Target Industries

TARGET SECTOR ANALYSIS: APPROACH AND METHODS

Market Street Services conducted a target identification that is rooted in a complete examination of the region’s strengths and opportunities, including talent (the occupations and types of knowledge that support the region’s business activities). This interrelated approach stands in contrast to the traditional “top down” approach long utilized in cluster identification and analysis. It recognizes the importance of talent and workforce sustainability to the business community. It is complemented by an evaluation of the region’s business climate, networks, infrastructure, research assets, educational programs, and many other factors that influence site location decisions.

CLASSIFICATION: Our approach defines targets by their North American Industry Classification System (NAICS) codes. Though these codes are used to help quantify important employment trends and activity within each target, they should not be interpreted as rigid definitions of the composition of economic activity within a given target. Classification systems do not adequately capture certain niche technologies and opportunities that may deserve strategic attention in certain communities. We utilize the federal government’s Standard Occupational Classification (SOC) system to classify occupations. SOC codes differ from NAICS in that they quantify worker’s skill categories rather than the employment sector reported by their companies.

TARGET DEFINITIONS: The selection of NAICS subsectors and SOC occupations used to “define” the employment and skill sets of each target sector is made based on assessments of industrial categories published by the U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, Economic Modeling Specialists International (EMSI), the U.S. Cluster Mapping Project, the U.S. Employment and Training Administration’s Occupational Information Network (O*NET), and other resources. Due to data-reporting protocols and limitations in specificity of industrial classifications, definitions are intended to be approximations of targeted activity.

GEOGRAPHY: Business and workforce composition information contained within this report is based on an analysis of trends observed in Greater Manhattan which encompasses Geary, Riley, and Pottawatomie counties. As with the Community Analysis, Market Street and Manhattan Area leaders felt this geography best approximated the region’s labor shed, a critical criterion for economic development analysis.

LOCATION QUOTIENTS: Location quotients (LQs) are used to measure the relative concentration of local employment in a given business sector or occupation. When applied to business sector employment, they measure the ratio of a business sector’s share of total local employment to that business sector’s share of total national employment. A business sector with LQ of 1.0 is exactly the same share of total local employment as that business sector’s share of national employment. When a local business sector has a location quotient greater than 1.0, it signals that the sector is more heavily concentrated locally than it is nationwide. Those sectors with high LQs are often assumed to benefit from one or more sources of local competitive advantage. Location quotients can also be applied to occupational employment in the same manner that they are applied to business sector employment, helping to determine which occupations and corresponding skill sets are highly concentrated in the local workforce.

DATA SOURCES: Unless otherwise noted, all quantitative data contained in this report is sourced from Economic Modeling Specialists International, an industry-leading provider of proprietary data, aggregated from public sources such as the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, the U.S. Bureau of Economic Analysis, the National Center for Education Statistics, and CareerBuilder, among many others.

Information courtesy of Market Street Services, Target Sector Analysis and Marketing Review, Greater Manhattan Project
December 2017