Fundamentals of Economic Development Speaker Biographies and Presentation Materials

Fundamentals of Economic Development Speaker Biographies and Presentation Materials
Fundamentals of Economic Development
Speaker Biographies and Presentation
Materials
Tuesday, May 19, 2015
Joe Crowley Student Union, Room 402
University of Nevada, Reno
Main Campus
Reno, NV
University Center for Economic Development – Nevada Leadership Institute
http://www.unr.edu/business/research-and-outreach/uced
Speaker Biographies
Buddy Borden
Buddy Borden currently works for the University of Nevada, Reno as an Economic Development
Specialist with University of Nevada Cooperative Extension. Buddy Borden has over 23 years
working as an Economic Development Specialist for Cooperative Extension; 19 years in Nevada
and four years in Wyoming. He is committed to assisting communities build strong sustainable
economies through entrepreneurship, business retention and expansion, and business recruitment.
His interests are in community & business economic development processes, economic base
analysis, small business development and economic impact modeling and analysis.
Thomas Harris, PhD
Dr. Thomas R. Harris is a Foundation Professor in the Department of Economics in the College
of Business; State Extension Specialists in Community and Economic Development in
University of Nevada Cooperative Extension; and the Director of the University Center for
Economic Development at the University of Nevada, Reno. Dr. Harris’ primary areas of
teaching, research and extension are rural economic development, economic impact modeling,
and feasibility studies.
Malieka Landis
Malieka Landis is a Research Analyst for the University Center for Economic Development
(UCED) in the College of Business at the University of Nevada, Reno (UNR). She has
conducted research for UCED since graduating with a Master of Science in Resource Economics
in 2010. Malieka also worked part-time as a research assistant for UCED both as an
undergraduate and a graduate student at UNR. She works on a variety of projects to develop
applied tools that assist individuals, businesses, and municipalities in making economic
decisions. A few projects of which she is a key contributor include Herds and Harvest
(individualized enterprise budgets for agricultural producers), Food and Agricultural Policy
Research Institute (modify existing Input-Output models using representative agriculture budgets
refined with primary data), Area Sector Analysis Program (matches industries and communities
based on compatibility and desirability), and conducting economic impact studies of special
events on the Reno-Tahoe region which includes onsite primary data collection through surveys.
Malieka specializes in data management and analysis including survey design and management.
In addition to survey work, she develops budgets for economic decision making, primarily for
agricultural producers and industries, utilizing her experience in various accounting capacities
including cost accountant and controller over the course of 7 years. While Malieka was born and
raised in central Pennsylvania, she has lived in Reno since 2004.
Speaker Biographies
Frederick Steinmann, DPPD
Frederick Steinmann currently works for the University of Nevada, Reno and the University Center
for Economic Development. He began his professional economic development career with the
Reno Redevelopment Agency in the City of Reno, Nevada. Since then, he has worked for the
Nevada Small Business Development Center, Bureau of Business and Economic Research, and for
the Carson Economic Development Services Department in the City of Carson, California.
Frederick has also worked as a Senior Associate for David Paul Rosen & Associates, one of the
elite economic development and public policy consulting firms in California. Frederick earned his
Doctorate in Policy, Planning, and Development, with areas of study including economic
development, public policy, public finance, and real estate development, from the University of
Southern California with the successful defense of his dissertation titled, “The Twilight of the Local
Redevelopment Era: The Past, Present, and Future of Urban Revitalization and Urban Economic
Development in Nevada and California.” He also earned a Bachelor’s of Science and Masters of
Science in Economics from the University of Nevada, Reno.
The University of Nevada, Reno, the University of Nevada, Reno
College of Business, and the University Center for Economic
Development would like to thank the Nevada Chapter of the American
Planning Association for their generous support of this leadership
development program and the Nevada Leadership Institute.
For more information about the Nevada Chapter of the American
Planning Association, including information about how to join, please
visit their website:
http://www.nvapa.org/
Presentation Material
5/18/2015
Welcome!
Nevada Leadership Institute
Fundamentals of Economic Development – Introductions and Overview
May 19, 2015
Leadership and You
 Celebrating the important work we’ve already
done:
–
–
–
–
P.O.W.E.R (NACO and UNR Extended Studies)
Chamber Leadership Programs
Elected/Appointed New Orientation
Toastmasters International Leadership Curriculum
 Certificate of Completion
 Guests
Objectives
The Nevada Leadership Institute:
– Main Objective: To create a pool of qualified officials as
the difficulty of challenges in Nevada grow; officials who
understand the ins-and-outs of government
Management and Administration.
– Secondary Objective: To reduce conflict between staff
and elected/appointed officials over procedural matters
pertaining to government Management and
Administration.
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Our First Exercise
What is Leadership?
 As an individual, write down an answer to this question
on the index card provided on your table. Think about
qualities, responsibilities, activities, etc.
 As a group, and using your individual answers, write a
single sentence on the flipcharts provided for your group.
 As a class, we will discuss and share our answers.
The Agenda
An exploration of thoughts and skills associated with the
fundamentals of economic development and strategic
economic development planning:
1. What is Economic Development?
2. Strategic Economic Development Planning
3. Regional Economic Development
4. Funding Economic Development in Nevada
5. Fiscal Authority and Stability and its Impacts on Economic
Development
Nevada Leadership Institute
Fundamentals of Economic Development
May 19, 2015
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What is Economic Development?
Nevada Leadership Institute
Fundamentals of Economic Development Workshop
May 19, 2015
What is Economic Development?
 Fundamentally, a function of the public sector.
 A set of comprehensive policies, programs, and
projects designed to help:
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Create mid to high skill level jobs.
Create jobs that pay mid to high level wages.
Help Stabilize local, regional, state-wide revenues.
Offer individuals meaningful opportunities for general upward
mobility.
– Improve the quality of life in a particular community.
What is Economic Development?
Property and Non-Property Based Strategies:
– Real Estate and Land Reuse Strategies
– Economic Development Marketing and Attraction
– Tech-Transfer and Technology-Based Strategies
– Small Business and Entrepreneurial Development
– Neighborhood and Community-Based Development
– Workforce and Job Training Development
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Economic Development Marketing and Attraction
The Purpose:
– To help attract, retain, and expand businesses.
– Improve a community’s image both inside and outside
the community.
– Promote economic development policies and programs.
Economic Development Marketing and Attraction
• Assess the Economic Base – identifying a community’s
Competitive Advantages.
– SWOT Analysis
• Identify Target Industries
– What industries are the best prospects?
– What industries best fit the economic assets of a
community and its overall economic development
strategy?
• Identify Prospects
Economic Development Marketing and Attraction
Identify “Location Factors”:
– Access (Proximity) to Customer/Supplier Markets
– Access (Proximity) to Quality Transportation Systems (Rail, Port,
Air, Road)
– Access to Business and Professional Services
– Business Climate
– Community's External/Internal Image
– Existing Economic Incentives
– Quality of Life
– Regulatory Environment
– Sate and Local Government Attitude toward Business
– Taxes (Sales, Property, Corporate, Personal, Income, etc.)
– Utility Capabilities and Rates
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Economic Development Marketing and Attraction
• Marketing Tools
– Developing the Message
– Determining the Appropriate Marketing Technique to
Convey the Message
• Marketing Messages
– Importance of Targeting
– Tag Lines and Logos
– Presentation (Coherence, Consistency, Reliability,
Credibility, Organization, Originality, Accessibility)
• Marketing Techniques
– Tools: Advertising, Publicity, Promotional Materials, Direct
Mail, Personal Selling
– Criteria: Exposure, Presentation, Cost
What should we Communicate?
DATA, DATA, DATA, DATA, DATA…
– Workforce Demographics (Size, Skill Level, Availability,
etc.)
– Available Sites and Buildings (Size, Location,
Ownership, etc.)
– Housing Specifics (Rent Levels, Vacancy Rates, etc.)
– Contact Information (Real Estate Agencies, Business
Associations, Community Colleges, Universities, etc.)
Some Specific Tools
 Local Asset Maps
 Economic Development and the use of Geographic
Information Systems (GIS)
 Social Media
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Local Asset Maps
• Technical Assistance
South Bay Small Business Development Center
(http://www.southbaysbdc.com/)
• Informational Assistance
Carson (California) Chamber of Commerce
(http://www.carsonchamber.com)
• Financial Assistance
National Development Council
(http://www.nationaldevelopmentcouncil.org)
Economic Development and GIS
• Two Major Goals.
1. Business Retention, Recruitment, and Expansion.
2. Providing Information to Businesses located within and
outside an Economic Development Organization’s
Jurisdiction.
• Develop and Implement a Comprehensive Economic
Development and GIS Plan.
Economic Development and GIS
GIS as Part of the Bigger Economic Development
Picture:
1.
2.
3.
4.
5.
6.
7.
Internet GIS Site Selection
Integration of GIS with Social Media and Larger Economic
Development Networks
Business Directories (Buy Local, Business-to-Business
Programs)
Online Business Licensing
Employment Listings
Online Permitting
Video, Video Streaming, and Interactive Pictures
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Economic Development and GIS
 Asset Management
 Suitability Analysis
 Policy Making and Impact Analysis
 Site Selection and Marketing
Economic Development and GIS
Other Purposes and Uses:
– Marketing the EDO’s Community on the Internet.
– Showcasing a Community’s Available Property Online.
– Highlighting Business and Demographic Data.
– Strengthening Chamber of Commerce and Public-Private
Partnerships.
– Coordinating with State-Level Economic Development Activities and
Organizations.
– Growing Local Businesses with Economic Gardening
– Economic Research
Social Media and Economic Development
• Use a Comprehensive Approach – don’t rely on just one
type of Social Media (Facebook, LinkedIn, Twitter, Flickr,
Youtube, etc.)
• Content is King! An Economic Development Organization
(EDO) must develop/provide useful content that is relevant.
• Develop and Implement a Comprehensive Social Media
Economic Development Marketing and Attraction Plan.
– Identify the Goal and Mission of the social media
effort.
– Address Specific Plans/Policies of the social media
effort.
– Define Success and Develop Metrics to measure the
social media effort’s impact.
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Social Media and Economic Development
A Six-Step Process (Schafer Marketing Solutions,
2010):
1.
Plan and Align with Strategy
2.
Listen Before you Leap
3.
Focus and Experiment
4.
Engage Stakeholders
5. Leap
6.
Measure
The Economic Development Marketing and Attraction
Plan
• Goals – specific enough to lead to logical objectives.
• Objectives – specifics targets to be achieved in realizing the
goal(s).
• Marketing – specific strategies enabling the EDO to achieve
its Objectives and Goals; both short-term and long-term
strategies needed.
• Monitoring – of established goals, objectives, and strategies
should be an ongoing process.
• Evaluations – should be conducted on a periodic basis.
Evaluating the Outcomes of the Marketing and
Attraction Plan
• Benchmark/Compare Current Results with...
– Past Performance
– Results of the Marketing Efforts in Other Communities
– Against Targets Established at the Beginning of the EDO’s
Marketing Efforts
• Consider Specific but Broad Measures/Targets:
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Number of New Business Start-Ups
Percent of New Businesses Operating after 1, 3, or 5 Years
Number of Companies Recruited
Number of Jobs Created/Retained
Number of Patents Created
Percent Growth of Jobs at 100%, 125% of Median Income
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Financial Incentives – A Special Case
Most Common Incentives tend to Include:
– Low-Cost Financing (Redevelopment)
– Tax Abatements
– Training Programs
– Low-Cost Utilities
– Turnkey Facility Plans
– Enterprise Zones
Financial Incentives – A Special Case
Performance-Based Criteria:
– Number of Jobs Created
– Quality of Jobs Created (Retail Jobs vs. Manufacturing;
low paying and low skill vs. high paying and high skill)
– Minimum Private Investment Requirements
– Reporting Requirements
– “But-For” Determination (whether but for the incentive, the
company would either relocate, fail, or choose not to
come)
Financial Incentives – Use of the Cost-Benefit Analysis
• Benefits:
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–
–
–
–
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Number of Jobs Created
Type of Jobs Created
Corresponding Wages
Whether Local Residents are the Recipients of the New Jobs
Level of Investment the Company is Willing to Make
Associated Increase in the Tax Base
• Costs:
– Loss of Revenue (Current and Future, i.e. 20-year RDA Bonds)
– Public Service Expenditures (water supply/treatment, police/fire
protection, increased demand on roads and schools, etc.)
• Difficulties with Cost-Benefit Analysis:
– Quantifying qualitative factors (i.e. the “type” of job created – is retail
really that bad?)
– Estimating Future Income and Costs (i.e. inflations, future demand
levels, population growth)
– Controlling for Attribution and Causation – correlation does not equal
causation!
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What is Technology?
• International Economic Development Council: “…a
product or process…”.
• As a Product: A new piece of machinery or material with
new/enhanced capabilities.
• As a Process: A new technological advance used to
streamline an existing operation/function.
What is Technology?
• “High Technology Products”, US Census Bureau.
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Biotechnology
Life Sciences Technology
Opto-Electronics
Computers and Telecommunications
Electronics
Material Design
Aerospace
Weapons
Nuclear Technologies
• “Technology Businesses”.
– Skill Intensive Companies
– High-Tech Assembly Companies
Technology Businesses
Common Characteristics of all “Technology Businesses”:
– Research and Development
– Tendency to Cluster
– Collaboration
– Non-Traditional Business Structure
– Non-Traditional Workforce
– High Degree of Outsourcing
– Short Company Lifestyles
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Technology Businesses
Attracting “Technology Businesses”:
– Presence of Research Institutions
– Access to Capital
– Support for Entrepreneurial Development
– Educated and Talented Workforce
– Established Technology Infrastructure
– Quality of Place
Transferring Technology
Technology can be “Moved” or “Transferred” in
Different Forms:
– Data and Information
– Know-How or Expertise
– Right to Make, Use, and/or Sell (Patents)
– Embedded Technology that is contained in a piece of
Machinery or Software
Transferring Technology
Two Basic Approaches:
1. Technology Commercialization: To place new
products, services, or methods of production into the
marketplace.
2. Technology Deployment: To place new or existing
“off-the-shelf” technologies into existing businesses or
“non-technology-oriented businesses”.
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Technology Commercialization
Three Concurrent Activities:
1. Technology Development
2. Business Development
3. Financing
Transferring Technology
Two Basic “Technology-Forces”:
1. Technology-Push Forces: Developing new technology
leads to new products, services, or methods of
production that are not the result of a specific market
demand.
2. Technology-Pull Forces: Developing new technology
leads to new products, services, or methods of
production that are the result of a specific market
demand.
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Technology Business Incubator
• Like a traditional small business incubator…
– Shared Administrative Services
– Shared Workspace
– Shared Secretarial Services, Office Equipment, Filing
Systems
• But different because of…
– Focus on connecting Tech-Based Start-Ups with TechBased Resources.
– Tech-Oriented Training and Technical Assistance, The
“High-Tech Learning Curve”.
– Shared Specialized Facilities, i.e. Wet/Dry Labs, Start-ofArt Telecommunications, etc.
Technology Business Incubator
Three Program Components:
1. Space
2. Technical Assistance
3. Financing
Tech-Transfer Programs
• Stanford University, Office of Technology Licensing (OTL)
• University of California System, UC Technology Transfer
– UC Berkeley, Berkeley Lab Technology Transfer
– UC Davis, Innovation Access
• Massachusetts Institute of Technology (MIT), Lincoln
Laboratory
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Stanford OTL
General “Steps” in the Stanford OTL Process:
– Reviews an “Invention” to learn about potential private
sector applications.
– Develop a “Licensing Strategy” tailored to fit the specifics
of the Invention, considering Existing/Current Technical
and Market Risks.
– Decide whether or not to Patent the Invention.
– Seek out a “Product Champion” in the private sector to
help develop a Licensing Agreement.
UC Technology Transfer
Four Main Objectives:
1.
To disseminate new and useful knowledge resulting from
university research through the use of the patent system.
2.
To license patents to industry in order to promote the
development of inventions toward practical applications for use
by the general public.
3.
To provide income for use in further research and education,
with a share of the income going to the inventor.
4.
To assure that patent-related obligation to sponsors of
research are met.
UC Technology Transfer
Six Main Functions:
1.
Publication
2.
Reporting Inventions
3.
Evaluation of Inventions
4.
Filing of Patents
5.
Licensing
6.
Collection/Disbursement of Royalties
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Berkeley Lab Technology Transfer
Four Primary Functions:
1.
Promote the use of Berkeley Lab technology to benefit society
through licensing Berkeley Lab inventions to companies
capable of successfully commercializing them.
2.
Support the research mission of the Berkeley Lab by finding
industry partners to sponsor Berkeley Lab research through
generating licensing income that support future Berkeley Lab
research.
3.
Earn a fair return and recognition for the Berkeley Lab and its
inventors.
4.
Contribute to regional and national economic development.
Innovation Access, UC Davis
Two Programs:
1. Intellectual Property Management and Licensing – a
prototypical tech transfer program involving research,
patents, licensing agreements, and developmental
agreements.
2. Entrepreneurship – designed and use to augment the
Intellectual Property Management and Licensing
program.
Innovation Access “Intellectual Property Management
and Licensing”
ACTIVITY
TECHNOLOGY
TRANSFER
BUSINESS DEVELOPMENT
Evaluating Invention
Disclosures
For Patentability.
For Market Potential.
Protecting Intellectual Property
Work with patent law firm to file patents.
Identify copyrighted components.
Managing Intellectual Property (IP) issues
when transferring tangible research material.
Consult on patent claims.
Market Technologies
Develop non-confidential descriptions.
Online and direct marketing.
Conferences.
Develop non-confidential descriptions.
Online and direct marketing.
Conferences.
Licensee Engagement
License Technologies
Confidentiality Agreements.
Option Agreements.
Letter Agreements.
Plant Test Agreements.
Agreement terms.
Campus tours and introductions.
Analysis of Licensees.
Commercial Plan.
Financial Terms.
Support.
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Innovation Access “Entrepreneurship” Program
ACTIVITY
TECHNOLOGY
TRANSFER
BUSINESS DEVELOPMENT
Competitions
Intellectual Property considerations
of participant team technologies.
Little Bang Poster Competition
Organizer.
Business Consulting
Technology Licensing
Networking
Business Plan Review
See IP Management and Licensing
Above.
Within our network of Angel,
Venture investors, Mentors,
service and space resources, as
well as UC Davis Entrepreneurs
and Start-ups.
MIT Lincoln Laboratory
Five General Processes:
1.
Evaluation and Disclosure
2.
Filing and Securing of Appropriate Patent(s)
3.
Development of a Licensing Agreement
4.
Development and Execution of a Royalty-Based
Compensation Strategy
5.
Payment and Division of Royalties
Economic Development in Nevada: A
State-Wide Perspective
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Economic Development in Nevada – AB 449
The State Plan, Moving Nevada Forward: A Plan for
Excellence in Economic Development (February 2012):
– Restructured economic development efforts throughout
Nevada.
– Advisory Council on Economic Development, Board of
Economic Development, Governor’s Office of Economic
Development.
– Required the Development of a State Plan on Economic
Development
(http://www.diversifynevada.com/about/state-plan).
Economic Development in Nevada – AB 449
The State Plan, Moving Nevada Forward: A Plan for
Excellence in Economic Development (February 2012):
– Creation of the Catalyst Fund
– Creation of the Knowledge Fund:
• Recruitment, hiring, and retention of faculty and teams to
conduct research in science and technology
• Research laborites and related equipment.
• Construction of research clinics, institutes, and facilities and
related buildings.
• Matching funds for federal/private grants that further economic
development.
Economic Development in Nevada – AB 449
The State Plan, Moving Nevada Forward: A Plan for
Excellence in Economic Development (February 2012):
– Objective 1: Establish a Cohesive Economic Development
Operating System.
– Objective 2: Advance Target Sectors and Opportunities in the
Region.
– Objective 3: Expand Global Engagement.
– Objective 4: Catalyze Innovation in Core and Emerging Industries.
– Objective 5: Increase Opportunity Through Education and
Workforce Development.
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Objective No. 1: Establish a Cohesive Economic
Development Operating System
Expectations of the Regional Development Authorities:
– Develop and execute an appropriate regional economic development plan
aligned with the State Plan;
– Provide easily-accessible regional economic development information,
including regional assets;
– Drive sector and cluster advancement that create jobs;
– Work with Nevada community colleges and state agencies to know and
meet the region’s workforce development needs;
– Cooperate with research institutions to increase innovation
commercialization and technology transfer;
– Increase exports and foreign direct investment;
– Foster regional incubation of start-ups;
– Effectively market the region and its pertinent sectors; and
– Advocate for necessary improvements to the region’s business
environment.
Objective No. 2: Advance Target Sectors and
Opportunities in the Region
Eight Sectors Identified:
– Tourism, Gaming, and Entertainment
– Clean Energy
– Health and Medical Services
– Aerospace and Defense
– Mining, Materials, and Manufacturing
– Business IT Ecosystems
– Logistics and Operations
– Additional Promising Possibilities: Agriculture, Intangibles and Financial
Enterprises, and Water Technology
Objective No. 3: Expand Global Engagement
Three Goals:
– Facilitate Export Growth: use of collaboration among regional
representatives, and sector specialists, GOED global experts.
– Increase Foreign Direct Investment in Targeted Sectors:
collaboration between GOED and the regional development
authorities, working through Team Nevada, to showcase
investment opportunities in local communities throughout the state.
– Enhance the Global Network that Nevada is a Part Of: the
development and distribution of pertinent data and strategic
information.
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Objective No. 4: Catalyze Information in Core
and Emerging Industries
Three Goals:
– Develop a State-Wide Innovation and Commercialization
Structure: develop a formal state-wide technology-based
economic development strategy for Nevada.
– Increase Industry Collaboration with UNR, UNLV, and DRI:
development of a ‘Small Business Technology Transfer Resource
Center’; provide match funding for NSHE industry-sponsored
research.
– Build an Entrepreneur Support Structure: provide match
funding for the Nevada Institute for Renewable Energy
Commercialization (NIREC) and future federal grants NIREC will
seek out.
Objective No. 5: Increase Opportunity through
Education and Workforce Development
Three Goals:
– Align Education, Career Training, and Workforce Development:
develop foundational coursework necessary to prepare students for
the industry sectors that will form the foundation of Nevada’s
economy of the future.
– Reorganize Nevada’s Workforce Investment System to Align
with Target Sectors: establishment of the Governor’s Workforce
Investment Boards.
– Improve Educational Attainment: development of educational
and training programs designed to produce job candidates who are
qualified to work within each of the stated target industry sectors.
National Associations, Partners, and Resources
 American Planning Association http://www.planning.org/
 APA American Institute of Certified Planners
http://www.planning.org/aicp/
 American Society for Public Administration
https://www.aspanet.org/
 International Economic Development Council
http://www.iedconline.org/
 International City/County Management Association
http://icma.org/en/icma/home
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National Associations, Partners, and Resources
 U.S. Economic Development Administration http://www.eda.gov/
 Nevada Governor’s Office of Economic Development
http://diversifynevada.com/
 Western Research Application Center (WESRAC) at the USC
Viterbi School of Engineering http://wesrac.usc.edu/wtaac/
 USDA Rural Development http://www.rd.usda.gov/
 US Department of Housing and Urban Development
http://portal.hud.gov/hudportal/HUD
 US Department of Commerce http://www.commerce.gov/
Nevada Leadership Institute
Fundamentals of Economic Development
May 19, 2015
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Strategic Economic
Development Planning
Nevada Leadership Institute
Fundamentals of Economic Development Workshop
May 19, 2015
Assessment
Action
Consider Environmental Factors
•
•
•
•
•
•
•
•
•
•
•
1. Development Meaningful and Ultra‐Specific Goals.
Economic Base
Workforce
Physical Capital
Energy Availability
Financial Capital
Tax Structure
Culture
Geography
Climate
Topography
Research Environment
2. Identify Community Opportunities and Constraints.
3. Then Development Your Economic Development Strategies.
•
•
•
The EXISTING and DESIRED conditions for each factor will help identify Economic Development CHOICES.
YEAR
YEAR 1
YEAR 5
YEAR 10
•
•
•
YEAR 15
Real Estate and Land Reuse Strategies
Workforce and Job Training Strategies
Small Business and Entrepreneurial Strategies
Economic Development Marketing and Attraction Strategies
Neighborhood and Community Development Strategies
Tech‐Transfer and Technology‐Based Strategies
YEAR 20
YEAR 30
YEAR 50
CONDITION Median Income: Median Income: Median Income: Median Income: Median Income: Median Income: Median Income:
$25,000 Year
$30,000 Year
$35,000 Year
$25,000 Year
$50,000 Year
$45,000 Year
$60,000 Year
GOAL
ACTION
Create 100 New Create 300 New Create 300 New Create 100 New Create 200 New Create 100 New Create 100 New
Jobs that Pay
Jobs that Pay
Jobs that Pay
Jobs that Pay
Jobs that Pay
Jobs that Pay
Jobs that Pay
$40,000/yr and $40,000/yr and $60,000/yr and $35,000/yr and $60,000/yr and $55,000/yr and $70,000/yr and
Require a
Require a
Require a
Require a
Require a
Require a
Require a
College Degree College Degree College Degree College Degree College Degree College Degree College Degree
New Marketing New Vocational Redevelop one
and Attraction
Training
city block in the
Program
Program at
urban core.
Area
Community
College.
Develop a
Tech-Transfer
Program at
Local
University
Develop a
regional small
business
revolving loan
fund
Implement a
new Regional
Business-toBusiness
Purchasing
Program.
Develop an
online clearing
house for job
postings.
?
?
?
Develop a
regional job
training
program.
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Assessment
Planning
Action
A 9-Step Strategic Economic
Development Planning Process
International City County Managers
Association, 2010
Step 1: Decide to Plan
Year 1 – Develop the Plan
Year 2 through Year 5 – Implement the Plan
Year 6 – Evaluate, Update, Re-Implement
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Step 2: Identify the Community’s
Mandates and Expectations
Products: A list of formal mandates and
informal expectations.
Step 3: Establish the Community’s
Economic Development Mission
Products: Prioritized list of stakeholders, a list of
community values, a statement of what makes the
community unique, a written community economic
development mission statement
Step 4: Create a Community
Vision
Products: A written vision statement.
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Step 5: Conduct an assessment of
the community’s strengths,
weaknesses, opportunities, and
threats.
Products: A list of community strengths and
weaknesses, opportunities and threats, and a
brief analysis of the interaction among these
items.
Step 6: Identify the Community’s
Strategic Issues.
Products: A list of three to five strategic
issues, expressed as questions.
Step 7: Develop Strategies to
Address your Community’s
Strategic Issues.
Products: A strategy or strategies for
addressing each strategic issues and
accompanying tactics for each strategy.
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Step 8: Prepare an Action Plan.
Products: An action plan for each tactic in your strategic plan.
ACTION
(What)
STEPS
(How)
1. Develop a Business 1.
Incubator.
2.
3.
Acquire
Building.
Retrofit for use
as incubator.
Identify clients.
TIMING
(When)
RESOURCES
REQUIRED
(With What)
May 1st
October 31st
$500,000
$250,000
October 31st
40 hours of staff time.
RESPONSIBILITY
(Who)
Small Business
Program Director.
2.
3.
Step 9: Assess your Community’s
Economic Development Strategic Plan.
Products: A periodic assessment of progress
in achieving your plan.
(Year 6)
Comprehensive Strategic Economic
Development Planning
 Operate and Think Regionally.
 Operate and Think in both the Short-Term and the LongTerm.
 Incorporate Property-Based and Non-Property Based
Approaches.
 Start with Assessment, Move toward Action.
 It’s not enough to PLAN, you must also ACT.
 Constantly Measure and Evaluate your performance –
Adapt and Change Course as Needed.
5
5/18/2015
US EDA and The Comprehensive Economic
Development Strategy (CEDS)
Why Plan?
– It shapes a community’s future.
– It provides a structure for mutually accepted goals
and a common agenda.
– It defines the purpose of the community group.
– It balances community goals with realistic local
resources.
– And…YOU HAVE TO!
US EDA and The Comprehensive Economic
Development Strategy (CEDS)
“CEDS are designed to bring together the public and
private sectors in the creation of an economic
roadmap to diversify and strengthen Regional
economies. The CEDS should analyze the
Regional economy and serve as a guide for
establishing Regional goals and objectives,
developing and implementing a Regional plan of
action, and identifying investment priorities and
funding sources”.
- Section 303.7 Requirements for Comprehensive Economic
Development Strategies.
CFR Title 13, Part 301 “Eligibility, Investment
Rate and Application Requirements ”
Subpart C – Economic Distress Criteria; Section 301.3
“Economic Distress Levels”:
1. An unemployment rate that is, for the most recent
twenty-four (24) month period for which data is
available, at least one (1) percentage point greater
than the national average unemployment rate;
2. Per capita income that is, for the most recent period for
which data are available, eighty (80) percent or less of
the national average per capita income; or
3. A Special Need, as determined by the EDA.
6
5/18/2015
CFR Title 13, Part 303 – “Planning Investments
and Comprehensive Economic Development
Strategies”
 Section 303.1: Purpose and Scope
 Section 303.3: Application Requirements and
Evaluation Criteria
 Section 303.7: Requirements for Comprehensive
Economic Development Strategies
CEDS Component Parts, Section 303.1
 “…must be part of a continuous process involving
the active participation of Private Sector
Representatives, public officials, and private
citizens…”
 Include: (a) analyzing local economies, (b)
defining economic goals, (c) determining project
opportunities, and (d) formulating and
implementing an economic development program
that includes systematic efforts to reduce
unemployment and increase incomes.
CEDS Component Parts, Section 303.7
Technical Requirements:
1.
2.
Background of the region’s economic development situation.
Economic and community development problems and
opportunities.
3. Regional goals and objectives (more employment does not equal
a goal or objective; SPECIFIC).
4. Community/private sector participation.
5. Suggested projects and jobs created (SPECIFIC).
6. Identifying/prioritizing VITAL PROJECTS.
7. Regional economic clusters.
8. A plan of action (SPECIFIC – Year 1, Year 2, Year 3, etc.; Dollars
spent per project; No. of Jobs created; Responsible agency).
9. Performance measures (SPECIFIC).
10. Methodology tying the CEDS with a State Plan.
7
5/18/2015
Nevada Leadership Institute
Fundamentals of Economic Development
May 19, 2015
8
5/18/2015
SOCIO-ECONOMIC DATA ANALYSIS
FOR ECONOMIC DEVELOPMENT
Thomas R. Harris
UNR
University Center for Economic Development
PRIMER ON SOCIO-ECONOMIC DATA
• Data is used to help decision makers to assess a situation or
alternative objectively.
• Qualitative and Quantitative Data
• Primary and Secondary Data
• Cross Sectional or Comparative Data
1
5/18/2015
WHY USE SOCIO-ECONOMIC DATA
• Socio-Economic Data helps community leaders to:
• Identify Issues
• Identify Important Changes and Opportunities
• Understand What Has and Has Not Worked in Your
Community
• Make Decisions that Influence the Entire Community or
Situation
WHAT TO LOOK FOR IN DATA
• Conditions
• Direction of Change
• Intensity of Change
• Overall Picture
2
5/18/2015
What is an Economic Sector?
• A system that classifies businesses according to type of
primary product.
• NAICS = North American Industrial Classification System
Some Definitions
• Employment versus Income Data
• Employment is lagging economic indicator
• Income includes Passive Income and Residence Adjustment
• Place of Work versus Place of Residence Data
• Journey to Work Data
3
5/18/2015
Socio-Economic Tools Reviewed Today
• Location Quotients
• Shift-Share Analysis
What Does a Location Quotient Do?
• L.Q. estimates concentration or specialization of
economic sectors in a local economy
• Used for Export Enhancement and/or Import Substitution
4
5/18/2015
How Is a Location Quotient Estimated ?
A location quotient for Sector I in county s is computed:
LQis = ________________________________________________________________________
Percent of national economic activity in sector i and nation Percent of local economic activity in sector i and county s Sectoral Proportions for WNDD
SECTOR
Agriculture
Forest,fishing,related
Mining
Utilities
Construction
Manufacturing
Wholesale trade
Retail Trade
Transporation & Warehousing
Information
Finance and Insurance
Real Estate and Rentals
Prof, Sciet, and Tech Srv
Managt of Campan
Admint. & Waste Mgt
Educational serv
Health Care & Social Asst
Arts, Enter, & Recre
Accomadations & Food Serv
Other Serv
Fedral Govt
State & Local GOVT
TOTAL
Percentage 2008
Percentage 2013
0.79%
0.26%
0.72%
0.32%
7.72%
6.20%
3.57%
10.63%
4.29%
1.27%
5.51%
3.85%
6.18%
1.47%
5.72%
0.83%
7.55%
3.87%
10.85%
5.41%
1.56%
11.43%
0.69%
0.31%
1.21%
0.24%
4.55%
5.40%
2.95%
9.48%
8.15%
0.97%
6.41%
6.96%
4.16%
0.37%
9.07%
0.94%
8.23%
3.80%
9.36%
5.74%
1.33%
9.66%
100.00%
100.00%
5
5/18/2015
Sectoral Proportions for U.S.
Assignment OF LQ Through Time
• STAR is LQ greater than 1.0 in 2013 and LQ is growing
between 2008 and 2013.
• EMERGING is LQ less than 1.0 in 2013 but LQ is growing
between 2008 and 2013
• MATURE is LQ greater than 1.0 in 2013 but LQ is
declining between 2008 and 2013.
• TRANSFORMING is less than 1.0 in 2013 and LQ is
declining between 2008 and 2013.
6
5/18/2015
ESTIMATION OF CONCENTRATION OR
SPECIALIZATION
Location Quotients
7
5/18/2015
EXAMPLE CALCULATION
• From handout, estimate location quotient for 2008 and 2013 for
the Agricultural Sector and the Transportation and
Warehousing Sector? Are the sectors a STAR,
EMERGING, MATURE, or TRANSFORMING
SECTOR.
HOW TO USE LOCATION QUOTIENTS
• A Location Quotient less than one does not mean WNDD
needs to expand into this sector.
• If less than one, especially for trade and service sector,
the LQ less than one may suggest a gap.
• The question then becomes is the trade or service activity
feasible.
• Need to use other analytic methods to confirm potential.
8
5/18/2015
LIMITATIONS OF LOCATION
QUOTIENT
• LQ can vary by data such as employment versus income.
• LQ can fifer by disaggregated sectors. LQ should be
performed at the 3 or 4 digit NAICS level.
ANALYSIS OF CHANGE
• Analysis of change is a challenge whether change is due
to local conditions or some external factors.
• Employment for WNDD decreased from 405,875 in 2008,
the start of the Great Recession , to 376,530 in 2013.
• This is a decrease of -7.23%.
• One tool to analyze employment change is shift-share
analysis.
9
5/18/2015
WNDD EMPLOYMENT 1969 to 2013.
COMPONENTS of SHIFT-SHARE
ANALYSIS
• National Growth Component is the growth of WNDD
employment if it grew at the overall national growth rate.
• Industry Mix Component is the growth rate differentials of
fast growing and slow growing national economic sectors
to the overall national growth rate.
• Competitive Share Component is the employment growth
rate due to WNDD conditions or actions.
10
5/18/2015
National Growth Rate
TOTAL
Agriculture
Forest,fishing,related
Mining
Utilities
Construction
Manufacturing
Wholesale trade
Retail Trade
Transporation & Warehousing
Information
Finance and Insurance
Real Estate and Rentals
Prof, Sciet, and Tech Srv
Managt of Campan
Admint. & Waste Mgt
Educational serv
Health Care & Social Asst
Arts, Enter, & Recre
Accomadations & Food Serv
Other Serv
Fedral Govt
State & Local Government
USA2013
182,278,200
2,654,049
884,994
1,320,823
578,030
8,628,599
12,607,071
6,358,275
17,561,559
5,985,999
3,346,085
10,353,359
8,273,625
8,261,077
1,379,082
17,918,909
3,772,589
20,738,995
3,937,495
13,984,495
12,913,031
3,593,197
17,226,862
USA2008
national
179,645,900
1.47%
2,845,931
1.47%
985,608
1.47%
922,368
1.47%
567,636
1.47%
11,500,027
1.47%
14,090,687
1.47%
6,443,180
1.47%
19,206,446
1.47%
5,759,526
1.47%
3,660,601
1.47%
8,333,393
1.47%
7,707,262
1.47%
12,262,380
1.47%
1,896,193
1.47%
10,639,179
1.47%
3,558,501
1.47%
17,893,692
1.47%
3,598,255
1.47%
12,174,842
1.47%
12,266,792
1.47%
4,400,549
1.47%
18,932,853
1.47%
INDUSRIAL MIX GROWTH RATE
TOTAL
Agriculture
Forest,fishing,related
Mining
Utilities
Construction
Manufacturing
Wholesale trade
Retail Trade
Transporation & Warehousing
Information
Finance and Insurance
Real Estate and Rentals
Prof, Sciet, and Tech Srv
Managt of Campan
Admint. & Waste Mgt
Educational serv
Health Care & Social Asst
Arts, Enter, & Recre
Accomadations & Food Serv
Other Serv
Fedral Govt
State & Local Government
USA2013
182,278,200
2,654,049
884,994
1,320,823
578,030
8,628,599
12,607,071
6,358,275
17,561,559
5,985,999
3,346,085
10,353,359
8,273,625
8,261,077
1,379,082
17,918,909
3,772,589
20,738,995
3,937,495
13,984,495
12,913,031
3,593,197
17,226,862
USA2008
national
179,645,900
1.47%
2,845,931
1.47%
985,608
1.47%
922,368
1.47%
567,636
1.47%
11,500,027
1.47%
14,090,687
1.47%
6,443,180
1.47%
19,206,446
1.47%
5,759,526
1.47%
3,660,601
1.47%
8,333,393
1.47%
7,707,262
1.47%
12,262,380
1.47%
1,896,193
1.47%
10,639,179
1.47%
3,558,501
1.47%
17,893,692
1.47%
3,598,255
1.47%
12,174,842
1.47%
12,266,792
1.47%
4,400,549
1.47%
18,932,853
1.47%
nsectOR
-6.74%
-10.21%
43.20%
1.83%
-24.97%
-10.53%
-1.32%
-8.56%
3.93%
-8.59%
24.24%
7.35%
-32.63%
-27.27%
68.42%
6.02%
15.90%
9.43%
14.86%
5.27%
-18.35%
-9.01%
imrate
-8.21%
-11.67%
41.73%
0.37%
-26.43%
-11.99%
-2.78%
-10.03%
2.47%
-10.06%
22.77%
5.88%
-34.10%
-28.74%
66.96%
4.55%
14.44%
7.96%
13.40%
3.80%
-19.81%
-10.48%
11
5/18/2015
EMPLOYMENT CHANGE STATUS
WNDD
Description
TOTAL
Agriculture
Forest,fishing,related
Mining
Utilities
Construction
Manufacturing
Wholesale trade
Retail Trade
Transporation & Warehousing
Information
Finance and Insurance
Real Estate and Rentals
Prof, Sciet, and Tech Srv
Managt of Campan
Admint. & Waste Mgt
Educational serv
Health Care & Social Asst
Arts, Enter, & Recre
Accomadations & Food Serv
Other Serv
Fedral Govt
State&Local Govt
WNDD 2013
376,530
2,605
1,172
4,570
899
17,138
20,339
11,106
35,678
30,691
3,642
24,126
26,217
15,680
1,406
34,145
3,554
30,993
14,322
35,241
21,629
5,016
36,361
WNDD 2008
EMPLOYMENT CHANGE
(29,345)
405,875
3,198
(593)
1,044
128
2,917
1,653
1,293
(393)
31,342
(14,204)
25,173
(4,834)
14,481
(3,375)
43,131
(7,453)
17,399
13,292
5,167
(1,524)
22,372
1,754
15,615
10,603
25,088
(9,408)
5,973
(4,568)
23,230
10,915
3,385
169
30,663
330
15,708
(1,386)
44,033
(8,791)
21,977
(348)
6,315
(1,299)
46,373
(10,012)
RESULTS OF SHIFT-SHARE
CATEGORY
TOTAL
Agriculture
Forest,fishing,related
Mining
Utilities
Construction
Manufacturing
Wholesale trade
Retail Trade
Transporation & Warehousing
Information
Finance and Insurance
Real Estate and Rentals
Prof, Sciet, and Tech Srv
Managt of Campan
Admint. & Waste Mgt
Educational serv
Health Care & Social Asst
Arts, Enter, & Recre
Accomadations & Food Serv
Other Serv
Fedral Govt
State&Local Govt
National Growth
5,947
47
15
43
19
459
369
212
632
255
76
328
229
368
88
340
50
449
230
645
322
93
679
Industry Mix
2,469
-262
-122
1,217
5
-8,285
-3,019
-403
-4,326
429
-520
5,095
919
-8,554
-1,716
15,555
154
4,426
1,251
5,900
836
-1,251
-4,858
Competitive Effect TOTAL CHANGE
-37,762
-29,345
-377
-593
235
128
393
1,653
-417
-393
-6,378
-14,204
-2,183
-4,834
-3,184
-3,375
-3,759
-7,453
12,608
13,292
-1,080
-1,524
-3,669
1,754
9,455
10,603
-1,222
-9,408
-2,939
-4,568
-4,980
10,915
-35
169
-4,546
330
-2,867
-1,386
-15,336
-8,791
-1,506
-348
-140
-1,299
-5,834
-10,012
12
5/18/2015
RESULTS OF SHIFT-SHARE AS A RATE
• Hard to judge shift-share with values.
• Impossible to compare areas with levels.
• Make into rates
• Rates derived from use the base year as the denominator
of the results.
RESULTS OF SHIFT-SHARE RATES
SECTOR
National Rate
Industrial Mix Rate Competitive Rate
Total Change
Rate
Competition Rate
Agriculture
Forest,fishing,related
Mining
Utilities
Construction
Manufacturing
Wholesale trade
Retail Trade
Transporation &
Warehousing
Information
Finance and Insurance
Real Estate and Rentals
Prof, Sciet, and Tech Srv
Managt of Campan
Admint. & Waste Mgt
Educational serv
Health Care & Social Asst
Arts, Enter, & Recre
Accomadations & Food Serv
Other Serv
Fedral Govt
State&Local Govt
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
-8.21%
-11.67%
41.73%
0.37%
-26.43%
-11.99%
-2.78%
-10.03%
-11.79%
22.47%
13.47%
-32.25%
-20.35%
-8.67%
-21.99%
-8.72%
-18.53%
12.26%
56.67%
-30.42%
-45.32%
-19.20%
-23.30%
-17.28%
-2.49%
31.77%
22.78%
-22.95%
-11.05%
0.63%
-12.68%
0.59%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
1.47%
2.47%
-10.06%
22.77%
5.88%
-34.10%
-28.74%
66.96%
4.55%
14.44%
7.96%
13.40%
3.80%
-19.81%
-10.48%
72.46%
-20.91%
-16.40%
60.55%
-4.87%
-49.20%
-21.44%
-1.02%
-14.83%
-18.25%
-34.83%
-6.85%
-2.22%
-12.58%
76.40%
-29.50%
7.84%
67.90%
-37.50%
-76.47%
46.99%
5.00%
1.08%
-8.82%
-19.97%
-1.58%
-20.57%
-21.59%
81.77%
-11.61%
-7.10%
69.86%
4.43%
-39.90%
-12.13%
8.28%
-5.52%
-8.95%
-25.53%
2.45%
7.08%
-3.28%
TOTAL
1.47%
0.61%
-9.30%
-7.23%
0.00%
13
5/18/2015
EXAMPLE ANALYSIS OF SHIFT-SHARE
ANALYSIS OF WNDD 2008 to 2013
• National Growth Rate
• Industrial Mix Growth Rate
• Competitive Growth Rate
• Competition Growth Rate
ADDED INFORMATION FROM SHIFTSHARE ANALYSIS
• A positive competitive share indicates that WNDD gained
additional jobs over that due to overall national growth
and its industrial structure.
• As with Location Quotients results from Shift-Share can
vary by disaggregation.
14
5/18/2015
What Can Be Done If Economy Is Not
Competitive
• Strengthen managerial capacities of existing firms.
• Encourage business growth through identification of
capital sources.
• Increase knowledge of new technology.
• Aid employers in improving quality of workforce.
• Develop regional facilities to improve business efficiency
and access to non-local markets.
QUESTIONS
15
5/18/2015
Regional Economic Development
Nevada Leadership Institute
Fundamentals of Economic Development Workshop
May 19, 2015
Why Think Regionally?
 Because:
– The United States has a really, really, really big
economy.
– The United States is economically, politically, socially,
and culturally diverse.
– The United States is highly decentralized.
 Markets and economic activity geographic and
political boundaries.
Why Think Regionally?
New Trends in a “New” Economy Force us to Think
Regionally:
– Continued recovery from the Great Recession of 2008-2009.
– Continued loss of manufacturing jobs and continued growth of serviceoriented industries.
– Polarization of work reflecting knowledge, skills and abilities.
– Corporate outsourcing that further divides value-chain and functions into
highly efficient but interdependent activities.
– Increasing importance of creative and knowledge-based economies.
– Specialization of regions and communities.
– Increased connection among places with complementary specializations or
resources.
– Rapid growth of entrepreneurs and the self-employed.
1
5/18/2015
Why Think Regionally?
Community-Needs Force us to Think Regionally:
– Emphasis on job creation.
– Continued focus on companies rather than industries or people.
– Loss of private sector leadership.
– Need for a talented and knowledge-based workforce.
– Greater public scrutiny of the use of public dollars for economic
development purposes.
– Need for economic development professionals with new skills in marketing
and networking.
The Old Paradigm
Successful Places Where Once:
– Touted a cheap place to do business.
– Focused on attracting companies.
– Fostered a cost-concious physical environment.
– Had a competitive advantage in some resource or skill.
– Had government-led economic development (smoke-stack
chasing).
The New Paradigm
Successful Places Are Now:
– Rich in ideas and talent.
– Attract educated people with a well-defined and well-developed skill
set.
– Provide physical and cultural amenities.
– Have organizations and individuals with the ability to learn and
adapt.
– Embrace bold partnerships among the public, for-profit private, and
non-profit private sectors.
2
5/18/2015
Developing a Regional Approach
Promote the Three C’s:
– Conversation: coordination of local economic development efforts
amongst local government, local economic development
organizations, business leaders, education leaders, residents, and
other key stakeholders.
– Connection: a ‘contact sport’ that requires personal interactions at
every stage; a high degree of connectivity allows individual
communities to leverage their resources with the resources of
others.
– Capacity: brining together the resources and assets of different
communities in different sectors (businesses, institutions, labor
force, facilities, services, etc.) that benefits local communities and
the wider region.
Tech‐Transfer and Technology‐
Based Strategies
Real Estate and Land Reuse Strategies
Regional
Economic Development Policies, Programs, and Projects
Workforce and Job Training Strategies
Neighborhood and Community Development Strategies
Reno Redevelopment Agency
Washoe
County
School
District
Small Business and Entrepreneurial Strategies
Tahoe Reno Industrial Center
Nevada System of Higher Education
UNR‐DRI Technology Douglas County Transfer Office
Redevelopment Agency
Sparks Redevelopment Agency
Western
Nevada
College
Economic Development Marketing and Attraction Strategies
Nevada Institute for Renewable Energy Commercialization
DETR
EDAWN
Truckee
Meadows
Community
College
Carson City
School
District
WIN
NBC
RSCVA
Nevada
System of
Higher
Education
NNDA
Reno-Sparks
Chamber of
Commerce
NSBDC
Washoe
County
City of Sparks
City of Reno
Carson City
Center for
Economic
Development
(UNR)
Rural Nevada
Development
Council
NV Energy
Douglas
County
State of
Nevada
NCET
SCORE
3
5/18/2015
Reno Redevelopment Agency
Real Estate and Land Reuse Strategies
Sparks Redevelopment Agency
Western
Nevada
College
Tahoe Reno Industrial Center
UNR‐DRI Technology Douglas County Transfer Office
Redevelopment Agency
DETR
Washoe
County
School
District
Carson City
School
District
Nevada Institute for Renewable Energy Commercialization
WIN
EDAWN
Truckee
Meadows
Community
College
Workforce and Job Training Strategies
Nevada System of Higher Education
Tech‐Transfer and Technology‐
Based Strategies
Regional
Economic Development Policies, Programs, and Projects
Nevada
System of
Higher
Education
Economic Development Marketing and Attraction Strategies
NBC
RSCVA
NNDA
Reno-Sparks
Chamber of
Commerce
NSBDC
Washoe
County
Neighborhood and Community Development Strategies
City of Reno
City of Sparks
Carson City
Rural Nevada
Development
Council
Small Business and Entrepreneurial Strategies
Center for
Economic
Development
(UNR)
NV Energy
Douglas
County
State of
Nevada
NCET
SCORE
Developing a Regional Approach
Three Major Components:
– Build Regional Critical Mass
– Prioritize Investments in Public Goods and Services
– Spur, Support and Invest in Innovation
Developing a Regional Approach
Seven Policy Principles:
– Seize emerging regional competitive advantages.
– Invest in transportation and telecommunications infrastructure.
– Adopt technologies that strengthen competitive advantage.
– Strengthen rural labor markets and boost worker skills.
– Foster improved collaboration across political jurisdictional lines (especially
in urban-rural interfaces).
– Restructure agricultural activities by increasing value-added business
activities that can extend into urban markets.
– Improve the delivery of public services.
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The Nevada Governor’s Office of Economic Development
http://diversifynevada.com/
Regional Development Authorities:
– Las Vegas Global Economic Alliance, http://www.nevadadevelopment.org/
– Economic Development Authority of Western Nevada, http://edawn.org/
– Northern Nevada Development Authority, https://nnda.org/; Western Nevada
Development District, http://www.wndd.org/
– Highway 95, http://hwy95rda.com/
– Humboldt Development Authority, http://hdanv.org/
– Great Basin Regional Development Authority, http://www.greatbasinrda.org/
– Northeastern Nevada Regional Development Authority, http://nnrda.com/
– Nye County Regional Economic Development Authority,
http://www.nyecounty.net/
– Lincoln County Regional Development Authority, http://www.lcrda.com/
Nevada Leadership Institute
Fundamentals of Economic Development
May 19, 2015
5
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GETTING STARTED
PROGRAM STRUCTURE, OVERVIEW, APPLICATION
ASAP is a regional collaborative project of the Western Rural Development Center. wrdc.usu.edu
ASAP Training
2
is a regional collaborative effort between these institutions and the Western Rural Development Center: 1
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ASAP Training
3
Where ASAP Has Been Delivered
• Montana Counties
–
–
–
–
–
–
Silver Bow*
Deer Lodge*
Beaverhead
Madison
Granite
Powell
• Colorado River Region
–
–
–
–
–
Laughlin, NV
Bullhead City, AZ
Needles, CA
Golden Valley
Mohave Valley
Kingman, AZ
Lander County, NV
Spicer, MN
White Pine County, NV (in process)
• Monterey County, CA
• Wayne County, UT
(in process)
•
•
•
•
ASAP Training
4
Community Economic Development
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ASAP Training
5
ASAP MODEL
Community Profile
Goals
Assets
Matching
Process
Benefits
Compatibility
Desirability
Improve
Assets
Long
Economic
Term
Development
Strategies
Short
Term
Community
Action
Target
Specific
Industries
Needs
Industry Profile
ASAP Training
6
ASAP CONCEPTUAL MODEL
To assist communities in targeted sustainable
economic development by identifying:
1.
2.
3.
4.
5.
NAICS based industries
Community goals and priorities for economic
development
Community assets that will help achieve goals and
priorities
Industry needs and factors important for locating
operations in a community
Industries that are consistent with community goals and
assets
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ASAP Training
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ASAP DATA REQUIREMENTS
Secondary
Primary
 Industry expansion and/or relocation needs and factors
 Economic development goals and priorities
 Assets








IMPLAN
U.S. Census Bureau
U.S. EPA
U.S. Bureau of Economic Analysis
U.S. Bureau of Labor Statistics
FBI
Federation of Tax Administrators
Etc.
ASAP Training
8
THE ASAP PROGRAM STRUCTURE
ASAP Team Primary role: guide, educate, motivate
 ASAP Facilitator/Coach
 County/Region Coordinator(s)
 County/Region Steering Committee
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ASAP Training
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THE ASAP FACILITATOR/COACH
ROLES & RESPONSIBILITIES




Facilitate all sessions
Analysis of goals and assets
Results of ASAP final analysis
Assist Coordinator(s) and Steering Committee in developing action economic development strategies based on ASAP findings
ASAP Training
10
COORDINATOR(S)
ROLES & RESPONSIBILITIES
 Provide overall leadership to ASAP Steering Committee
 Build an ASAP Steering Committee that is representative of County/Region  Develop ASAP Steering Committee meeting schedule with facilitator
 Fulfill all ASAP Steering Committee roles and responsibilities
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ASAP Training
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ASAP STEERING COMMITTEE
ROLES AND RESPONSIBILITIES







Represent County/Region on the ASAP committee
Attend each ASAP session and offer expertise
Provide outreach to community members
Head subcommittees to complete the work
Assist in administering and completing goals/assets questionnaires
Analyze and interpret the ASAP results
Assist in developing an economic development strategic plan that identifies:
 short‐term opportunities
 long‐term opportunities
 Assist implementing economic development plan
ASAP Training
12
ASAP PROGRAM SPECIFICS
 6 Modules
 Each module will last between 2‐3 hours
 Each module will have an opening topic presentation and/or results  Each module has an interactive activity at the end
 Timeline is determined by coordinator(s) and steering committee
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ASAP Training
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ASAP PROGRAM MODULE TOPICS
 Economic Development Model  Three components
 What activities have taken place over the last 10 years?
 Sustainable Development
 Social, environmental, and economic systems
 What is the current sustainability position and how it may change?
 Economic System
 Three structural elements in an economy (basic industries, service firms, households)
 Know your region (review local data)
 Industry clusters
ASAP Training
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ASAP PROGRAM MODULE TOPICS
 Identify Goals and Priorities for Economic Development
 Community outreach sessions
 Pair wise comparison survey
 Asset Mapping & Assessments
 Community resources – things with value
 Asset assessment survey
 Best Matched Industries
 Desirability Index
 Compatibility Index
 Strategic Planning & Action
 Become familiar with targeted industries
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DESIRABILITY/COMPATIBILITY INDEX
ASAP Training
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ASAP GENERAL EXAMPLE FOR COMMUNITY XYZ
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ASAP Training
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SETTING ASAP UP FOR COMMUNITY XYZ
 Identify geographical region
 Identify ASAP coordinator(s)
 Identify steering committee, and size, that represents a cross section of the community
 Establish program timeline to complete all modules
 Start program modules
ASAP Training
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KEY DELIVERABLES FOR COMMUNITY XYZ
 Throughout the program the following deliverables will be produced: 





Goals and Priorities for Economic Development
Asset Inventory
Best matched industries with index scores
Detailed desirability and compatibility analysis
Relocation/expansion factors by NAICS
Various other data relevant to the study area
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ASAP Training
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XYZ COMMUNITY DEVELOPMENT GOALS
ASAP Training
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XYZ COMMUNITY DEVELOPMENT PRIORITIES
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XYZ ASSET INVENTORY ‐ ABBREVIATED
 Current and projected
 Building space (retail, industrial, mfg., office)
 Land (developed & undeveloped, ag and non‐ag)
 Availability of infrastructure and services
 Access to all types of transportation
 Hi‐tech
 Water/sewer etc..
 Business and social indicators
 Workforce (education, prevailing wage, etc..)
ASAP Training
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BEST MATCH INDUSTRIES
DESIRABILITY AND COMPATIBILITY BY NAICS
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BEST MATCH INDUSTRIES
DESIRABILITY > .6 AND COMPATIBILITY > .6 BY NAICS
ASAP Training
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TOP 25 BEST MATCH INDUSTRIES - INDEX
COMPATIBILITY > .6 AND DESIRABILITY > .6 BY NAICS (4) NAICS4
5179
2213
3391
3112
3322
3364
5239
3327
3312
6241
4431
3343
3328
1112
3359
3113
3365
3251
3353
3341
3336
2212
3361
3363
3331
Description
Other Telecommunications
Water, Sewage and Other Systems
Medical Equipment and Supplies Manufacturing
Grain and Oilseed Milling
Cutlery and Handtool Manufacturing
Aerospace Product and Parts Manufacturing
Other Financial Investment Activities
Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing
Steel Product Manufacturing from Purchased Steel
Individual and Family Services
Electronics and Appliance Stores
Audio and Video Equipment Manufacturing
Coating, Engraving, Heat Treating, and Allied Activities
Vegetable and Melon Farming
Other Electrical Equipment and Component Manufacturing
Sugar and Confectionery Product Manufacturing
Railroad Rolling Stock Manufacturing
Basic Chemical Manufacturing
Electrical Equipment Manufacturing
Computer and Peripheral Equipment Manufacturing
Engine, Turbine, and Power Transmission Equipment Manufacturing
Natural Gas Distribution
Motor Vehicle Manufacturing
Motor Vehicle Parts Manufacturing
Agriculture, Construction, and Mining Machinery Manufacturing
Existing
X
X
X
CI
DI
0.9370
0.9078
0.9043
0.8872
0.8862
0.8805
0.8735
0.8654
0.8534
0.8494
0.8493
0.8483
0.8399
0.8357
0.8257
0.7965
0.7842
0.7710
0.7551
0.7514
0.7476
0.7339
0.7234
0.7225
0.6941
0.7121
0.6249
0.6154
0.6136
0.6334
0.6247
0.8277
0.6388
0.6839
0.6151
0.6320
0.6145
0.6261
0.7039
0.6146
0.6155
0.6063
0.6443
0.6930
0.6312
0.6259
0.6922
0.6786
0.6239
0.6682
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DESIRABILITY ANALYSIS BY NAICS
1
1
1
2
4‐digit NAICS Code
3
2
5
2
3
2
5
4
Top 10 DI
3 3 3 4
2 3 3 8
5 4 4 5
6 2 4 9
5
1
5
2
5
1
7
9
5
2
3
9
3
3
4
3
3
3
5
9
3
3
6
3
Bottom 10 DI
3 3 3 6 3
3 3 3 2 1
6 6 9 4 1
4 5 1 1 2
3
1
1
3
3
3
1
4
Desirability Index
Compatibility Index
Desirability Indicator
G1.I1 ‐ Every new job generates additional jobs in the community
G1.I2 ‐ New businesses return profits to the community
G1.I3 ‐ New businesses hire locally
G1.I4 ‐ New businesses buy locally
G1.I5 ‐ New businesses increase the average local wage
G2.I1 ‐ New businesses do not pollute the water
G2.I2 ‐ New businesses do not release toxic chemicals in the air
G2.I3 ‐ New businesses are in compliance with hazardous waste management
G2.I4 ‐ New businesses do not emit greenhouse gas
G2.I5 ‐ New businesses do not develop undeveloped land
G3.I1 ‐ New businesses increase the local tax base
G3.I2 ‐ New jobs are full‐time
G3.I3 ‐ New jobs offer benefits (health and/or retirement)
G3.I4 ‐ New jobs provide training programs
G3.I5 ‐ New businesses support community activities
ASAP Training
26
COMPATIBILITY ANALYSIS BY NAICS – PT1
4‐digit NAICS Code
2
1
3
1
2
2
1
3
2
3
8
1
TOP 10 CI
5 5 5 3
1 1 4 1
7 7 1 2
1 9 1 1
4
4
4
1
5
6
1
9
3
1
5
9
3
2
5
6
3
3
1
3
BOTTOM 10 CI
3 4 4 4 4 4
3 2 5 8 8 9
7 4 4 5 8 3
1 4 1 9 5 1
5
1
5
2
7
2
2
3
Desirability Index
Compatibility Index
Space requirement
Land
Manufacturing space
Warehouse space
Office space
Retail space
Asset requirement
Availability of job training programs
Availability of financing
Low crime rate
Affordable housing
Clean air & water
Quality of natural ecosystem*
Outdoor recreational opportunities*
Social/cultural opportunities*
Shopping opportunities*
Quality of K‐12 schooling*
Access to university/college
Quality of health care*
Quality of public safety services*
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COMPATIBILITY ANALYSIS BY NAICS – PT2
4‐digit NAICS Code
2
1
3
1
2
2
1
3
2
3
8
1
TOP 10 CI
5 5 5 3
1 1 4 1
7 7 1 2
1 9 1 1
4
4
4
1
5
6
1
9
3
1
5
9
3
2
5
6
3
3
1
3
BOTTOM 10 CI
3 4 4 4 4 4
3 2 5 8 8 9
7 4 4 5 8 3
1 4 1 9 5 1
5
1
5
2
7
2
2
3
Desirability Index
Compatibility Index
Asset requirement
Access to interstate
Access to package freight
Access to railhead/rail spur
Access to rail freight
Access to passenger air
Access to port/harbor
Access to international port
Access to natural gas pipeline
Access to suppliers
Access to customers
Access to 3‐phase electric power
Access to fiber optic lines
High‐volume water supply
High‐volume wastewater disposal
Solid waste disposal
Availability of public transportation
Possibility of expansion at site
High‐speed internet
Availability of managerial workforce
Availability of skilled workforce
Availability of unskilled workforce
Favorable labor cost
Favorable workers compensation tax
Favorable business tax rate
ASAP Training
28
SAMPLE OF RELOCATION FACTORS
NAICS 3391 ‐ Medical Equipment and Supplies Manufacturing
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Availability of high‐speed internet
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Lenient environmental regulations
Quality of Life
Low crime rate
Clean air and water
Social and cultural opportunities
Quality educational system (K‐12)
Availability of quality healthcare
Not Important
0%
20%
20%
20%
Somewhat Important
60%
40%
40%
0%
Important
20%
40%
20%
20%
N=5
Very Important
20%
0%
20%
60%
Not Important
60%
20%
0%
0%
20%
80%
Somewhat Important
40%
20%
20%
20%
20%
0%
Important
0%
0%
40%
40%
20%
20%
Very Important
0%
60%
40%
40%
40%
0%
Not Important
0%
0%
20%
20%
0%
Somewhat Important
20%
0%
60%
0%
0%
Important
20%
20%
0%
20%
40%
Very Important
60%
80%
20%
60%
60%
14
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ASAP Training
29
HOW HAS ASAP HELPED WITH ECONOMIC DEVELOPMENT?
 More strategic approaches to economic development efforts.
 More engaged community with economic development efforts.
 Better understanding of asset base and how to improve to better meet industry needs.
 Formalized economic development organizations including sub working committees (ED, Workforce Development, Quality of Life, Infrastructure, etc…).
 Develop Master Plans & Economic Development Strategic Plans (industrial & commercial).
 Developed Comprehensive Economic Development Strategies (CEDS).
 Ability to target market community amenities and strengths to prospective industries
 Industry cluster development
 Etc…..
ASAP Training
30
ASAP PROGRAM QUESTIONS?
 Time commitment  Depends how fast the region wants to move (6‐12 months)
 Deliverables
 All output tables presented plus additional descriptive data that will be used in final plan
 Support
 Facilitator is main contact who will also work with ASAP program team to produce meaningful deliverables
 Facilitator & ASAP program team will assist with final interpretation of results and preparing final action strategic plan  Cost
 Depends on geographical size of study area
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ASAP Training
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ASAP Team Contact Information
Buddy Borden
University of Nevada, Reno
Nevada Cooperative Extension
[email protected]
775‐257‐5505
Tom Harris
University of Nevada, Reno
Nevada Cooperative Extension
University Center for Economic Development
[email protected]
775‐784‐1681
Don Albrecht
Western Regional Development Center
Utah State University
[email protected]
435‐797‐2798
Malieka Landis
University of Nevada, Reno
Nevada Cooperative Extension
University Center for Economic Development
[email protected]
775‐784‐1913
ASAP is a regional collaborative project of the Western Rural Development Center. wrdc.usu.edu
16
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Funding Economic Development
in Nevada
Nevada Leadership Institute
Fundamentals of Economic Development Workshop
May 19, 2015
Funding Economic Development – Some
Approaches
 Redevelopment (NRS 279)
 Special Assessment Districts (NRS 271)
 Tourism Improvement Districts (NRS 271A)
 General Improvement Districts (NRS 318)
 Tax Increment Areas (NRS 278C)
Redevelopment and Tax Increment
Financing (Nevada)
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Process and Benefits
 Process – Governed under Nevada Revised
Statutes, Chapter 279, “Redevelopment of
Communities” Law.
 Benefits – County-wide benefits for citizens, local
taxing entities and the community at large.
Process Outlined in NRS 279
Specifically, get to know:
– NRS 279.388 “Blight Area” Defined
– NRS 279.408 “Redevelopment” Defined
– NRS 279.410 “Redevelopment Area” Defined
– NRS 279.412 “Redevelopment Project” Defined
– NRS 279.426 through NRS 279.468 “Creation Process”
– NRS 279.516 through NRS 279.609 “Plans”
Process
Areas of “Process” include:
– Formation of a Redevelopment District.
– Governance.
– Duration of Existence.
– Areas Eligible for Inclusion.
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Process
“General” Steps in the Process:
– Step 1: County Commission establishes a study area.
– Step 2: Hiring of a Consultant to prepare the required documents and
conduct a Physical Property Survey of the Study Area.
– Step 3: Development and Submission of a Preliminary Plan. Submitted to
the Planning Commission and the County Commission.
– Step 4: Development and Submission of a Draft Redevelopment Plan.
Submitted to the Planning Commission and the County Commission.
– Step 5: Two Public Hearings, 30 days apart with notifications mailed to
impacted property owners 30 days prior to both Public Hearings.
– Step 6: The Enabling Redevelopment Plan is adopted via County
ordinance, mandatory “Challenge Period”.
Process
 The Redevelopment Plan is not an action plan – it
is a legally required document part of a mandatory
process outlined in NRS 279.
 Strategic Plans for the District cannot be developed
until after the District is established. Remember
that these “strategic plans” will ultimately be
property of the Agency.
Post-Process
After the Redevelopment District is established,
then:
– Develop the Physical Structure of the Agency based on findings in
the Redevelopment Plan.
– Begin to develop strategic action plans for the District.
– Begin to pursue projects in the District.
– Begin to issue debt, collect revenue, incur expenses, hire staff, etc.
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Benefits of Redevelopment
• Increased living, working, shopping and entertainment
opportunities.
• Decreased costs for support services in “blighted” areas.
• A Larger Tax Base.
• Increased support for local area School District and other
agencies over the live of the Redevelopment Plan.
Benefits of Redevelopment
Increased Revenue Streams from increased levels
of Economic Activity.
– Sales Tax Revenue
– Business License Revenue
– Hotel Room Tax Revenue
– Gaming Revenue
Benefits of Redevelopment
 Provides for Implementation of Redevelopment
strategies beyond just the redevelopment district –
“spin off” development.
 Represents a Long-Term Financing Strategy to
address long-term economic and social trends.
 Allows for New and Transformative projects and
initiatives to be pursued.
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Benefits of Redevelopment
Redevelopment funds can be leveraged in numerous ways:
– Matching Funds for grant sources – EPA grants, HUD grants, DOT
grants, etc.
– Pursuit of Sales Tax Anticipated Revenue (STAR) Bonds.
– Pursuit of Special Assessment District (SAD) Bonds.
– Pursuit of Redevelopment Property Tax Increment Financing (TIF)
Bonds.
The Findings of the Redevelopment Plan can serve as
the foundation for pursuing these other funding
sources.
Redevelopment Programs
• Acquisition, Assembly, and Demolition of Property
• Partnerships with other Economic Development
Organizations – Leveraging of Existing Resources
• Brownfield Clean-up Revolving Loan Fund
• Commercial Façade Program
• Revolving Loan Programs for Small Business within the
Project Area
Tax Increment Financing (TIF)
Property
Tax
Revenue
Increment to Agency
Base AV
Base to Everyone Else
Agency
Established
Years
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5/18/2015
Tax Increment Financing (TIF)
 The Bigger the project area/district, the Bigger the
Bonding Potential.
 Benefits of a Larger District for purposes of
bonding include:
–
–
–
–
–
–
–
Geographic and Taxpayer Diversity.
Broader mix of Property Types.
Diversity in Economic Conditions.
More Development Potential.
Larger pool of Potential Revenues.
Ability to bond sooner.
Economies of Scale.
TIF Bond Financing Criteria
“Average Financial Industry Criteria” include:
– Project Area Size and Location
500 to 1,000 acre threshold.
– Assessed Valuation
$500 Million Total AV Threshold of Insurance
Base Year Value as a % of Total AV
Growth with Trends and Potential
Grow with Trends and Potential
TIF Bond Financing Criteria
“Average Financial Industry Criteria” include:
– Taxpayer Diversity
Residential, Commercial, etc.
Concentration of Revenue
Stability of Tax Base
– Local Economy
Employment Base
– Legal Structure
Debt Service Coverage
Flow of Funds
Additional Bonds Test
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5/18/2015
Additional Requirements for Redevelopment
“In any fiscal year, the total revenue paid to a
redevelopment agency must not exceed an amount
equal to the combined tax rates of the taxing
agencies for that fiscal year multiplied by 10 percent
of the total assessed valuation in the municipality.”
‐ NRS 279.676.2
Additional Requirements for Redevelopment
At least 75 % of the area included within a
redevelopment area must be improved land.
The Percent of area determined to be improved is
part of the Physical Property Survey.
Special Assessment District (SAD) and
the Commercial Area Vitalization
Project (CAVP)
(NRS 271)
Tourism Improvement Area (TIA)
(NRS 271A)
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5/18/2015
SAD, CAVP, TIA – Process
Four “General Steps”:
1. Local Government must designate an area for
consideration. City/County Engineer may serve as the
“Assessment District Coordinator. (Provisional Order
Resolution).
2. City/County Engineer must complete a “Fiscal and
Economic Impact Study”.
3. Local Government, during a public hearing, reads an
ordinance establishing the SAD, CAVP, TIA.
4. Generate annual budget(s) for the duration of the SAD,
CAVP, TIA.
SAD, CAVP, TIA – Post-Process
 Year-by-Year Assessments (subsequently impacted by
annual property value fluctuations).
 Assessment is ABOVE the existing property tax rate.
Revenue can ONLY be generated from revenues generated
from an ADDITIONAL ASSESSMENT.
 Local Government can dissolve the SAD, CAVP, TIA at any
time.
 So far, has been property tax based . . . however, efforts
are currently underway to allow a SAD, CAVP, TIA based
on Sales Tax Revenue within the SAD, CAVP, TIA area.
SAD, CAVP, TIA – Post-Process
 SAD, CAVP, TIA can be managed and directed by the Local
Government (City or County).
 SAD, CAVP, TIA can be managed and directed by a nonprofit formed by property owners and/or business owners.
 Annual reports must be provided to the Local Government
and annual assessments are completed by the County
Assessor.
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5/18/2015
SAD, CAVP, TIA – Benefits
 Funds can be bonded against.
 Funds can be spent annually as the CAVP
“Assessment District Coordinator” determines.
 Funds can be used for general improvements,
acquisition, demolition, rehabilitation and other
property improvement programs.
SAD and CAVP – Eligible Projects
“Commercial Area Vitalization Project” includes:
1.
The beautification and improvement of the public portions of any
area zoned primarily for business or commercial purposed,
including, without limitation:
a.
b.
c.
d.
e.
f.
g.
h.
2.
Public restrooms;
Facilities for outdoor lighting and heating;
Decorations;
Fountains;
Landscaping;
Facilities or equipment, or both, to enhance protection of persons
and property within the improvement district;
Ramps, sidewalks and plazas; and
Rehabilitation or removal of existing structures; and
The improvement of an area zoned primarily for business or
commercial purposes by providing promotion activities.”
SAD and CAVP – Eligible Programs
 Acquisition, Assembly, and Demolition of Property
 Partnerships with other Economic Development
Organizations – Leveraging of Existing Resources
 Brownfield Clean-up Revolving Loan Fund
 “Local Restaurant Guide” as an Example
 Print, Radio, Television Media Advertising
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5/18/2015
Nevada Leadership Institute
Fundamentals of Economic Development
May 19, 2015
10
5/18/2015
Fiscal Authority and Stability
Nevada Leadership Institute
Fundamentals of Economic Development Workshop
May 19, 2015
Fiscal Authority and Stability
Tax Revenue = Tax Rate x Tax Base
where…
Tax Base is a function of the Economic Base
Fiscal Authority and Stability
“Something is seriously out of sync in California. Many of its
cities’ revenue sources aren’t well aligned with their
communities’ changing service demands. Diminishing local
control over their finances and the unprecedented dominance of
the state in local affairs has left city officials frustrated as they work
to respond to the growing needs of their communities.
When legislators do seek to reform the current system of statelocal finance, they encounter hundreds of distrustful local officials
and technical complexities in a situation where almost any
change helps some communities and harms others.”
- Coleman and Colantuono (2003)
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5/18/2015
Three Characteristics to Consider
 The degree of local control and discretion, including:
– Control of the tax base (who pays).
– Control of the tax rate (how much they pay).
 The degree of economic risk, including:
– Sustainability (the capacity of the revenue to grow
comparably to growth in service demand).
– Volatility (the level of year-to-year fluctuation).
 The degree of political risk (the vulnerability of
revenues to appropriation or reallocation by the state or
federal government including the courts).
Local Control and Discretion
 Rate, Base, and Use – Discretion and Control?
 Degree of Flexibility:
– Setting the rate(s) level.
– Determining who pays and on what basis (the base of
the revenue measure).
– Using the revenues.
Economic Risk
Two Aspects of Long-Term Stability:
1. Sustainability: “A tax is best suited to fund programs
where the demand for service changes in proportion
to the proceeds of the tax…provides sufficient
revenue to cover service costs even as service
demands change over time.”
– Services to People
– Services to Property
– Services to Businesses
2
5/18/2015
Economic Risk
Two Aspects of Long-Term Stability:
2. Volatility: “…a measure of the degree of annual
fluctuation from the average annual growth of a
revenue source.” Generally unacceptable, except for
when:
– The source provides strong return in relation to service demand
over time. Example?
– Sufficient reserves and use of one-time programming can be used
to cushion the impacts of fluctuation. Example?
– The revenue budget contains a mix of other sources with different
performance characteristics that mitigate volatility. Example?
Political Risk
“Local revenue stability is also affected by the potential
for the state or federal governments (or courts) to reduce
the revenue, which we label ‘political risk’.
To the extent that this delegation of authority is
accomplished by the state Constitution, the risk of state
actions impacting local finances and powers is reduced.”
Nevada? End of the 2015 Session?
Political Risk
 Impacts on Fiscal Planning:
“…certain bells cannot be unrung. Once a serious proposal
is made to transfer a revenue stream on which local
government has relied, the dependability of that revenue
stream for long-range fiscal planning is significantly damaged
for as long as the political memory of the debate remains.”
 Impacts on the Cost of Financing Government:
“Political risk means uncertainty, and in finance – whether
public or private – uncertainty means at the very least higher
costs and may mean complete frustration of important fiscal
goals for a community.”
3
5/18/2015
Looking Ahead – Who has a Crystal Ball?
“In recent decades, local home rule in California
(Nevada?) has been substantially eroded,
particularly in municipal fiscal affairs…Meanwhile,
the state’s economy and society are evolving, and
finance officers are becoming increasingly
concerned about the stability of city revenues.”
Nevada Leadership Institute
Fundamentals of Economic Development
May 19, 2015
4
What is ASAP?
ASAP is a tool to help achieve sustainable
community development. The process is
based on the belief that sustainable
community development strategies should
reflect the preferences of both the community
and the businesses in order to be successful.
ASAP assesses :
1) Community priorities for sustainable
development.
2) How these priorities are met by different
types of businesses.
3) What different businesses need in terms of
physical,
economic,
and
social
infrastructure.
4) Which infrastructure the community can
offer to the businesses.
All four assessments are used to identify which
business sectors are more desirable to the
community and which sectors are more
compatible with community infrastructure.
Why implement ASAP?
ASAP is a highly adaptable community
development tool using desirability and compatibility
measures to match communities and business
sectors. Any size community can implement ASAP,
whether small rural village or a multi-state region.
ASAP estimates a baseline model which can be
easily modified to create secondary scenarios,
providing tools to compare different community
development options.
Communities can use results to fortify existing
business sectors reported as desirable and
compatible, recruit new businesses from desirable
and compatible sectors currently absent in the
community, or invest in infrastructure the
community lacks to attract businesses from
desirable but currently incompatible sectors.
CONTACT
Don E. Albrecht, Ph.D.
Executive Director
Western Rural Development Center
Utah State University
Agricultural Sciences (AGRS) 118
4880 Old Main Hill
Logan, UT 84322-4880
Office: (435) 797-2798
Mobile: (979) 777-3202
[email protected]
http://wrdc.usu.edu/
ASAP METHOD
REPORTING
A trained ASAP specialist works along with a
community representative to compile data using
methods designed specifically for ASAP.
The “compatibility index” captures compatibility of
each business sector’s asset requirements and the
community’s asset availability.
Community goals and priorities are captured by
survey responses of community members.
These goals are classified into 3 general
categories (economic, environmental, social)
and ranked by importance.
The “desirability index” captures desirability of
business sectors based on the characteristics of the
business and community members’ stated goals
and priorities.
Sectors are compared to one another based on the
ranking of each index. In this example, the
community targets businesses who generate
indexes >.60 for both desirability and compatibility.
ASAP is easily adaptable to analyzing different combinations of index rankings for all sectors.
Business characteristics and operational asset
requirements are captured by survey responses
from businesses across the United States.
Community goals are combined with business
survey responses, community asset inventory,
and national and community productivity
measures (e.g. employment level, production
volume, import/export measures) to produce
community
desirability
and
compatibility
indexes for each NAICS business sector.
ANALYSIS
Many factors determine the compatibility
and desirability rankings. The graphs
below show how well each NAICS sector is
matched to the community for each of the
determining factors. This provides not only
an explanation for why each sector is more
or less desirable and compatible to a
community, but the community’s strengths
and weaknesses are revealed as well in
patterns of “green-lights” or “red-lights”
across sectors.
AREA SECTOR ANALYSIS PROCESS
Community, USA
May 2015
University Center for Economic Development, University of Nevada, Reno
Western Rural Development Center, Utah State University
National and state level business data summary statistics for sectors with top ranking compatibility and desirability
THIS PAGE LEFT INTENTIONALLY BLANK
The purpose of this document is to provide additional information on the top 10 sectors ranked with the highest
compatibility index (CI) and the highest desirability index (DI) by the ASAP (Area Sector Analysis Process) generated for
Community, USA in March 2015. The highest ranking agriculture sector (1112) is also included.
NAICS4 Description
5179
2213
3391
3112
3322
3364
5239
3327
3312
6241
1112
Other Telecommunications
Water, Sewage and Other Systems
Medical Equipment and Supplies Manufacturing
Grain and Oilseed Milling
Cutlery and Hand-tool Manufacturing
Aerospace Product and Parts Manufacturing
Other Financial Investment Activities
Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing
Steel Product Manufacturing from Purchased Steel
Individual and Family Services
Vegetable and Melon Farming
Existing
CI
DI
Page
X
0.9370
0.9078
0.9043
0.8872
0.8862
0.8805
0.8735
0.8654
0.8534
0.8494
0.8357
0.7121
0.6249
0.6154
0.6136
0.6334
0.6247
0.8277
0.6388
0.6839
0.6151
0.7039
39
6
33
11
20
28
44
24
16
50
2
X
X
Text describing NAICS (North American Industry Classification System) codes is sourced from the following document:
 United States Census Bureau, North American Industry Classification System (2012)
http://www.census.gov/eos/www/naics/2012NAICS/2012_Definition_File.pdf
Superscripts of “T” within the text mean that Canadian, Mexican, and United States industries are comparable.
Summary statistics for business data measures by sector such as number of employees, number of establishments,
revenue/receipts, and payroll are sourced from the following national databases:
 United States Census Bureau, American Fact Finder, Economic Census annual reporting (2013 most recent data)

http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=BP_2013_00A1&prodType=table
United States Department of Agriculture, Census of Agriculture (2012 most recent data)
http://www.agcensus.usda.gov/Publications/2012/Full_Report/Volume_1,_Chapter_2_US_State_Level/st99_2_044_044.pdf
Agriculture sector reporting based on five year sample intervals with 2012 being most current year. Non-agriculture
sector reporting based on one year sample intervals with 2013 being most current year. All ‘Top 10’ lists for all sectors
reflect most current sample reporting.
Summary statistics of physical infrastructure, economic infrastructure and quality of life sourced from the ASAP Business
Location Choice Survey database maintained by the University Center for Economic Development (UCED) at the
University of Nevada, Reno.
For all tables, “NR” reflects that no data was reported for that specific data point (may be due to insufficient available
sample).
1
T
Sector 11--Agriculture, Forestry, Fishing and Hunting
The Sector as a Whole
The Agriculture, Forestry, Fishing and Hunting sector comprises establishments primarily engaged in growing crops,
raising animals, harvesting timber, and harvesting fish and other animals from a farm, ranch, or their natural habitats.
The establishments in this sector are often described as farms, ranches, dairies, greenhouses, nurseries, orchards, or
hatcheries. A farm may consist of a single tract of land or a number of separate tracts which may be held under different
tenures. For example, one tract may be owned by the farm operator and another rented. It may be operated by the
operator alone or with the assistance of members of the household or hired employees, or it may be operated by a
partnership, corporation, or other type of organization. When a landowner has one or more tenants, renters, croppers,
or managers, the land operated by each is considered a farm.
The sector distinguishes two basic activities: agricultural production and agricultural support activities. Agricultural
production includes establishments performing the complete farm or ranch operation, such as farm owner-operators,
tenant farm operators, and sharecroppers. Agricultural support activities include establishments that perform one or
more activities associated with farm operation, such as soil preparation, planting, harvesting, and management, on a
contract or fee basis.
Excluded from the Agriculture, Forestry, Fishing and Hunting sector are establishments primarily engaged in agricultural
research and establishments primarily engaged in administering programs for regulating and conserving land, mineral,
wildlife, and forest use. These establishments are classified in Industry 54171, Research and Development in the
Physical, Engineering, and Life Sciences; and Industry 92412, Administration of Conservation Programs, respectively.
T
1112 Vegetable and Melon Farming
This industry group comprises establishments primarily engaged in growing root and tuber crops (except sugar beets and
peanuts) or edible plants and/or producing root and tuber or edible plant seeds. The crops included in this group have
an annual growth cycle and are grown in open fields. Climate and cultural practices limit producing areas but often
permit the growing of a combination of crops in a year.
11121
T
Vegetable and Melon Farming
This industry comprises establishments primarily engaged in one or more of the following: (1) growing vegetable and/or
melon crops; (2) producing vegetable and/or melon seeds; and (3) growing vegetable and/or melon bedding plants.
Cross-References.






Establishments primarily engaged in--
Growing sugar beets--are classified in Industry 11199, All Other Crop Farming;
Growing vegetables and melons under glass or protective cover--are classified in Industry 11141, Food Crops
Grown Under Cover;
Growing dry peas and beans--are classified in Industry 11113, Dry Pea and Bean Farming;
Growing corn (except sweet corn)--are classified in Industry 11115, Corn Farming;
Canning, pickling, and/or drying (artificially) vegetables--are classified in Industry 31142, Fruit and Vegetable
Canning, Pickling, and Drying; and
Growing fruit on trees and other fruit-bearing plants (except melons)--are classified in Industry Group 1113, Fruit
and Tree Nut Farming.
2
111211 Potato Farming
This U.S. industry comprises establishments primarily engaged in growing potatoes and/or producing seed potatoes.
Cross-References.

Establishments primarily engaged in canning or drying potatoes are classified in Industry 31142, Fruit and
Vegetable Canning, Pickling, and Drying.
111219 Other Vegetable (except Potato) and Melon Farming
This U.S. industry comprises establishments primarily engaged in one or more of the following: (1) growing melons and/or
vegetables (except potatoes; dry peas; dry beans; field, silage, or seed corn; and sugar beets); (2) producing vegetable
and/or melon seeds; and (3) growing vegetable and/or melon bedding plants.
Illustrative Examples:
Carrot farming
Squash farming
Green bean farming
Tomato farming
Melon farming (e.g., cantaloupe, casaba, honeydew, watermelon)
Vegetable (except potato) farming
Pepper farming (e.g., bell, chili, green, red, sweet peppers)
Watermelon farming
Cross-References.







Establishments primarily engaged in--
Growing potatoes, including sweet potatoes and yams--are classified in U.S. Industry 111211, Potato Farming;
Growing sugar beets--are classified in U.S. Industry 111991, Sugar Beet Farming;
Growing vegetables and melons under glass or protective cover--are classified in U.S. Industry 111419, Other
Food Crops Grown Under Cover;
Growing dry peas and beans--are classified in Industry 111130, Dry Pea and Bean Farming;
Growing corn (except sweet corn)--are classified in Industry 111150, Corn Farming;
Canning, pickling, and/or drying (artificially) vegetables--are classified in Industry 31142, Fruit and Vegetable
Canning, Pickling, and Drying; and
Growing fruit on trees and other fruit-bearing plants (except melons)--are classified in Industry Group 1113,
Fruit and Tree Nut Farming.
3
National Totals by Year
NAICS 1112 - Vegetable and Melon Farming
2007
2012
Number of Establishments
40,589.00
Annual Payroll ($1000)
$
2,204,929.00
Employees
255,940.00
Average Payroll Per Employee
$
8,615.02
Average Employment Per Establishment
6.31
*Employees and Annual Payroll Reported for Hired Labor Only*
$
$
43,021.00
2,578,204.00
246,423.00
10,462.51
5.73
Recent Yr.
Trend
5.99%
16.93%
-3.72%
21.44%
-9.16%
Top 10 Producer States
NAICS 1112 - Vegetable and Melon Farming
Establishments
Total U.S.
California
Florida
Washington
Arizona
Idaho
Michigan
Oregon
New York
North Carolina
Wisconsin
Subtotal
% of U.S.
43,021
4,191
1,084
1,924
1,625
758
1,737
1,184
2,031
2,022
1,318
17,874
41.55%
Annual Payroll ($1,000)
$
$
$
$
$
$
$
$
$
$
$
$
2,578,204
901,494
258,549
161,309
127,954
103,501
88,716
85,734
77,937
62,530
59,583
1,927,307
74.75%
Paid Employees
15,656
2,072
499
669
348
491
705
510
773
624
538
7,229
46.17%
Top Western Producer States
NAICS 1112 - Vegetable and Melon Farming
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
43,021
108
1,625
4,191
455
744
758
203
82
1,291
1,184
463
1,924
26
13,054
30.34%
Annual Payroll ($1,000)
$
$
$
$
$
2,578,204
1,415
127,954
901,494
48,276
NR
$
$
$
$
$
103,501
5,479
7,359
14,415
85,734
NR
$
161,309
NR
1,456,936
56.51%
Paid Employees
15,656
42
348
2,072
222
261
491
61
30
294
510
137
669
5
5,142
32.84%
4
NAICS 1112 - Vegetable and Melon Farming
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
60%
40%
100%
80%
60%
60%
80%
60%
20%
20%
20%
40%
20%
80%
80%
20%
80%
40%
0%
0%
0%
Somewhat
Important
20%
40%
0%
20%
40%
20%
0%
0%
0%
0%
20%
20%
20%
20%
20%
0%
0%
0%
20%
20%
20%
Important
20%
0%
0%
0%
0%
0%
20%
0%
0%
0%
0%
20%
20%
0%
0%
20%
0%
20%
40%
0%
0%
N=5
Very
Important
0%
20%
0%
0%
0%
20%
0%
20%
80%
80%
40%
20%
40%
0%
0%
40%
20%
40%
40%
0%
0%
Not
Important
80%
40%
80%
0%
40%
0%
0%
80%
40%
60%
40%
40%
20%
Somewhat
Important
0%
40%
0%
60%
0%
40%
0%
0%
0%
0%
0%
0%
0%
Important
0%
0%
0%
0%
0%
20%
40%
0%
20%
40%
0%
40%
20%
Very
Important
20%
20%
20%
40%
60%
40%
60%
0%
20%
0%
60%
0%
40%
Not
Important
0%
40%
0%
60%
60%
40%
40%
60%
60%
0%
20%
0%
0%
Somewhat
Important
0%
0%
0%
0%
0%
20%
0%
0%
0%
0%
0%
0%
0%
Important
20%
20%
20%
40%
20%
20%
60%
20%
0%
60%
40%
20%
0%
Very
Important
80%
40%
80%
0%
20%
20%
0%
20%
40%
40%
40%
60%
20%
5
Sector 22—UtilitiesT
The Sector as a Whole
The Utilities sector comprises establishments engaged in the provision of the following utility services: electric power,
natural gas, steam supply, water supply, and sewage removal. Within this sector, the specific activities associated with
the utility services provided vary by utility: electric power includes generation, transmission, and distribution; natural gas
includes distribution; steam supply includes provision and/or distribution; water supply includes treatment and
distribution; and sewage removal includes collection, treatment, and disposal of waste through sewer systems and
sewage treatment facilities.
Excluded from this sector are establishments primarily engaged in waste management services classified in Subsector
562, Waste Management and Remediation Services. These establishments also collect, treat, and dispose of waste
materials; however, they do not use sewer systems or sewage treatment facilities.
2213 Water, Sewage and Other Systems
22131
Water Supply and Irrigation Systems
See industry description for 221310 below.
221310 Water Supply and Irrigation Systems
This industry comprises establishments primarily engaged in operating water treatment plants and/or operating water
supply systems. The water supply system may include pumping stations, aqueducts, and/or distribution mains. The
water may be used for drinking, irrigation, or other uses.
22132
Sewage Treatment Facilities
See industry description for 221320 below.
221320 Sewage Treatment Facilities
This industry comprises establishments primarily engaged in operating sewer systems or sewage treatment facilities that
collect, treat, and dispose of waste.
Cross-References.



22133
Establishments primarily engaged in--
Operating waste treatment or disposal facilities (except sewer systems or sewage treatment facilities)--are
classified in Industry 56221, Waste Treatment and Disposal;
Pumping (i.e., cleaning) septic tanks and cesspools--are classified in U.S. Industry 562991, Septic Tank and
Related Services; and
Cleaning and rodding sewers and catch basins--are classified in U.S. Industry 562998, All Other Miscellaneous
Waste Management Services.
Steam and Air-Conditioning Supply
See industry description for 221330 below.
221330 Steam and Air-Conditioning Supply
This industry comprises establishments primarily engaged in providing steam, heated air, or cooled air. The steam
distribution may be through mains.
6
National Totals by Year
NAICS 2213 - Water sewage and other systems
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2010
2011
2012
2013
4,828.00
$ 2,208,004.00
41,974.00
$
52,604.09
8.69
4,810.00
$ 2,320,352.00
41,931.00
$
55,337.39
8.72
4,943.00
$ 2,443,594.00
44,242.00
$
55,232.45
8.95
4,869.00
$ 2,399,313.00
42,029.00
$
57,087.08
8.63
Recent Yr.
Trend
-1.50%
-1.81%
-5.00%
3.36%
-3.56%
Avg. Trend
(BY10)
0.95%
8.14%
1.81%
6.24%
0.84%
Top 10 Producer States
NAICS 2213 - Water, sewage and other systems
Establishments
Total U.S.
Annual Payroll ($1,000)
4,869 $
California
New Jersey
Pennsylvania
Texas
Illinois
Indiana
Arizona
Florida
Missouri
New York
2,399,313
42,029
$
$
$
$
$
$
$
$
$
$
353,525
289,503
218,405
168,786
110,319
104,773
99,842
94,795
78,066
67,509
4,822
2,831
3,164
4,232
2,372 $
48.72%
1,585,523
66.08%
478
114
200
697
137
151
165
250
96
84
Subtotal
% of U.S.
Paid Employees
NR
1,765
1,654
2,206
1,244
1,050
22,968
54.65%
Top Western Producer States
NAICS 2213 - Water, sewage and other systems
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
4,869 $
16
165
478
131
27
77
38
23
111
86
57
154
11
1,374
28.22%
$
$
$
$
$
$
$
$
$
$
$
$
$
Paid Employees
2,399,313
42,029
20,499
99,842
353,525
21,127
17,230
14,627
7,009
9,640
11,784
9,073
7,060
28,618
535
251
1,654
4,822
552
600,569
25.03%
NR
398
159
142
377
259
186
712
NR
9,512
22.63%
7
NAICS 2213 - Water, sewage and other systems
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
60%
40%
80%
60%
60%
80%
80%
80%
0%
0%
20%
80%
40%
80%
80%
0%
60%
40%
20%
0%
0%
Somewhat
Important
20%
20%
20%
0%
20%
0%
0%
20%
0%
0%
20%
0%
0%
0%
0%
0%
0%
0%
20%
0%
0%
Important
20%
40%
0%
40%
20%
20%
20%
0%
100%
60%
40%
0%
20%
20%
20%
60%
40%
60%
20%
0%
0%
N=5
Very
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
40%
20%
20%
40%
0%
0%
40%
0%
0%
40%
0%
0%
Not
Important
20%
20%
60%
20%
0%
0%
0%
100%
0%
60%
20%
40%
0%
Somewhat
Important
40%
20%
0%
40%
0%
0%
0%
0%
20%
20%
20%
20%
20%
Important
40%
40%
40%
20%
80%
60%
40%
0%
40%
20%
40%
40%
60%
Very
Important
0%
20%
0%
0%
20%
40%
60%
0%
40%
0%
20%
0%
20%
Not
Important
0%
0%
0%
0%
0%
40%
40%
0%
40%
0%
0%
0%
0%
Somewhat
Important
40%
0%
0%
20%
40%
20%
20%
40%
20%
20%
40%
0%
0%
Important
40%
80%
60%
20%
40%
20%
20%
40%
20%
60%
40%
60%
0%
Very
Important
20%
20%
40%
40%
20%
20%
20%
20%
20%
20%
20%
40%
0%
8
Sector 31-33—ManufacturingT
The Sector as a Whole
The Manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of
materials, substances, or components into new products. The assembling of component parts of manufactured products
is considered manufacturing, except in cases where the activity is appropriately classified in Sector 23, Construction.
Establishments in the Manufacturing sector are often described as plants, factories, or mills and characteristically use
power-driven machines and materials-handling equipment. However, establishments that transform materials or
substances into new products by hand or in the worker's home and those engaged in selling to the general public
products made on the same premises from which they are sold, such as bakeries, candy stores, and custom tailors, may
also be included in this sector. Manufacturing establishments may process materials or may contract with other
establishments to process their materials for them. Both types of establishments are included in manufacturing.
The materials, substances, or components transformed by manufacturing establishments are raw materials that are
products of agriculture, forestry, fishing, mining, or quarrying as well as products of other manufacturing establishments.
The materials used may be purchased directly from producers, obtained through customary trade channels, or secured
without recourse to the market by transferring the product from one establishment to another, under the same
ownership.
The new product of a manufacturing establishment may be finished in the sense that it is ready for utilization or
consumption, or it may be semi-finished to become an input for an establishment engaged in further manufacturing. For
example, the product of the alumina refinery is the input used in the primary production of aluminum; primary
aluminum is the input to an aluminum wire drawing plant; and aluminum wire is the input for a fabricated wire product
manufacturing establishment.
The subsectors in the Manufacturing sector generally reflect distinct production processes related to material inputs,
production equipment, and employee skills. In the machinery area, where assembling is a key activity, parts and
accessories for manufactured products are classified in the industry of the finished manufactured item when they are
made for separate sale. For example, a replacement refrigerator door would be classified with refrigerators and an
attachment for a piece of metal working machinery would be classified with metal working machinery.
However, components, input from other manufacturing establishments, are classified based on the production function
of the component manufacturer. For example, electronic components are classified in Subsector 334, Computer and
Electronic Product Manufacturing and stampings are classified in Subsector 332, Fabricated Metal Product
Manufacturing.
Manufacturing establishments often perform one or more activities that are classified outside the Manufacturing sector
of NAICS. For instance, almost all manufacturing has some captive research and development or administrative
operations, such as accounting, payroll, or management. These captive services are treated the same as captive
manufacturing activities. When the services are provided by separate establishments, they are classified to the NAICS
sector where such services are primary, not in manufacturing.
9
The boundaries of manufacturing and the other sectors of the classification system can be somewhat blurry. The
establishments in the manufacturing sector are engaged in the transformation of materials into new products. Their
output is a new product. However, the definition of what constitutes a new product can be somewhat subjective. As
clarification, the following activities are considered manufacturing in NAICS:
Milk bottling and pasteurizing;
Water bottling and processing;
Fresh fish packaging (oyster shucking,
fish filleting);
Apparel jobbing (assigning of materials
to contract factories or shops for
contract operations)
as well as contracting on materials owned
by others;
Ready-mixed concrete production;
Leather converting;
Grinding of lenses to prescription;
Wood preserving;
Electroplating, plating, metal heat
treating, and polishing for the trade;
Lapidary work for the trade;
Fabricating signs and advertising displays; fabrication or other
Rebuilding or remanufacturing
machinery (i.e., automotive parts); Printing and related activities;
Ship repair and renovation;
Machine shops; and
Tire retreading.
Conversely, there are activities that are sometimes considered manufacturing, but which for NAICS are classified in
another sector (i.e., not classified as manufacturing). They include:
1. Logging, classified in Sector 11, Agriculture, Forestry, Fishing and Hunting, is considered a harvesting operation;
2. The beneficiating of ores and other minerals, classified in Sector 21, Mining, Quarrying, and Oil and Gas
Extraction, is considered part of the activity of mining;
3. The construction of structures and fabricating operations performed at the site of construction by contractors, is
classified in Sector 23, Construction;
4. Establishments engaged in breaking of bulk and redistribution in smaller lots, including packaging, repackaging,
or bottling products, such as liquors or chemicals; the customized assembly of computers; sorting of scrap; mixing
paints to customer order; and cutting metals to customer order, classified in Sector 42, Wholesale Trade or Sector
44-45, Retail Trade, produce a modified version of the same product, not a new product; and
5. Publishing and the combined activity of publishing and printing, classified in Sector 51, Information, perform the
transformation of information into a product whereas the value of the product to the consumer lies in the
information content, not in the format in which it is distributed (i.e., the book or software diskette).
10
3112 Grain and Oilseed MillingT
31121
Flour Milling and Malt ManufacturingT
This industry comprises establishments primarily engaged in one or more of the following: (1) milling flour or meal from
grains or vegetables; (2) preparing flour mixes or doughs from flour milled in the same establishment; (3) milling,
cleaning, and polishing rice; and (4) manufacturing malt from barley, rye, or other grains.
Cross-References.







Establishments primarily engaged in--
Preparing breakfast cereals from flour milled in the same establishment--are classified in Industry 31123,
Breakfast Cereal Manufacturing;
Crushing soybeans or wet milling corn and vegetables--are classified in Industry 31122, Starch and Vegetable
Fats and Oils Manufacturing;
Manufacturing prepared flour mixes or doughs from flour ground elsewhere--are classified in Industry 31182,
Cookie, Cracker, and Pasta Manufacturing;
Brewing malt beverages--are classified in Industry 31212, Breweries;
Mixing purchased dried and dehydrated ingredients with purchased rice--are classified in Industry 31199, All
Other Food Manufacturing;
Drying and/or dehydrating ingredients and packaging them with purchased rice--are classified in Industry
31142, Fruit and Vegetable Canning, Pickling, and Drying; and
Manufacturing malt extract and syrups--are classified in Industry 31194, Seasoning and Dressing Manufacturing.
311211 Flour Milling
This U.S. industry comprises establishments primarily engaged in (1) milling flour or meal from grains (except rice) or
vegetables and/or (2) milling flour and preparing flour mixes or doughs.
Cross-References.





Establishments primarily engaged in--
Preparing breakfast cereals from flour milled in the same establishment--are classified in Industry 311230,
Breakfast Cereal Manufacturing;
Manufacturing prepared flour mixes or doughs from flour ground elsewhere--are classified in U.S. Industry
311824, Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour;
Milling rice or cleaning and polishing rice--are classified in U.S. Industry 311212, Rice Milling;
Wet milling corn and vegetables--are classified in U.S. Industry 311221, Wet Corn Milling; and
Crushing soybean and extracting soybean oil--are classified in U.S. Industry 311224, Soybean and Other Oilseed
Processing.
311212 Rice Milling
This U.S. industry comprises establishments primarily engaged in one of the following: (1) milling rice; (2) cleaning and
polishing rice; or (3) milling, cleaning, and polishing rice. The establishments in this industry may package the rice they
mill with other ingredients.
Cross-References.


Establishments primarily engaged in--
Drying and/or dehydrating ingredients and packaging them with purchased rice--are classified in U.S. Industry
311423, Dried and Dehydrated Food Manufacturing; and
Mixing purchased dried and/or dehydrated ingredients with purchased rice--are classified in U.S. Industry
311999, All Other Miscellaneous Food Manufacturing.
11
311213 Malt Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing malt from barley, rye, or other grains.
Cross-References.


31122
Establishments primarily engaged in--
Brewing malt beverages--are classified in Industry 312120, Breweries; and
Manufacturing malt extract and syrups--are classified in U.S. Industry 311942, Spice and Extract Manufacturing.
Starch and Vegetable Fats and Oils ManufacturingT
This industry comprises establishments primarily engaged in one or more of the following: (1) wet milling corn and
vegetables; (2) crushing oilseeds and tree nuts; (3) refining and/or blending vegetable oils; (4) manufacturing shortening
and margarine; and (5) blending purchased animal fats with vegetable fats.
Cross-References.






Establishments primarily engaged in--
Manufacturing table syrups from corn syrup and starch base dessert powders--are classified in Industry 31199,
All Other Food Manufacturing;
Reducing maple sap to maple syrup--are classified in Industry 11199, All Other Crop Farming;
Milling flour or meal from grains and vegetables--are classified in Industry 31121, Flour Milling and Malt
Manufacturing;
Wet milling corn to produce non-potable ethyl alcohol--are classified in Industry 32519, Other Basic Organic
Chemical Manufacturing;
Rendering or refining animal fats and oils--are classified in Industry 31161, Animal Slaughtering and Processing;
and
Manufacturing laundry starches--are classified in Industry 32561, Soap and Cleaning Compound Manufacturing.
311221 Wet Corn Milling
This U.S. industry comprises establishments primarily engaged in wet milling corn and other vegetables (except to make
ethyl alcohol). Examples of products made in these establishments are corn sweeteners, such as glucose, dextrose, and
fructose; corn oil; and starches (except laundry).
Cross-References.






Establishments primarily engaged in--
Refining and/or blending corn oil from purchased oils--are classified in U.S. Industry 311225, Fats and Oils
Refining and Blending;
Manufacturing sweetening syrups from corn syrup and starch base dessert powders--are classified in U.S.
Industry 311999, All Other Miscellaneous Food Manufacturing;
Reducing maple sap to maple syrup--are classified in U.S. Industry 111998, All Other Miscellaneous Crop
Farming;
Milling (except wet milling) corn--are classified in U.S. Industry 311211, Flour Milling;
Wet milling corn to produce non-potable ethyl alcohol--are classified in U.S. Industry 325193, Ethyl Alcohol
Manufacturing; and
Manufacturing laundry starches--are classified in U.S. Industry 325612, Polish and Other Sanitation Good
Manufacturing.
12
311224 Soybean and Other Oilseed Processing
This U.S. industry comprises establishments primarily engaged in crushing oilseeds and tree nuts, such as soybeans,
cottonseeds, linseeds, peanuts, and sunflower seeds. Examples of products produced in these establishments are
oilseed oils, cakes, meals, and protein isolates and concentrates.
Cross-References.


Establishments primarily engaged in--
Wet milling corn and other vegetables--are classified in U.S. Industry 311221, Wet Corn Milling; and
Refining and/or blending vegetable, oilseed, and tree nut oils from purchased oils--are classified in U.S.
Industry 311225, Fats and Oils Refining and Blending.
311225 Fats and Oils Refining and Blending
This U.S. industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing
shortening and margarine from purchased fats and oils; (2) refining and/or blending vegetable, oilseed, and tree nut oils
from purchased oils; and (3) blending purchased animal fats with purchased vegetable fats.
Cross-References.



31123
Establishments primarily engaged in--
Refining and/or blending corn oil made by wet corn milling--are classified in U.S. Industry 311221, Wet Corn
Milling;
Refining and/or blending oilseeds and tree nuts in crushing mills--are classified in U.S. Industry 311224,
Soybean and Other Oilseed Processing; and
Rendering or refining animal fats and oils--are classified in Industry 31161, Animal Slaughtering and Processing.
Breakfast Cereal ManufacturingT
See industry description for 311230 below.
311230 Breakfast Cereal Manufacturing
This industry comprises establishments primarily engaged in manufacturing breakfast cereal foods.
Cross-References.




Establishments primarily engaged in--
Manufacturing non-chocolate-coated granola bars and other types of breakfast bars--are classified in Industry
311340, Non-chocolate Confectionery Manufacturing;
Manufacturing chocolate-coated granola bars from purchased chocolate--are classified in U.S. Industry 311352,
Confectionery Manufacturing from Purchased Chocolate;
Manufacturing chocolate-coated granola bars from cacao beans--are classified in U.S. Industry 311351,
Chocolate and Confectionery Manufacturing from Cacao Beans; and
Manufacturing coffee substitutes from grain--are classified in Industry 311920, Coffee and Tea Manufacturing.
13
National Totals by Year
NAICS 3112-Grain and Oilseed Milling
2010
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2011
2012
2013
791.00
788.00
814.00
812.00
$ 3,061,666.00 $ 3,008,867.00 $ 3,094,722.00 $ 3,160,559.00
54,926.00
53,140.00
54,170.00
54,996.00
$
55,741.65 $
56,621.51 $
57,129.81 $
57,468.89
69.44
67.44
66.55
67.73
Recent Yr.
Trend
-0.25%
2.13%
1.52%
0.59%
1.77%
Avg. Trend
(BY10)
1.73%
0.86%
-1.50%
2.39%
-3.17%
Top 10 Producer States
NAICS 3112 - Grain and oilseed milling
Establishments
Total U.S.
812 $
Paid Employees
3,160,559
54,996
$
$
$
$
$
$
$
$
$
$
402,440
354,520
210,311
200,730
167,011
153,536
142,366
132,769
131,025
106,064
5,933
5,448
3,776
2,987
2,803
2,414
2,266
1,907
2,016
2,478
367 $
45.20%
2,000,772
63.30%
32,028
58.24%
Iowa
Illinois
California
Indiana
Minnesota
Michigan
Ohio
Tennessee
Nebraska
Arkansas
Subtotal
% of U.S.
Annual Payroll ($1,000)
52
42
85
29
41
17
33
17
19
32
Top Western Producer States
NAICS 3112 - Grain and oilseed milling
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
812 $
NR
5
85
13
3
11
10
1
1
15
8
20
2
174
21.43%
3,160,559
NR
NR
$
$
Paid Employees
54,996
NR
NR
210,311
14,607
NR
$
3,776
216
NR
12,908
NR
NR
NR
$
$
$
221
NR
NR
NR
21,895
29,497
46,651
NR
479
NR
827
NR
335,869
10.63%
5,519
10.04%
14
NAICS 3112 - Grain and oilseed milling
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
0%
25%
50%
50%
75%
50%
75%
50%
25%
25%
0%
0%
0%
25%
25%
0%
75%
0%
0%
0%
0%
Somewhat
Important
25%
50%
25%
25%
25%
50%
25%
25%
25%
0%
0%
50%
50%
25%
50%
25%
0%
0%
25%
0%
0%
Important
25%
25%
0%
0%
0%
0%
0%
0%
0%
0%
25%
25%
0%
25%
25%
50%
25%
50%
0%
0%
0%
N=4
Very
Important
50%
0%
25%
25%
0%
0%
0%
25%
50%
75%
75%
25%
50%
25%
0%
25%
0%
50%
50%
0%
0%
Not
Important
0%
0%
25%
25%
0%
0%
0%
75%
0%
50%
0%
25%
50%
Somewhat
Important
50%
50%
75%
50%
0%
25%
25%
0%
25%
25%
25%
25%
0%
Important
50%
25%
0%
25%
75%
75%
50%
25%
50%
0%
50%
50%
0%
Very
Important
0%
25%
0%
0%
25%
0%
25%
0%
25%
25%
25%
0%
50%
Not
Important
25%
25%
0%
25%
25%
25%
50%
25%
25%
0%
25%
50%
0%
Somewhat
Important
0%
50%
25%
0%
0%
0%
0%
25%
25%
25%
0%
0%
0%
Important
25%
0%
50%
25%
50%
75%
25%
50%
50%
50%
25%
25%
0%
Very
Important
50%
25%
25%
50%
25%
0%
25%
0%
0%
25%
50%
25%
0%
15
3312 Steel Product Manufacturing from Purchased SteelT
This industry group comprises establishments primarily engaged in manufacturing iron and steel tube and pipe, drawing
steel wire, and rolling or drawing shapes from purchased iron or steel.
33121
Iron and Steel Pipe and Tube Manufacturing from Purchased SteelT
See industry description for 331210 below.
331210 Iron and Steel Pipe and Tube Manufacturing from Purchased Steel
This industry comprises establishments primarily engaged in manufacturing welded, riveted, or seamless pipe and tube
from purchased iron or steel.
Cross-References.
Establishments primarily engaged in making steel and further processing the steel into steel pipe and tube are classified
in Industry 331110, Iron and Steel Mills and Ferroalloy Manufacturing.
33122
Rolling and Drawing of Purchased SteelT
This industry comprises establishments primarily engaged in rolling and/or drawing steel shapes, such as plate, sheet,
strip, rod, and bar, from purchased steel.
Cross-References.


Establishments primarily engaged in--
Making steel and rolling and/or drawing steel--are classified in Industry 33111, Iron and Steel Mills and
Ferroalloy Manufacturing; and
Manufacturing wire products from purchased wire--are classified in Industry 33261, Spring and Wire Product
Manufacturing.
331221 Rolled Steel Shape Manufacturing
This U.S. industry comprises establishments primarily engaged in rolling or drawing shapes (except wire), such as plate,
sheet, strip, rod, and bar, from purchased steel.
Cross-References.


Establishments primarily engaged in--
Making steel and rolling or drawing steel shapes, or manufacturing concrete reinforcing bars in an iron and
steel mill--are classified in Industry 331110, Iron and Steel Mills and Ferroalloy Manufacturing;
Drawing wire from purchased steel--are classified in U.S. Industry 331222, Steel Wire Drawing; and
Manufacturing fabricated structural metal products from concrete reinforcing bars and fabricated bar joists-are classified in U.S. Industry 332312, Fabricated Structural Metal Manufacturing.
16
331222 Steel Wire Drawing
This U.S. industry comprises establishments primarily engaged in drawing wire from purchased steel.
Cross-References.


Establishments primarily engaged in--
Making steel and drawing steel wire--are classified in Industry 331110, Iron and Steel Mills and Ferroalloy
Manufacturing; and
Manufacturing wire products, such as nails, spikes, and paper clips, from purchased steel wire--are classified in
Industry 33261, Spring and Wire Product Manufacturing.
17
National Totals by Year
NAICS 3312-Steel Product Manufacturing from Purchased Steel
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2010
2011
2012
2013
660.00
$ 2,067,288.00
38,825.00
$
53,246.31
58.83
691.00
$ 2,237,308.00
41,090.00
$
54,448.97
59.46
723.00
$ 2,662,531.00
47,669.00
$
55,854.56
65.93
657.00
$ 2,694,636.00
48,221.00
$
55,880.96
73.40
Recent Yr.
Trend
-9.13%
1.21%
1.16%
0.05%
11.32%
Avg. Trend
(BY10)
4.60%
22.45%
17.60%
4.04%
12.64%
Top 10 Producer States
NAICS 3312 - Steel product manufacturing from purchased steel
Establishments
Total U.S.
657 $
Paid Employees
2,694,636
48,221
$
$
$
$
$
$
$
$
$
$
358,231
266,735
229,048
206,839
200,711
134,087
122,976
100,514
99,304
94,462
5,616
4,384
3,575
3,683
3,265
2,391
2,578
1,827
1,989
1,938
333 $
50.68%
1,812,907
67.28%
31,246
64.80%
Ohio
Texas
Alabama
Pennsylvania
Illinois
Arkansas
Indiana
California
Oklahoma
Tennessee
Subtotal
% of U.S.
Annual Payroll ($1,000)
51
43
16
52
40
11
21
62
16
21
Top Western Producer States
NAICS 3312 - Steel product manufacturing from purchased steel
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
657 $
NR
2,694,636
NR
11
62
6
$
$
2
1
NR
NR
8
9
4
3
106
16.13%
48,221
NR
12,605
100,514
NR
NR
NR
NR
NR
NR
NR
NR
Paid Employees
$
960
NR
NR
114,079
4.23%
251
1,827
NR
NR
NR
NR
NR
NR
NR
NR
NR
NR
2,078
4.31%
18
NAICS 3312 - Steel product manufacturing from purchased steel
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
0%
0%
0%
0%
50%
50%
100%
50%
0%
0%
0%
100%
100%
50%
50%
0%
100%
50%
0%
50%
50%
Somewhat
Important
50%
50%
100%
50%
50%
50%
0%
0%
0%
0%
0%
0%
0%
50%
50%
0%
0%
50%
50%
0%
0%
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
50%
50%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
N=2
Very
Important
50%
50%
0%
50%
0%
0%
0%
50%
100%
50%
50%
0%
0%
0%
0%
50%
0%
0%
50%
0%
0%
Not
Important
0%
0%
0%
0%
0%
0%
0%
50%
0%
0%
100%
0%
50%
Somewhat
Important
0%
50%
50%
0%
0%
0%
0%
0%
0%
50%
0%
0%
0%
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
50%
0%
Very
Important
100%
50%
50%
100%
100%
100%
100%
0%
50%
50%
0%
0%
0%
Not
Important
0%
0%
0%
0%
0%
0%
0%
0%
50%
0%
0%
0%
0%
Somewhat
Important
0%
0%
50%
100%
50%
50%
100%
0%
0%
0%
50%
50%
50%
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Very
Important
100%
100%
50%
0%
50%
50%
0%
100%
50%
100%
50%
0%
0%
19
3322 Cutlery and Handtool ManufacturingT
33221
Cutlery and Handtool ManufacturingT
This industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing metal
kitchen cookware (except those manufactured by casting (e.g., cast iron skillets) or stamped without further fabrication),
utensils, and/or nonprecious and precious plated metal cutlery and flatware; (2) manufacturing saw blades, all types
(including those for power sawing machines); and (3) manufacturing non-powered hand and edge tools.
Cross-References.






Establishments primarily engaged in--
Manufacturing precious (except precious plated) metal cutlery and flatware--are classified in Industry 33991,
Jewelry and Silverware Manufacturing;
Manufacturing electric razors and hair clippers for use on humans--are classified in Industry 33521, Small
Electrical Appliance Manufacturing;
Manufacturing power hedge shears and trimmers and electric hair clippers for use on animals--are classified in
Industry 33311, Agricultural Implement Manufacturing;
Manufacturing metal cutting dies, attachments, and accessories for machine tools--are classified in Industry
33351, Metalworking Machinery Manufacturing;
Manufacturing handheld power-driven handtools--are classified in Industry 33399, All Other General Purpose
Machinery Manufacturing; and
Manufacturing finished cast iron kitchen utensils (i.e., cast iron skillets) and castings for kitchen utensils, pots,
and pans--are classified in Industry Group 3315, Foundries.
332215 Metal Kitchen Cookware, Utensil, Cutlery, and Flatware (except Precious) Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing metal kitchen cookware (except those
manufactured by casting (e.g., cast iron skillets) or stamped without further fabrication), utensils, and/or nonprecious
and precious plated metal cutlery and flatware.
Cross-References.






Establishments primarily engaged in--
Manufacturing precious (except precious plated) metal cutlery and flatware--are classified in Industry 339910,
Jewelry and Silverware Manufacturing;
Manufacturing electric razors and hair clippers for use on humans--are classified in Industry 335210, Small
Electrical Appliance Manufacturing;
Manufacturing power hedge shears and trimmers--are classified in U.S. Industry 333112, Lawn and Garden
Tractor and Home Lawn and Garden Equipment Manufacturing;
Manufacturing nonelectric hair clippers for use on animals--are classified in U.S. Industry 332216, Saw Blade
and Handtool Manufacturing;
Manufacturing finished cast metal kitchen utensils or castings for kitchen utensils--are classified in Industry
Group 3315, Foundries; and
Manufacturing stampings for kitchen utensils, pots, and pans--are classified in U.S. Industry 332119, Metal
Crown, Closure, and Other Metal Stamping (except Automotive).
20
332216 Saw Blade and Handtool Manufacturing
This U.S. industry comprises establishments primarily engaged in (1) manufacturing saw blades, all types (including those
for power sawing machines) and/or (2) manufacturing non-powered hand and edge tools.
Cross-References.





Establishments primarily engaged in--
Manufacturing metal cutting dies, attachments, and accessories for machine tools--are classified in Industry
33351, Metalworking Machinery Manufacturing;
Manufacturing handheld power-driven handtools--are classified in U.S. Industry 333991, Power-Driven
Handtool Manufacturing;
Manufacturing electric razors and hair clippers for use on humans--are classified in Industry 335210, Small
Electrical Appliance Manufacturing;
Manufacturing electric hair clippers for use on animals--are classified in U.S. Industry 333111, Farm Machinery
and Equipment Manufacturing; and
Manufacturing nonelectric household-type scissors and shears--are classified in U.S. Industry 332215, Metal
Kitchen Cookware, Utensil, Cutlery, and Flatware (except Precious) Manufacturing.
21
National Totals by Year
NAICS 3322-Cutlery and Handtool Manufacturing
2010
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2011
2012
2013
1,386.00
1,366.00
1,200.00
1,178.00
$ 1,830,919.00 $ 1,961,988.00 $ 1,714,873.00 $ 1,741,835.00
38,951.00
40,414.00
35,226.00
35,436.00
$
47,005.70 $
48,547.24 $
48,682.02 $
49,154.39
28.10
29.59
29.36
30.08
Recent Yr.
Trend
-1.83%
1.57%
0.60%
0.97%
2.47%
Avg. Trend
(BY10)
-9.96%
-1.35%
-4.94%
3.81%
5.59%
Top 10 Producer States
NAICS 3322 - Cutlery and handtool manufacturing
Establishments
Total U.S.
Annual Payroll ($1,000)
1,178 $
Ohio
Massachusetts
Oregon
California
Illinois
Pennsylvania
Connecticut
Michigan
Wisconsin
New York
Subtotal
% of U.S.
Paid Employees
1,741,835
35,436
$
$
$
$
$
$
$
$
$
$
189,785
161,149
115,665
115,367
105,784
104,621
94,827
91,386
90,096
66,396
3,809
2,792
2,080
2,552
2,313
2,351
1,490
1,611
1,859
1,433
662 $
56.20%
1,135,076
65.17%
22,290
62.90%
82
37
24
156
85
63
32
84
38
61
Top Western Producer States
NAICS 3322 - Cutlery and handtool manufacturing
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
1,178 $
3
15 $
156 $
10
1
11
7 $
5 $
3
24 $
6 $
27 $
1
269
22.84%
1,741,835
NR
Paid Employees
35,436
NR
7,581
115,367
NR
NR
NR
155
2,552
NR
NR
NR
1,114
547
NR
115,665
1,663
11,645
NR
33
NR
NR
2,080
NR
253
NR
253,582
14.56%
5,073
14.32%
22
NAICS 3322 - Cutlery and handtool manufacturing
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
0%
33%
33%
33%
33%
33%
33%
67%
33%
33%
33%
0%
33%
33%
33%
33%
33%
33%
0%
33%
33%
Somewhat
Important
33%
33%
67%
67%
0%
0%
0%
0%
0%
0%
33%
0%
33%
67%
67%
0%
33%
0%
0%
33%
33%
Important
33%
0%
0%
0%
33%
33%
33%
33%
33%
0%
33%
0%
33%
0%
0%
0%
33%
67%
0%
0%
0%
N=3
Very
Important
33%
33%
0%
0%
33%
33%
33%
0%
33%
67%
0%
100%
0%
0%
0%
0%
0%
0%
100%
0%
0%
Not
Important
33%
33%
67%
0%
0%
0%
0%
33%
0%
33%
33%
33%
0%
Somewhat
Important
0%
0%
0%
0%
0%
0%
0%
0%
33%
33%
33%
0%
0%
Important
0%
33%
33%
67%
33%
67%
33%
0%
0%
33%
33%
0%
0%
Very
Important
67%
33%
0%
33%
67%
33%
67%
0%
0%
0%
0%
0%
33%
Not
Important
0%
0%
33%
33%
67%
33%
67%
0%
0%
0%
0%
0%
0%
Somewhat
Important
0%
0%
0%
0%
0%
0%
0%
0%
33%
0%
0%
0%
0%
Important
33%
67%
33%
33%
33%
33%
33%
33%
67%
67%
33%
0%
33%
Very
Important
67%
33%
33%
33%
0%
33%
0%
67%
0%
33%
67%
33%
33%
23
3327 Machine Shops; Turned Product; and Screw, Nut, and Bolt ManufacturingT
33271
Machine ShopsT
See industry description for 332710 below.
332710 Machine Shops
This industry comprises establishments known as machine shops primarily engaged in machining metal and plastic parts
and parts of other composite materials on a job or order basis. Generally machine shop jobs are low volume using
machine tools, such as lathes (including computer numerically controlled); automatic screw machines; and machines for
boring, grinding, and milling.
Cross-References.


33272
Establishments primarily engaged in--
Repairing industrial machinery and equipment--are classified in Industry 811310, Commercial and Industrial
Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance; and
Manufacturing parts (except on a job or order basis) for machinery and equipment--are generally classified in
the same manufacturing industry that makes complete machinery and equipment.
Turned Product and Screw, Nut, and Bolt ManufacturingT
This industry comprises establishments primarily engaged in (1) machining precision turned products or (2)
manufacturing metal bolts, nuts, screws, rivets, and other industrial fasteners. Included in this industry are
establishments primarily engaged in manufacturing parts for machinery and equipment on a customized basis.
Cross-References.
Establishments primarily engaged in manufacturing plastics fasteners are classified in Industry 32619, Other Plastics
Product Manufacturing.
332721 Precision Turned Product Manufacturing
This U.S. industry comprises establishments known as precision turned manufacturers primarily engaged in machining
precision products of all materials on a job or order basis. Generally precision turned product jobs are large volume
using machines, such as automatic screw machines, rotary transfer machines, computer numerically controlled (CNC)
lathes, or turning centers.
Cross-References.
Establishments primarily engaged in manufacturing metal bolts, nuts, screws, rivets, washers, and other industrial
fasteners on machines, such as headers, threaders, and nut forming machines, are classified in U.S. Industry 332722,
Bolt, Nut, Screw, Rivet, and Washer Manufacturing.
24
332722 Bolt, Nut, Screw, Rivet, and Washer Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing metal bolts, nuts, screws, rivets, and
washers, and other industrial fasteners using machines, such as headers, threaders, and nut forming machines.
Cross-References.


Establishments primarily engaged in--
Manufacturing precision turned products--are classified in U.S. Industry 332721, Precision Turned Product
Manufacturing; and
Manufacturing plastics fasteners--are classified in U.S. Industry 326199, All Other Plastics Product
Manufacturing.
25
National Totals by Year
NAICS 3327-Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing
2010
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2011
2012
2013
23,202.00
23,239.00
23,785.00
23,559.00
$ 15,358,604.00 $ 17,251,917.00 $ 18,888,165.00 $ 18,910,258.00
325,517.00
355,873.00
385,217.00
388,056.00
$
47,182.19 $
48,477.74 $
49,032.53 $
48,730.75
14.03
15.31
16.20
16.47
Recent Yr.
Trend
-0.95%
0.12%
0.74%
-0.62%
1.70%
Avg. Trend
(BY10)
1.40%
19.48%
15.63%
3.32%
14.00%
Top 10 Producer States
NAICS 3327 - Machine shops; turned product; and screw, nut, and bolt
manufacturing
Establishments
Total U.S.
California
Texas
Michigan
Ohio
Illinois
Pennsylvania
Wisconsin
New York
Minnesota
Indiana
Subtotal
% of U.S.
Annual Payroll ($1,000)
23,559 $
Paid Employees
18,910,258
388,056
$
$
$
$
$
$
$
$
$
$
2,470,423
1,589,235
1,431,934
1,398,432
1,395,386
1,038,179
804,498
706,120
688,490
613,479
48,057
29,346
30,267
28,827
27,694
21,356
18,270
14,587
12,934
14,213
13,596 $
57.71%
12,136,176
64.18%
245,551
63.28%
2,944
1,816
1,427
1,619
1,366
1,218
853
902
696
755
Top Western Producer States
NAICS 3327 - Machine shops; turned product; and screw, nut, and bolt
manufacturing
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
23,559 $
18,910,258
19 $
325 $
2,944 $
331 $
10 $
117 $
73 $
80 $
100 $
346 $
228 $
453 $
47 $
10,607
274,812
2,470,423
186,083
3,334
51,133
22,602
54,960
38,108
187,104
143,488
366,724
36,182
5,073
21.53%
3,845,560
20.34%
Paid Employees
388,056
NR
5,597
48,057
4,122
60
1,316
573
1,525
934
3,931
2,980
7,050
574
76,719
19.77%
26
NAICS 3327 - Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
0%
0%
60%
80%
40%
60%
40%
20%
0%
0%
0%
40%
60%
100%
80%
0%
40%
40%
0%
60%
20%
Somewhat
Important
20%
20%
40%
20%
20%
40%
40%
20%
20%
40%
0%
20%
40%
0%
0%
0%
40%
0%
0%
0%
0%
Important
20%
80%
0%
0%
20%
0%
20%
40%
40%
20%
60%
20%
0%
0%
20%
0%
20%
20%
20%
0%
40%
N=5
Very
Important
60%
0%
0%
0%
20%
0%
0%
20%
40%
40%
40%
20%
0%
0%
0%
40%
0%
40%
80%
0%
0%
Not
Important
0%
20%
0%
0%
0%
0%
0%
20%
0%
40%
40%
20%
0%
Somewhat
Important
40%
0%
40%
80%
0%
20%
0%
20%
0%
20%
0%
20%
20%
Important
40%
40%
20%
20%
80%
20%
40%
0%
0%
0%
20%
0%
0%
Very
Important
20%
40%
40%
0%
20%
60%
40%
0%
40%
40%
40%
0%
20%
Not
Important
0%
0%
0%
0%
0%
0%
0%
20%
0%
0%
0%
0%
0%
Somewhat
Important
0%
0%
20%
40%
0%
80%
80%
0%
20%
0%
20%
0%
20%
Important
40%
40%
40%
20%
60%
0%
20%
20%
20%
20%
20%
40%
0%
Very
Important
60%
60%
40%
20%
40%
20%
0%
60%
60%
80%
60%
0%
40%
27
3364 Aerospace Product and Parts ManufacturingT
33641
Aerospace Product and Parts ManufacturingT
This industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing complete
aircraft, missiles, or space vehicles; (2) manufacturing aerospace engines, propulsion units, auxiliary equipment or parts;
(3) developing and making prototypes of aerospace products; (4) aircraft conversion (i.e., major modifications to
systems); and (5) complete aircraft or propulsion systems overhaul and rebuilding (i.e., periodic restoration of aircraft to
original design specifications).
Cross-References.








Establishments primarily engaged in manufacturing space satellites are classified in Industry 33422, Radio and
Television Broadcasting and Wireless Communications Equipment Manufacturing;
Establishments primarily engaged in the repair of aircraft or aircraft engines (except overhauling, conversion,
and rebuilding) are classified in Industry 48819, Other Support Activities for Air Transportation;
Research and development establishments primarily engaged in aerospace R&D (except prototype production)
are classified in Industry 54171, Research and Development in the Physical, Engineering, and Life Sciences;
Establishments primarily engaged in manufacturing aircraft engine intake and exhaust valves, pistons, or engine
filters are classified in Industry 33631, Motor Vehicle Gasoline Engine and Engine Parts Manufacturing;
Establishments primarily engaged in manufacturing of aircraft seating are classified in Industry 33636, Motor
Vehicle Seating and Interior Trim Manufacturing;
Establishments primarily engaged in manufacturing aeronautical, navigational, and guidance systems and
instruments are classified in Industry 33451, Navigational, Measuring, Electro-medical, and Control Instruments
Manufacturing;
Establishment primarily engaged in manufacturing aircraft engine electrical (aeronautical electrical) equipment
or aircraft lighting fixtures are classified in Industry 33632, Motor Vehicle Electrical and Electronic Equipment
Manufacturing; and
Establishments primarily engaged in manufacturing of aircraft fluid power subassemblies are classified in
Industry 33291, Metal Valve Manufacturing.
336411 Aircraft Manufacturing
This U.S. industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing or
assembling complete aircraft; (2) developing and making aircraft prototypes; (3) aircraft conversion (i.e., major
modifications to systems); and (4) complete aircraft overhaul and rebuilding (i.e., periodic restoration of aircraft to
original design specifications).
Cross-References.



Establishments primarily engaged in manufacturing guided missiles and space vehicles are classified in
U.S. Industry 336414, Guided Missile and Space Vehicle Manufacturing;
Establishments primarily engaged in the repair of aircraft (except overhauling, conversion, and rebuilding) are
classified in Industry 488190, Other Support Activities for Air Transportation; and
Research and development establishments primarily engaged in aircraft R&D (except prototype production) are
classified in U.S. Industry 541712, Research and Development in the Physical, Engineering, and Life Sciences
(except Biotechnology).
28
336412 Aircraft Engine and Engine Parts Manufacturing
This U.S. industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing aircraft
engines and engine parts; (2) developing and making prototypes of aircraft engines and engine parts; (3) aircraft
propulsion system conversion (i.e., major modifications to systems); and (4) aircraft propulsion systems overhaul and
rebuilding (i.e., periodic restoration of aircraft propulsion system to original design specifications).
Cross-References.
 Establishments primarily engaged in manufacturing guided missile and space vehicle propulsion units and parts
are classified in U.S. Industry 336415, Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit
Parts Manufacturing;
 Establishments primarily engaged in manufacturing aircraft intake and exhaust valves and pistons and aircraft
internal combustion engine filters are classified in Industry 336310, Motor Vehicle Gasoline Engine and Engine
Parts Manufacturing;
 Establishments primarily engaged in the repair of aircraft engines (except overhauling, conversion, and
rebuilding) are classified in Industry 488190, Other Support Activities for Air Transportation;
 Research and development establishments primarily engaged in aircraft engine and engine parts R&D (except
prototype production) are classified in U.S. Industry 541712, Research and Development in the Physical,
Engineering, and Life Sciences (except Biotechnology); and
 Establishments primarily engaged in manufacturing aeronautical instruments are classified in U.S. Industry
334511, Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument
Manufacturing.
336413 Other Aircraft Parts and Auxiliary Equipment Manufacturing
This U.S. industry comprises establishment primarily engaged in (1) manufacturing aircraft parts or auxiliary equipment
(except engines and aircraft fluid power subassemblies) and/or (2) developing and making prototypes of aircraft parts
and auxiliary equipment. Auxiliary equipment includes such items as crop dusting apparatus, armament racks, inflight
refueling equipment, and external fuel tanks.
Cross-References.







Establishments primarily engaged in manufacturing aircraft engines and engine parts are classified in U.S.
Industry 336412, Aircraft Engine and Engine Parts Manufacturing;
Establishments primarily engaged in manufacturing aeronautical instruments are classified in U.S. Industry
334511, Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument
Manufacturing;
Establishments primarily engaged in manufacturing aircraft lighting fixtures and aircraft engine electrical
(aeronautical electrical) equipment are classified in Industry 336320, Motor Vehicle Electrical and Electronic
Equipment Manufacturing;
Establishments primarily engaged in manufacturing guided missile and space vehicle parts and auxiliary
equipment are classified in U.S. Industry 336419, Other Guided Missile and Space Vehicle Parts and Auxiliary
Equipment Manufacturing;
Establishments primarily engaged in manufacturing of aircraft fluid power subassemblies are classified in
U.S. Industry 332912, Fluid Power Valve and Hose Fitting Manufacturing;
Establishments primarily engaged in manufacturing of aircraft seating are classified in Industry 336360, Motor
Vehicle Seating and Interior Trim Manufacturing; and
Research and development establishments primarily engaged in aircraft parts and auxiliary equipment R&D
(except prototype production) are classified in U.S. Industry 541712, Research and Development in the
Physical, Engineering, and Life Sciences (except Biotechnology).
29
336414 Guided Missile and Space Vehicle Manufacturing
This U.S. industry comprises establishments primarily engaged in (1) manufacturing complete guided missiles and space
vehicles and/or (2) developing and making prototypes of guided missiles or space vehicles.
Cross-References.


Establishments primarily engaged in manufacturing space satellites are classified in Industry 334220, Radio and
Television Broadcasting and Wireless Communications Equipment Manufacturing; and
Research and development establishments primarily engaged in guided missile and space vehicle R&D (except
prototype production) are classified in U.S. Industry 541712, Research and Development in the Physical,
Engineering, and Life Sciences (except Biotechnology).
336415 Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
This U.S. industry comprises establishments primarily engaged in (1) manufacturing guided missile and/or space vehicle
propulsion units and propulsion unit parts and/or (2) developing and making prototypes of guided missile and space
vehicle propulsion units and propulsion unit parts.
Cross-References.
Research and development establishments primarily engaged in guided missile and space propulsion unit and propulsion
unit parts R&D (except prototype production) are classified in U.S. Industry 541712, Research and Development in the
Physical, Engineering, and Life Sciences (except Biotechnology).
336419 Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
This U.S. industry comprises establishments primarily engaged in (1) manufacturing guided missile and space vehicle
parts and auxiliary equipment (except guided missile and space vehicle propulsion units and propulsion unit parts) and/or
(2) developing and making prototypes of guided missile and space vehicle parts and auxiliary equipment.
Cross-References.



Establishments primarily engaged in manufacturing navigational and guidance systems are classified in
U.S. Industry 334511, Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and
Instrument Manufacturing;
Establishments primarily engaged in manufacturing guided missile and space vehicle propulsion units and
propulsion unit parts are classified in U.S. Industry 336415, Guided Missile and Space Vehicle Propulsion Unit
and Propulsion Unit Parts Manufacturing; and
Research and development establishments primarily engaged in guided missile and space vehicle parts and
auxiliary equipment R&D (except prototype production) are classified in U.S. Industry 541712, Research and
Development in the Physical, Engineering, and Life Sciences (except Biotechnology).
30
National Totals by Year
NAICS 3364 - Aerospace Product and Parts Manufacturing
2010
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2011
2012
2013
1,737.00
1,712.00
1,751.00
1,740.00
$ 29,728,183.00 $ 30,926,088.00 $ 32,251,232.00 $ 34,054,956.00
383,609.00
378,977.00
387,973.00
399,877.00
$
77,496.05 $
81,604.13 $
83,127.52 $
85,163.58
220.85
221.37
221.57
229.81
Recent Yr.
Trend
-0.63%
5.59%
3.07%
2.45%
3.72%
Avg. Trend
(BY10)
-0.15%
9.02%
1.39%
7.49%
1.54%
Top 10 Producer States
NAICS 3364 - Aerospace product and parts manufacturing
Establishments
Total U.S.
1,740 $
Paid Employees
34,054,956
399,877
$
$
$
$
$
$
$
$
$
$
6,398,033
3,295,264
2,181,171
2,168,814
1,605,301
752,189
698,257
663,215
617,644
538,901
64,849
35,250
30,627
21,751
18,334
10,404
10,329
7,014
6,889
5,352
933 $
53.62%
18,918,789
55.55%
210,799
52.72%
California
Texas
Kansas
Arizona
Georgia
Ohio
Florida
Pennsylvania
Indiana
Massachusetts
Subtotal
% of U.S.
Annual Payroll ($1,000)
325
123
92
74
35
69
129
36
26
24
Top Western Producer States
NAICS 3364 - Aerospace product and parts manufacturing
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
Paid Employees
1,740 $
34,054,956
399,877
5 $
74 $
325 $
26
2,160
2,168,814
6,398,033
1,920
45
21,751
64,849
NR
NR
482
NR
322
NR
2,599
4,690
NR
64
9,168,957
26.92%
94,802
23.71%
NR
13 $
5
10 $
8
31 $
23 $
111
3 $
634
36.44%
NR
NR
19,153
NR
18,768
NR
173,810
386,299
NR
31
NAICS 3364 - Aerospace Product and Parts Manufacturing
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
40%
20%
80%
40%
40%
80%
40%
40%
20%
20%
0%
20%
20%
60%
80%
0%
80%
20%
0%
0%
0%
Somewhat
Important
40%
20%
20%
40%
0%
0%
20%
0%
20%
0%
0%
40%
40%
0%
0%
0%
0%
40%
0%
20%
0%
Important
0%
20%
0%
0%
20%
0%
0%
40%
60%
20%
0%
0%
20%
20%
0%
20%
0%
20%
0%
0%
20%
N=5
Very
Important
20%
40%
0%
20%
40%
20%
20%
0%
0%
60%
100%
40%
20%
20%
20%
60%
20%
20%
80%
0%
0%
Not
Important
40%
0%
20%
60%
20%
20%
0%
80%
0%
20%
40%
60%
20%
Somewhat
Important
20%
40%
0%
20%
0%
20%
0%
0%
20%
40%
20%
20%
20%
Important
40%
20%
40%
20%
80%
40%
100%
0%
60%
0%
40%
0%
20%
Very
Important
0%
40%
40%
0%
0%
20%
0%
0%
0%
40%
0%
0%
20%
Not
Important
0%
20%
0%
40%
20%
20%
20%
40%
60%
0%
0%
20%
0%
Somewhat
Important
60%
40%
20%
20%
60%
40%
60%
20%
0%
40%
0%
20%
0%
Important
0%
20%
60%
40%
20%
40%
20%
20%
40%
40%
80%
40%
0%
Very
Important
40%
20%
20%
0%
0%
0%
0%
20%
0%
20%
20%
0%
20%
32
3391 Medical Equipment and Supplies ManufacturingT
33911
Medical Equipment and Supplies ManufacturingT
This industry comprises establishments primarily engaged in manufacturing medical equipment and supplies. Examples
of products made by these establishments are surgical and medical instruments, surgical appliances and supplies, dental
equipment and supplies, orthodontic goods, ophthalmic goods, dentures, and orthodontic appliances.
Cross-References.









Establishments primarily engaged in--
Manufacturing laboratory instruments, X-ray apparatus, electro-medical apparatus (including electronic
hearing aids), and thermometers (except medical)--are classified in Industry 33451, Navigational, Measuring,
Electro-medical, and Control Instruments Manufacturing;
Manufacturing molded glass lens blanks--are classified in Industry 32721, Glass and Glass Product
Manufacturing;
Manufacturing molded plastics lens blanks--are classified in Industry 32619, Other Plastics Product
Manufacturing;
Retailing and grinding prescription eyeglasses--are classified in Industry 44613, Optical Goods Stores;
Manufacturing sporting goods helmets and protective equipment--are classified in Industry 33992, Sporting
and Athletic Goods Manufacturing;
Manufacturing general purpose hospital, laboratory and/or dental furniture (e.g., stools, tables, benches)-- are
classified in Industry 33712, Household and Institutional Furniture Manufacturing;
Manufacturing laboratory scales and balances, laboratory furnaces and ovens, and/or laboratory centrifuges-are classified in Industry 33399, All Other General Purpose Machinery Manufacturing;
Manufacturing laboratory distilling equipment--are classified in Industry 33324, Industrial Machinery
Manufacturing; and
Manufacturing laboratory freezers--are classified in Industry 33341, Ventilation, Heating, Air- Conditioning, and
Commercial Refrigeration Equipment Manufacturing.
33
339112 Surgical and Medical Instrument Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing medical, surgical, ophthalmic, and
veterinary instruments and apparatus (except electrotherapeutic, electro-medical and irradiation apparatus).
Examples of products made by these establishments are syringes, hypodermic needles, anesthesia apparatus, blood
transfusion equipment, catheters, surgical clamps, and medical thermometers.
Cross-References.







Establishments primarily engaged in--
Manufacturing electro-medical and electrotherapeutic apparatus--are classified in U.S. Industry 334510,
Electro-medical and Electrotherapeutic Apparatus Manufacturing;
Manufacturing irradiation apparatus--are classified in U.S. Industry 334517, Irradiation Apparatus
Manufacturing;
Manufacturing surgical and orthopedic appliances or specialized hospital furniture (except dental) (e.g.,
hospital beds, operating tables)--are classified in U.S. Industry 339113, Surgical Appliance and Supplies
Manufacturing;
Manufacturing dental equipment, dental supplies, dental laboratory apparatus, and dental laboratory
furniture--are classified in U.S. Industry 339114, Dental Equipment and Supplies Manufacturing;
Manufacturing general purpose hospital, laboratory and/or dental furniture (e.g., stools, tables, benches)-- are
classified in U.S. Industry 337127, Institutional Furniture Manufacturing;
Manufacturing thermometers (except medical)--are classified in U.S. Industry 334519, Other Measuring and
Controlling Device Manufacturing; and
Manufacturing ophthalmic goods--are classified in U.S. Industry 339115, Ophthalmic Goods Manufacturing.
339113 Surgical Appliance and Supplies Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing surgical appliances and supplies.
Examples of products made by these establishments are orthopedic devices, prosthetic appliances, surgical dressings,
crutches, surgical sutures, personal industrial safety devices (except protective eyewear), hospital beds, and operating
room tables.
Cross-References.





Establishments primarily engaged in--
Manufacturing dental equipment, dental supplies, dental laboratory apparatus, and specialized dental
laboratory furniture (e.g. dental chairs)--are classified in U.S. Industry 339114, Dental Equipment and Supplies
Manufacturing;
Manufacturing general purpose hospital, laboratory and/or dental furniture (e.g., stools, tables, benches)-- are
classified in U.S. Industry 337127, Institutional Furniture Manufacturing;
Manufacturing electronic hearing aids--are classified in U.S. Industry 334510, Electromedical and
Electrotherapeutic Apparatus Manufacturing;
Manufacturing industrial protective eyewear--are classified in U.S. Industry 339115, Ophthalmic Goods
Manufacturing; and
Manufacturing sporting goods helmets and protective equipment--are classified in Industry 339920, Sporting
and Athletic Goods Manufacturing.
34
339114 Dental Equipment and Supplies Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing dental equipment and supplies used by
dental laboratories and offices of dentists, such as dental chairs, dental instrument delivery systems, dental hand
instruments, and dental impression material and dental cements.
Cross-References.
Establishments primarily engaged in manufacturing dentures, crowns, bridges, and orthodontic appliances customized
for individual application are classified in U.S. Industry 339116, Dental Laboratories.
339115 Ophthalmic Goods Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing ophthalmic goods. Examples of
products made by these establishments are prescription eyeglasses (except manufactured in a retail setting), contact
lenses, sunglasses, eyeglass frames, and reading glasses made to standard powers, and protective eyewear.
Cross-References.



Establishments primarily engaged in--
Manufacturing molded glass lens blanks--are classified in U.S. Industry 327212, Other Pressed and Blown Glass
and Glassware Manufacturing;
Manufacturing molded plastics lens blanks--are classified in U.S. Industry 326199, All Other Plastics Product
Manufacturing; and
Retailing and grinding prescription eyeglasses--are classified in Industry 446130, Optical Goods Stores.
339116 Dental Laboratories
This U.S. industry comprises establishments primarily engaged in manufacturing dentures, crowns, bridges, and
orthodontic appliances customized for individual application.
Cross-References.
Establishments primarily engaged in manufacturing dental equipment and supplies are classified in U.S. Industry 339114,
Dental Equipment and Supplies Manufacturing.
35
National Totals by Year
NAICS 3391 - Medical Equipment and Supplies Manufacturing
2010
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2011
2012
2013
11,705.00
11,552.00
11,534.00
11,261.00
$ 16,163,997.00 $ 16,540,599.00 $ 17,746,214.00 $ 17,596,569.00
285,144.00
285,929.00
293,501.00
285,648.00
$
56,687.14 $
57,848.62 $
60,463.90 $
61,602.28
24.36
24.75
25.45
25.37
Recent Yr.
Trend
-2.37%
-0.84%
-2.68%
1.88%
-0.32%
Avg. Trend
(BY10)
-2.19%
6.99%
1.13%
5.79%
3.40%
Top 10 Producer States
NAICS 3391 - Medical equipment and supplies manufacturing
Establishments
Total U.S.
California
New Jersey
Florida
Indiana
Minnesota
New York
Texas
Massachusetts
Pennsylvania
Tennessee
Subtotal
% of U.S.
Annual Payroll ($1,000)
11,261 $
Paid Employees
17,596,569
285,648
$
$
$
$
$
$
$
$
$
$
3,777,616
1,102,166
1,099,834
1,015,384
1,003,426
854,972
677,780
635,632
586,952
488,237
50,540
12,523
16,507
17,011
14,719
15,496
13,690
8,927
12,087
7,091
5,593 $
49.67%
11,241,999
63.89%
168,591
59.02%
1,720
308
788
241
301
720
608
293
419
195
Top Western Producer States
NAICS 3391 - Medical equipment and supplies manufacturing
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
11,261 $
17,596,569
24 $
219 $
1,720 $
275
29 $
77 $
65 $
91 $
49
222 $
204 $
371 $
13 $
4,139
421,447
3,777,616
3,359
29.83%
Paid Employees
285,648
NR
199,509
427,258
207,626
1,343
6,708
50,540
NR
220
444
670
614
NR
3,646
7,736
3,814
NR
5,115,622
29.07%
74,392
26.04%
NR
6,826
16,700
29,329
23,829
NR
36
NAICS 3391 - Medical Equipment and Supplies Manufacturing
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
0%
20%
100%
100%
20%
80%
80%
80%
20%
20%
60%
40%
80%
100%
80%
0%
40%
20%
20%
0%
0%
Somewhat
Important
60%
40%
0%
0%
60%
20%
0%
20%
40%
40%
0%
0%
20%
0%
20%
0%
20%
40%
0%
0%
0%
Important
20%
0%
0%
0%
20%
0%
20%
0%
40%
20%
20%
40%
0%
0%
0%
20%
20%
20%
20%
0%
0%
N=5
Very
Important
20%
40%
0%
0%
0%
0%
0%
0%
0%
20%
20%
20%
0%
0%
0%
80%
20%
20%
60%
0%
0%
Not
Important
60%
20%
40%
60%
0%
0%
20%
100%
0%
80%
20%
20%
80%
Somewhat
Important
40%
20%
20%
0%
20%
20%
20%
0%
20%
20%
20%
80%
0%
Important
0%
0%
20%
0%
40%
40%
20%
0%
20%
0%
20%
0%
20%
Very
Important
0%
60%
20%
40%
40%
40%
40%
0%
60%
0%
40%
0%
0%
Not
Important
0%
20%
0%
80%
20%
20%
60%
20%
60%
0%
40%
60%
0%
Somewhat
Important
20%
20%
0%
0%
80%
60%
40%
0%
20%
0%
20%
0%
0%
Important
20%
20%
20%
0%
0%
0%
0%
20%
20%
40%
20%
20%
0%
Very
Important
60%
40%
80%
20%
0%
20%
0%
60%
0%
60%
20%
20%
0%
37
Sector 51—InformationT
The Sector as a Whole
The Information sector comprises establishments engaged in the following processes: (a) producing and distributing
information and cultural products, (b) providing the means to transmit or distribute these products as well as data or
communications, and (c) processing data.
The main components of this sector are the publishing industries, including software publishing, and both traditional
publishing and publishing exclusively on the Internet; the motion picture and sound recording industries; the
broadcasting industries, including traditional broadcasting and those broadcasting exclusively over the Internet; the
telecommunications industries; Web search portals, data processing industries, and the information services industries.
The expressions ''information age'' and ''global information economy'' are used with considerable frequency today. The
general idea of an ''information economy'' includes both the notion of industries primarily producing, processing, and
distributing information, as well as the idea that every industry is using available information and information technology
to reorganize and make themselves more productive.
For the purposes of NAICS, it is the transformation of information into a commodity that is produced and distributed by a
number of growing industries that is at issue. The Information sector groups three types of establishments: (1) those
engaged in producing and distributing information and cultural products; (2) those that provide the means to transmit or
distribute these products as well as data or communications; and (3) those that process data. Cultural products are
those that directly express attitudes, opinions, ideas, values, and artistic creativity; provide entertainment; or offer
information and analysis concerning the past and present. Included in this definition are popular, mass-produced
products as well as cultural products that normally have a more limited audience, such as poetry books, literary
magazines, or classical records.
The unique characteristics of information and cultural products, and of the processes involved in their production and
distribution, distinguish the Information sector from the goods-producing and service-producing sectors. Some of these
characteristics are:
1. Unlike traditional goods, an ''information or cultural product,'' such as a newspaper on-line or television program,
does not necessarily have tangible qualities, nor is it necessarily associated with a particular form. A movie can be
shown at a movie theater, on a television broadcast, through video-on-demand or rented at a local video store. A
sound recording can be aired on radio, embedded in multimedia products, or sold at a record store.
2. Unlike traditional services, the delivery of these products does not require direct contact between the supplier
and the consumer.
3. The value of these products to the consumer lies in their informational, educational, cultural, or entertainment
content, not in the format in which they are distributed. Most of these products are protected from unlawful
reproduction by copyright laws.
4. The intangible property aspect of information and cultural products makes the processes involved in their
production and distribution very different from goods and services. Only those possessing the rights to these
works are authorized to reproduce, alter, improve, and distribute them. Acquiring and using these rights often
involves significant costs. In addition, technology is revolutionizing the distribution of these products. It is
possible to distribute them in a physical form, via broadcast, or on-line.
38
5. Distributors of information and cultural products can easily add value to the products they distribute. For
instance, broadcasters add advertising not contained in the original product. This capacity means that unlike
traditional distributors, they derive revenue not from sale of the distributed product to the final consumer, but
from those who pay for the privilege of adding information to the original product. Similarly, a directory and
mailing list publisher can acquire the rights to thousands of previously published newspaper and periodical
articles and add new value by providing search and software and organizing the information in a way that
facilitates research and retrieval. These products often command a much higher price than the original
information.
The distribution modes for information commodities may either eliminate the necessity for traditional manufacture, or
reverse the conventional order of manufacture-distribute: A newspaper distributed on-line, for example, can be printed
locally or by the final consumer. Similarly, it is anticipated that packaged software, which today is mainly bought through
the traditional retail channels, will soon be available mainly on-line. The NAICS Information sector is designed to make
such economic changes transparent as they occur, or to facilitate designing surveys that will monitor the new
phenomena and provide data to analyze the changes.
Many of the industries in the NAICS Information sector are engaged in producing products protected by copyright law, or
in distributing them (other than distribution by traditional wholesale and retail methods). Examples are traditional
publishing industries, software and directory and mailing list publishing industries, and film and sound industries.
Broadcasting and telecommunications industries and information providers and processors are also included in the
Information sector, because their technologies are so closely linked to other industries in the Information sector.
5179 Other Telecommunications
51791
T
T
Other Telecommunications
This industry comprises establishments primarily engaged in (1) purchasing access and network capacity from owners
and operators of telecommunications networks and reselling wired and wireless telecommunications services (except
satellite) to businesses and households; (2) providing specialized telecommunications services, such as satellite tracking,
communications telemetry, and radar station operation; (3) providing satellite terminal stations and associated facilities
connected with one or more terrestrial systems and capable of transmitting telecommunications to, and receiving
telecommunications from, satellite systems; or (4) providing Internet access services or Voice over Internet protocol
(VoIP) services via client-supplied telecommunications connections. Establishments in this industry do not operate as
telecommunications carriers. Mobile virtual network operators (MVNO) are included in this industry.
517911 Telecommunications Resellers
This U.S. industry comprises establishments engaged in purchasing access and network capacity from owners and
operators of telecommunications networks and reselling wired and wireless telecommunications services (except
satellite) to businesses and households. Establishments in this industry resell telecommunications; they do not operate
transmission facilities and infrastructure. Mobile virtual network operators (MVNOs) are included in this industry.
Cross-References.



Establishments primarily engaged in--
Operating and maintaining wired telecommunications networks--are classified in Industry 517110, Wired
Telecommunications Carriers;
Operating and maintaining wireless telecommunications networks--are classified in Industry 517210, Wireless
Telecommunications Carriers (except Satellite); and
Reselling satellite telecommunications services--are classified in Industry 517410, Satellite Telecommunications.
39
517919 All Other Telecommunications
This U.S. industry comprises establishments primarily engaged in providing specialized telecommunications services, such
as satellite tracking, communications telemetry, and radar station operation. This industry also includes establishments
primarily engaged in providing satellite terminal stations and associated facilities connected with one or more terrestrial
systems and capable of transmitting telecommunications to, and receiving telecommunications from, satellite systems.
Establishments providing Internet services or voice over Internet protocol (VoIP) services via client-supplied
telecommunications connections are also included in this industry.
Illustrative Examples:
Dial-up Internet service providers
VoIP service providers, using client-supplied telecommunications connections
Internet service providers using client-supplied telecommunications connections (e.g., dial-up ISPs)
Satellite tracking stations
Cross-References.




Establishments primarily engaged in--
Providing wired broadband Internet services via own operated telecommunications infrastructure--are
classified in Industry 517110, Wired Telecommunications Carriers;
Providing wired VoIP services via own operated telecommunications infrastructure--are classified in Industry
517110, Wired Telecommunications Carriers;
Providing expert advice in the field of information technology or in integrating communication and computer
systems--are classified in Industry 54151, Computer Systems Design and Related Services; and
Providing satellite telecommunications services--are classified in Industry 517410, Satellite
Telecommunications.
40
National Totals by Year
NAICS 5179 - Other Telecommunications
2010
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2011
2012
2013
5,403.00
5,083.00
4,315.00
4,778.00
$ 3,776,248.00 $ 3,817,362.00 $ 4,042,723.00 $ 4,510,356.00
54,144.00
53,904.00
51,335.00
55,612.00
$
69,744.53 $
70,817.79 $
78,751.79 $
81,104.01
10.02
10.60
11.90
11.64
Recent Yr.
Trend
10.73%
11.57%
8.33%
2.99%
-2.17%
Avg. Trend
(BY10)
-12.54%
9.20%
-0.97%
10.25%
13.56%
Top 10 Producer States
NAICS 5179 - Other telecommunications
Establishments
Total U.S.
California
New York
Virginia
New Jersey
Florida
Massachusetts
Texas
Georgia
Illinois
Pennsylvania
Subtotal
% of U.S.
Annual Payroll ($1,000)
4,778 $
Paid Employees
4,510,356
55,612
$
$
$
$
$
$
$
$
$
$
835,633
450,971
340,417
339,321
339,052
338,777
332,848
287,899
111,341
103,161
7,589
4,026
3,355
4,013
4,296
3,196
4,752
3,677
1,728
2,872 $
60.11%
3,479,420
77.14%
771
390
140
186
458
135
334
150
188
120
NR
36,632
65.87%
Top Western Producer States
NAICS 5179 - Other telecommunications
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
4,778 $
5
98
771
109
15
13
18
55
25
73
84
115
15
1,396
29.22%
$
$
$
$
$
$
4,510,356
55,612
3,648
45,596
835,633
53,319
2,676
1,398
56
872
7,589
789
NR
$
$
$
$
$
$
Paid Employees
NR
NR
NR
27,914
3,426
79,440
49,272
95,053
4,302
433
113
1,797
701
1,241
103
1,201,677
26.64%
13,694
24.62%
41
NAICS 5179 - Other Telecommunications
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
0%
100%
100%
100%
0%
100%
100%
100%
100%
0%
0%
0%
100%
100%
100%
0%
0%
0%
0%
100%
100%
Somewhat
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
0%
0%
0%
0%
100%
100%
0%
0%
0%
N=1
Very
Important
100%
0%
0%
0%
100%
0%
0%
0%
0%
100%
0%
0%
0%
0%
0%
0%
0%
0%
100%
0%
0%
Not
Important
0%
0%
0%
100%
0%
0%
0%
0%
0%
100%
100%
0%
0%
Somewhat
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Important
0%
100%
100%
0%
0%
100%
100%
0%
0%
0%
0%
0%
0%
Very
Important
100%
0%
0%
0%
100%
0%
0%
0%
0%
0%
0%
0%
0%
Not
Important
0%
0%
100%
100%
100%
100%
100%
0%
0%
100%
100%
0%
0%
Somewhat
Important
100%
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Important
0%
0%
0%
0%
0%
0%
0%
100%
100%
0%
0%
0%
100%
Very
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
42
Sector 52--Finance and InsuranceT
The Sector as a Whole
The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions
involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions.
Three principal types of activities are identified:
1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments
engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities.
Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds
with respect to maturity, scale, and risk. This activity is known as financial intermediation.
2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees,
insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual
payments. Fees are based on the expected incidence of the insured risk and the expected return on investment.
3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit
programs.
In addition, monetary authorities charged with monetary control are included in this sector.
The subsectors, industry groups, and industries within the NAICS Finance and Insurance sector are defined on the basis of
their unique production processes. As with all industries, the production processes are distinguished by their use of
specialized human resources and specialized physical capital. In addition, the way in which these establishments acquire
and allocate financial capital, their source of funds, and the use of those funds provides a third basis for distinguishing
characteristics of the production process. For instance, the production process in raising funds through deposit-taking is
different from the process of raising funds in bond or money markets. The process of making loans to individuals also
requires different production processes than does the creation of investment pools or the underwriting of securities.
Most of the Finance and Insurance subsectors contain one or more industry groups of (1) intermediaries with similar
patterns of raising and using funds and (2) establishments engaged in activities that facilitate, or are otherwise related to,
that type of financial or insurance intermediation. Industries within this sector are defined in terms of activities for which
a production process can be specified, and many of these activities are not exclusive to a particular type of financial
institution. To deal with the varied activities taking place within existing financial institutions, the approach is to split
these institutions into components performing specialized services. This requires defining the units engaged in providing
those services and developing procedures that allow for their delineation.
These units are the equivalents for finance and insurance of the establishments defined for other industries.
The output of many financial services, as well as the inputs and the processes by which they are combined, cannot be
observed at a single location and can only be defined at a higher level of the organizational structure of the enterprise.
Additionally, a number of independent activities that represent separate and distinct production processes may take
place at a single location belonging to a multi-location financial firm. Activities are more likely to be homogeneous with
respect to production characteristics than are locations, at least in financial services. The classification defines activities
broadly enough that it can be used both by those classifying by location and by those employing a more top-down
approach to the delineation of the establishment.
Establishments engaged in activities that facilitate, or are otherwise related to, the various types of intermediation have
been included in individual subsectors, rather than in a separate subsector dedicated to services alone because these
services are performed by intermediaries, as well as by specialist establishments, the extent to which the activity of the
intermediaries can be separately identified is not clear.
43
The Finance and Insurance sector has been defined to encompass establishments primarily engaged in financial
transactions; that is, transactions involving the creation, liquidation, change in ownership of financial assets; or in
facilitating financial transactions. Financial industries are extensive users of electronic means for facilitating the
verification of financial balances, authorizing transactions, transferring funds to and from transactors' accounts, notifying
banks (or credit card issuers) of the individual transactions, and providing daily summaries. Since these transaction
processing activities are integral to the production of finance and insurance services, establishments that principally
provide a financial transaction processing service are classified to this sector, rather than to the data processing industry
in the Information sector.
Legal entities that hold portfolios of assets on behalf of others are significant and data on them are required for a variety
of purposes. Thus for NAICS, these funds, trusts, and other financial vehicles are the fifth subsector of the Finance and
Insurance sector. These entities earn interest, dividends, and other property income, but have little or no employment
and no revenue from the sale of services. Separate establishments and employees devoted to the management of funds
are classified in Industry Group 5239, Other Financial Investment Activities.
5239 Other Financial Investment ActivitiesT
This industry group comprises establishments primarily engaged in one of the following: (1) acting as principals in buying
or selling financial contracts (except investment bankers, securities dealers, and commodity contracts dealers); (2) acting
as agents (i.e., brokers) (except securities brokerages and commodity contracts brokerages) in buying or selling financial
contracts; or (3) providing other investment services (except securities and commodity exchanges), such as portfolio
management; investment advice; and trust, fiduciary, and custody services.
52391
Miscellaneous Intermediation
See industry description for 523910 below.
523910 Miscellaneous Intermediation
This industry comprises establishments primarily engaged in acting as principals (except investment bankers, securities
dealers, and commodity contracts dealers) in buying or selling of financial contracts generally on a spread basis.
Principals are investors that buy or sell for their own account.
Illustrative Examples:
Investment clubs
Tax liens dealing (i.e., acting as a principal in dealing tax liens to investors)
Mineral royalties or leases dealing (i.e., acting as a principal in dealing royalties or leases to investors)
Venture capital companies
Cross-References.
Establishments primarily engaged in investment banking, securities dealing, securities brokering, commodity contracts
dealing, or commodity contracts brokering are classified in Industry Group 5231, Securities and Commodity Contracts
Intermediation and Brokerage.
52392
Portfolio Management
See industry description for 523920 below.
44
523920 Portfolio Management
This industry comprises establishments primarily engaged in managing the portfolio assets (i.e., funds) of others on a fee
or commission basis. Establishments in this industry have the authority to make investment decisions, and they derive
fees based on the size and/or overall performance of the portfolio.
Illustrative Examples:
Managing trusts
Pension fund managing
Mutual fund managing
Portfolio fund managing
Cross-References.
Establishments primarily engaged in investment banking, securities dealing, securities brokering, commodity contracts
dealing, or commodity contracts brokering are classified in Industry Group 5231, Securities and Commodity Contracts
Intermediation and Brokerage.
52393
Investment Advice
See industry description for 523930 below.
523930 Investment Advice
This industry comprises establishments primarily engaged in providing customized investment advice to clients on a fee
basis, but do not have the authority to execute trades. Primary activities performed by establishments in this industry
are providing financial planning advice and investment counseling to meet the goals and needs of specific clients.
Illustrative Examples:
Financial investment advice services, customized, fees paid by client
Investment advisory services, customized, fees paid by client
Financial planning services, customized, fees paid by client
Cross-References.


Establishments providing investment advice in conjunction with their primary activity, such as portfolio
management, or the sale of stocks, bonds, annuities, and real estate, are classified according to their primary
activity; and
Establishments known as publishers providing generalized investment information to subscribers are classified
in Subsector 511, Publishing Industries (except Internet) or Industry 519130, Internet Publishing and
Broadcasting and Web Search Portals.
45
52399
All Other Financial Investment Activities
This industry comprises establishments primarily engaged in acting as agents or brokers (except securities brokerages
and commodity contracts brokerages) in buying and selling financial contracts providing financial investment activities
(except securities and commodity exchanges, portfolio management, and investment advice).
Illustrative Examples:
Bank trust offices
Fiduciary agencies (except real estate)
Escrow agencies (except real estate)
Stock quotation services
Cross-References.








Establishments primarily engaged in--
Investment banking, securities dealing, securities brokerage, commodity contracts dealing, or commodity
contracts brokering--are classified in Industry Group 5231, Securities and Commodity Contracts Intermediation
and Brokerage;
Acting as principals (except investment bankers, securities dealers, and commodity contracts dealers) in buying
or selling financial contracts (except securities or commodity contracts)--are classified in Industry 52391,
Miscellaneous Intermediation;
Furnishing physical or electronic marketplaces for the purpose of facilitating the buying and selling of securities
and commodities--are classified in Industry 52321, Securities and Commodity Exchanges;
Managing the portfolio assets (i.e., funds) of others--are classified in Industry 52392, Portfolio Management;
Providing customized investment advice--are classified in Industry 52393, Investment Advice;
Awarding grants from trust funds--are classified in Industry 81321, Grantmaking and Giving Services;
Performing real estate escrow or real estate fiduciary activities--are classified in Industry 53139, Other Activities
Related to Real Estate; and
Financial transactions processing, reserve, and clearinghouse activities--are classified in Industry 52232,
Financial Transactions Processing, Reserve, and Clearinghouse Activities.
523991 Trust, Fiduciary, and Custody Activities
This U.S. industry comprises establishments primarily engaged in providing trust, fiduciary, and custody services to
others, as instructed, on a fee or contract basis, such as bank trust offices and escrow agencies (except real estate).
Cross-References.



Establishments primarily engaged in--
Managing the portfolio assets (i.e., funds) of others--are classified in Industry 523920, Portfolio Management;
Performing real estate escrow or real estate fiduciary activities--are classified in Industry 531390, Other
Activities Related to Real Estate; and
Awarding grants from trust funds--are classified in Industry 81321, Grantmaking and Giving Services.
46
523999 Miscellaneous Financial Investment Activities
This U.S. industry comprises establishments primarily engaged in acting as agents and/or brokers (except securities
brokerages and commodity contracts brokerages) in buying or selling financial contracts and those providing financial
investment services (except securities and commodity exchanges; portfolio management; investment advice; and trust,
fiduciary, and custody services) on a fee or commission basis.
Illustrative Examples:
Exchange clearinghouses, commodities or securities
Stock quotation services
Gas lease brokers' offices
Cross-References.







Establishments primarily engaged in--
Investment banking, securities dealing, securities brokering, commodity contracts dealing, or commodity
contracts brokering--are classified in Industry Group 5231, Securities and Commodity Contracts Intermediation
and Brokerage;
Acting as principals (except investment bankers, securities dealers, and commodity contracts dealers) in buying
or selling financial contracts--are classified in Industry 523910, Miscellaneous Intermediation;
Furnishing physical or electronic marketplaces for the purpose of facilitating the buying and selling of securities
and commodities--are classified in Industry 523210, Securities and Commodity Exchanges;
Managing the portfolio assets (i.e., funds) of others--are classified in Industry 523920, Portfolio Management;
Providing customized investment advice--are classified in Industry 523930, Investment Advice;
Providing trust, fiduciary, and custody services to others--are classified in U.S. Industry 523991, Trust, Fiduciary,
and Custody Activities; and
Financial transactions processing, reserve, and clearinghouse activities--are classified in Industry 522320,
Financial Transactions Processing, Reserve, and Clearinghouse Activities.
47
National Totals by Year
NAICS 5239 - Other Financial Investment Activities
2010
2011
2012
2013
Number of Establishments
50,938.00
51,554.00
50,665.00
52,189.00
Annual Payroll ($1000)
$ 73,621,107.00 $ 79,148,573.00 $ 84,821,085.00 $ 86,468,485.00
Employees
434,211.00
450,440.00
458,320.00
464,971.00
Average Payroll Per Employee
$ 169,551.46 $ 175,713.91 $ 185,069.57 $ 185,965.33
Average Employment Per Establishment
8.52
8.74
9.05
8.91
** Totals Exclude NAICS Subcode 52399 All Other Financial Investment Activities.
Recent Yr.
Trend
3.01%
1.94%
1.45%
0.48%
-1.51%
Avg. Trend
(BY10)
1.04%
13.39%
5.46%
7.49%
4.38%
Top 10 Producer States
NAICS 5239 - Other financial investment activities
Establishments
Total U.S.
New York
California
Massachusetts
Illinois
Texas
Pennsylvania
Connecticut
New Jersey
Florida
Maryland
Subtotal
% of U.S.
Annual Payroll ($1,000)
Paid Employees
52,189 $
86,468,485
464,971
4,998 $
7,364 $
1,679 $
2,432 $
4,473 $
1,817 $
1,237 $
1,561 $
3,731 $
897 $
27,799,924
11,576,916
8,003,535
4,981,435
4,504,794
4,393,114
4,156,826
2,704,581
2,076,986
1,940,255
81,526
53,024
44,184
23,826
34,349
39,858
14,114
19,626
18,945
12,599
30,189 $
57.85%
72,138,366
83.43%
342,051
73.56%
Top Western Producer States
NAICS 5239 - Other financial investment activities
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
Paid Employees
52,189 $
86,468,485
464,971
84 $
1,072 $
7,364 $
1,445 $
119 $
210 $
157 $
674 $
202
653 $
565 $
1,109 $
129 $
42,457
518,605
11,576,916
1,080,999
34,061
66,775
33,543
144,805
NR
296,632
293,127
956,100
14,722
481
6,172
53,024
8,225
383
833
525
2,135
NR
3,820
2,840
7,634
217
15,058,742
17.42%
86,289
18.56%
13,783
26.41%
48
NAICS 5239 - Other Financial Investment Activities
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
0%
100%
100%
100%
50%
100%
100%
100%
50%
50%
50%
50%
100%
100%
100%
0%
0%
50%
0%
0%
0%
Somewhat
Important
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
50%
0%
0%
0%
50%
0%
Important
0%
0%
0%
0%
50%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
N=2
Very
Important
0%
0%
0%
0%
0%
0%
0%
0%
50%
50%
50%
50%
0%
0%
0%
0%
100%
50%
100%
0%
50%
Not
Important
0%
0%
0%
0%
0%
0%
0%
50%
0%
50%
50%
0%
50%
Somewhat
Important
50%
50%
50%
50%
0%
0%
0%
0%
0%
0%
0%
50%
0%
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Very
Important
50%
50%
50%
50%
100%
100%
100%
0%
50%
50%
50%
0%
0%
Not
Important
0%
0%
0%
50%
50%
0%
0%
0%
0%
0%
0%
50%
0%
Somewhat
Important
50%
0%
0%
0%
0%
0%
0%
0%
50%
0%
0%
0%
0%
Important
0%
0%
50%
50%
50%
50%
50%
0%
0%
0%
50%
0%
0%
Very
Important
50%
100%
50%
0%
0%
50%
50%
100%
50%
100%
50%
0%
50%
49
Sector 62--Health Care and Social AssistanceT
The Sector as a Whole
The Health Care and Social Assistance sector comprises establishments providing health care and social assistance for
individuals. The sector includes both health care and social assistance because it is sometimes difficult to distinguish
between the boundaries of these two activities. The industries in this sector are arranged on a continuum starting with
those establishments providing medical care exclusively, continuing with those providing health care and social
assistance, and finally finishing with those providing only social assistance. The services provided by establishments in
this sector are delivered by trained professionals. All industries in the sector share this commonality of process, namely,
labor inputs of health practitioners or social workers with the requisite expertise. Many of the industries in the sector are
defined based on the educational degree held by the practitioners included in the industry.
Excluded from this sector are aerobic classes in Subsector 713, Amusement, Gambling, and Recreation Industries and
nonmedical diet and weight reducing centers in Subsector 812, Personal and Laundry Services. Although these can be
viewed as health services, these services are not typically delivered by health practitioners.
6241 Individual and Family ServicesT
62411
Child and Youth ServicesT
See industry description for 624110 below.
624110 Child and Youth Services
This industry comprises establishments primarily engaged in providing nonresidential social assistance services for
children and youth. These establishments provide for the welfare of children in such areas as adoption and foster care,
drug prevention, life skills training, and positive social development.
Illustrative Examples:
Adoption agencies
Youth centers (except recreational only)
Child guidance organizations
Youth self-help organizations
Foster care placement services
Cross-References.




62412
Youth recreational centers are classified in Industry 713940, Fitness and Recreational Sports Centers;
Youth recreational sports teams and leagues are classified in Industry 713990, All Other Amusement and
Recreation Industries;
Scouting organizations are classified in Industry 813410, Civic and Social Organizations; and
Establishments primarily engaged in providing day care services for children are classified in Industry 624410,
Child Day Care Services.
Services for the Elderly and Persons with DisabilitiesT
See industry description for 624120 below.
50
624120 Services for the Elderly and Persons with Disabilities
This industry comprises establishments primarily engaged in providing nonresidential social assistance services to
improve the quality of life for the elderly, persons diagnosed with intellectual and developmental disabilities, or persons
with disabilities. These establishments provide for the welfare of these individuals in such areas as day-care, nonmedical
home care or homemaker services, social activities, group support, and companionship.
Cross-References. Establishments primarily engaged in-


62419
Providing job training for persons diagnosed with intellectual and developmental disabilities or persons with
disabilities--are classified in Industry 624310, Vocational Rehabilitation Services;
Providing residential care for the elderly, persons diagnosed with intellectual and developmental disabilities or
persons with disabilities--are classified in Subsector 623, Nursing and Residential Care Facilities; and
Providing in-home health care services--are classified in Subsector 621, Ambulatory Health Care Services.
Other Individual and Family ServicesT
See industry description for 624190 below.
624190 Other Individual and Family Services
This industry comprises establishments primarily engaged in providing nonresidential individual and family social
assistance services (except those specifically directed toward children, the elderly, persons diagnosed with intellectual
and developmental disabilities, or persons with disabilities).
Illustrative Examples:
Community action services agencies
Marriage counseling services (except by offices of mental health practitioners)
Crisis intervention centers
Multipurpose social services centers
Family social services agencies
Self-help organizations (except for disabled persons, the elderly, persons diagnosed with intellectual and developmental
disabilities)
Family welfare services
Suicide crisis centers
Hotline centers
Telephone counseling services
Cross-References.






Establishments primarily engaged in--
Providing clinical psychological and psychiatric social counseling services--are classified in Industry 621330,
Offices of Mental Health Practitioners (except Physicians);
Providing child and youth social assistance services (except day care)--are classified in Industry 624110, Child
and Youth Services;
Providing child day care services--are classified in Industry 624410, Child Day Care Services;
Providing social assistance services for the elderly, persons diagnosed with intellectual and developmental
disabilities, and persons with disabilities--are classified in Industry 624120, Services for the Elderly and Persons
with Disabilities;
Community action advocacy--are classified in U.S. Industry 813319, Other Social Advocacy Organizations; and
Providing in-home health care services--are classified in Subsector 621, Ambulatory Health Care Services.
51
National Totals by Year
NAICS 6241 - Individual and Family Services
2010
Number of Establishments
Annual Payroll ($1000)
Employees
Average Payroll Per Employee
Average Employment Per Establishment
2011
2012
2013
60,938.00
61,953.00
65,301.00
71,057.00
$ 29,337,227.00 $ 30,185,510.00 $ 31,720,186.00 $ 32,213,587.00
1,332,223.00
1,382,590.00
1,469,876.00
1,486,240.00
$
22,021.26 $
21,832.58 $
21,580.18 $
21,674.55
21.86
22.32
22.51
20.92
Recent Yr.
Trend
8.81%
1.56%
1.11%
0.44%
-7.08%
Avg. Trend
(BY10)
8.48%
6.94%
8.56%
-1.48%
0.24%
Top 10 Producer States
NAICS 6241 - Individual and family services
Establishments
Total U.S.
California
New York
Pennsylvania
Texas
Massachusetts
Illinois
Florida
Ohio
New Jersey
Minnesota
Subtotal
% of U.S.
Annual Payroll ($1,000)
71,057 $
Paid Employees
32,213,587
1,486,240
$
$
$
$
$
$
$
$
$
$
3,918,432
3,813,645
1,899,884
1,744,302
1,607,595
1,399,989
1,161,508
1,065,291
862,037
820,960
152,834
149,675
85,849
102,104
73,780
62,967
44,809
51,917
34,265
43,852
31,304 $
44.05%
18,293,643
56.79%
802,052
53.97%
7,530
4,360
3,185
3,974
1,643
2,319
2,995
2,249
1,438
1,611
Top Western Producer States
NAICS 6241 - Individual and family services
Establishments
Total U.S.
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
Subtotal
% of U.S.
Annual Payroll ($1,000)
71,057 $
233
1,115
7,530
1,266
271
484
380
413
585
983
506
1,544
229
15,539
21.87%
$
$
$
$
$
$
$
$
$
$
$
$
$
Paid Employees
32,213,587
1,486,240
229,764
641,053
3,918,432
414,378
147,769
143,444
99,205
160,466
316,667
304,118
118,786
755,738
62,965
8,198
32,068
152,834
20,743
7,544
8,209
5,902
8,070
19,031
14,508
5,675
32,245
2,683
7,312,785
22.70%
317,710
21.38%
52
NAICS 6241 - Individual and family services
Physical Infrastructure
Access within 30 minutes to an interstate highway
Access within 30 minutes to package freight services
Immediate access to a railhead or rail spur
Access within 30 minutes to rail freight
Access within 30 minutes to passenger air services
Access within 30 minutes to port or harbor facilities
Access within 30 minutes to an international trade port
Access to natural gas pipeline
Access within one day, at a reasonable cost, to the supplies you need
Access within one day, at a reasonable cost, to your customers
Access to 3-phase electric power
Access to fiber optic lines
Availability of high-volume water supply
Availability of high-volume wastewater disposal
Availability of solid waste disposal
Availability of cell phone service
Availability of local public transportation
Possibility for future expansion at site
Availability of high-speed internet
Access to ponds and streams
Availability of satellite transmission
Economic Infrastructure
Availability of managerial workforce
Availability of skilled workforce
Availability of technical workforce
Availability of unskilled workforce
Favorable local labor costs
Favorable worker’s compensation tax rate
Favorable local business tax rates
Favorable state and local government incentives
Availability of union labor
Availability of specialized job training programs
Availability of long and short term financing
Existence of a business/trade association
Lenient environmental regulations
Quality of Life
Low crime rate
Availability of affordable housing
Clean air and water
High quality natural ecosystem
Outdoor recreation opportunities
Social and cultural opportunities
Retail shopping opportunities
Quality educational system (K-12)
Access within 30 minutes to college or university
Availability of quality healthcare
Availability of public safety services (e.g. police, fire station)
Climate
Ease of attracting skilled workers
Not
Important
33%
33%
67%
67%
67%
100%
67%
67%
0%
33%
33%
0%
33%
33%
0%
0%
0%
67%
0%
0%
0%
Somewhat
Important
33%
33%
0%
0%
0%
0%
0%
0%
67%
33%
0%
67%
33%
33%
33%
0%
0%
0%
33%
0%
0%
Important
0%
0%
0%
0%
0%
0%
0%
33%
0%
0%
0%
33%
0%
0%
0%
0%
33%
0%
0%
0%
0%
N=3
Very
Important
33%
33%
33%
33%
33%
0%
0%
0%
33%
33%
67%
0%
33%
33%
67%
67%
67%
33%
67%
33%
0%
Not
Important
33%
0%
0%
67%
33%
33%
0%
33%
0%
0%
0%
0%
67%
Somewhat
Important
33%
33%
100%
33%
33%
33%
67%
33%
33%
67%
67%
33%
0%
Important
0%
0%
0%
0%
0%
0%
33%
0%
0%
0%
0%
0%
0%
Very
Important
33%
67%
0%
0%
33%
33%
0%
0%
33%
33%
33%
33%
0%
Not
Important
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Somewhat
Important
0%
0%
0%
0%
0%
0%
67%
0%
33%
0%
0%
0%
0%
Important
0%
33%
0%
33%
33%
67%
33%
67%
67%
0%
33%
67%
33%
Very
Important
100%
67%
100%
67%
67%
33%
0%
33%
0%
100%
67%
0%
0%
53
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