis. The population size of Marion County is only rivaled by Lake County, which is located in the northwestern corner of the state and is part of the Chicago metro area. Seventy-two percent of Indiana counties have less than 50,000 inhabitants. In the following, we will first identify the cluster-specific hot spots of concentration, i.e., areas where several counties in close proximity to each other specialize in the same industry cluster. In a subsequent section, we will take a more general look at the locational patterns of industry clusters in Indiana and their relationship to rurality and metropolitan accessibility.

3.1 Spatial Patterns and Hot Spots of Industry Clusters in Indiana4

The big industry clusters have a large share of Indiana’s total employment and have a tendency to be more uniformly distributed, with extreme specializations being the exception. In fact, among the 22 industry clusters, the Biomedical/Biotechnical Cluster is one of the most uniformly distributed clusters across Indiana counties. The location quotients at the county level vary between 0.131 and 2.71, and noticeable or distinct hot spots cannot be identified. For example, the extremes of the location quotients are both found in the Economic Growth Region 8 (EGR8) in Southern Indiana. Martin County, a rural county located West of Bedford, has the weakest representation of the Biomedical / Biotechnical Life Sciences Cluster with an LQ of only 0.131. Owen County to the Northwest of Bloomington has the strongest representation of all Indiana counties, with an LQ=2.71. Owen County is known for its vibrant biomedical industry with over 1,000 employees (Jockel and Richardson 2000). For the majority of counties, however, the location quotient falls into a range between 0.7 and 1.3. Moreover, the location quotient is increasing in almost 50% of all Indiana counties thus making the Biomedical / Biotechnical Life Sciences Cluster a ‘Star Cluster’ or an ‘Emerging Cluster’ for these counties.

The Manufacturing Supercluster similarly displays a rather even pattern with most counties being —to some degree—specialized in manufacturing. In fact, the location quotient for the Manufacturing Supercluster is smaller than one in only 23 of the 92 counties. Most of these counties are located in southwestern Indiana, in the confluence of Economic Growth Regions 7, 8, and 11. For the remaining 69 counties, manufacturing is of pivotal importance for the local economy and in 52 counties, the importance has even increased over the last three years. As mentioned earlier, the Manufacturing Supercluster is a composite cluster, with many different specializations. As shown in the sequence of maps in the Appendix, these specializations also have distinct spatial patterns.

• The Computer and Electronic Product Manufacturing Cluster is weak or almost absent in most Indiana counties. The cluster is instead strongly concentrated around two counties, Huntington and Wabash.

• The Electrical Equipment, Appliance, and Component Manufacturing Cluster is also comparatively weak at the state level overall as in majority of Indiana counties. The location quotient is smaller than one for two-thirds of all counties. However, in the

4 See Appendix for Cluster Maps


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northern portion of the state—from Fountain to Miami and Wells counties, and beyond to De Kalb County—the local economies are quite specialized in this cluster, reaching location quotients as high as 15.3 (Wells County). A secondary hot spot is in the South, in around Gibson and Jackson Counties.

• Fifty-nine counties specialize in the Fabricated Metal Product Manufacturing Cluster (LQ > 1). However, distinct hotspots of very high specialization are found in a corridor stretching northeast from Warren County (LQ=21) to De Kalb and Steuben counties. A secondary hot spot is in the Southeast around Union, Decatur and Jennings counties.

• For the Machinery Manufacturing Cluster, 47 counties have a location quotient greater than one. Two distinct hot spots are visible. The first is in the south east around Bartholomew (LQ=15.8), Rush and Washington counties, the second is around Pulaski County (LQ = 14.9) in the northwest.

• More than 50% of Indiana counties are specialized in the Primary Metal Manufacturing Cluster, with hot spots of extremely high concentration. Most notable are the concentration involving Warrick and Perry counties at the Ohio River; the concentration along the entire northern stretch from Lake County to De Kalb County, the hot spot in the East-central portion of the state including Rush, Henry Wayne and Shelby counties, and the smaller concentration the west including Fountain and Montgomery counties. In fact, Fountain County has the highest location quotient in this cluster (LQ = 30.006).

• Two-thirds of all Indiana counties specialize in the Transportation Equipment Manufacturing Cluster. This makes it the most ubiquitous among the six manufacturing clusters. The cluster is of major importance for many local economies, with some counties having very high location quotient. For example, the location quotient is 24.2 for Gibson County where the employment in this cluster more than doubled over the three last years. High location quotients and rising employment are also found in Elkhart, Lagrange, Clay, Adams and Crawford counties.

The spatial patterns of the Advanced Materials Cluster very much resemble that of the Manufacturing Supercluster, with almost universal importance throughout the state. In fact, the cluster is strongly represented (LQ >1) in 73 of Indiana’s 92 counties. In eight counties, the Advanced Materials Cluster is an emerging cluster, i.e., its location quotient is below one but increasing. Among this overall strong representation, specialization in the Advanced Materials Cluster is particularly prominent in the northeast around Kosciusko County (LQ = 5.8) and Noble County (LQ = 6.1), as well as in the western portion of the state around Fountain County (LQ = 8.36).

The employment shares for the remaining clusters are substantially smaller. Nevertheless (or because of that) the spatial patterns are more distinct, with pronounced peaks of local specialization (i.e., very high location quotients). Four clusters are expected to have a primarily urban orientation: Business and Financial Services, Education and Knowledge, Information Technology and Communication and Transportation/Logistics. The maps (Appendix) suggest that the Business and Financial Services Cluster is the most urban-oriented cluster. It is weak in almost all Indiana counties but a hot spot can be identified in the center of the state where its location quotient exceeds one in Marion County (Indianapolis) and in neighboring Hamilton


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County. In all other counties, the LQ is smaller than one. In fact, in 50% of all Indiana counties, the location quotient for this cluster is even smaller than 0.252, suggesting that the cluster representation is about four times stronger at the national level than for half of Indiana counties.

The Education and Knowledge Cluster also seems to be urban oriented. It is particularly strongly represented in counties that house a university or college, for example Tippecanoe County (Purdue University), Monroe County (Indiana University), and St. Joseph County (Notre Dame University). Note, however, that in the large economy of Marion County (Indianapolis), the Education and Knowledge Cluster does not show an over-representation even though it is home to three universities: IUPUI, Butler University and the University of Indianapolis. In the smaller counties, where the college towns often dominate the economy, the location quotient of this cluster is not only high but also increasing. Thus, in these counties the Education and Knowledge Cluster is a “Star Cluster.” Since the institutions of higher education are rather evenly spread across the state, there is no spatial clustering or hot spot of the Education and Knowledge Cluster. Thus, the college towns with their very high location quotients appear as islands in a sea of low locations quotients. In fact, for more than 50% of all Indiana counties, the location quotient for the Education and Knowledge Cluster is smaller than 0.3.

The urban orientation for the Information Technology and Communication Cluster seems to be less pronounced. The cluster is of minor importance throughout most of the state, with location quotients smaller than one for 83 counties. Six of the remaining nine counties in which the Information Technology and Communication Cluster shows a strong representation are concentrated in northeast of Indianapolis, forming an elongated hot spot along or close to Interstate 69. Most prominent is Huntington County with an LQ of 2.02, accompanied by Wells County (LQ = 1.30), Allen County (LQ=1.11), Hamilton (LQ = 1.037) Hamilton County (LQ = 1.04) and Hancock County (LQ=1.54).

Several hotspots of the Transportation and Logistics Cluster emerge in Indiana. The first is located in the southeastern part of Indiana, and includes Franklin, Jennings, Jackson counties, as well as Clark and Crawford counties along the Ohio River. This hot spot accounts for about 8,500 employees or 8% of Indiana’s employment in the Transportation and Logistic Cluster. The second hot spot is located in the northeast of the Indianapolis area. It includes Hendricks, Marion, Boone and Putnam counties. Here, the importance of the Transportation and Logistic Cluster for the local economy is less pronounced than in the southeaster hotspot. However, in absolute size it is the most important concentration of the Transportation and Logistic Cluster in the state, accounting for more than one third of the state’s total employment in this cluster. Third, Wells and Allen counties can be interpreted as a third hot spot, with the Transportation and Logistic Cluster being particularly important in Wells county (LQ = 4.9). Combined, these two counties account for about 8% of the total Transportation and Logistic Cluster employment in Indiana.

Three clusters are expected to have a strong rural orientation. These are the Forest and Wood Products Cluster, the Agribusiness Cluster, and the Mining Cluster. Among those, the Mining Cluster (lime stone) has local relevance in a few very rural counties in Southern Indiana, including Crawford, Orange and Switzerland counties.

The Forest and Wood Products Cluster is well represented (LQ>1) in 55% of Indiana counties and the specialization in this cluster becomes even stronger for 60% of those counties. Quite remarkable is the cluster’s strong representation in southern Indiana, where its location quotients reach 19.2 in Dubois County, 11.4 in Orange County, and 7.78 in Washington County.


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This southern hot spot of the Forest and Wood Products Cluster is complemented by an array of counties along the Ohio River, from Spencer County (LQ = 4.9) to Clark County (LQ=3.3) and even further east to Ripley County (LQ=6.49). The Forest and Wood Products Cluster in this southern hot spot remains strong despite recent declines in absolute employment. A secondary hot spot of the Forest and Wood Products Cluster is located in Northern Indiana. For Elkhart County, the Forest and Wood Products Cluster is a ‘Mature Cluster’ with over 12,000 employees, and for neighboring Lagrange County, it is a ‘Star Cluster’ with a large and growing employment share and an increasing absolute number of employees.

More than 50% of all Indiana counties are specialized (LQ > 1) in the Agribusiness, Food Processing and Technology Cluster. For 31 counties the specialization is even strengthening and thus making the Agribusiness, Food Processing and Technology Cluster a ‘Star Cluster’ in these counties. In general, the Agribusiness, Food Processing and Technology Cluster plays a more prominent role in rural portions of northern Indiana. In EGR 4 it reaches its strongest level of specialization, with the cluster having a strong and growing presence in Carroll County (LQ = 13.9) and Clinton County (LQ = 4).

For the remaining clusters, rurality is not expected to be a decisive locational factor. For example, the Chemicals and Chemical Based Products Cluster is well represented in many counties throughout Indiana, both rural and urban. It has a location quotient above one in almost two-thirds of the counties. It even dominates the local economy in several counties, most notably in Posey County east of Evansville. Here, its location quotient is 12.5 and the cluster accounts for almost a quarter of all employees. Notable is also the cluster’s concentration in the northern portion of the state, along a line from Newton County in the West to De Kalb County in the East. In addition there are a more isolated strongholds, including Vermillion County (LQ=8.4) and Shelby County (LQ=7.9). Similarly, the Printing and Publishing Cluster is also not expected to derive locational advantages from either an urban or rural setting. In Indiana, it is locally very important in Montgomery County where it accounts for more than 10% of local employment. A secondary hot spot in the NE includes Kosciusko, Noble, Wabash, Miami, Whitley and Huntington.

For some industry clusters, it is mostly some idiosyncratic characteristics that shape the locational patterns. Most notable, the Defense and Security Cluster is of minor importance for most counties, except for Martin County—the home of a military base— in Southern Indiana. High location quotients are also characteristics for a few small and isolated counties with prison, such as Sullivan County where the Wabash Valley Correctional Facility houses more than 2,000 inmates.5

The Arts, Entertainment, Recreation and Visitor Industries is a dominant cluster in the southern part of Indiana. Here the casino industry along the Ohio River, as well as the pioneer arts community in Brown County is responsible for extremely high location quotients. In Ohio County (LQ=15.2) and Switzerland County (LQ=12.3), this cluster accounts for more than 50 % of total employment. Aside from the few counties in the southern hot spot, this cluster does not have a strong presence in Indiana.

The Energy Cluster takes on a prominent role (LQ>1) in one third of Indiana’s counties, but it is in the southwestern portion of the state where it is particularly strong. In this area, the Energy Cluster’s locational hot spot spans across three economy growth regions: Sullivan County in EGR 7 with a location quotient of 2.3; Greene and Orange counties in EGR 8 with 5 Incidentally, the inmates make up nearly 10% of the entire county population.


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location quotients of 3.5 and 2.7, respectively; and Pike, Posey, and Gibson counties in EGR 11 with the location quotients of 7.2, 2.3 and 3.0, respectively. In Pike County, over 50% of this fast-growing cluster is linked to bituminous coal and lignite surface mining (NAICS 212111).

The Apparel and Textile Cluster has local relevance in the north: its employment in Lagrange, Elkhart, Whitley, Adams, Jasper and White counties is growing; in Lagrange it more than doubled its employment. The cluster also has local relevance in the south, particularly in Brown and Dubois counties where its employment is growing, and Orange and Scott counties where, however, its employment is declining.

The Glass and Ceramics Cluster is of minor importance for the U.S. as well as the Indiana economy, but it does take on a pivotal role in a few small Indiana counties along the eastern border. In Jay and Randolph counties, the cluster accounts for more than 5% of total employment, making its employment share about 20 times higher than in the U.S. where it only accounts for about a quarter percent of total employment. Further north, in De Kalb and Steuben counties, the employment share of the Glass and Ceramics Cluster is more than 13 times larger than in the U.S. 3.2 Specialization, Rurality, and Metropolitan Accessibility

Which industry clusters are more likely to be specialized in rural environments, which are more specialized in urban environments? Phrased differently, is there a systematic relationship between the degree of cluster specialization and the degree of rurality. For each county, a cluster’s degree of specialization is measured by its location quotient. A county’s degree of rurality is measured via the Index of Relative Rurality (IRR)6. The Index of Relative Rurality is a continuous measure that goes beyond the simple rural-urban dichotomy frequently used in rural research, and thus offers a more nuanced view of the relationships between industry clusters and rurality.

Based on the exploration of the cluster-specific locational patterns in the previous section, it is expected that most industry clusters do not show a relationship between rurality and specialization. For Business and Financial Services, Education and Knowledge, Information Technology and Communication and Transportation/Logistics we expect a negative relationship between the index of relative rurality and the degree of specialization. A negative correlation coefficient suggests that the cluster is more likely to be strong in an urban setting than in a rural setting. A positive correlation coefficient—suggesting that rural counties are more likely to be specialized in the cluster—is expected for the Forest and Wood Products Cluster, the Agribusiness Cluster, and the Mining Cluster.

Table 4 shows the correlation coefficients between location quotients and the index of rurality for all clusters, for both 2001 and 2004. By and large, the results confirm our expectations. For 14 clusters, we cannot find a relationship between cluster specialization and

6 The IRR (Waldorf, 2006) is a composite measure of rurality based on a county’s total population size, its proportion of urban residents, density, and proximity to a metropolitan area. The index is calibrated so as to vary between 0 (most urban) and 1 (most rural). For Indiana counties, the most urban county is Marion County (IRR = 0.11), and the most rural county is Warren County (IRR=0.71). Extreme rurality (IRR > 0.8) that is so prevalent in the Great Plains is absent from Indiana. Absent is also the other extreme of very low rurality (IRR < 0.1) that is characteristic of the East and West coast areas. Most of the Indiana counties show a remarkable persistence in the degree of rurality over time. The most notable declines in rurality (i.e., the counties are becoming increasingly urban) are observed for some of the suburban counties, namely Hendricks and Jasper. Increases in relative rurality are only recorded for three Indiana counties, namely Dearborn, Whitley and Owen (Waldorf 2006)


15

rurality. These clusters include all but one of the manufacturing clusters, as well as the Manufacturing Supercluster (the aggregate of all six manufacturing clusters).

Table 4. Correlation Coefficients*) between Location Quotient and Index of Rurality for Industry Clusters in Indiana, 2001 and 2004.

Industry Cluster 2001 2004

Strong Urban Focus Business and Financial Services -0.626 -0.559 Education and Knowledge Creation -0.328 -0.330 Biomedical / Biotechnical Life Sciences -0.221 -0.255 Information Technology and Communications -0.169 -0.300

No Relationship between Rurality and Cluster Specialization Transportation and Logistics -0.127 -0.155 Printing and Publishing -0.100 -0.080 Computer and Electronic Product Manufacturing -0.036 -0.070 Primary Metal Manufacturing -0.024 0.011 Transportation Equipment Manufacturing 0.037 0.072 Machinery Manufacturing 0.039 0.045 Electrical equipment, Appliance, and Component

f i0.046 0.017

Chemicals and Chemical Based Products 0.077 0.053 Defense and Security 0.078 0.097 Arts, Entertainment, Recreation and Visitor Industries 0.095 0.089 Glass and Ceramics 0.102 0.099 Apparel and Textiles 0.106 0.089 Manufacturing Supercluster 0.120 0.167 Advanced Materials 0.161 0.183 Energy 0.179 0.185

Strong Rural Focus Mining 0.218 0.216 Forest and Wood Products 0.241 0.230 Fabricated Metal Product Manufacturing 0.286 0.322 Agribusiness, Food Processing and Technology 0.299 0.303

*) n=92 counties, correlation coefficients significantly (α=0.05) different from zero are in bold. For four industry clusters—Business and Financial Services, Education and Knowledge

Creation, Biomedical / Biotechnical Life Sciences, Information Technology and Communications —we find a statistically significant negative relationship between rurality and cluster specialization. As expected from the locational patterns described in the previous section, the negative relationship between rurality and specialization is most pronounced for the Business and Financial Services Sector (Figure 3). Interesting is also the relationship between rurality and


16

specialization in the Education cluster where all counties with colleges—for example, Indiana University in Monroe County, Purdue University in Tippecanoe County, Notre Dame in St. Joseph County and Vincennes University in Know County—are located far above the trend line (Figure 3). The urban focus is weakest for the Biomedical / Biotechnical Life Science Cluster, which includes a good portion of health service-oriented employees (physicians, nurses, dentists) and is thus is more ubiquitous. For the Information Technology and Communications Cluster the urban focus is a more recent phenomenon: it was insignificant in 2001 but, in 2004, surpassed the urban focus of the Biomedical / Biotechnical Cluster.

Figure 3. Specialization and Rurality for four Urban-Oriented Industry Clusters, 2004 At the other end of the spectrum are four industry clusters that have a strong rural focus.

That is, these cluster show a positive relationship between the location quotient and index of relative rurality. For the Mining Cluster and the Forest and Wood Product Cluster the rural focus is weakest, and even slightly declining between 2001 and 2004. For the Fabricated Metal Product Manufacturing Cluster and the Agribusiness, Food Processing and Technology Cluster the rural focus is slightly stronger and also slightly increasing. As shown in Figure 4, for all rural-oriented clusters the negative relation is very much a result of a few rural counties showing

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17

a very high degree of specialization. Yet, Figure 4 also shows the huge variation in location quotients among the rural counties. Thus, for the rural-oriented clusters, we cannot use rurality as a predictor for their presence but we can use high urbanity as a predictor for their absence.

Figure 4. Specialization and Rurality for four Rural-Oriented Industry Clusters, 2004 The Index of Relative Rurality is a composite measure of population size, density, and

proximity to metropolitan areas. However, of particular interest is the county’s metropolitan accessibility or a cluster’s sensitivity to distance from a metro area. Which clusters are access-sensitive, which are access-insensitive? In this analysis we measure a county’s accessibility via the inverse distance to the closest metropolitan area weighted by the population size of the metropolitan area. An industry cluster is considered access sensitive if the correlation between the access measure and the cluster’s location quotient is positive. Otherwise, the cluster is considered access insensitive and oriented more towards remote locations.

Table 5 shows the correlation coefficients between location quotients and metro access for 2001 and 2004. Interestingly, only the Business and Financial Services Cluster has a significantly positive focus on closeness to metro-areas. The Education and Knowledge Creation Cluster had a positive relationship between specialization and metro access in 2001, but it lost its significance in 2004. Unlike in the case of the rurality index, none of the clusters shows a

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18

significant focus on remote areas. However, it should be noted that these results may be due to Indiana’s special situation where no county is very far away from a metro areas,7 especially considering that the Cincinnati, OH, and the Louisville, KY metro areas are in close proximity to many counties in Southern Indiana.

Table 5. Correlation Coefficients*) between Location Quotient and Metro Access for Industry Clusters in Indiana,

2001 and 2004.

Industry Cluster 2001 2004

Metro Access -sensitive Business and Financial Services 0.475 0.432 Education and Knowledge Creation 0.203 0.192

No Relationship between Metro Access and Cluster Specialization

Information Technology and Communications 0.173 0.135 Biomedical / Biotechnical Life Sciences 0.122 0.121 Transportation and Logistics 0.106 0.075 Arts, Entertainment, Recreation and Visitor Industries 0.062 0.061 Printing and Publishing 0.048 0.047 Computer and Electronic Product Manufacturing 0.017 0.006 Defense and Security -0.011 -0.015 Transportation Equipment Manufacturing -0.027 -0.027 Machinery Manufacturing -0.028 -0.038 Apparel and Textiles -0.039 -0.062 Mining -0.066 -0.067 Chemicals and Chemical Based Products -0.069 -0.073 Electrical equipment, Appliance, and Component -0.085 -0.088 Glass and Ceramics -0.098 -0.100 Fabricated Metal Product Manufacturing -0.108 -0.109 Energy -0.132 -0.132 Forest and Wood Products -0.133 -0.133 Manufacturing Supercluster -0.134 -0.135 Primary Metal Manufacturing -0.137 -0.139 Advanced Materials -0.148 -0.162 Agribusiness, Food Processing and Technology -0.184 -0.187

*) n=92 counties, correlation coefficients significantly (α=0.05) different from zero are in bold. 3.3 Economic Performance, Rurality, and Metropolitan Access Is the economic performance of an industry cluster better in urban than in rural counties? Is the economic performance of industry clusters positively related to a county’s accessibility to a metropolitan area? Table 6 shows—for each industry cluster— the correlation between

7 Using average travel time rather than distances may show stronger results.


19

employment growth8 and the index of rurality. A positive correlation coefficient suggests that a cluster is likely to perform better in a rural area than in an urban area. A negative coefficient suggests that employment growth increases with decreasing rurality. Overall, employment growth is negatively influenced by rurality. However, for individual industry clusters, this is only the case for the Forest and Wood Product Cluster and the Biomedical/Biotechnical Life Science Cluster. A positive relationship between rurality and employment growth is found for Agribusiness and—somewhat surprisingly—business and financial services. This latter may suggest that advanced business services are doing some catch-up in rural areas where their representation is utterly lagging behind their representation in urban areas.

Table 6. Correlation Coefficients*) between Employment Change and Rurality in Indiana

Sector r

Better Performance in Urban Areas Employees ALL -0.24 Forest and Wood Products -0.23 Biomedical / Biotechnical Life Sciences -0.22

No relationship between cluster performance and rurality

Primary Metal Manufacturing -0.14 Glass and Ceramics -0.13 Machinery Manufacturing -0.12 Advanced Materials -0.11 Electrical equipment, Appliance, and Component Manufacturing -0.07 Computer and Electronic Product Manufacturing -0.07 Education and Knowledge Creation -0.06 Information Technology and Communications -0.05 Arts, Entertainment, Recreation and Visitor Industries -0.03 Transportation and Logistics 0.01 Apparel and Textiles 0.02 Energy 0.04 Printing and Publishing 0.05 Mining 0.07 Fabricated Metal Product Manufacturing 0.10 Chemicals and Chemical Based Products 0.12 Transportation Equipment Manufacturing 0.12 Defense and Security 0.13 Manufacturing Supercluster 0.17

Better Performance in Rural Areas

Business and Financial Services 0.22 Agribusiness, Food Processing and Technology 0.23

When relating cluster performance to metro accessibility, none of the relationships are significant. This lack of significance maybe due to accessibility not being a real issue in a state

8 Measured as percent employment change between 2001 and 2004.


20

that has a lot of metropolitan areas or due to other confounding factors that need to be addressed in a multivariate setting.

Summary and Conclusions

This paper explores the locational patterns of industry clusters across the state of Indiana. The exploration is based on a new set of cluster definitions and unsuppressed 2001 and 2004 employment data at the 6-digit NAICS level. A number of key findings can be stressed.

First, Indiana is traditionally known as “manufacturing” state. Indeed, USDA’s Economic Research Service classifies 70% of Indiana’s counties as manufacturing-based counties. However, our county-based cluster analysis shows that the “manufacturing” label is too simplistic and does not do justice to the diversity of economic activity at the state and county level. This paper shows that the Indiana economy is actually moving closer to mirror the diverse U.S. economy. Although not all industry clusters are proportionally represented, many of them exhibit strong concentrations in some local economies, where they contribute to regions’ competitive advantages. This trend towards overall diversification and—simultaneously— specialization at the local level promises to be a successful strategy as the U.S. economy transitions into a knowledge-based economy.

Second, spatial concentrations and hot spots do not always follow predefined regional boundaries, such as those of the economic growth regions. For example, the spatial concentration of the Forest and Wood Products Cluster in southern Indiana is traditionally associated with Economic Growth Region 8. However, our analysis shows that the cluster extends well beyond EGR8 and also shows high degrees of specializations for counties in EGRs 7, 10, and 11. This suggests that regional development policies need to be flexible, fostering alliance with different sets of counties that are determined by the spatial extent of a cluster.

Third, the analysis suggest that rurality not only influences a cluster’s degree of specialization but also its economic performance. Yet, the direction of influence is cluster-specific. For example, the Forest and Wood Products Cluster tends to be specialized in more rural areas. However, its economic performance is better in urban than in rural areas. This contrasts the situation for the Business and Financial Services Cluster that tends to be highly specialized in urban areas but tends to grow faster in rural than in urban areas.

Fourth, this research is concerned with overall cluster patterns across the state of Indiana. Overall patterns describe averages, and it should be kept in mind that individual regions may deviate markedly from the overall trend. In fact, it is recommended that economic development policies not only allow for regional flexibility as suggested above, but also for flexibility in the identification and definition of industry clusters.


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References Cheshire, P. C. and E. J. Malecki 2004. Growth, Development and Innovation: A Look

Backward and Forward. Papers in Regional Science 83: 249-267. Cortright, J. 2006. Making Sense of Clusters: Regional Competitiveness and Economic

Development. Discussion Paper. Brookings Institution Metropolitan Policy Program. Cortright, J. and L. Dukehart 2002. Metropolitan Economic Task Force: Review of Economic

Strategy. Impresa Inc. www.upa.pdx.edu/IMS/ Feser, E. 2004. Visioning North Carolina’s Southeast: An Analysis of Industry Cluster Trends

and Opportunities Held, J. R. 1996. Clusters as an economic development tool. Economic Development Quarterly,

10: 249-261. Jockel, T. and L. Richardson. Progressive Manufacturing–Medical Devices and Biotechnlogy.

INContext, February 2000National Governors’ Association 2002. A Governor’s Guide to Cluster-Based Economic Development. Washington D.C.

Porter, M. 1990. The Competitive Advantage of Nations. New York: Basic Books. Porter, M. 1997. New Strategies for Inner-City Economic Development. Economic Development

Quarterly 11(1). Porter, M. 2001. Clusters of Innovation: Regional Foundations of U.S. Competitiveness.

http://www.usistf.org/download/documents/Clusters-of-Innovation/Clusters-of-Innovation.pdf

Porter, M. E. 2003. The Economic Performance of Regions. Regional Studies 37: 549-678. Rosenthal, S. S. and W. C. Strange 2003. Geography, Industrial Organization, and

Agglomeration. Review of Economics and Statistics 85: 377-393. Saxenian, A. 1994. Regional Advantage: Culture and Competition in Silicon Valley and Route

128. Cambridge, MA: Harvard University. Sweeney, S. H. and Feser, E. J. 1998. Plant size and clustering of manufacturing activity.

Geographical Analysis 30: 45-64. Waldorf, B. 2006. What is Urban and What is Rural in Indiana? Working Paper. Purdue Center

for Regional Development.


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APPENDIX

Industry Cluster Profiles

Note: in alphabetical order except for the Manufacturing Supercluster and its sub-clusters which appear at the end.


24

ADVANCED MATERIALS

Indiana USA Variable 2001 2004 Change 2001 2004 Change

Employment 257,398 231,190 -10.18% 6,107,519 5,360,428 -12.23% As % of Total Employment 8.95% 8.09% -0.85pp 4.71% 4.15% -0.56pp Average Wage $45,862 $52,274 13.98% $50,246 $56,829.82 13.10% Number of Establishments 4158 3984 -4.18% 150947 143811 -4.73% Average Firm Size 61.90 58.03 -6.26% 40.46 37.27 -7.88%

Location Quotient 1.90 1.95 2.82%

Top 5 NAICS (# of employees, 2004) NAICS 326199 All other plastics product manufacturing NAICS 541710 Physical, engineering and biological research NAICS 325412 Pharmaceutical preparation manufacturing NAICS 326199 All other plastics product manufacturing NAICS 331111 Iron and steel mills NAICS 332710 Machine shops NAICS 336399 All other motor vehicle parts manufacturing NAICS 325412 Pharmaceutical preparation manufacturing NAICS 336322 Other motor vehicle electric equipment mfg. NAICS 334413 Semiconductors and related device mfg. Top 5 NAICS (LQ, 2004) NAICS 331111 Iron and steel mills NAICS 331314 Secondary smelting and alloying of aluminum NAICS 336322 Other motor vehicle electric equipment mfg. NAICS 325320 Pesticide and other ag. chemical mfg. NAICS 339991 Gasket, packing, and sealing device mfg. Top 5 Fastest Growth NAICS 334514 Totalizing fluid meters and counting devices NAICS 326112 Plastics packaging film and sheet mfg. NAICS 334290 Other communications equipment manufacturing NAICS 325193 Ethyl alcohol manufacturing NAICS 327992 Ground or treated minerals and earths mfg. NAICS 332995 Other ordnance and accessories manufacturing NAICS 339113 Surgical appliance and supplies manufacturing NAICS 326140 Polystyrene foam product manufacturing NAICS 339112 Surgical and medical instrument manufacturing NAICS 325413 In-vitro diagnostic substance manufacturing


25

Advanced Materials

Advance Material Cluster Advance Material Cluster _____________________________________________________________________________________________

Left: Classification of Indiana Counties. Right: Size of Location Quotient in Indiana Counties, 2004

Distribution of Locations Quotients across Indiana Counties

Minimum 0.000

Maximum 8.36 Average 2.319 Median 1.628


26

AGRIBUSINESS, FOOD PROCESSING AND TECHNOLOGY

Indiana USA Variable

2001 2004 Change 2001 2004 Change Employment 61,944 61,454 -0.79% 3,198,092 3,094,315 -3.24% As % of Total Employment 2.15% 2.15% 0.00pp 2.47% 2.39% -0.07pp Average Wage $33,142 $36,116 8.97% $29,433 $32,107.32 9.09% Number of Establishments 2740 2699 -1.50% 143931 137814 -4.25% Average Firm Size 22.61 22.77 0.72% 22.22 22.45 1.05%


Top 5 NAICS (# of employees, 2004) NAICS 424910 Farm supplies merchant wholesalers NAICS 311615 Poultry processing NAICS 311612 Meat processed from carcasses NAICS 311611 Animal, except poultry, slaughtering NAICS 311812 Commercial bakeries NAICS 115115 Farm labor contractors and crew leaders NAICS 423820 Farm and garden equip. merchant wholesalers NAICS 311812 Commercial bakeries NAICS 311615 Poultry processing NAICS 311612 Meat processed from carcasses Top 5 NAICS (LQ, 2004) NAICS 111150 Corn farming NAICS 311221 Wet corn milling NAICS 325320 Pesticide and other ag. chemical mfg. NAICS 311422 Specialty canning NAICS 112310 Chicken egg production Top 5 Fastest Growth NAICS 311412 Frozen specialty food manufacturing NAICS 111419 Other food crops grown under cover NAICS 111336 Fruit and tree nut combination farming NAICS 111191 Oilseed and grain combination farming NAICS 111191 Oilseed and grain combination farming NAICS 112512 Shellfish farming NAICS 111199 All other grain farming NAICS 111333 Strawberry farming NAICS 112920 Horses and other equine production NAICS 111940 Hay farming


27

Agribusiness, Food Processing and Technology Agribusiness, Food Processing and Technology Cluster Agribusiness, Food Processing and Technology Cluster _________________________________________________________________________________________________________



Minimum 0.054



28

APPAREL AND TEXTILES


2001 2004 Change 2001 2004 Change Employment 16,750 16,757 0.04% 1,680,678 1,360,395 -19.06% As % of Total Employment 0.58% 0.59% 0.00pp 1.30% 1.05% -0.24pp Average Wage $29,013 $30,837 6.29% $31,899 $36,147.61 13.32% Number of Establishments 1179 1231 4.41% 90085 84146 -6.59% Average Firm Size 14.21 13.61 -4.18% 18.66 16.17 -13.34%


Top 5 NAICS (# of employees, 2004) NAICS 323113 Commercial screen printing NAICS 337121 Upholstered household furniture manufacturing NAICS 337121 Upholstered household furniture manufacturing NAICS 315212 Women's cut and sew apparel contractors NAICS 314912 Canvas and related product mills NAICS 313210 Broadwoven fabric mills NAICS 541890 Other services related to advertising NAICS 541860 Direct mail advertising NAICS 541430 Graphic design services NAICS 541430 Graphic design services Top 5 NAICS (LQ, 2004) NAICS 314912 Canvas and related product mills NAICS 314992 Tire cord and tire fabric mills NAICS 323113 Commercial screen printing NAICS 314121 Curtain and drapery mills NAICS 337910 Mattress manufacturing Top 5 Fastest Growth NAICS 315228 Other men's outerwear manufacturing NAICS 541490 Other specialized design services NAICS 315212 Women's cut and sew apparel contractors NAICS 314912 Canvas and related product mills NAICS 541850 Display advertising NAICS 541850 Display advertising NAICS 314912 Canvas and related product mills NAICS 541890 Other services related to advertising NAICS 424310 Piece goods merchant wholesalers NAICS 337910 Mattress manufacturing


29

Apparel and Textiles Apparel and Textiles Cluster Apparel and Textiles Cluster _________________________________________________________________________________________________________

Left: Classification of Indiana Counties. Right: Size of Location Quotient in Indiana Counties, 2004.


Minimum 0.000



30

ARTS, ENTERTAINMENT, RECREATION AND VISITOR INDUSTRIES


Employment 82,814 79,771 -3.67% 5,115,077 5,119,339 0.08% As % of Total Employment 2.88% 2.79% -0.08pp 3.95% 3.96% 0.01pp Average Wage $22,059 $24,046 9.01% $27,459 $30,113.08 9.67% Number of Establishments 3908 3997 2.28% 250858 254290 1.37% Average Firm Size 21.19 19.96 -5.82% 20.39 20.13 -1.27%

Location Quotient 0.73 0.71 -3.30%

Top 5 NAICS (# of employees, 2004) NAICS 721110 Hotels and motels, except casino hotels NAICS 721110 Hotels and motels, except casino hotels NAICS 713210 Casinos, except casino hotels NAICS 713940 Fitness and recreational sports centers NAICS 713940 Fitness and recreational sports centers NAICS 713910 Golf courses and country clubs NAICS 713910 Golf courses and country clubs NAICS 721120 Casino hotels NAICS 512131 Motion picture theaters, except drive-ins NAICS 713210 Casinos, except casino hotels Top 5 NAICS (LQ, 2004) NAICS 713210 Casinos, except casino hotels NAICS 711219 Other spectator sports NAICS 339932 Game, toy, and children's vehicle mfg. NAICS 711212 Racetracks NAICS 512132 Drive-in motion picture theaters Top 5 Fastest Growth NAICS 512290 Other sound recording industries NAICS 713290 Other gambling industries NAICS 712120 Historical sites NAICS 711190 Other performing arts companies NAICS 487210 Scenic and sightseeing transportation, water NAICS 711310 Promoters with facilities NAICS 512132 Drive-in motion picture theaters NAICS 711510 Independent artists, writers, and performers NAICS 711190 Other performing arts companies NAICS 713910 Golf courses and country clubs


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Arts, Entertainment, Recreation and Visitor Industries

Arts, Entertainment, Recreation and Visitor Industries Cluster Arts, Entertainment, Recreation and Visitor Industries Cluster _________________________________________________________________________________________________________



Minimum 0.027



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BIOMEDICAL/BIOTECHNICAL (LIFE SCIENCES)


Employment 345,999 366,119 5.82% 15,029,293 15,963,321 6.21% As % of Total Employment 12.02% 12.82% 0.79pp 11.59% 12.35% 0.75pp Average Wage $36,643 $41,021 11.95% $37,385 $42,092.48 12.59% Number of Establishments 12242 12657 3.39% 649513 690602 6.33% Average Firm Size 28.26 28.93 2.35% 23.14 23.12 -0.10%


Top 5 NAICS (# of employees, 2004) NAICS 622110 General medical and surgical hospitals NAICS 622110 General medical and surgical hospitals NAICS 621111 Offices of physicians, except mental health NAICS 325412 Pharmaceutical preparation manufacturing NAICS 623110 Nursing care facilities NAICS 622210 Psychiatric and substance abuse hospitals NAICS 325412 Pharmaceutical preparation manufacturing NAICS 622310 Other hospitals NAICS 621210 Offices of dentists NAICS 623110 Nursing care facilities Top 5 NAICS (LQ, 2004) NAICS 325412 Pharmaceutical preparation manufacturing NAICS 339113 Surgical appliance and supplies manufacturing NAICS 339112 Surgical and medical instrument manufacturing NAICS 339111 Laboratory apparatus and furniture mfg. NAICS 621493 Freestanding emergency medical centers Top 5 Fastest Growth NAICS 621498 All other outpatient care centers NAICS 621399 Offices of miscellaneous health practitioners NAICS 621399 Offices of miscellaneous health practitioners NAICS 623311 Continuing care retirement communities NAICS 621999 Miscellaneous ambulatory health care services NAICS 621493 Freestanding emergency medical centers NAICS 622310 Other hospitals NAICS 621340 Offices of specialty therapists NAICS 621340 Offices of specialty therapists NAICS 621610 Home health care services


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Biomedical / Biotechnical Life Sciences Cluster

Biomedical / Biotechnical Life Sciences Cluster Biomedical / Biotechnical Life Sciences Cluster

__________________________________________________________________________


Distribution of Locations Quotients across Indiana

Counties Minimum 0.131



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BUSINESS AND FINANCIAL SERVICES CLUSTER


Employment 155,741 154,305 -0.92% 10,937,804 10,828,195 -1.00% As % of Total Employment 5.41% 5.40% -0.01pp 8.44% 8.38% -0.06pp Average Wage $46,387 $49,912 7.60% $64,029 $68,936.18 7.66% Number of Establishments 19649 20768 5.69% 1165694 1237833 6.19% Average Firm Size 7.93 7.43 -6.26% 9.38 8.75 -6.77%


Top 5 NAICS (# of employees, 2004) NAICS 523210 Securities and commodity exchanges NAICS 541110 Offices of lawyers NAICS 541110 Offices of lawyers NAICS 541330 Engineering services NAICS 524210 Insurance agencies and brokerages NAICS 524210 Insurance agencies and brokerages NAICS 541330 Engineering services NAICS 541511 Custom computer programming services NAICS 524126 Direct property and casualty insurers NAICS 524126 Direct property and casualty insurers Top 5 NAICS (LQ, 2004) NAICS 524128 Other direct insurance carriers NAICS 323116 Manifold business forms printing NAICS 522294 Secondary market financing NAICS 541191 Title abstract and settlement offices NAICS 524292 Third party administration of insurance funds Top 5 Fastest Growth NAICS 523210 Securities and commodity exchanges NAICS 522310 Mortgage and nonmortgage loan brokers NAICS 541690 Other technical consulting services NAICS 541191 Title abstract and settlement offices NAICS 524128 Other direct insurance carriers NAICS 522292 Real estate credit NAICS 525910 Open-end investment funds NAICS 525920 Trusts, estates, and agency accounts NAICS 522291 Consumer lending NAICS 541690 Other technical consulting services


35

Business and Financial Services

Business and Financial Services Cluster Business and Financial Services Cluster _________________________________________________________________________________________________________



Minimum 0.056



36

CHEMICALS AND CHEMICAL BASED PRODUCTS




Top 5 NAICS (# of employees, 2004) NAICS 326199 All other plastics product manufacturing NAICS 326199 All other plastics product manufacturing NAICS 325412 Pharmaceutical preparation manufacturing NAICS 325412 Pharmaceutical preparation manufacturing NAICS 326291 Rubber product mfg. for mechanical use NAICS 327320 Ready-mix concrete manufacturing NAICS 327215 Glass product mfg. made of purchased glass NAICS 424690 Other chemicals merchant wholesalers NAICS 327320 Ready-mix concrete manufacturing NAICS 424720 Other petroleum merchant wholesalers Top 5 NAICS (LQ, 2004) NAICS 325320 Pesticide and other ag. chemical mfg. NAICS 326291 Rubber product mfg. for mechanical use NAICS 327213 Glass container manufacturing NAICS 325412 Pharmaceutical preparation manufacturing NAICS 327125 Nonclay refractory manufacturing Top 5 Fastest Growth NAICS 327992 Ground or treated minerals and earths mfg. NAICS 326112 Plastics packaging film and sheet mfg. NAICS 327991 Cut stone and stone product manufacturing NAICS 325193 Ethyl alcohol manufacturing NAICS 327211 Flat glass manufacturing NAICS 327991 Cut stone and stone product manufacturing NAICS 327124 Clay refractory manufacturing NAICS 326191 Plastics plumbing fixture manufacturing NAICS 326191 Plastics plumbing fixture manufacturing NAICS 326140 Polystyrene foam product manufacturing


37

Chemicals and Chemical Based Products

Chemicals and Chemical Based Products Cluster Chemicals and Chemical Based Products Cluster _________________________________________________________________________________________________________



Minimum 0.071



38

DEFENSE AND SECURITY


2001 2004 Change 2001 2004 Change Employment 91,884 90,842 -1.13% 6,585,037 6,472,452 -1.71% As % of Total Employment 3.19% 3.18% -0.01pp 5.08% 5.01% -0.07pp Average Wage $42,120 $46,783 11.07% $51,609 $56,714.74 9.89% Number of Establishments 4381 4546 3.77% 273438 278611 1.89% Average Firm Size 20.97 19.98 -4.72% 24.08 23.23 -3.53%


Top 5 NAICS (# of employees, 2004) NAICS 922140 Correctional institutions NAICS 922120 Police protection NAICS 561612 Security guards and patrol services NAICS 561612 Security guards and patrol services NAICS 928110 National security NAICS 541710 Physical, engineering and biological research NAICS 926120 Transportation program administration NAICS 541511 Custom computer programming services NAICS 339113 Surgical appliance and supplies manufacturing NAICS 922140 Correctional institutions Top 5 NAICS (LQ, 2004) NAICS 336412 Aircraft engine and engine parts mfg. NAICS 339113 Surgical appliance and supplies manufacturing NAICS 336612 Boat building NAICS 423130 Tire and tube merchant wholesalers NAICS 423110 Motor vehicle merchant wholesalers Top 5 Fastest Growth NAICS 334290 Other communications equipment manufacturing NAICS 926120 Transportation program administration NAICS 332993 Ammunition, except small arms, manufacturing NAICS 922120 Police protection NAICS 339113 Surgical appliance and supplies manufacturing NAICS 423130 Tire and tube merchant wholesalers NAICS 336612 Boat building NAICS 332992 Small arms ammunition manufacturing NAICS 423130 Tire and tube merchant wholesalers NAICS 332995 Other ordnance and accessories manufacturing


39

Defense and Security

Defense and Security Cluster Defense and Security Cluster _________________________________________________________________________________________________________



Minimum 0.058



40

EDUCATION AND KNOWLEDGE CREATION


Employment 93,499 99,268 6.17% 4,335,967 4,523,921 4.33% As % of Total Employment 3.25% 3.48% 0.23pp 3.34% 3.50% 0.15pp Average Wage $31,279 $32,825 4.94% $36,278 $39,128.96 7.86% Number of Establishments 1657 1771 6.88% 94405 101753 7.78% Average Firm Size 56.43 56.05 -0.66% 45.93 44.46 -3.20%


Top 5 NAICS (# of employees, 2004) NAICS 611310 Colleges and universities NAICS 611310 Colleges and universities NAICS 511110 Newspaper publishers NAICS 611210 Junior colleges NAICS 611210 Junior colleges NAICS 511110 Newspaper publishers NAICS 519120 Libraries and archives NAICS 519120 Libraries and archives NAICS 511130 Book publishers NAICS 511120 Periodical publishers Top 5 NAICS (LQ, 2004) NAICS 519120 Libraries and archives NAICS 611410 Business and secretarial schools NAICS 611513 Apprenticeship training NAICS 511130 Book publishers

NAICS 611692 Automobile driving schools

Top 5 Fastest Growth NAICS 519110 News syndicates NAICS 611710 Educational support services NAICS 611710 Educational support services NAICS 611691 Exam preparation and tutoring NAICS 611692 Automobile driving schools NAICS 611620 Sports and recreation instruction NAICS 611691 Exam preparation and tutoring NAICS 611513 Apprenticeship training NAICS 611699 Miscellaneous schools and instruction NAICS 611519 Other technical and trade schools


41

Education and Knowledge Creation Education and Knowledge Creation Cluster Education and Knowledge Creation Cluster ___________________________________________________________________________



Minimum 0.058

Maximum 5.55

Average 0.624 Median 0.288


42

ENERGY (FOSSIL AND RENEWABLE)


Employment 105,283 97,625 -7.27% 5,918,117 5,558,621 -6.07% As % of Total Employment 3.66% 3.42% -0.24pp 4.57% 4.30% -0.27pp Average Wage $38,995 $43,366 11.21% $52,332 $57,976.24 10.79% Number of Establishments 7391 7382 -0.12% 365816 368070 0.62% Average Firm Size 14.24 13.22 -7.16% 16.18 15.10 -6.65%


Top 5 NAICS (# of employees, 2004) NAICS 447110 Gasoline stations with convenience stores NAICS 541330 Engineering services NAICS 541330 Engineering services NAICS 447110 Gasoline stations with convenience stores NAICS 221112 Fossil fuel electric power generation NAICS 541710 Physical, engineering and biological research NAICS 447190 Other gasoline stations NAICS 334413 Semiconductors and related device mfg. NAICS 237110 Water and sewer system construction NAICS 237110 Water and sewer system construction Top 5 NAICS (LQ, 2004) NAICS 332420 Metal tank, heavy gauge, manufacturing NAICS 212111 Bituminous coal and lignite surface mining NAICS 335312 Motor and generator manufacturing NAICS 335999 Miscellaneous electrical equipment mfg. NAICS 333414 Heating equipment, except warm air furnaces Top 5 Fastest Growth NAICS 332410 Power boiler and heat exchanger manufacturing NAICS 213113 Support activities for coal mining NAICS 221121 Electric bulk power transmission and control NAICS 541690 Other technical consulting services NAICS 221111 Hydroelectric power generation NAICS 325193 Ethyl alcohol manufacturing NAICS 213113 Support activities for coal mining NAICS 213114 Support activities for metal mining NAICS 541690 Other technical consulting services NAICS 221113 Nuclear electric power generation


43

Energy (Fossil and Renewable)

Energy (Fossil and Renewable) Cluster Energy (Fossil and Renewable) Cluster _________________________________________________________________________________________________________



Counties

Minimum 0.284

Maximum 7.262



44

FOREST AND WOOD PRODUCTS




Top 5 NAICS (# of employees, 2004) NAICS 337110 Wood kitchen cabinet and countertop mfg. NAICS 337110 Wood kitchen cabinet and countertop mfg. NAICS 321991 Manufactured home, mobile home, manufacturing NAICS 423310 Lumber and wood merchant wholesalers NAICS 322211 Corrugated and solid fiber box manufacturing NAICS 322211 Corrugated and solid fiber box manufacturing NAICS 337211 Wood office furniture manufacturing NAICS 321113 Sawmills NAICS 337215 Showcases, partitions, shelving, and lockers NAICS 322121 Paper, except newsprint, mills Top 5 NAICS (LQ, 2004) NAICS 339995 Burial casket manufacturing NAICS 337211 Wood office furniture manufacturing NAICS 321991 Manufactured home, mobile home, manufacturing NAICS 321211 Hardwood veneer and plywood manufacturing NAICS 333210 Sawmill and woodworking machinery Top 5 Fastest Growth NAICS 322233 Stationery and related product manufacturing NAICS 337212 Custom architectural woodwork and millwork NAICS 113210 Forest nursery and gathering forest products NAICS 321214 Truss manufacturing NAICS 321212 Softwood veneer and plywood manufacturing NAICS 337110 Wood kitchen cabinet and countertop mfg. NAICS 332213 Saw blade and handsaw manufacturing NAICS 321911 Wood window and door manufacturing NAICS 115310 Support activities for forestry NAICS 321992 Prefabricated wood building manufacturing


45

Forest and Wood Products

Forest and Wood Products Cluster Forest and Wood Products Cluster Forest and Wood Products Cluster ______________________________________________________________________________



Minimum 0.000



46

GLASS AND CERAMICS


Employment 15,323 14,203 -7.31% 393,092 334,888 -14.81% As % of Total Employment 0.53% 0.50% -0.04pp 0.30% 0.26% -0.04pp Average Wage $35,885 $39,199 9.23% $36,508 $40,328.85 10.46% Number of Establishments 334 320 -4.19% 12989 11954 -7.97% Average Firm Size 45.88 44.38 -3.25% 30.26 28.01 -7.43%


Top 5 NAICS (# of employees, 2004) NAICS 327215 Glass product mfg. made of purchased glass NAICS 332813 Electroplating, anodizing, and coloring metal NAICS 332812 Metal coating and nonprecious engraving NAICS 327215 Glass product mfg. made of purchased glass NAICS 332813 Electroplating, anodizing, and coloring metal NAICS 332812 Metal coating and nonprecious engraving NAICS 327213 Glass container manufacturing NAICS 327212 Other pressed and blown glass and glassware NAICS 327310 Cement manufacturing NAICS 327213 Glass container manufacturing Top 5 NAICS (LQ, 2004) NAICS 327213 Glass container manufacturing NAICS 327125 Nonclay refractory manufacturing NAICS 327215 Glass product mfg. made of purchased glass NAICS 332812 Metal coating and nonprecious engraving NAICS 327111 Vitreous china plumbing fixture manufacturing Top 5 Fastest Growth NAICS 327992 Ground or treated minerals and earths mfg. NAICS 327122 Ceramic wall and floor tile manufacturing NAICS 327211 Flat glass manufacturing NAICS 327310 Cement manufacturing NAICS 327124 Clay refractory manufacturing NAICS 327121 Brick and structural clay tile manufacturing NAICS 327112 Vitreous china and earthenware articles mfg. NAICS 332812 Metal coating and nonprecious engraving NAICS 332812 Metal coating and nonprecious engraving NAICS 327213 Glass container manufacturing


47

Glass and Ceramics

Glass and Ceramics Cluster Glass and Ceramics Cluster _________________________________________________________________________________________________________



Counties

Minimum 0.000

Maximum 20.985



48

INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS




Top 5 NAICS (# of employees, 2004) NAICS 517110 Wired telecommunications carriers NAICS 517110 Wired telecommunications carriers NAICS 541512 Computer systems design services NAICS 541710 Physical, engineering and biological research NAICS 423690 Other electronic parts merchant wholesalers NAICS 541511 Custom computer programming services NAICS 541511 Custom computer programming services NAICS 541512 Computer systems design services NAICS 541710 Physical, engineering and biological research NAICS 518210 Data processing and related services Top 5 NAICS (LQ, 2004) NAICS 334415 Electronic resistor manufacturing NAICS 334612 Audio and video media reproduction NAICS 333613 Mechanical power transmission equipment mfg. NAICS 334416 Electronic coils, transformers, and inductors NAICS 334512 Automatic environmental control manufacturing Top 5 Fastest Growth NAICS 334111 Electronic computer manufacturing NAICS 334613 Magnetic and optical recording media mfg. NAICS 334290 Other communications equipment manufacturing NAICS 541710 Physical, engineering and biological research NAICS 518112 Web search portals NAICS 926130 Utility regulation and administration NAICS 517410 Satellite telecommunications NAICS 517212 Cellular and other wireless carriers NAICS 541513 Computer facilities management services NAICS 541512 Computer systems design services


49

INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS

Information Technology and Telecommunications Cluster Information Technology and Telecommunications Cluster _________________________________________________________________________________________________________



Counties

Minimum 0.000

Maximum 2.02



50

MINING


2001 2004 Change 2001 2004 Change Employment 4,188 4,060 -3.06% 193,262 183,955 -4.82% As % of Total Employment 0.15% 0.14% 0.00pp 0.15% 0.14% -0.01pp Average Wage $41,054 $44,199 7.66% $45,579 $49,405.83 8.40% Number of Establishments 278 282 1.44% 10364 10645 2.71% Average Firm Size 15.06 14.40 -4.43% 18.65 17.28 -7.33%


Top 5 NAICS (# of employees, 2004) NAICS 212321 Construction sand and gravel mining NAICS 532412 Other heavy machinery rental and leasing NAICS 212312 Crushed and broken limestone mining NAICS 212321 Construction sand and gravel mining NAICS 532412 Other heavy machinery rental and leasing NAICS 212312 Crushed and broken limestone mining NAICS 212325 Clay, ceramic, and refractory minerals mining NAICS 212319 Other crushed and broken stone mining NAICS 212399 All other nonmetallic mineral mining NAICS 212221 Gold ore mining Top 5 NAICS (LQ, 2004) NAICS 212325 Clay, ceramic, and refractory minerals mining NAICS 212399 All other nonmetallic mineral mining NAICS 212312 Crushed and broken limestone mining NAICS 212321 Construction sand and gravel mining NAICS 212311 Dimension stone mining and quarrying NAICS 532412 Other heavy machinery rental and leasing Top 5 Fastest Growth NAICS 212399 All other nonmetallic mineral mining NAICS 482111 Line-haul railroads NAICS 212322 Industrial sand mining NAICS 213115 Support activities for nonmetallic minerals NAICS 212325 Clay, ceramic, and refractory minerals mining NAICS 213114 Support activities for metal mining NAICS 532412 Other heavy machinery rental and leasing NAICS 482112 Short line railroads NAICS 212312 Crushed and broken limestone mining NAICS 212311 Dimension stone mining and quarrying


51

Mining

Mining Cluster Mining Cluster _____________________________________________________________________________



Minimum 0.000



52

PRINTING AND PUBLISHING


2001 2004 Change 2001 2004 Change Employment 49,878 46,476 -6.82% 2,640,081 2,390,108 -9.47% As % of Total Employment 1.73% 1.63% -0.11pp 2.04% 1.85% -0.19pp Average Wage $32,932 $35,416 7.54% $44,594 $47,662.42 6.88% Number of Establishments 3027 3027 0.00% 181293 181750 0.25% Average Firm Size 16.48 15.35 -6.82% 14.56 13.15 -9.70%


Top 5 NAICS (# of employees, 2004) NAICS 511110 Newspaper publishers NAICS 511110 Newspaper publishers NAICS 323110 Commercial lithographic printing NAICS 323110 Commercial lithographic printing NAICS 323113 Commercial screen printing NAICS 541810 Advertising agencies NAICS 511130 Book publishers NAICS 511120 Periodical publishers NAICS 515112 Radio stations NAICS 541910 Marketing research and public opinion polling Top 5 NAICS (LQ, 2004) NAICS 323111 Commercial gravure printing NAICS 323117 Books printing NAICS 323113 Commercial screen printing NAICS 323112 Commercial flexographic printing NAICS 323121 Tradebinding and related work Top 5 Fastest Growth NAICS 519190 All other information services NAICS 519190 All other information services NAICS 519110 News syndicates NAICS 541613 Marketing consulting services NAICS 541830 Media buying agencies NAICS 541850 Display advertising NAICS 541850 Display advertising NAICS 541830 Media buying agencies NAICS 541613 Marketing consulting services NAICS 541890 Other services related to advertising


53

Printing and Publishing Printing and Publishing Cluster Printing and Publishing Cluster ______________________________________________________________________________



Minimum 0.000



54

TRANSPORTATION AND LOGISTICS


2001 2004 Change 2001 2004 Change Employment 108,353 104,161 -3.87% 4,013,326 3,882,206 -3.27% As % of Total Employment 3.77% 3.65% -0.12pp 3.10% 3.00% -0.09pp Average Wage $32,525 $36,062 10.87% $38,238 $41,238.86 7.85% Number of Establishments 5126 5234 2.11% 205212 205109 -0.05% Average Firm Size 21.14 19.90 -5.85% 19.56 18.93 -3.22%


Top 5 NAICS (# of employees, 2004) NAICS 484121 General freight trucking, long-distance TL NAICS 492110 Couriers NAICS 493110 General warehousing and storage NAICS 484121 General freight trucking, long-distance TL NAICS 492110 Couriers NAICS 493110 General warehousing and storage NAICS 484122 General freight trucking, long-distance LTL NAICS 481111 Scheduled passenger air transportation NAICS 484220 Other specialized trucking, local NAICS 484110 General freight trucking, local Top 5 NAICS (LQ, 2004) NAICS 483211 Inland water freight transportation NAICS 481211 Nonscheduled air passenger chartering NAICS 484121 General freight trucking, long-distance TL NAICS 561910 Packaging and labeling services NAICS 493110 General warehousing and storage Top 5 Fastest Growth NAICS 493130 Farm product warehousing and storage NAICS 485112 Commuter rail systems NAICS 532411 Transportation equipment rental and leasing NAICS 482111 Line-haul railroads NAICS 541614 Process and logistics consulting services NAICS 482112 Short line railroads NAICS 485999 All other ground passenger transportation NAICS 541614 Process and logistics consulting services NAICS 485510 Charter bus industry NAICS 488490 Other support activities for road transport.


55

Transportation and Logistics

Transportation and Logistics Cluster Transportation and Logistics Cluster _________________________________________________________________________________________________________



Minimum 0.132



56

Manufacturing Supercluster

Manufacturing Supercluster Manufacturing Supercluster ______________________________________________________________________________



Minimum 0.035



57

COMPUTER AND ELECTRONIC PRODUCT MANUFACTURING




Top 5 NAICS (# of employees, 2004) NAICS 334220 Broadcast and wireless communications equip. NAICS 334413 Semiconductors and related device mfg. NAICS 334612 Audio and video media reproduction NAICS 334511 Search, detection, and navigation instruments NAICS 334511 Search, detection, and navigation instruments NAICS 334111 Electronic computer manufacturing NAICS 334512 Automatic environmental control manufacturing NAICS 334220 Broadcast and wireless communications equip. NAICS 334310 Audio and video equipment manufacturing NAICS 334419 Other electronic component manufacturing Top 5 NAICS (LQ, 2004) NAICS 334415 Electronic resistor manufacturing NAICS 334612 Audio and video media reproduction NAICS 334416 Electronic coils, transformers, and inductors NAICS 334512 Automatic environmental control manufacturing NAICS 334514 Totalizing fluid meters and counting devices Top 5 Fastest Growth NAICS 334111 Electronic computer manufacturing NAICS 334613 Magnetic and optical recording media mfg. NAICS 334514 Totalizing fluid meters and counting devices NAICS 334510 Electromedical apparatus manufacturing NAICS 334290 Other communications equipment manufacturing NAICS 334511 Search, detection, and navigation instruments NAICS 334516 Analytical laboratory instrument mfg. NAICS 334517 Irradiation apparatus manufacturing NAICS 334511 Search, detection, and navigation instruments NAICS 334519 Other measuring and controlling device mfg.


58

Computer and Electronic Product Manufacturing

Computer and Electronic Product Manufacturing Subcluster Computer and Electronic Product Manufacturing Subcluster _________________________________________________________________________________________________________



Minimum 0.000



59

ELECTRICAL EQUIP, APPLIANCE, AND COMPONENT MANUFACTURING


2001 2004 Change 2001 2004 Change Employment 19,024 14,424 -24.18% 552,012 443,842 -19.60% As % of Total Employment 0.66% 0.51% -0.16pp 0.43% 0.34% -0.08pp Average Wage $36,612 $43,583 19.04% $40,390 $46,125.76 14.20% Number of Establishments 209 179 -14.35% 7969 7392 -7.24% Average Firm Size 91.02 80.58 -11.47% 69.27 60.04 -13.32%


Top 5 NAICS (# of employees, 2004) NAICS 335222 Household refrigerator and home freezer mfg. NAICS 335312 Motor and generator manufacturing NAICS 335312 Motor and generator manufacturing NAICS 335314 Relay and industrial control manufacturing

NAICS 335999 Miscellaneous electrical equipment mfg. NAICS 335931 Current-carrying wiring device manufacturing

NAICS 335110 Electric lamp bulb and part manufacturing NAICS 335313 Switchgear and switchboard apparatus mfg. NAICS 335122 Nonresidential electric lighting fixture mfg. NAICS 335999 Miscellaneous electrical equipment mfg. Top 5 NAICS (LQ, 2004) NAICS 335312 Motor and generator manufacturing NAICS 335314 Relay and industrial control manufacturing NAICS 335931 Current-carrying wiring device manufacturing NAICS 335313 Switchgear and switchboard apparatus mfg. NAICS 335999 Miscellaneous electrical equipment mfg. NAICS 335312 Motor and generator manufacturing

Top 5 Fastest Growth NAICS 335129 Other lighting equipment manufacturing NAICS 335221 Household cooking appliance manufacturing

NAICS 335121 Residential electric lighting fixture mfg. NAICS 335228 Other major household appliance manufacturing

NAICS 335122 Nonresidential electric lighting fixture mfg. NAICS 335122 Nonresidential electric lighting fixture mfg.

NAICS 335222 Household refrigerator and home freezer mfg. NAICS 335222 Household refrigerator and home freezer mfg.

NAICS 335110 Electric lamp bulb and part manufacturing NAICS 335999 Miscellaneous electrical equipment mfg.


60

Electrical Equip, Appliance, and Component Manufacturing

Electrical Equip,Appliance,Component Manufacturing Subcluster Electrical Equip,Appliance,Component Manufacturing Subcluster _________________________________________________________________________________________________________



Minimum 0.000

Maximum 15.259



61

FABRICATED METAL PRODUCT MANUFACTURING


2001 2004 Change 2001 2004 Change Employment 64,687 58,976 -8.83% 1,629,537 1,449,734 -11.03% As % of Total Employment 2.25% 2.07 -0.18pp 1.26% 1.12% -0.14pp Average Wage $35,229 $37,716 7.06% $37,216 $40,896.37 9.89% Number of Establishments 1862 1806 -3.01% 63340 60275 -4.84% Average Firm Size 34.74 32.66 -6.00% 25.73 24.05 -6.51%


Top 5 NAICS (# of employees, 2004) NAICS 332710 Machine shops NAICS 332710 Machine shops NAICS 332321 Metal window and door manufacturing NAICS 332322 Sheet metal work manufacturing NAICS 332322 Sheet metal work manufacturing NAICS 332312 Fabricated structural metal manufacturing NAICS 332812 Metal coating and nonprecious engraving NAICS 332321 Metal window and door manufacturing NAICS 332813 Electroplating, anodizing, and coloring metal NAICS 332813 Electroplating, anodizing, and coloring metal Top 5 NAICS (LQ, 2004) NAICS 332115 Crown and closure manufacturing NAICS 332913 Plumbing fixture fitting and trim mfg. NAICS 332510 Hardware manufacturing NAICS 332420 Metal tank, heavy gauge, manufacturing NAICS 332991 Ball and roller bearing manufacturing Top 5 Fastest Growth

NAICS 332410 Power boiler and heat exchanger manufacturing NAICS 332211 Cutlery and flatware, except precious, mfg. NAICS 332213 Saw blade and handsaw manufacturing NAICS 332321 Metal window and door manufacturing NAICS 332710 Machine shops NAICS 332710 Machine shops NAICS 332322 Sheet metal work manufacturing NAICS 332311 Prefabricated metal buildings and components NAICS 332722 Bolt, nut, screw, rivet, and washer mfg. NAICS 332811 Metal heat treating


62

Fabricated Metal Product Manufacturing

Fabricated Metal Product Manufacturing Subcluster Fabricated Metal Product Manufacturing Subcluster _________________________________________________________________________________________________________



Minimum 0.000

Maximum 21.107



63

MACHINERY MANUFACTURING


2001 2004 Change 2001 2004 Change Employment 50,499 43,760 -13.34% 1,360,796 1,136,774 -16.46% As % of Total Employment 1.76% 1.53% -0.22pp 1.05% 0.88% -0.17pp Average Wage $43,472 $49,633 14.17% $45,277 $50,678.45 11.93% Number of Establishments 1162 1064 -8.43% 35777 32142 -10.16% Average Firm Size 43.46 41.13 -5.36% 38.04 35.37 -7.02%


Top 5 NAICS (# of employees, 2004) NAICS 333618 Other engine equipment manufacturing NAICS 333415 AC, refrigeration, and forced air heating NAICS 333514 Special tool, die, jig, and fixture mfg. NAICS 333514 Special tool, die, jig, and fixture mfg. NAICS 333415 AC, refrigeration, and forced air heating NAICS 333120 Construction machinery manufacturing NAICS 333999 Miscellaneous general purpose machinery mfg. NAICS 333111 Farm machinery and equipment manufacturing NAICS 333511 Industrial mold manufacturing NAICS 333319 Other commercial and service machinery mfg. Top 5 NAICS (LQ, 2004) NAICS 333618 Other engine equipment manufacturing NAICS 333921 Elevator and moving stairway manufacturing NAICS 333412 Industrial and commercial fan and blower mfg. NAICS 333210 Sawmill and woodworking machinery NAICS 333612 Speed changer, drive, and gear manufacturing Top 5 Fastest Growth NAICS 333292 Textile machinery manufacturing NAICS 333312 Commercial laundry and drycleaning machinery NAICS 333992 Welding and soldering equipment manufacturing NAICS 333220 Plastics and rubber industry machinery NAICS 333995 Fluid power cylinder and actuator mfg. NAICS 333112 Lawn and garden equipment manufacturing NAICS 333411 Air purification equipment manufacturing NAICS 333111 Farm machinery and equipment manufacturing NAICS 333132 Oil and gas field machinery and equipment NAICS 333613 Mechanical power transmission equipment mfg.


64

Machinery Manufacturing

Machinery Manufacturing Subcluster Machinery Manufacturing Subcluster _________________________________________________________________________________________________________



Minimum 0.000



65

PRIMARY METAL MANUFACTURING


Employment 60564 48338 -20.19% 569918 465995 -18.23% As % of Total Employment 2.10% 1.69% -0.41pp 0.44% 0.36% -0.08pp Average Wage 50320.184 61079.432 21.38% $45022 $50823 12.89% Number of Establishments 248 237 -4.43% 6415 6071 -5.36% Average Firm Size 244.20968 203.95781 -16.48% 88.84146532 76.7575358 -13.6%

Location Quotient 4.7877262 4.6954659 -1.93% Top 5 NAICS (# of employees, 2004) NAICS 331111 Iron and steel mills NAICS 331111 Iron and steel mills NAICS 331511 Iron foundries NAICS 331511 Iron foundries NAICS 331521 Aluminum die-casting foundries NAICS 331316 Aluminum extruded product manufacturing NAICS 331524 Aluminum foundries, except die-casting NAICS 331521 Aluminum die-casting foundries NAICS 331316 Aluminum extruded product manufacturing NAICS 331210 Iron, steel pipe and tube from purchase steel Top 5 NAICS (LQ, 2004) NAICS 331111 Iron and steel mills NAICS 331314 Secondary smelting and alloying of aluminum NAICS 331312 Primary aluminum production NAICS 331524 Aluminum foundries, except die-casting NAICS 331422 Copper wire, except mechanical, drawing Top 5 Fastest Growth NAICS 331524 Aluminum foundries, except die-casting NAICS 331528 Other nonferrous foundries, exc. die-casting NAICS 331492 Secondary processing of other nonferrous NAICS 331222 Steel wire drawing NAICS 331316 Aluminum extruded product manufacturing NAICS 331210 Iron, steel pipe and tube from purchase steel NAICS 331315 Aluminum sheet, plate, and foil manufacturing NAICS 331524 Aluminum foundries, except die-casting NAICS 331314 Secondary smelting and alloying of aluminum NAICS 331316 Aluminum extruded product manufacturing


66

Primary Metal Manufacturing

Primary Metal Manufacturing Subcluster Primary Metal Manufacturing Subcluster _________________________________________________________________________________________________________



Minimum 0.000

Maximum 39.006



67

TRANSPORTATION EQUIPMENT MANUFACTURING


2001 2004 Change 2001 2004 Change Employment 138,907 139,591 0.49% 1,953,152 1,792,712 -8.21% As % of Total Employment 4.83% 4.89% 0.06pp 1.51% 1.39% -0.12pp Average Wage $47,918 $54,136 12.98% $50,694 $57,223.71 12.88% Number of Establishments 730 717 -1.78% 15888 15380 -3.20% Average Firm Size 190.28 194.69 2.31% 122.93 116.56 -5.18%


Top 5 NAICS (# of employees, 2004) NAICS 336350 Motor vehicle power train components mfg. NAICS 336411 Aircraft manufacturing NAICS 336214 Travel trailer and camper manufacturing NAICS 336399 All other motor vehicle parts manufacturing NAICS 336399 All other motor vehicle parts manufacturing NAICS 336111 Automobile manufacturing NAICS 336322 Other motor vehicle electric equipment mfg. NAICS 336611 Ship building and repairing NAICS 336213 Motor home manufacturing NAICS 336370 Motor vehicle metal stamping Top 5 NAICS (LQ, 2004) NAICS 336213 Motor home manufacturing NAICS 336214 Travel trailer and camper manufacturing NAICS 336391 Motor vehicle air-conditioning manufacturing NAICS 336350 Motor vehicle power train components mfg. NAICS 336212 Truck trailer manufacturing Top 5 Fastest Growth NAICS 336120 Heavy duty truck manufacturing NAICS 336213 Motor home manufacturing NAICS 336214 Travel trailer and camper manufacturing NAICS 336214 Travel trailer and camper manufacturing NAICS 336112 Light truck and utility vehicle manufacturing NAICS 336112 Light truck and utility vehicle manufacturing NAICS 336213 Motor home manufacturing NAICS 336212 Truck trailer manufacturing NAICS 336510 Railroad rolling stock manufacturing NAICS 336611 Ship building and repairing


68

Transportation Equipment Manufacturing

Transportation Equipment Manufacturing Subcluster Transportation Equipment Manufacturing Subcluster _________________________________________________________________________________________________________



Minimum 0.000



69

Documents

LOCATIONAL PATTERNS OF INDUSTRY CLUSTERS IN INDIANA · The Business and Financial Services Cluster is the third-ranked cluster with a comparatively low employment share of only 5.4%,