Cluster Analysis of Key Sectors

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Cluster Analysis of Key Sectors

• Boone County
• and Surrounding Areas
• November 19, 2009

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Region of Study
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Cluster Analysis of Key Sectors

• Clusters are determined by purchasing and sales
  volume within the region
• Selection of the key sectors is based on their
  volume of activity (sales), type and size of
  employment and factors related to industry growth
  

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Identification of Clusters

• Top Performing Sectors in Boone County region
• 1. Pharmaceutical and Medicine Manufacturing
• 2. Motor Vehicle Related Manufacturing
• 3. Engine Equipment Manufacturing
• 4. Transportation and Warehousing
• 5. Aircraft Engine and Engine Parts Manufacturing
• 6. Electronic Computer Manufacturing
• 7. Agricultural Chemical Manufacturing
• 8. Surgical and Medical Instrument Manufacturing

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Analysis of Key Sectors

• Each Sector represents over 1B in sales volume
• The analysis doesnt factor in potential only
  actual sales
• Analysis traces key sector inputs for each
  industry
• There may be horizontal relationships within a
  cluster (e.g. truck transportation that needs
  wholesale and warehousing and vice versa)

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Analysis of Key Sectors

• Opportunity to examine multiple clusters and
  promote input sectors that connect other
  industries together (e.g. common RD
  activities)
• Some strong sectors in the region are ubiquitous
  to Indiana (e.g. Transportation and Warehousing)
• Clusters may occur across both industries and
  their input industries.

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Promote Industry Clusters

• Establish the framework conditions such as
  infrastructure, technology policies, education
  for a new cluster or to draw a key sector to the
  region
• Create a network of initiatives and business
  development for firms
• Help manage scarce resources among cluster and
  non-cluster industries such as skilled labor

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Promoting Industry Clusters

• Help create economic spillover from existing
  clusters to improve competitiveness of the region
  (such as knowledge and technology
  sharing/transfer from large companies to small
  companies or new entrants)
• Focus the regional development policy on the most
  beneficial cluster segments

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Promote Industry Clusters

• Focus on missing or underrepresented cluster
  segments that would value existing comparative
  advantage of the region
• Consider trade connections among all sectors of
  the regional trade cluster
• Design policies to allow a continually changing
  mix of industries distributed across segments of
  several trade clusters

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Stakeholder Observations

• Opportunity for New Business Development in Boone
  County
• Outstanding Infrastructure
• Proximity to Higher Education
• Public/Private Partnerships
• Opportunities for Agribusiness Development
• Focus on Entrepreneurial Initiatives

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Stakeholder Observations

• Defining Premium Jobs
• Jobs that support the lifestyles of people in
  Boone County so they can live and work in the
  community
• Higher wage jobs
• Jobs that require more education and pay higher
  wages

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Stakeholder Observations

• Concerns about the current mix of business and
  industry and the economy
• Diversifying the Economy
• Educational Attainment
• Contiguous growth leverage infrastructure
• Incorporate Agriculture as Business and Industry
• Housing Choices and Dependence on Residential
  Sector for Property Taxes

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Stakeholder Observations

• Potential incentives and programs for Boone
  County
• Common Zoning Standards/Definitions
• Assistance for Entrepreneurs
• Partnerships with Purdue, IU, other Higher Ed
• Special Districts/Designs for Targeted Industry
• Enhanced Communication about Economic Development
  Opportunities in Boone County

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Questions

• Michael Hicks
• Heather Kemper
• Linda Williamson
• Building Better Communities, Ball State
  University
• www.bsu.edu/bbc
• 765-285-2773