EDiS Institute: Predicting Delaware’s Economic Future

June 9, 2016

By: Jon Roberts, principal, TIP Strategies

Jon Roberts speaks at the EDiS Institute - image courtesy Delaware Business Now

Image credit: Jon Roberts speaks at the 2016 EDiS Institute courtesy Delaware Business Now

On April 21st, TIP principal Jon Roberts and urban studies theorist Richard Florida gave complementary presentations at the 2016 EDiS Institute, a biennial economic and industry update event held by Wilmington-based construction and development firm, EDiS. The Institute is a half-day forum which examines important industry topics, including increasing communication with vocational education institutions and encouraging high school students to choose construction-related careers. Previous presenters have included chief economist of Moody’s Analytics, Mark Zandi; architect Andres Duany; Robert F. Kennedy, Jr.; and former head of the Congress for the New Urbanism, John Norquist.

The Institute’s speakers offer provocative views on future trends and their potential impacts on Delaware and the nation. These forward-thinking discussions have yielded striking results, including an accurate prediction of the impending recession in 2007. Carrying the tradition forward, Jon and Richard examined the future of manufacturing employment in 2016. This topic is particularly relevant as the State of Delaware continues its transition away from traditional manufacturing companies. The imminent merger between DuPont and Dow Chemical make this an even more pressing concern. Jon’s presentation provided insight on Delaware’s current competitive position and suggested creative solutions for addressing the state’s economic challenges. Richard’s presentation focused on building an entrepreneurial economy for Delaware.

Jon’s participation in the Institute coincides with TIP’s work in the state. In the fall of 2015, TIP Strategies was commissioned by the Delaware Business Roundtable to prepare a statewide strategy for economic growth and prosperity. The soon-to-be-finalized Delaware Growth Agenda offers a set of long-term strategic recommendations to guide the state’s economic development program over the next five years.

MassDevelopment: Blueprint for Economic Diversification

June 4, 2016

By: Alex Cooke, senior consultant, TIP Strategies

Salem Muster

Image credit: Salem Muster [Image 1 of 2], by 1SG Donald Veitch via DVIDS (Public Domain)

TIP recently completed an engagement for MassDevelopment, the Commonwealth of Massachusetts’s economic development and finance agency, to develop a Defense Industry Economic Diversification Study and Strategic Blueprint. MassDevelopment applied for and received a grant from the Department of Defense, Office of Economic Adjustment (OEA) to create the blueprint, which is designed to mitigate the potential impact of federal defense budget cuts and sequestration on the state and regional economy. Supporting TIP on this project was a consulting team consisting of UMass Donahue Institute’s Economic and Public Policy Research group, Chmura Economics & Analytics, and Business Development Advisors.

The planning process included stakeholder meetings with representatives of businesses, industry groups, agencies, and institutions throughout Massachusetts to gather ideas and expertise to inform the plan. Through these meetings, a number of specific initiatives were identified to assist defense-dependent businesses in diversifying and commercializing their products/technologies, providing skills training for employees, and improving their manufacturing processes and products.

To secure needed funding to launch the pilot initiatives and determine their effectiveness, MassDevelopment submitted implementation grant award requests to OEA before the blueprint was even completed. In all, MassDevelopment received over $3.6 million from OEA to fund five initiatives. These initiatives include assisting small manufacturers and R&D firms to commercialize their products and technologies and diversify their business portfolios, providing consulting services and technical assistance to small manufacturers, and helping defense-related firms export their products/services. The successful implementation of these and other initiatives proposed in the blueprint will serve to strengthen the Commonwealth’s defense sector and enable it to seize emerging opportunities, both commercial and defense related.

Recap of Inner City Economic Summit in Detroit

September 29, 2015

By: John Karras, Consultant, TIP Strategies

Photo credit: Detroit Skyline (HDR) by Bryan Debus via Flickr (CC BY-ND 2.0)

Last month (Sept. 14-16, 2015), I attended the Inner City Economic Summit in Detroit with Jeff Marcell, Senior Partner from our firm’s Seattle office. We spent the first part of the week in Detroit, engaging with leaders from other urban markets and national experts on the subject of inner city economies. Following the conference, we joined our clients at the East Michigan Council of Governments in Saginaw to share what we learned and to continue our work helping evaluate options for establishing a center of excellence. The work is part of the implementation phase of our prior engagement which resulted in a plan to boost economic development in the 8-county region centered on Saginaw.

The Inner City Economic Summit was created by the Initiative for a Competitive Inner City (ICIC), the Harvard-based think tank established by Michael Porter, and was sponsored by three other organizations: the W.E. Upjohn Institute for Employment Research, the Federal Reserve Bank of Chicago, and the Economic Development Quarterly from Sage Publications. For those of you not familiar with the ICIC, it’s worth getting to know their organization and their work. My favorite aspect of the ICIC is their incredibly useful “library of best practices in urban economic development.” The summit was hosted at the Detroit Marriott Renaissance Center (the same complex where GM is headquartered) on Day 1 and at the Detroit branch of the Chicago Federal Reserve on Day 2. During both days, we heard presentations and panel discussions from national experts on urban economic development, including a keynote from Michael Porter. We learned first-hand about the unprecedented private sector investments centered on downtown and Midtown Detroit, led primarily by Rock Ventures. We also participated in a three-hour bus tour through several revitalized and distressed areas in Detroit. And at the end of the conference, we took our own “self-guided” tour of the most challenged neighborhoods before heading up to Saginaw for the second part of our Michigan visit.

The Summit was filled with high-quality presentations, panel discussions, and conversations with leaders from urban markets across the US. But three presentations rose to the top as the most insightful and relevant to the challenges and opportunities facing urban economic development:

1. Michael Porter, the famed Harvard economist and corporate strategy expert. Porter revisited 20 years of groundbreaking research and experience on inner city economies and their competitive advantages, reflecting on lessons learned and providing perspective on what’s next for the field. [Read more]

2. Matthew Cullen, President and CEO of Rock Ventures. Cullen provided an in-depth perspective on how private sector investment has shaped Detroit’s infrastructure, economy, and culture in recent years. [Read more]

3. Martin Lavelle, Business Economist with the Detroit branch of the Chicago Federal Reserve Bank. Lavelle shared an overview of Detroit’s current economic situation and offered perspectives on where it is headed, including some of the remaining barriers and potential pitfalls facing the city’s economy. [Read more]

Throughout the summit, an underlying theme emerged during the discussions about Detroit’s economic future:
Does urban economic development need to be big or small?

I would argue that, in order for cities to have the greatest shot at success, their economic development programs must include a combination of big and small initiatives. Detroit is focusing on both ends of the spectrum, which is a good thing, given the serious challenges facing the city’s economic development. I’ll share with you the highlights from the summit, including what Detroit is doing to catalyze economic growth. But first, let me share a brief summary of how the city arrived at its current state of affairs. There are an infinite number of things that can be said about Detroit’s economic history (people have written lengthy essays and books about it), but I’ll be as short and to-the-point as possible. Here goes…

Detroit, Michigan played a leading role in the development of the US economy during the 20th century. It was the birthplace of modern manufacturing and large-scale industrial production. Henry Ford’s Model T and the innovative assembly line that made it possible transformed the global economy in ways that no one could have anticipated. Detroit was arguably the most important city in the world from 1900 to 1950, from an economic development perspective. The city was, and still is, the global epicenter of the automotive industry. Only a handful of US cities dominate a single industry in the same way (New York with finance, Houston with energy, and Los Angeles with film/entertainment). Detroit also occupies an important place in our nation’s cultural identity, thanks in large part to Motown.

But despite its many accolades, Detroit is better known today for its epic decline. Even though its business leaders and companies were responsible for revolutionizing the world’s economy, the city has become a universal symbol of economic failure. Detroit is the only city in US history to have reached the 1,000,000 mark in population and subsequently drop down below that mark. Even worse, Detroit came close to the 2,000,000 mark around 1950 (estimated at 1.85 million in 1950) before its population decline. Detroit is by no means the only US city where such a dramatic economic decline took place…but it is the by far the largest and most well-known. In 2010, the city’s population stood at 713,777. In 2013, the city entered the largest municipal bankruptcy in US history. The latest 2014 estimates for Detroit show a population of 680,250, less than 37 percent of its 1950 peak. And the city’s decline has taken place against a backdrop of racial inequities. With a city population that is 83 percent black and 11 percent white, compared with a metro area population that is roughly 70 percent white and 23 percent black, the city offers a glaring example of racial segregation. Interestingly, the city’s decline over the last several decades has played out within the context of a relatively stable metro area population. The Detroit metro area was home to 4,490,902 residents in 1970, compared with 4,296,611 in 2014, a decline of only four percent (compared with a 45 percent decline in the city’s population during the same period).

Although there are stark challenges facing Detroit’s economic future, there are some major signs of life in the city. Private sector investment, business expansions, and job growth are beginning to take place in portions of the city, especially in downtown and Midtown. Positive things are happening in Detroit on a level not seen in more than half a century. It’s too early to gauge whether these recent changes will turn the tide, but there is finally a reason to be optimistic about Detroit’s future. At the very least, it is an unprecedented experiment in urban economic development that will provide the rest of us with case studies and lessons learned for years to come. Hopefully those future lessons will be referred to as “best practices” instead of cautionary tales. Time will tell…

So, back to our question of whether urban economic development needs to be big or small: What does a struggling urban economy need to get back on track? What does Detroit need to change the course of its economy- many small things or a few big things?

Detroit has an aversion to big things. For nearly a century, their economy has been defined by big auto companies, big unions, and big government. All three of these big things have dramatically (and permanently) decreased. So it is understandable that many residents are placing their hopes of recovery in small things (e.g., block-by-block revitalization of Midtown, expansion of the Eastern Market as a local food hub, a new protected bike lane on Jefferson Avenue). On top of that, the city’s business and community leaders are equally concerned with pursuing larger, more transformative, strategies (e.g., the massive private sector investments from Dan Gilbert, a new streetcar line, the innovation/acceleration efforts lead by TechTown Detroit).

Below are three additional ideas for Detroit to consider as part of its “all of the above” approach to transform the local economy, each of which could potentially include a combination of big and small things:

1. R&D and higher education.
2. International development.
3. Aggressive business recruitment and expansion.

R&D and higher education. When we completed the Regional Prosperity Strategy last year for the 8-county region in East Central Michigan, one of the most surprising findings from our data analysis was how concentrated the academic R&D investments in Michigan are in the state’s top two schools. The University of Michigan in Ann Arbor is the nation’s number two institution ranked by academic R&D spending (nearly $1.4 billion in FY 2013). The state’s other top school and research powerhouse, Michigan State University in East Lansing, spent $516 million on R&D in FY 2013.Together, those two institutions account for more than 83 percent of Michigan’s total academic R&D expenditures. While this is greatly beneficial for those institutions, it’s a huge missed opportunity for the rest of the state. In fact, Michigan has a higher percentage of academic R&D investments in its top two universities than the investments in the top two universities in the other top 10 states in the US ranked by total academic R&D expenditures. This is especially frustrating for the Detroit metro area which accounts for nearly half of the state’s population but less than 10 percent of the state’s academic R&D spending. Wayne State University in Midtown Detroit is the city’s only significant research institution, with $224 million in academic R&D investments in FY 2013. Wayne State is certainly playing a critical role in the revitalization of Midtown, thanks in large part to its 27,000 students and its nearly 6,000 employees, but it is still a far cry from being one of the world’s preeminent research universities. The link between higher education and economic development is well-established. Besides the most prevalent examples (Stanford University in Silicon Valley, Harvard and MIT in Boston, and the University of Texas in Austin), dozens of communities across the US can trace their economic development success to the role of higher education. Which is why it’s no coincidence that Ann Arbor, just 40 miles from Detroit, is the best performing metro area in the state (along with Grand Rapids), having surpassed its pre-recession employment levels by 5 percent as of July 2015.

International development. With Windsor, Ontario right across the river from downtown, Detroit is part of the largest integrated, bi-national metropolitan economy in North America. Many people do not realize that the automotive manufacturing cluster centered on metro Detroit is actually a highly connected economic region that extends well into Canada. Given the city’s strong existing international ties, the multitude of nonstop international flights at Detroit-Wayne County International Airport, and the city’s global business connections, international business development represents a significant opportunity for Detroit.

Aggressive business recruitment and expansion. There is an untapped potential to bring in large private investment and business expansions from outside of Michigan into Detroit. An aggressive business recruitment program could play a large role in Detroit’s resurgence, while the city has a global brand and a reputation as an up-and-coming place for Millenials. The relocation of firms from Detroit’s suburbs into the urban core (e.g., Quicken Loans, Little Caesars) is wonderful for downtown, but the real opportunity lies in attracting new businesses from outside of the state. This won’t be easy, but business recruitment will be critical to the long-term growth of Detroit’s economy.

The beginning of something new? Or the beginning of the end?

This post could leave off on a positive note, citing once again the incredible transformation of downtown/Midtown Detroit. Or it could end on a less optimistic note, acknowledging the realities of a still-declining city that has yet to turn the tide. I’m going to do both.

Google Maps has a really cool new feature. You’ve probably used the Street View tool before, but you may not be aware that you can now use Street View to see the same photo perspective from multiple points in time. This is especially useful for cities that are experiencing rapid change, whether the change is positive or negative.

In Detroit’s case, I will leave you with two sequences of photos from Google’s StreetView. The first shows a house in the city’s near-East side neighborhood of McDougall-Hunt in 2009, 2011, and 2013. The second sequence shows Campus Martius Park in downtown Detroit in 2008, 2011, and 2015.

I’ll let the images speak for themselves.

June 2009

June 2011

September 2013

October 2008

June 2011

July 2015

Highlighted Inner City Economic Summit Presenter Summaries in Detail:

Michael Porter’s presentation was a comprehensive overview of the challenges and opportunities for inner cities, based on multiple decades of research and observation. It was fascinating, not only because Porter is a dynamic and incredibly knowledgeable speaker, but because he did a great job of tying the challenges facing inner city economic development to the realities in the larger national economy. You can download Porter’s presentation here [PDF]. You can also see a re-cap of his talk on YouTube. Porter began his talk by describing the structural challenges facing the US economy, concluding that “strengthening America’s inner cities has become more challenging due to the overall state of the US economy.” He contrasted this with the relatively strong national economy in 1990, back when ICIC was first getting off the ground. ICIC defines an inner city as “contiguous census tracts within central cities that are economically distressed”. Their definition of distressed is based on the following two criteria: 1) “a poverty rate of 20 percent or higher, excluding students” or; 2) “a poverty rate, excluding students, of 1.5x or more than the MSA” and at least one of two other criteria: “median household income 50 percent or less than the MSA” or “unemployment rate 1.5x or more than the MSA”. One of the more interesting points in Porter’s presentation was that inner city economic success is not closely correlated with overall metropolitan economic success. At first glance, this seems to go against commonly held beliefs that a strong inner city is needed for a strong metro economy. But Porter was also keen on pointing out that the central cities (not including the portions classified as inner city according to ICIC’s definition) accounted for all of the net job growth in the US from 2003 to 2013. He also shared several key findings about how to stimulate economic development in inner city economies, including: the importance of clusters as drivers of growth, connecting inner cities to regional clusters, and capitalizing on anchor institutions present in inner cities. While Porter’s talk touched on many of the challenges and opportunities facing inner city economic development, he did not cover one key area, real estate. Urban areas have many barriers impacting real estate development that don’t exist in suburban and exurban areas. Fortunately, the other keynote presentation from Matthew Cullen did cover real estate.

Matthew Cullen, head of Rock Ventures, also gave a dynamic keynote presentation. Rock Ventures is the umbrella entity created to manage Quicken Loans founder Dan Gilbert’s portfolio of 110 companies, investments, and real estate development projects in Detroit primarily, and to a lesser extent, in Cleveland. Cullen’s talk showcased the major transformations in downtown and Midtown Detroit, largely spearheaded by Rock Ventures and other private sector leaders (e.g., the Illitch family, which is bringing its Little Caesars corporate HQ from the suburbs into Midtown and is also building a new arena for the Red Wings hockey team as part of a new mixed-use district). It’s funny…at TIP we sometimes joke about the ”fairy godfather/godmother” strategy for downtown revitalization. As the story often goes, “all you have to do is find a rich/famous person with an affinity for your community, and then convince them to funnel millions of dollars into the renovation of historic buildings to create a bunch of cool new offices, restaurants, and loft apartments.” Well, downtown Detroit may be the best example ever of this strategy, with Dan Gilbert serving as Chief Executive Fairy Godfather and Matthew Cullen serving as Chief Operating Fairy Godfather. You can see Cullen’s presentation for yourself (parts 1 through 5 on YouTube), but I’ll give you the highlights. Since 2010, Rock Ventures has been responsible for the creation of 13,000 jobs, nearly $2 billion in investment, and the renovation/redevelopment of 13 million square feet of building space (office, residential, retail). They are also leading an effort to create a new $140 million streetcar line (with a remarkable $100 million coming from private and philanthropic investors, and only $40 million in public funds) that will connect downtown to Midtown after construction is completed in 2017. Rock Ventures has also invested in a downtown broadband internet infrastructure known as RocketFiber, which is purported to be 100x faster than Comcast. It’s pretty obvious that Gilbert’s efforts are starting to pay off in a major way. All it takes is a 10-minute walk through downtown Detroit, and you feel like you’re in an emerging hipster haven. Take another 20 minute walk north to Midtown, and you’ll find growing clusters of creative businesses like Shinola among the large anchor institutions of Wayne State University, the Detroit Medical Center, and the Detroit Institute of Arts. Lastly, Rock Ventures is keenly aware that bringing jobs and investment into the urban core will not create a vibrant district without a thoughtful approach toward improving the urban design, or the “connective tissue” as Cullen described it. Of course, it’s worth keeping in mind that, no matter how inspiring the work of Rock Ventures and other private sector leaders, the downtown/Midtown area only represents a small portion of Detroit, roughly 6 to 8 percent of the city’s land area, depending on how you define it. And when you consider the fact that the city’s urban core has seen a large amount growth (investment, job growth, and residential growth) while the city as a whole is still losing more than 8,000 residents a year (from 2010 to 2014), it is clear that the rest of the city is still declining rapidly. It will be interesting to watch the evolution of Detroit’s downtown/Midtown urban renaissance over the coming years. Hopefully, the success of the city’s urban core can translate into broader economic development for the rest of the city.

Martin Lavelle, an economist with the Detroit branch of the Chicago Federal Reserve Bank, gave a brief talk as part of the introductory set of presentations. (You can find his presentation at the tail end of this document.) I really appreciated Lavelle’s comments because he cut through the hype and gave a realistic assessment of where Detroit is and where it might be headed from an economic development perspective. Lavelle started by acknowledging the major progress in the city: improving city services, ongoing investment (largely in the downtown/Midtown area), a growing neighborhood focus, and a greater willingness among civic leaders to discuss the tough issues. Lavelle then went on to discuss some of the significant structural impediments that act as barriers to economic development in the city, most notably the lack of a premier research university and an inadequate public transportation system. He also highlighted several potential pitfalls that could send the city back into bankruptcy including: tax revenue declines, fiscal challenges facing other regional entities (e.g., Detroit Public Schools, Wayne County), and a potential return of corrupt elected leadership—a long-time hallmark of Detroit’s government. Finally, Lavelle touched on some of the key issues the city must tackle in order to become a prosperous community: reform of Detroit Public Schools, addressing the city’s many unique land use challenges, and regional cooperation.

A Practitioner’s Perspective On Understanding And Developing Industry Clusters

August 14, 2014

By: Dave Olson
Via: Inforum

Photo credit: Nick Wagner / The Forum

MOORHEAD – A workforce study released Thursday confirms what many employers have been painfully aware of for some time: There aren’t enough people living in the Fargo-Moorhead area to fill available jobs.

But the study went one step further and stated that over the next five years, at least 30,000 new job openings are expected, with close to half of those being low-paying positions that make it difficult for workers to cover the cost of child care, transportation and housing.

“If we don’t address this problem, this issue is going to get worse and worse,” said Jim Gartin, president of the Greater Fargo Moorhead Economic Development Corp., speaking to an audience of community leaders who gathered in Moorhead to hear highlights of the workforce study.

The 100-page report was prepared by TIP Strategies, a consulting firm based in Austin, Texas.

Tom Stellman, president and CEO of TIP, told the group that the Fargo-Moorhead area is at a tipping point. The community is small enough that individuals feel they can still make a difference, but large enough to be a competitor nationally when it comes to attracting a qualified workforce.

He said the challenge becomes how to convince people to live here when many areas around the country are also striving to attract and retain workers.

“This is a national issue,” he said.

One thing the study highlighted is a pay gap when median wages in Fargo-Moorhead are compared to national numbers.

Local numbers tend to lag the national figures, particularly at the high end of the wage scale, where the difference between what companies pay here and what they pay elsewhere is greater than 20 percent, Stellman said.

Charley Johnson, president and CEO of the Fargo-Moorhead Convention and Visitors Bureau, said local employers have started raising pay, but he said the pace may be too slow to make an impact when people are deciding where they want to live and work.

“This (pay gap) is a huge part of it,” he said.

Some other findings of the report:

• The number of jobs in the Fargo-Moorhead area grew by nearly 30,000 between 2004 and 2014, a 24 percent increase.
• That compares to a 5 percent increase in the total number of jobs in the U.S. for the same period.
• There are now about 6,700 job listings posted online in the Fargo-Moorhead area.

Stellman said one approach to attracting more people to the area would be to embrace one of its perceived weaknesses, its northern climate.

“Embrace the cold,” Stellman said, adding that organizing something along the lines of a communitywide winter carnival should be made a priority.

He said current efforts that promote the Fargo area as a hotbed of innovation and entrepreneurial drive should be supported and he suggested a contest could be organized that invites the public to offer ideas on how the worker shortage can be turned around.

Gartin agreed community input will be valuable in finding solutions and he challenged those attending Thursday’s gathering to give of their time and energy.

“This is just the beginning and we need your help,” he said.

Office And Administrative Support Occupations Make Up Nearly 16 Percent Of U.S. Employment, May 2013

April 11, 2014

Via: U.S. Bureau of Labor Statistics

In May 2013, office and administrative support was the largest occupational group, making up nearly 16 percent of total U.S. employment. The next largest groups were sales and related occupations and food preparation and serving related occupations, which made up about 11 and 9 percent, respectively. Seven of the 10 largest occupations were in one of these three groups.

Click here for interactive version
The smallest occupational groups included legal occupations and life, physical, and social science occupations, each making up less than 1 percent of total employment in May 2013.
The highest-paying occupational groups were management, legal, computer and mathematical, and architecture and engineering occupations. Most detailed occupations in these groups were also high paying. For example, all 19 computer and mathematical occupations had average wages above the U.S. all-occupations mean of $46,440, ranging from $50,450 for computer user support specialists to $109,260 for computer and information research scientists.
The lowest-paying occupational groups were food preparation and serving related; farming, fishing, and forestry; personal care and service; building and grounds cleaning and maintenance; and healthcare support occupations. Annual mean wages for these groups ranged from $21,580 for food preparation and serving related occupations to $28,300 for healthcare support occupations. With few exceptions, the detailed occupations in these groups had below-average wages. For example, occupational therapy assistants and physical therapy assistants were the only healthcare support occupations with mean wages above the U.S. all-occupations mean.
Among 665,850 employed persons in the District of Columbia in May 2013, there were about 3,370 political scientists—accounting for 50.6 out of every 10,000 jobs in the District of Columbia. In all of the United States there were 5,570 political scientists employed out of a total of 132,588,810 employed people—meaning less than 1 (0.42) out of every 10,000 jobs in America were political scientists. The ratio that compares the concentration of employment in a defined area (in this case, the District of Columbia) to that of a larger area (the United States) is referred to by the Bureau of Labor Statistics as the “location quotient.”

Click here for interactive version
The location quotient of political scientists in the District of Columbia is 50.6 divided by 0.42 (the location quotient of political scientists in the United States), which equals about 120.5—indicating there are about 120.5 times as many political scientists per 10,000 total employed people in the District of Columbia as in the United States as a whole.
These data are from the Occupational Employment Statistics program. To learn more, see, “Occupational Employment and Wages — May 2013” (HTML) (PDF), news release USDL-14-0528.

Interactive Map Detailing Growth Of Top Industries In 100 Most Populous U.S. Metros

February 13, 2014

By: Rob Sentz

Click here to see the interactive map
Which industries are the top drivers of job growth for each of the 100 largest U.S. markets? Which metros have added the most jobs post-recession? Which metros have the biggest concentration of jobs in healthcare, technology, construction, manufacturing, energy and other top fields?
The U.S. economy is composed of hundreds of industries that are spread across thousands of counties, and the interactions of these industries are huge engines for job formation and economic prosperity.
CareerBuilder and EMSI have teamed up to create a powerful interactive map that applies big data to visualize the enormous size, scope and diversity of the U.S. economy. The map uses EMSI’s rich labor market database of over 90 national and state employment resources to identify key industries that are driving job growth for the 100 most populous U.S. metros. 1
Viewers can click on each metro and the map reveals 10 of the most important detailed industries for that location, based on number of 2013 jobs, job growth since 2010 and job concentration. From well-known economic forces (e.g., finance in New York City and aerospace products and parts manufacturing in Seattle) to emerging sectors (e.g., motor vehicle body and trailer manufacturing in Nashville and data processing and hosting in San Antonio), the map provides comprehensive – and often surprising – insights.
Viewers can also click on an industry menu to see a list of metros where a specific industry is a major economic driver.
“Since 2010, the national workforce has grown four percent, but more than 40 large metros have eclipsed the national growth rate,” said Matt Ferguson, CEO of CareerBuilder. “These are metros with a strong concentration of computer systems design, software publishing and data processing and hosting firms. These are metros benefiting from the resurgence in U.S. manufacturing, and the nation’s need to find new energy sources and expand healthcare services.”
In a separate study of the same 100 metros, CareerBuilder and EMSI discovered which metros have added the most jobs per capita post-recession:


1. Salt Lake City, UT – added over 62,000 jobs since 2010, up 9% (534 new jobs per 10,000 people)
Originally a farming community, Salt Lake City has grown into an industrial center for the state. Industries that have experienced strong job growth in this metro include electronic shopping and mail order houses (up 43%), software publishing (up 28%), specialized freight trucking (up 23%) and credit intermediation (up 22%).
2. Grand Rapids-Wyoming, MI – added over 39,000 jobs since 2010, up 10% (513 new jobs per 10,000 people)

This manufacturing heavyweight has benefited from the rebound of production jobs after the recession. The metro saw job increases in various manufacturing segments such as plastics product (up 35%), motor vehicle parts (up 33%), metalworking machinery (up 30%) and office furniture (up 12%). Hospitals also accounted for an upswing in jobs (up 16%).
3. San Jose-Sunnyvale-Santa Clara, CA – added over 91,000 jobs since 2010, up 10% (498 new jobs per 10,000 people)
It’s no surprise that software publishing (up 30%), computer systems design (up 19%), data processing and hosting (up 16%), computer manufacturing (up 12%) and scientific research (up 9%) are big contributors to employment for this Silicon Valley metro.
4. Austin-Round Rock- San Marcos, TX – added over 90,000 jobs since 2010, up 11% (488 new jobs per 10,000 people)

Austin has made a name for itself as a technology and business hub, fueling job growth in management, scientific and consulting services (up 35%), computer systems design (up 35%), data processing and hosting (up 35%) and semiconductor manufacturing (up 17%).
5. Houston-Sugar Land-Baytown, TX – added over 281,000 jobs since 2010, up 10% (451 new jobs per 10,000 people)
Energy-rich Houston continues to see job growth in utility system construction (specifically, oil and gas pipeline, up 45%), mining support (up 38%), metal and mineral (except petroleum) wholesalers (up 31%), oil and gas extraction (up 25%), and architectural and engineering services (21%).
6. Nashville-Davidson-Murfreesboro-Franklin, TN – added over 71,000 jobs since 2010, up 9% (432 new jobs per 10,000 people)
A popular music center, Nashville saw a 25% increase in jobs for independent artists, writers and performers. The metro also saw notable jumps in jobs for motor vehicle manufacturing (up 61%), accounting services (up 37%), general freight trucking (up 17%) and specialty hospitals (up 15%).
7. Provo-Orem, UT – added over 24,000 jobs since 2010, up 12% (427 new jobs per 10,000 people)
The mid-sized Utah metro is well concentrated in a number of fast-growing tech industries: software publishing (up 51%), computer systems design (up 30%) and semiconductor manufacturing (up 14%).
8. Dallas-Fort Worth-Arlington, TX – added over 267,000 jobs since 2010, up 9% (400 new jobs per 10,000 people)
Part of the Silicon Prairie, Dallas saw a boost in jobs in computer systems design (up 32%) and communications equipment manufacturing (up 18%). Other key growth areas include oil and gas extraction (up 27%), office administration (up 22%) and credit intermediation (up 13%).
9. Bakersfield-Delano, CA – added 33,000 jobs since 2010, up 11% (394 new jobs per 10,000 people)

Growth in this metro has been fueled by agriculture-related industries such as crop production (up 14%) and dairy product manufacturing (up 11%). Bakersfield has also benefited from an upswing in utility system construction (specifically, oil and gas pipeline), an industry that has more than doubled in employment since 2010 and is nearly seven times as concentrated in Bakersfield than the national average.
10. Charlotte-Gastonia-Rock Hill, NC-SC – added over 70,000 jobs, up 8% (381 new jobs per 10,000 people)

In addition to spectator sports (up 37%), this metro also experienced growth in tech-related industries such as telecommunication carriers (up 31%), management, scientific and consulting services (up 22%), scheduled air transportation (up 17%) and data processing and hosting (up 14%).
Meanwhile, the poorest-performing labor markets are in Scranton–Wilkes-Barre and Albuquerque, both of which have roughly the same number of workers today as they did in 2010. Ten other metros, headlined by Providence, Dayton, and Syracuse, have only grown 1 percent.
The map also reveals pockets of the U.S. where key industries are clustered among the largest cities:

Motor vehicles parts manufacturing has traditionally been focused in Rust Belt cities, but Southern metros such as Birmingham, Louisville and Nashville are emerging in this sector.
Oil and gas extraction is a major driver of high-wage job growth in Texas, Oklahoma and the surrounding region. It’s also becoming a driver of job growth in Denver.
General freight trucking is concentrated in the Mid-Atlantic and Southeast (Nashville, Memphis, Jacksonville, etc.), where transportation routes are plentiful and huge population centers are in close range.
Software publishing has a big presence in Silicon Valley, but is also growing in major markets such as Seattle, Boston, Atlanta and Denver.
General medical and surgical hospitals are driving jobs in Columbus, Chicago, Baltimore, Boston, Rochester and St. Louis, among others.
Highway, street and bridge construction has seen an uptick in jobs in Baton Rouge, Oklahoma City and San Antonio as cities rebuild after natural disasters and address other public concerns.

CareerBuilder and EMSI are national leaders in providing labor market data and tools to dig deeper and better understand national and local economies.
1 EMSI data is collected from more than 90 federal and state sources, such as the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, and state labor departments. EMSI removes suppressions often found in publicly available data and includes proprietors, creating a complete picture of the workforce.
About EMSI
Economic Modeling Specialists Intl., a CareerBuilder company, turns labor market data into useful information that helps organizations understand the connection between economies, people, and work. Using sound economic principles and good data, we build user-friendly services that help educational institutions, workforce planners, and regional developers build a better workforce and improve the economic conditions in their regions. For more information, visit www.economicmodeling.com.
About CareerBuilder®

CareerBuilder is the global leader in human capital solutions, helping companies target and attract great talent. Its online career site, CareerBuilder.com®, is the largest in the United States with more than 24 million unique visitors, 1 million jobs and 50 million resumes. CareerBuilder works with the world’s top employers, providing resources for everything from employment branding and talent and compensation intelligence to recruitment solutions. More than 10,000 websites, including 140 newspapers and broadband portals such as MSN and AOL, feature CareerBuilder’s proprietary job search technology on their career sites. Owned by Gannett Co., Inc. (NYSE:GCI), Tribune Company and The McClatchy Company (NYSE:MNI), CareerBuilder and its subsidiaries operate in the United States, Europe, South America, Canada and Asia. For more information, visit www.careerbuilder.com.