Six analysis tools are used to determine which industries should be chosen for targeting in the Northeast Region. The first two tools, Specialization Ratios (SR) and the Regional Shift (RS) component of Shift-Share Analysis (SSA), help to determine which industries might have a competitive advantage in a region. The third and most important tool, the Economic Impact (EI) analysis, helps to identify which industries will most benefit the region should they expand. The Skills-Mismatch Index (SMI) determines whether the skills of the available workforce in a region match the needed skills for a particular industry. The Industrial Mix (IM) component of SSA helps to identify emerging industries. Finally, the Current Employment (CE) level of a regional industry helps to determine whether needed infrastructure is in place to attract particular industries and is an important factor when considering SRs.
Industries are awarded points on a scale of 0 to 100 based on whether they meet necessary criteria in these six categories. Those industries that score the highest are recommended for targeting. The table on the following page displays the categories and the point value an industry receives if it performs well in a specific category. If an industry does not meet the condition for that category, no points are awarded. An industry that scores well in each of the categories receives a score of 100 points, while those industries that perform poorly receive 0 points. Industries that score 50 or more points are those recommended for targeting.
| Category | Point Value |
|---|---|
| Condition 1: High Economic Impact | 40 |
| Condition 2: High Specialization Ratio | 20 |
| Condition 3: Strong Regional Shift | 20 |
| Condition 4: Low Skills-Mismatch | 10 |
| Condition 5: Positive Industrial Mix & Regional Shift | 5 |
| Condition 6: High Current Employment | 5 |
| Total Points: | 100 |
The tables that follow present those industries with scores of 50 or higher on the target scale for the Northeast Region. In general, this region has an relatively small number of industries scoring at least 55 points, suggesting that the Northeast Region needs more diversification within its economy. While several industries score very high on the scale, this general lack of diversification is likely a contributor to the region’s recent economic struggles (see MERIC’s Economic Momentum series
).No industries in the region achieved a perfect score of 100 points, but nine industries did score 95. In total, twelve industries scored 80 points or higher on the targeting scale, suggesting that these industries are the primary drivers of the Northeast region’s economy. Of these twelve, two are part of the Advanced Manufacturing cluster and two are part of the Life Sciences cluster, both of which are important in the "New Economy." Further, while all twelve of these industries are growing in the Northeast, only two are experiencing employment growth at the national level (SIC 366 Communications Equipment and SIC 494 Water Utilities).
Another nineteen industries scored between 55 and 75 points on the target scale, suggesting the Northeast Region is ripe for potential development in these industries. Included among these are two Advanced Manufacturing firms, while the others are less sophisticated manufacturing or service-producing industries. It is perhaps this lack of development-ready industries, particularly the lack of Advanced Manufacturing, Life Science, or Information Technology industries, that is most indicative of the hurdles that must be overcome in this region.
Additionally, 64 industries scored 50 points on the target scale, suggesting these industries are good matches for the Northeast Region. This comparatively large list includes all remaining identified Advanced Manufacturing and many Life Science industries. The large number of target industries scoring exactly 50 points suggests that the region is in great need of infrastructure development in order to enjoy future economic success.
TM2 has provided a list of 95 industries that have the best potential for economic development in the Northeast Region. The original Target Missouri provided a list of only 20 target industries for this region. Of these, 16 appear on both lists, so in this case, the two studies have obtained similar results. However, the expanded list generated by TM2 provides a list of industries that better fits the specifics of the Northeast Region, as well as providing rankings that shed some light on the relative importance of certain industries.
Map 1 shows the approximate locations of only those industries scoring at least 80 points on the target scale, which are industries that are already drivers of the Northeast economy. The map clearly paints a picture of a region divided, anchored by the cities of Kirksville and Macon on the west, and Hannibal, Bowling Green, and Louisiana toward the southeast. The central and northern portions of the region lack the industries that are drivers of the area’s economy.
Map 1: Locations of High-Scoring Industries
Map 2: Current Locations of Potential Target Industries
| Northeast Region Target Industries | ||
|---|---|---|
| SIC | Industry | Total Score |
| 332 | Iron and steel foundries | 95 |
| 335 | Nonferrous rolling and drawing | 95 |
| 356 | General industrial machinery and equipment | 95 |
| 363 | Household appliances | 95 |
| 366 | Communications equipment | 95 |
| 201 | Meat products | 95 |
| 275-276 | Commercial printing and business forms | 95 |
| 281,286 | Industrial chemicals | 95 |
| 287 | Agricultural chemicals | 95 |
| 364 | Electric lighting and wiring equipment | 90 |
| 491,%493 | Electric utilities | 85 |
| 494-497,%493 | Water and sanitation | 85 |
| 324 | Hydraulic cement | 75 |
| 371 | Motor vehicles and equipment | 75 |
| 203 | Preserved fruits and vegetables | 75 |
| 45 | Air Transportation | 75 |
| 367 | Electronic components and accessories | 70 |
| 40 | Railroad | 70 |
| 46 | Pipelines, except natural gas | 70 |
| 735 | Miscellaneous equipment rental and leasing | 70 |
| 14 | Nonmetallic minerals, except fuels | 65 |
| 336 | Nonferrous foundries | 60 |
| 354 | Metalworking machinery and equipment | 60 |
| 492,%493 | Gas utilities | 60 |
| 833 | Job training and related services | 60 |
| 07 | Agricultural services | 60 |
| 347 | Metal coating, engraving, and allied services | 55 |
| 358 | Refrigeration and service industry machinery | 55 |
| 472 | Passenger transportation arrangement | 55 |
| 721,725 | Laundry, cleaning, and shoe repair | 55 |
| 751 | Automotive rentals, without drivers | 55 |
| 241 | Logging | 50 |
| 321-323 | Glass and glass products | 50 |
| 325,326,328,329 | Stone, clay, and misc. mineral products | 50 |
| 327 | Concrete, gypsum, & plaster products | 50 |
| 331 | Blast furnaces and basic steel products | 50 |
| 333 | Primary nonferrous smelting & refining | 50 |
| 334,339 | All other primary metals | 50 |
| 341 | Metal cans and shipping containers | 50 |
| 342 | Cutlery, hand tools, and hardware | 50 |
| 343 | Plumbing and nonelectric heating equipment | 50 |
| 345 | Screw machine products, bolts, rivets, etc. | 50 |
| 346 | Metal forgings and stampings | 50 |
| 348 | Ordnance and ammunition | 50 |
| 349 | Miscellaneous fabricated metal products | 50 |
| 351 | Engines and turbines | 50 |
| 352 | Farm and garden machinery and equipment | 50 |
| 353 | Construction and related machinery | 50 |
| 355 | Special industry machinery | 50 |
| 357 | Computer and office equipment | 50 |
| 361 | Electric distribution equipment | 50 |
| 362 | Electrical industrial apparatus | 50 |
| 365 | Household audio and video equipment | 50 |
| 369 | Miscellaneous electrical equipment | 50 |
| 372,376 | Aerospace | 50 |
| 373 | Ship and boat building and repairing | 50 |
| 374 | Railroad equipment | 50 |
| 375,379 | Miscellaneous transportation equipment | 50 |
| 381 | Search and navigation equipment | 50 |
| 382 | Measuring and controlling devices | 50 |
| 384 | Medical equipment, instruments and supplies | 50 |
| 385 | Ophthalmic goods | 50 |
| 386 | Photographic equipment and supplies | 50 |
| 387 | Watches, clocks, and parts | 50 |
| 202 | Dairy products | 50 |
| 204,207 | Grain mill products and fats and oils | 50 |
| 205 | Bakery products | 50 |
| 206 | Sugar and confectionery products | 50 |
| 208 | Beverages | 50 |
| 209 | Miscellaneous food and kindred products | 50 |
| 21 | Tobacco products | 50 |
| 221-224,226,228 | Weaving, finishing, yarn, and thread mills | 50 |
| 225 | Knitting mills | 50 |
| 227 | Carpets and rugs | 50 |
| 229 | Miscellaneous textile goods | 50 |
| 261-263 | Pulp, paper, and paperboard mills | 50 |
| 267 | Converted paper products except containers | 50 |
| 272 | Periodicals | 50 |
| 273 | Books | 50 |
| 274 | Miscellaneous publishing | 50 |
| 277 | Greeting cards | 50 |
| 278 | Blankbooks and bookbinding | 50 |
| 279 | Service industries for the printing trade | 50 |
| 282 | Plastics materials and synthetics | 50 |
| 283 | Drugs | 50 |
| 284 | Soap, cleaners, and toilet goods | 50 |
| 285 | Paints and allied products | 50 |
| 289 | Miscellaneous chemical products | 50 |
| 291 | Petroleum refining | 50 |
| 295,299 | Miscellaneous petroleum and coal products | 50 |
| 301 | Tires and inner tubes | 50 |
| 308 | Miscellaneous plastics products, nec | 50 |
| 15-17 | Construction | 50 |
| 44 | Water transportation | 50 |
| 473,474,478 | Miscellaneous transportation services | 50 |
| Life Science Industries |
| Information and Communications Technologies |
| Advanced Manufacturing |