Matt Kures

Center for Community & Economic Development

University of Wisconsin-Extension

Wisconsin Land Information Association Fall Regional Meeting

October 27, 2011

Neenah, WI

GIS for Economic Development

Incorporating Economic and Census Data into Geospatial Analysis

“The process of retaining, expanding, and attracting jobs, income and wealth in a manner that improves individual economic opportunities

and the quality of human life.”

Defining Economic Development

Economic Development

Geography Sociology

Design

Planning

Economics

Real Estate

Distinguishing Between Growth and Development

EraIndustrial Recruiting

(1950s to 1980s)

Cost Competition (Early 1980s to Early

1990s)

Regional Competitiveness

(Early 1990s to Present)

Driver • Export Base • Scale Economies • Innovation &

Entrepreneurship

Strategies

• Financial incentives to firms

• Industrial parks

• Industrial consolidation and cost cutting

• Deregulation

• Entrepreneurship

• Clusters

• Commercial research

Keys to Success

• Government funds for subsidies and tax breaks

• Industrial infrastructure

• Health of existing industries

• Distinct regional assets such as industry specializations, human capital, higher education & amenities

Eras or Waves of Economic Development Approaches

Source: Drabenstott, 2005

Center for Community & Economic Development (CCED)

Working with UW-Extension county and campus partners we create, apply and transfer multi-disciplinary knowledge to help people understand community change and identify

opportunities.

Communities often ask:

• What types of comprehensive economic development strategies can we pursue?

• What challenges and opportunities are facing our local and regional economies?

• How can we create sufficient jobs with livable wages to support families?

• How can we improve the competitiveness of our community’s downtown, neighborhood shopping district, regional economy, etc?

• How can we build stronger capacity in our community to deal with change?

GIS in Community and Economic Development

Examples of how we use GIS in community and economic development:

• Policy Analysis and Strategy Development;

• Asset Mapping and Monitoring/Benchmarking;

• Business Attraction, Retention and Expansion Analysis;

• Market Research;

• Labor Market Analysis;

• Applied Research

Creating a Geographic Profile of Customers

MSA

(drive time)

All Seasons

Spring Summer Fall Winter

Chicago, IL(4.2 hours)

28.7% 23.9% 31.1% 31.4% 21.2%

Milwaukee, WI(2.5 hours)

19.1% 23.5% 16.1% 16.8% 26.8%

Madison, WI(3.2 hours)

5.9% 6.2% 5.8% 5.7% 6.1%

Appleton, WI(1.5 hours)

5.6% 8.3% 4.3% 4.3% 9.2%

Green Bay, WI(0.8 hours)

5.3% 7.8% 3.8% 3.5% 10.0%

Minneapolis, MN(5.5 hours)

4.3% 3.3% 5.2% 5.2% 1.3%

Creating a Demographic Profile of Customers

Demographic Category

Spring Summer Fall Winter TotalStudy Area

Average

Average Household Size 2.6 2.6 2.6 2.6 2.6 2.5

Median Age 36.3 36.7 36.7 36.2 36.5 36.0

Average Family Income $64,171 $72,018 $66,845 $65,149 $68,630 $47,351

Executive or Professional Occupation

18.5% 21.0% 18.9% 18.8% 19.8% 12.0%

College Degree

31.3% 34.2% 31.9% 31.7% 32.8% 25.4%

HomeOwner

72.1% 75.5% 73.9% 72.3% 74.2% 68.1%

Customer Prospecting - What Demographic Criteria Differentiate Customers from the General Population?

2. Conditional Means or Distributions of Demographic Variables

1. Logistical Regression: Customer (yes/no) = β0 + β1 median age + β3 median household income + β4 educational attainment + βn

Assessing Accessibility and Spatial Mismatches in Supply and Demand

Typical Questions Asked as Part of a Regional Industry Analysis

• What assets do we have in our region that might be a source of competitive advantage for certain industries?

• How do various industries contribute to the regional economy?

• What industries are either currently aligned or could be aligned with assets in the region?

• How does the region compare to the other regions that may be competitive locations?

• What factors might encourage or discourage industries or entrepreneurs to consider the region as a location? Are these factors controllable or uncontrollable at the local level?

• How can we work with local industries to better understand their needs?

Assessing Factors of Regional Competitive Advantage

• Industry Structure - Differentiation, competitiveness and concentration;

• Human Capital – Knowledge and skills of the labor force;

• Natural Assets – Quantity, quality and uniqueness;

• Research and Educational Institutions – Drive innovation and train the labor force;

• Physical and Information Infrastructure – Allow for information sharing and decreases friction;

• Social Capital – Professional relationships and networks for knowledge sharing and spillovers;

• Quality of Life – Quality of life matters, particularly in economies based on knowledge and innovation;

• Cost of Doing Business – Financial capital, regulatory environment, etc.

Chart

Measuring Spatial Association and Significance

• Spatial Lag and Other Neighborhood Weighting Functions –Weighted averages or other statistics based on values in neighboring areas;

• Local Measures of Spatial Autocorrelation - Indicate the presence or absence of significant spatial clusters or outliers for each location;

• Locational Correlations and Spatial Regression – Used to determine if activities or industries are co-located in space;

Good overview of spatial analysis, spatial autocorrelation and spatial regression through the GeoDa Center for Geospatial Analysis and

Computation (http://geodacenter.asu.edu/eslides)

Using Spatial Analysis to Examine Supply Chains

Agricultural Production

Grain, Vegetable and Fruit

Production

Dairy, Poultry and

Livestock Production

Food and Beverage Manufacturing

(Animal Processing Dairy Products, Animal Food,

Bakeries, Beverages, Fruit, Vegetable and

Grain, Processing, etc.)

Agricultural Processing

Future Bio-Ag Value Added Industries

Supporting Educational, Research and Development Organizations

Ag-ProductionSupport

Farm Machinery Sales & Repair

Transportation

Animal Feed Production

Animal Support Services (Vets,

Breeding Services)

Professional, Technical & Financial

Services

Wholesale

Customers (Food Service, Utilities, Retail, Institutions, Wholesale, etc.)

Plastic, Metal and Paperboard Packaging

Machinery and Machinery Repair

Wholesale

Warehousing

Transportation

Packaging Machinery

Printing

Utilities

Plastic and Plumbing Fixtures

Ag-ProcessingSupport

WI Department of Workforce Development – WORKnethttp://worknet.wisconsin.gov/worknet/default.aspx

• Quarterly Census of Employment and Wages (ES-202) – Data on employment,

wages and number of establishments by industry. Quarterly/Annual data by state

and county starting with 1990. Figures are based on UI filings. Some data will be

suppressed;

• Large Employers – Up to 25 largest employers in each industry for counties, cities,

towns and villages;

• Plant Closings and Mass Layoffs - Businesses employing 50 or more persons in the

State of Wisconsin must provide written notice 60 days before implementing a

"business (plant) closing" or "mass layoff" in the state (with some exceptions)

• Unemployment Statistics (LAUS) – Monthly/Annual figures for U.S., Wisconsin,

counties, metropolitan/micropolitan areas, certain cities, etc. (1990 to present).

• Top 5/Bottom 5 – Industries that are growing/declining the fastest in each county;

highest and lowest paying industries by county (2009 to 2010);

http://www.onetonline.org/

Occupational Information Network - O*NET OnLine

Bureau of Economic Analysis – Regional Economic Accounts http://www.bea.gov/regional/index.htm

• National, State, Metro/Non-Metro, and County Data - Population, personal income, transfer payments, farm income and expenses, proprietors’ income, employment and compensation by industry and more. Starting with 1969 for most measures;

• Gross Domestic Product (GDP) by industry for states and metropolitan areas

• Consistent source of farm production employment and income – Farm employment is not fully available through the Quarterly Census of Employment and Wages;

• Employee compensation and earnings by industry - Employee compensation includes the sum of wage and salary disbursements and supplements to wages and salaries. Earnings include employee compensation as well as proprietors’ income;

• Important differences from the Quarterly Census of Employment and Wages data:

1. Employment by industry includes proprietors;

2. Government employment includes government employees across all sectors (public administration, education, health care, etc.)

Census Bureau Local Employment DynamicsQuarterly Workforce Indicators (QWI)

http://lehd.did.census.gov/led/datatools/qwiapp.html

Quarterly Workforce Indicators -Detailed county, WIA and MSA estimates of employment, earnings, gross job creation and destruction by detailed industry, gender and age of workers. (Currently through Q3 2010)

QWI avoids many of the data disclosure problems associated with other data sets. However, it does so by introducing noise (distortions) into the data.

Tutorial available at: http://lehd.did.census.gov/led/datatools/elearning/QWI_Online/index.htm

Census Bureau Local Employment Dynamics - Industry Focushttp://bit.ly/epmCHb

Industry Focus Tool:

• Determine the top industries for your local area and your local workers;

• Focus on a particular industry to see how it ranks among top industries;

• Examine characteristics of those who work in that industry;

• Also relies on noise introduced into the data.

Tutorial available at:http://lehd.did.census.gov/led/datatools/elearning/Industry_focus/index.htm

U.S. Census Bureau Local Employment Dynamics - OnTheMaphttp://lehdmap.did.census.gov/

OnTheMap - Mapping and reporting application showing:

• Where workers are employed and where they live;

• Companion reports on worker characteristics;

• Filtering by age, earnings, or industry groups;

• Based on synthetic data that are statistically analogous to actual worker counts and locations but not exact.

Tutorial available at:http://lehd.did.census.gov/led/datatools/elearning/OnTheMap/index.html

Other Notable Census Bureau Resources

• Decennial Census and American Community Survey (ACS) Data…

• Population Estimates - Annual estimates of total population; components of change; population by age, sex, race, and Hispanic origin. National, state, MSA and county level data. Some place level data also available;

• County Business Patterns - Annual estimates of establishments, mid-March employment, first quarter payroll, and annual payroll by industry . National, state, county, zip code and metropolitan areas. 2009 is most current;

• 2007 Economic Census – Data on establishments, payrolls, employment, sales, etc. by industry categories – Detailed data for small areas is likely suppressed;

• Non-Employer Statistics - U.S. and sub-national economic data by industry for businesses that have no paid employees and are subject to federal income tax.

All Available through American FactFinder

Data Sources for Quality of Life Indicators

www.uwex.edu/ces/cced/communities/QualityofLifeDataIndicatorsDataSources.cfm

Some More Favorites

• Headwaters Economics Economic Profile System - Detailed socioeconomic profiles for counties http://www.headwaterseconomics.org/eps/

• WI DOA Demographic Services Center – Population and housing estimates, projections, and components of change for WI counties, cities, towns and villages http://bit.ly/hgUlLb

• WI DWD Office of Economic Advisors – County workforce profiles and other datasets http://dwd.wisconsin.gov/oea/county_profiles/

• Data.gov – Clearinghouse of government data sets. http://www.data.gov/catalog/raw

• 2007 Census of Agriculture - National, state, and county data on a wide-variety of agricultural topics http://www.agcensus.usda.gov/

• Private Data Providers - ESRI, Nielsen Claritas, AGS, InfoUSA, Dun and Bradstreet, etc

Some More Favorites

• YourEconomy.org – Industry and business data from the Edward Lowe Foundation classified by composition, growth and industry (states, counties and MSAs) http://www.youreconomy.org/

• StatsIndiana – Official Indiana data center with information on other geographic areas throughout the U.S. http://www.stats.indiana.edu/

• Atlas of Rural and Small Town America -http://www.ers.usda.gov/Data/RuralAtlas/index.htm

• Home Mortgage Disclosure Act Data http://www.ffiec.gov/hmda/ - Home lending data compiled by the Federal Financial Institutions Examination Council (FFIEC).

• National Historical Geographic Information System (NHGIS) – Free census data and GIS files for areas between 1790 and 2000. http://www.nhgis.org/

• IRS Statistics of Income Migration Data – Returns, Exemptions and Income http://www.irs.gov/taxstats/article/0,,id=212683,00.html

Sage Advice about Using Data

“It ain’t what you don’t know that gets you into trouble.

It’s what you know for sure that just ain’t so.”

Mark Twain

For More Information on Today’s Presentation

Matt Kures

University of Wisconsin-Extension

Center for Community & Economic Development

www.uwex.edu/ces/cced

twitter.com/uwexcced

610 Langdon Street, Room 335, Madison, WI 53703

Phone 608-265-8258 matthew.kures@uwex.edu