Six analysis tools are used to determine which industries should be chosen for targeting in The northwest 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 benefit the region most 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.
|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|
The tables that follow present those industries with scores of 50 or higher on the target scale for the northwest Region. Surprisingly, seven industries scored a perfect 100 points. Three others scored higher than 80 points. These ten industries are already significant drivers of the northwest Region economy. Included among these are two Life Sciences industries (Drugs--SIC 283, and Agricultural Chemicals--SIC 287), and two Advanced Manufacturing Industries (Construction Machinery--SIC 353, and General Machinery, SIC 35 6).
Another 29 industries scored between 55-75 points on the target scale, suggesting the northwest Regions is ripe for potential development in these industries. Included in this range are the Information Technology industries (Communications--SIC 48, and Computer Services--SIC 737). Certain Life Science and Advanced Manufacturing Industries can also be found in this range.
An additional 52 industries scored 50 points on the target scale, suggesting these industries are good matches for the northwest Region.
This analysis reveals the potential for the economic success of certain modern industries in the northwest Region. Life Sciences and Advanced Manufacturing are already driving the diversified economy of the northwest Region, and with a little prodding, Information Technology can become important as well.
TM2 has provided a list of 91 industries that have the best potential for economic development in the northwest Region. The original Target Missouri provided a list of only 21 target industries for the northwest Region. Of these, only 14 appear on both lists, so in this case, the two studies have obtained somewhat different results. The expanded list generated by TM2 provides a list of industries that better fits the specifics of the northwest Region, as well as providing rankings that shed some light on the relative importance of certain industries.
Map 1 below shows the approximate current locations of those industries chosen for targeting in the northwest Region. In general, Manufacturing industries are clustered near St. Joseph, while Service and Construction firms are more evenly scattered across the region.
Map 1: northwest Target Industries
Map 2 further demonstrates the clustering effect around St. Joseph. Map 2 shows the locations of only those industries scoring at least 80 points on the target scale, or those industries that are already drivers of the northwest economy. Clearly, the area around St. Joseph, as well as the area around Maryville, are key economic areas in the northwest Region.
Map 2: Locations of High-Scoring Industries