Six analysis tools are used to determine which industries should be chosen for targeting in The South Central 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.
| 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 South Central Region. In general, this region had relatively few high-scoring industries, but also an exceptionally large number of industries that scored at the low end of the suitable target range. This suggests that the South Central Region, with a little prodding, could become an important economic region for the state, despite its current struggles.
Three industries in the region scored a perfect score of 100 points: Concrete Mfg. (SIC 327), Construction Machinery Mfg. (SIC 353), and Refrigeration Machinery (SIC 358).
Nine industries scored 80 points or higher on the targeting scale, a relatively small number of industries compared to those regions in the state currently experiencing superior economic growth. Of these nine, only Construction Machinery Mfg. (SIC 353) is considered among the state’s target industries of Advanced Manufacturing, Information Technology, or Life Sciences. These high scores indicate that these industries are already economic drivers for the South Central Region, but the low number and the lack of "new economy" industries indicate the region is in need of some diversification.
Another 22 industries scored between 55 and 75 points on the target scale, suggesting the South Central Region is ripe for potential development in these industries. Included among these are several Advanced Manufacturing firms and a few Life Science firms, such as Industrial Chemicals (SICs 281 & 286).
An additional 63 industries scored 50 points on the target scale, suggesting these industries are good matches for the South Central Region. This comparatively large list includes nearly all remaining identified Advanced Manufacturing and Life Science industries. However, no Information Technology firms achieved a score above the 50-point threshold. The large number of target industries scoring exactly 50 points suggests that the region’s workforce has the education needed for these industries, but they may need specific training to sharpen required skills. Further, scores of 50 suggest that the infrastructure needed to support these industries needs further development.
TM2 has provided a list of 95 industries that have the best potential for economic development in the South Central Region. The original Target Missouri provided a list of only 23 target industries for this region. Of these, only 15 appear on both lists, so in this case, the two studies have obtained significantly different results. The expanded list generated by TM2 provides a list of industries that better fits the specifics of the South Central 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 South Central economy. Note that most are located near highways, and few are outside the major transportation routes.
Map 1: Locations of High-Scoring Industries
Map 2: Current Locations of Potential Target Industries
|
South Central Region Target Industries |
||
|---|---|---|
|
SIC |
Industry |
Total Score |
|
241 |
Logging |
95 |
|
242 |
Sawmills and planing mills |
55 |
|
243 |
Millwork, plywood, and structural members |
60 |
|
244,249 |
Wood containers and misc. wood products |
55 |
|
251 |
Household furniture |
95 |
|
254 |
Partitions and fixtures |
50 |
|
252,253,259 |
Office and misc. furniture and fixtures |
50 |
|
321-323 |
Glass and glass products |
50 |
|
324 |
Hydraulic cement |
50 |
|
325,326,328,329 |
Stone, clay, and misc. mineral products |
50 |
|
327 |
Concrete, gypsum, & plaster products |
100 |
|
331 |
Blast furnaces and basic steel products |
50 |
|
332 |
Iron and steel foundries |
50 |
|
333 |
Primary nonferrous smelting & refining |
50 |
|
334,339 |
All other primary metals |
50 |
|
335 |
Nonferrous rolling and drawing |
50 |
|
336 |
Nonferrous foundries |
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 |
|
347 |
Metal coating, engraving, and allied services |
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 |
100 |
|
354 |
Metalworking machinery and equipment |
55 |
|
355 |
Special industry machinery |
75 |
|
356 |
General industrial machinery and equipment |
50 |
|
357 |
Computer and office equipment |
50 |
|
358 |
Refrigeration and service industry machinery |
100 |
|
359 |
Industrial machinery, nec |
75 |
|
361 |
Electric distribution equipment |
50 |
|
362 |
Electrical industrial apparatus |
75 |
|
363 |
Household appliances |
50 |
|
364 |
Electric lighting and wiring equipment |
70 |
|
365 |
Household audio and video equipment |
50 |
|
366 |
Communications equipment |
50 |
|
367 |
Electronic components and accessories |
50 |
|
369 |
Miscellaneous electrical equipment |
50 |
|
371 |
Motor vehicles and equipment |
75 |
|
372,376 |
Aerospace |
70 |
|
373 |
Ship and boat building and repairing |
50 |
|
374 |
Railroad equipment |
50 |
|
375,379 |
Miscellaneous transportation equipment |
55 |
|
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 |
|
201 |
Meat products |
50 |
|
202 |
Dairy products |
75 |
|
203 |
Preserved fruits and vegetables |
50 |
|
204,207 |
Grain mill products and fats and oils |
75 |
|
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 |
|
231-238 |
Apparel |
55 |
|
239 |
Miscellaneous fabricated textile products |
55 |
|
281,286 |
Industrial chemicals |
75 |
|
282 |
Plastics materials and synthetics |
50 |
|
283 |
Drugs |
50 |
|
284 |
Soap, cleaners, and toilet goods |
50 |
|
285 |
Paints and allied products |
50 |
|
287 |
Agricultural chemicals |
50 |
|
289 |
Miscellaneous chemical products |
50 |
|
291 |
Petroleum refining |
50 |
|
295,299 |
Miscellaneous petroleum and coal products |
50 |
|
301 |
Tires and inner tubes |
50 |
|
302,305,306 |
Rubber products and plastic hose and footwear |
50 |
|
308 |
Miscellaneous plastics products, nec |
70 |
|
14 |
Nonmetallic minerals, except fuels |
65 |
|
15-17 |
Construction |
50 |
|
40 |
Railroad |
95 |
|
42 |
Trucking |
95 |
|
45 |
Air Transportation |
80 |
|
44 |
Water transportation |
50 |
|
46 |
Pipelines, except natural gas |
50 |
|
472 |
Passenger transportation arrangement |
55 |
|
473,474,478 |
Miscellaneous transportation services |
55 |
|
491,%493 |
Electric utilities |
85 |
|
52-57,59 |
Rest of Retail |
50 |
|
722,729 |
Personal services, nec |
60 |
|
735 |
Miscellaneous equipment rental and leasing |
50 |
|
833 |
Job training and related services |
60 |
| Life Science Industries | ||
| Information and Communications Technologies | ||
| Advanced Manufacturing Industries | ||