Yolo County Workforce Innovation Board Industry Clusters of Opportunity

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1 This report was prepared by the Labor Market Information Division (LMID) of the California Development Department to provide the Workforce Innovation Board () a resource for workforce development and planning. The findings were derived from the most detailed industry data available from the Quarterly Census of and Wages program, which provides the number of businesses, number of jobs, and total payroll for workers covered by unemployment insurance programs from reports filed by California employers each quarter. Only private, non-government industries are included in this study. Workforce Innovation Board Industry Clusters of Opportunity Overview An industry cluster describes a specific grouping of companies with highly similar business activities. These businesses are economically interdependent and may have common supply chains, labor needs, technologies, and markets. Industry clusters identified in are those that demonstrated the greatest opportunity for new jobs, rising wages, business expansion, and career development possibilities. The LMID aggregated nine regional industry clusters for, which together were comprised of 130 industries. These industry clusters include (in order of size by total number of jobs): Agribusiness, Food and Beverage Production Arts, Entertainment, and Recreation Healthcare and Social Assistance Building and Systems Construction Business Management and Support Transportation, Warehousing, and Logistics Manufacturing Investment Support Information Technology and Telecommunications

2 Industry Cluster Overview (continued) During the study period, 2010 through 2015, the nine industry clusters demonstrated a combination of: 1. Expanded opportunity (job and/or firm growth). 2. Increased wages. 3. Improved competitiveness (strong or growing concentration of jobs compared to California as a whole). 4. Expanded career opportunities (distribution of job opportunities across the occupational spectrum). Collectively, these industry clusters comprised 52.9 percent of the total regional jobs in 2015, and 46.4 percent of the region s total wages. The total number of jobs and total wages increased in the region over the study period. The Agribusiness, Food and Beverage Production industry cluster was the largest cluster in 2015, accounted for 9,024 jobs, or 9.5 percent of total regional employment, and had an employment concentration of Arts, Entertainment, and Recreation was the second largest cluster, reporting 7,139 jobs, or 7.5 percent of the region s employment, and a concentration of The highest annual wages were found in Information Technology and Telecommunications, with an average wage of $64,508. 2

3 Industry Cluster Descriptions The Agribusiness, Food and Beverage Production industry cluster includes establishments primarily engaged in growing crops, raising animals, and manufacturing food and beverages. Support activities for these industries are also included. This cluster employed 9,024 people in 2015, or 9.5 percent of the region s workforce. Firms include: Oilseed and Grain Farming and Milling Vegetable, Fruit, and Tree Nut Farming Other Crop Farming Food and Beverage Manufacturing Support Activities for Crop and Animal Production Grocery Wholesalers The Arts, Entertainment, and Recreation industry cluster includes firms primarily involved in the leisure, hospitality, and tourism industries. This cluster employed 7,139 people in 2015, and accounted for 7.5 percent of the region s employment. Firms include: Special Food Services Restaurants and Bars Hotels and Motels Travel Arrangement and Reservation Services The Healthcare and Social Assistance industry cluster includes private health care providers and other health-related services. This cluster employed 7,078 people in 2015, and comprised 7.4 percent of the total regional employment. Firms include: Ambulatory Health Care Services Hospitals Nursing and Residential Care Facilities Social Assistance Personal and Death Care Services Pharmaceutical and Medicine Manufacturing The Building and Systems Construction industry cluster includes firms focused on the physical infrastructure of communities. The industries serve the area s need for housing and commercial structures, as well as roadways and utilities. The group employed 6,921 workers in 2015, and comprised 7.3 percent of total regional employment. Firms include: Residential Housing Contractors Specialty Trade Contractors Highway, Street, and Bridge Construction Plumbing and Heating Contractors Building Material and Supplies Dealers 3

4 Industry Cluster Descriptions (continued) The Business Management and Support industry cluster contains businesses involved in accounting, legal services, consulting services, data processing, and advertising. These firms provided 6,951 jobs, or 7.3 percent of total regional employment in Firms include: Administrative and Support Services Architectural, Engineering, and Related Services Accounting, Tax Preparation, Bookkeeping, and Payroll Services Legal Services Management, Scientific, and Technical Consulting Services Advertising, Public Relations, and Related Services Management of Companies and Enterprises Data Processing, Hosting, and Other Information Related Services Investigation and Security Services The Transportation, Warehousing, and Logistics industry cluster contains businesses involved in transportation and supporting industries, such as long distance and specialized freight trucking, courier services, warehousing, and storage. The industry cluster employed 5,357 workers and provided 5.6 percent of total regional jobs in Firms include: General Freight Trucking Warehousing and Storage Automotive Equipment Rental, Repair and Maintenance Support Activities for Transportation Local Messengers and Local Delivery The Manufacturing industry cluster includes firms primarily involved in the manufacturing of durable goods such as, fabricated metal products, transportation equipment, machine shops, and chemical, plastics, and rubber products. This cluster provided 3,704 jobs, and accounted for 3.9 percent of the region s employment in Firms include: Chemical, Plastics, and Rubber Products Manufacturing Fabricated Metal Product Manufacturing Computer and Electronic Product Manufacturing Transportation Equipment Manufacturing Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers The Investment Support industry cluster includes firms primarily engaged in finance, insurance, and real estate. This cluster s employment stood at 2,072 in 2015, comprising 2.2 percent of the region s total employment. Firms include: Depository and Nondepository Credit Intermediation Other Financial Investment Activities Insurance Carriers Real Estate Services 4

5 Industry Cluster Descriptions (continued) The Information Technology and Telecommunications industry cluster contains businesses involved in publishing, communications, and computer systems design. The cluster employed 2,058 workers, and provided 2.2 percent of total regional jobs in Firms include: Publishing Industries Broadcasting Telecommunications Motion Picture and Sound Recording Industries Computer Systems Design and Related Services 5

6 Concentration 2015 Industry Clusters The chart below is a visual representation of the NCCC Industry Clusters. Each bubble represents regional industry clusters and displays three important data elements: compound annual growth rate, 2015 employment concentration, and 2015 employment size. Industry Clusters of Opportunity MATURE Transportation and Logistics 1.1%, 1.90, 5,357 Agribusiness, Food and Beverage Production 3.1%, 2.00, 9,024 GROWING Manufacturing 2.5%, 0.82, 3,704 Building and Systems Construction 2.9%, 0.97, 6, Interpreting the Chart: Healthcare and Social Assistance 1.0%, 0.69, 7,078 Investment Support -4.7%, 0.48, 2,072 Business Management and Support 2.5%, 0.57, 6,951 Arts, Entertainment, and Recreation 3.3%, 0.67, 7,139 Information Technology and Telecommunications 7.1%, 0.39, 2,058 DECLINING EMERGING % -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Each bubble s position on the horizontal axis represents the level of employment growth experienced by that industry cluster from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. Each bubble s position on the vertical axis represents the employment concentration for that industry cluster in 2015 relative to California. concentration, also called Location Quotient (LQ), is used to measure an industry cluster s strength and activity level by comparing its employment size to that of a larger area, usually the state or the nation. This study compares regional employment concentration to the California average. A concentration greater than 1.0 indicates a higher concentration of jobs in the industry cluster than found statewide, and industry clusters with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. Industry clusters with higher location quotients generally consist of export industries, and are the region s strong economic sectors. In theory, they are producing more goods and services than the region alone can consume and thus export the excess goods or services to consumers in areas outside of the region and bring wealth back to the local economy. The size of the bubble indicates the employment (number of jobs) in that industry cluster in

7 Concentration 2015 Agribusiness, Food and Beverage Production Industry Cluster The Agribusiness, Food and Beverage Production industry cluster had 9,024 employees, grew by 3.1 percent annually, and had an employment concentration of The industry posted 2015 annual average wages of $40,419. Of the agribusiness, food and beverage production cluster, Grain and Oilseed Milling had the highest employment concentration at Farm Product Raw Material Merchant Wholesalers posted the highest wages at $73,412 annually, in The largest industry in the cluster was Support Activities for Crop Production with 3,368 employees. Poultry and Egg Production reported the largest growth, showing a 14.6 percent compound annual growth rate during the study period Agribusiness, Food and Beverage Production Industry Cluster MATURE Grain and Oilseed Milling -4.2%, 19.64, 490 GROWING Greenhouse, Nursery, and Floriculture Production -9.7%, 0.68, 113 Vegetable and Melon Farming -2.8%, 5.79, 1,147 Farm Product Raw Material Merchant Wholesalers -1.3%, 2.98, 36 Oilseed and Grain Farming -2.4%, 9.40, 192 Agriculture, Construction, and Mining Machinery Manufacturing -2.4%, 2.26, 89 Specialty Food Stores -4.7%, 0.41, 75 Grocery and Related Product Merchant Wholesalers 2.1%, 2.33, 1,414 Other Crop Farming -1.2%, 4.18, 297 Support Activities for Animal Production 5.7% Beverage Manufacturing 4.5%, 1.64, 503 Support Activities for Crop Production 7.7%, 2.74, 3,368 Food Manufacturing Except Grain and Oilseed Milling 6.7%, 0.64, 561 Other Animal Production 10.2%, 4.77, 65 Poultry and Egg Production 14.6%, 1.34, 19 Fruit and Tree Nut Farming 9.5%, 1.01, 599 Cattle Ranching and Farming DECLINING -8.4%, 0.23, % -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Compound Annual Growth Rate EMERGING Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry group from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry group than found statewide, and industry groups with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry group in

8 Agribusiness, Food and Beverage Production Industry Cluster Summary Table AGRIBUSINESS, FOOD AND BEVERAGE PRODUCTION NAICS Code Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Oilseed and Grain Farming Vegetable and Melon Farming Fruit and Tree Nut Farming Greenhouse, Nursery, and Floriculture Production Farming % $39,828 $40, % 0.2% 1,286 1, % $42,713 $38, % 1.2% % $39,588 $37, % 0.6% % $39,044 $65, % 0.1% 1119 Other Crop Farming % $38,867 $46, % 0.3% Cattle Ranching and Farming Poultry and Egg Production Other Animal Production Support Activities for Crop Production Support Activities for Animal Production Food Manufacturing except Grain and Oilseed Milling Grain and Oilseed Milling Beverage Manufacturing % $28,034 $29, % 0.0% % $23,554 $28, % 0.0% % $30,589 $37, % 0.1% 2,503 3, % $26,962 $27, % 3.5% % $23,525 $21, % 0.0% % $44,045 $53, % 0.6% % $56,496 $55, % 0.5% % $57,015 $53, % 0.5% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 8

9 Agribusiness, Food and Beverage Production Industry Cluster (continued) Summary Table AGRIBUSINESS, FOOD AND BEVERAGE PRODUCTION (continued) NAICS Code Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Agriculture, Construction, and Mining Machinery Manufacturing Grocery and Related Product Merchant Wholesalers Farm Product Raw Material Merchant Wholesalers % $59,864 $52, % 0.1% 1,302 1, % $59,653 $56, % 1.5% % $47,129 $73, % 0.0% 4452 Specialty Food Stores % $14,954 $19, % 0.1% AGRIBUSINESS, FOOD AND BEVERAGE PRODUCTION SUMMARY 7,983 9, % $41,594 $40, % 9.5% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 9

10 Concentration 2015 Arts, Entertainment, and Recreation Industry Cluster The Arts, Entertainment, and Recreation industry cluster employed 7,139, grew at 3.3 percent annually, and reported a concentration of The annual average wages of $16,347 were below the regional annual average wage of $52,406. Drinking Places (Alcoholic Beverages) showed the largest concentration in this cluster at 0.92, as well as the highest growth rate at 10.9 percent annually. Travel Arrangement and Reservation Services earned the highest annual average wages at $58,500. Restaurants and other eating places reported the highest percent of regional employment, at 5.5 percent, employed 5,236 people, and grew at a rate of 4.2 percent annually. Arts, Entertainment, and Recreation Industry Cluster MATURE GROWING 1.00 Restaurants and Other Eating Places 4.2%, 0.74, 5, Drinking Places (Alcoholic Beverages) 10.9%, 0.92, Special Food Services -6.7%, 0.74, 267 Arts, Entertainment, and Recreation 2.1%, 0.58, Accommodation 2.0%, 0.39, Travel Arrangement and Reservation Services -10.2%, 0.10, DECLINING EMERGING -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry cluster from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry cluster than found statewide, and industry clusters with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry cluster in

11 Arts, Entertainment, and Recreation Industry Cluster Summary Table ARTS, ENTERTAINMENT, AND RECREATION NAICS Code Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Travel Arrangement and Reservation Services Arts, Entertainment, and Recreation % $35,456 $58, % 0.0% % $17,142 $16, % 1.0% 721 Accommodation % $17,816 $19, % 0.5% Special Food Services Drinking Places (Alcoholic Beverages) % $20,912 $16, % 0.3% % $12,405 $14, % 0.2% 7225 Restaurants and Other Eating Places 4,437 5, % $15,708 $15, % 5.5% ARTS, ENTERTAINMENT, AND RECREATION SUMMARY 6,264 7, % $16,367 $16, % 7.5% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 11

12 Concentration 2015 Healthcare and Social Assistance Industry Cluster The Healthcare and Social Assistance industry cluster had 7,078 employees in 2015, grew by 1.0 percent annually, and had an employment concentration of The industry posted 2015 annual average wages of $52,484; this is slightly higher than the region s annual average wage of $52,406. Community Food and Housing, and Emergency and Other Relief Services had the highest employment concentration at Offices of Physicians posted the highest wages at $132,014 annually in The largest industry in the cluster was General Medical and Surgical Hospitals, with 1,415 employees, and it accounted for 1.5 percent of the region s employment. The largest growth was seen in Medical and Diagnostic Laboratories, showing a 23.6 percent compound annual growth rate during the study period MATURE Healthcare and Social Assistance Industry Cluster Community Food and Housing, and Emergency and Other Relief Services 2.6%, 1.76, 183 GROWING Psychiatric, Substance Abuse, Vocational Rehab and Other Residential Care Facilities -31.5%, 0.19, 62 Other Ambulatory Health Care Services -0.2%, 1.35, 211 Nursing Care Facilities (Skilled Nursing Facilities) -0.1%, 1.06, 837 General Medical and Surgical Hospitals 0.9%, 0.67, 1,415 Pharmaceutical and Medicine Manufacturing -6.1%, 0.64, 181 Health and Personal Care Stores 0.4%, 0.64, 415 Residential Intellectual and Developmental Disability, Mental Health, and Substance Abuse Facilities -3.2%, 0.29, 80 Child Day Care Services 0.3% Continuing Care Retirement Communities and Assisted Living Facilities for the Elderly 7.2%, 1.20, 609 Outpatient Care Centers 2.4%, 1.01, 700 Offices of Dentists 3.1%, 0.73, 525 Personal Care Services 13.8%, 0.64, 275 Offices of Other Health Practitioners 2.0%, 0.67, 298 Death Care Services 1.7%, 0.50, 31 Medical and Diagnostic Laboratories 23.6%, 0.36, Offices of Physicians 1.0%, 0.36, 588 Home Health Care Services 0.5%, 0.30, DECLINING EMERGING -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry group from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry group than found statewide, and industry groups with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry group in

13 Healthcare and Social Assistance Industry Cluster Summary Table NAICS Code HEALTHCARE AND SOCIAL ASSISTANCE Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Pharmaceutical and Medicine Manufacturing Health and Personal Care Stores % $81,476 $80, % 0.2% % $36,323 $37, % 0.4% 6211 Offices of Physicians % $128,234 $132, % 0.6% 6212 Offices of Dentists % $46,913 $46, % 0.6% 6213 Offices of Other Health Practitioners % $34,290 $31, % 0.3% 6214 Outpatient Care Centers % $61,051 $53, % 0.7% Medical and Diagnostic Laboratories Home Health Care Services Other Ambulatory Health Care Services General Medical and Surgical Hospitals Psychiatric, Substance Abuse, Vocational Rehab and Other Residential Care Facilities Nursing Care Facilities (Skilled Nursing Facilities) Residential Intellectual and Developmental Disability, Mental Health, and Substance Abuse Facilities % $71,965 $66, % 0.1% % $42,476 $42, % 0.1% % $46,074 $48, % 0.2% 1,364 1, % $68,162 $75, % 1.5% % $33,643 $32, % 0.1% % $32,168 $31, % 0.9% % $19,462 $19, % 0.1% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 13

14 Healthcare and Social Assistance Industry Cluster (continued) Summary Table NAICS Code HEALTHCARE AND SOCIAL ASSISTANCE (continued) Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Continuing Care Retirement Communities and Assisted Living Community Food and Housing, and Emergency and Other Relief Services Child Day Care Services Personal Care Services % $26,935 $25, % 0.6% % $29,421 $23, % 0.2% % $21,029 $20, % 0.5% % $15,258 $17, % 0.3% 8122 Death Care Services % $27,396 $27, % 0.0% HEALTHCARE AND SOCIAL ASSISTANCE SUMMARY 6,811 7, % $52,185 $52, % 7.4% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 14

15 Concentration 2015 Building and Systems Construction Industry Cluster The Building and Systems Construction industry cluster had an employment concentration of 0.97 in 2015, employed 6,921 workers, showed an annual average wage of $53,993, and grew by 7.3 percent annually. The industry cluster is composed of four industry sub-clusters: Structural Construction, Specialty Trade Contractors, Heavy and Building Construction, and Building Support Services. Remediation and Other Waste Management Services reported the highest growth rate, at 43.3 percent annually. Nonmetallic Mineral Product Manufacturing grew at 35.8 percent, had the highest employment concentration at 5.93, accounted for 1.1 percent of the county s employment, and earned an average wage of $58,904; this is above the region s average wage of $52,406. Nonmetallic Mineral Mining and Quarrying reported the highest wages at $81,668, followed by Nonresidential Building Construction at $79,849. Building and Systems Construction Industry Cluster Building Materials and Supplies 9.8%, 1.89, 3, Heavy and Building Construction -1.6%, 1.03, 1, Specialty Trade Contractors -3.3%, 0.60, 1,609 Building Support Services 3.5%, 0.51, % -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry group from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry group than found statewide, and industry groups with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry group in

16 Building and Systems Construction Industry Cluster Summary Table NAICS Code BUILDING AND SYSTEMS CONSTRUCTION Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Nonmetallic Mineral Mining and Quarrying Support Activities for Mining Wood Product Manufacturing Nonmetallic Mineral Product Manufacturing Architectural and Structural Metals Manufacturing Hardware, Spring, and Wire Product Manufacturing Lumber and Other Construction Materials Merchant Wholesalers Metal and Mineral (except Petroleum) Merchant Wholesalers Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers Building Material and Supplies Dealers Lawn and Garden Equipment and Supplies Stores Building Materials and Supplies % $76,383 $81, % 0.0% % $63,400 $68, % 0.1% % $39,669 $38, % 0.3% 316 1, % $66,436 $58, % 1.1% % $48,809 $45, % 0.5% % $39,073 $52, % 0.1% % $58,312 $50, % 0.1% % $66,737 $63, % 0.1% % $57,516 $58, % 0.2% % $35,956 $37, % 0.8% % $24,990 $19, % 0.0% Building Materials and Supplies Summary 2,183 3, % $48,208 $49, % 3.3% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 16

17 Building and Systems Construction Industry Cluster (continued) Summary Table NAICS Code BUILDING AND SYSTEMS CONSTRUCTION (continued) Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Specialty Trade Contractors Foundation, Structure, and Building Exterior Contractors Building Equipment Contractors Building Finishing Contractors Other Specialty Trade Contractors % $38,059 $42, % 0.5% % $77,526 $68, % 0.6% % $47,467 $38, % 0.3% % $52,405 $63, % 0.3% Specialty Trade Contractors Summary 1,843 1, % $58,778 $55, % 1.7% Heavy and Building Construction Residential Building Construction Nonresidential Building Construction Heavy and Civil Engineering Construction % $67,394 $51, % 0.4% % $80,553 $79, % 0.3% % $67,542 $72, % 0.8% Heavy and Building Construction Summary 1,536 1, % $70,175 $67, % 1.5% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 17

18 Building and Systems Construction Industry Cluster (continued) Summary Table NAICS Code BUILDING AND SYSTEMS CONSTRUCTION (continued) Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Household and Institutional Furniture and Kitchen Cabinet Manufacturing Furniture and Home Furnishing Merchant Wholesalers Household Appliances and Electrical and Electronic Goods Merchant Wholesalers % $45,000 $43, % 0.0% % $42,838 $46, % 0.0% % $57,934 $65, % 0.1% 4421 Furniture Stores % $33,242 $35, % 0.3% Home Furnishings Stores Electronics and Appliance Stores Waste Treatment and Disposal Remediation and Other Waste Management % $23,798 $34, % 0.1% % $20,875 $31, % 0.1% % $57,543 $64, % 0.0% % $107,626 $56, % 0.1% Building Support Services Summary % $36,774 $41, % 0.7% BUILDING AND SYSTEMS CONSTRUCTION SUMMARY 6,169 6, % $55,710 $53, % 7.3% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 18

19 Concentration 2015 Business Management and Support Industry Cluster The Business Management and Support industry cluster employed 6,951, reported an employment concentration of 0.57, and grew by 2.5 percent annually. The annual average wage in this cluster was $56,359. Management of Companies and Enterprises reported the largest employment, with 1,077 employees. Services recorded the largest growth rate over the study period at 19.7 percent. Scientific Research and Development Services showed the highest employment concentration at MATURE Business Management and Support Industry Cluster Scientific Research and Development Services 7.0%, 1.21, 934 GROWING Architectural, Engineering, and Related Services -6.4%, 0.77, 785 Services to Buildings and Dwellings 0.8%, 0.82, 1,041 Advertising, Public Relations, and Related Services 3.3%, 0.33, 123 Management of Companies and Enterprises, 1.3%, 0.80, 1, Management, Scientific, and Technical Consulting Services -1.4%, 0.61, 734 Wholesale Electronic Markets and Agents and 0.4 Brokers -3.3%, 0.31, 197 Business Support Services -12.0%, 0.27, Other Support Services -13.0%, 0.17, 31 Office Administrative Services -1.6%, 0.21, 93 Legal Services 5.7%, 0.22, 175 Investigation and Security Services 13.7%, 0.76, 609 Accounting, Tax Preparation, Bookkeeping, and Payroll Services 5.5%, 0.29, 212 Data Processing, Hosting, Related Services, and Other Information Services 10.8%, 0.18, 107 Specialized Design Services 18.0%, 0.50, 66 Services 19.7%, 0.25, 676 DECLINING MATURE % -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry group from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry group than found statewide, and industry groups with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry group in

20 Business Management and Support Industry Cluster Summary Table BUSINESS MANAGEMENT AND SUPPORT NAICS Code Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Wholesale Electronic Markets and Agents and Brokers Data Processing, Hosting, Related Services, and Other Information Services % $56,262 $57, % 0.2% % $54,653 $61, % 0.1% 5411 Legal Services % $46,278 $58, % 0.2% Accounting, Tax Preparation, Bookkeeping, and Payroll Services Architectural, Engineering, and Related Services Specialized Design Services Management, Scientific, and Technical Consulting Services Scientific Research and Development Services Advertising, Public Relations, and Related Services Management of Companies and Enterprises Office Administrative Services % $42,394 $38, % 0.2% 1, % $73,896 $70, % 0.8% % $44,542 $68, % 0.1% % $67,522 $64, % 0.8% % $76,124 $92, % 1.0% % $47,561 $38, % 0.1% 1,023 1, % $80,499 $84, % 1.1% % $86,374 $46, % 0.1% 5613 Services % $26,394 $25, % 0.7% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 20

21 Business Management and Support Industry Cluster (continued) Summary Table BUSINESS MANAGEMENT AND SUPPORT (continued) NAICS Code Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Business Support Services % $33,687 $31, % 0.1% 5616 Investigation and Security Services % $19,444 $23, % 0.6% 5617 Services to Buildings and Dwellings 1,008 1, % $23,251 $25, % 1.1% 5619 Other Support Services % $29,367 $49, % 0.0% BUSINESS MANAGEMENT AND SUPPORT INDUSTRY CLUSTER SUMMARY 6,288 6, % $56,582 $56, % 7.3% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 21

22 Concentration 2015 Transportation, Warehousing, and Logistics Industry Cluster The Transportation, Warehousing, and Logistics industry cluster had 5,357 employees in 2015, grew by 1.1 percent annually, and reported an employment concentration of In 2015, the average wage in the cluster was $45,588; below the region s average wage of $52,406. Warehousing and Storage was the largest industry, with 2,162 employees in 2015, and it recorded the highest employment concentration of Over the study period, Local Messengers and Local Delivery experienced the largest growth rate at 12.5 percent Transportation, Warehousing, and Logistics Industry Cluster MATURE Warehousing and Storage -2.6%, 4.37, 2,162 GROWING 4.00 General Freight Trucking 6.3%, 2.99, 1, Specialized Freight Trucking 8.3%, 1.88, Automotive Equipment Rental and Leasing 0.2%, 1.04, 132 Automotive Repair and Maintenance 1.9%, 1.05, 697 Support Activities for Transportation -3.1%, 0.59, 309 Transit and Ground Passenger Transportation 2.3%, 0.74, 181 Local Messengers and Local Delivery 12.5%, 0.45, 24 DECLINING EMERGING % -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry group from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry group than found statewide, and industry groups with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry group in

23 Transportation, Warehousing, and Logistics Industry Cluster Summary Table NAICS Code TRANSPORTATION, WAREHOUSING, AND LOGISTICS Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration General Freight Trucking 1,090 1, % $50,019 $49, % 1.5% 4842 Specialized Freight Trucking % $43,855 $45, % 0.5% 485 Transit and Ground Passenger Transportation % $31,676 $33, % 0.2% 488 Support Activities for Transportation % $43,180 $47, % 0.3% 4922 Local Messengers and Local Delivery % $29,905 $31, % 0.0% 4931 Warehousing and Storage 2,405 2, % $45,562 $44, % 2.3% 5321 Automotive Equipment Rental and Leasing % $56,231 $55, % 0.1% 8111 Automotive Repair and Maintenance % $41,107 $43, % 0.7% TRANSPORTATION, WAREHOUSING, AND LOGISTICS INDUSTRY CLUSTER SUMMARY 5,136 5, % $45,454 $45, % 5.6% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 23

24 Concentration 2015 Manufacturing Industry Cluster The Manufacturing industry cluster had 3,704 jobs, grew by 2.5 percent annually, and reported an employment concentration of The cluster recorded annual average wages of $57,895. This industry cluster is comprised of three sub-clusters: Chemical Manufacturing, Diversified Manufacturing, and Machinery Manufacturing. The largest industry was Machinery, Equipment, and Supplies Merchant Wholesalers with 725 employees in Miscellaneous Manufacturing experienced the largest growth rate at 44.5 percent annually. The highest employment concentration was found in Motor Vehicle Body and Trailer Manufacturing at Manufacturing Industry Cluster MATURE GROWING Machinery Manufacturing 2.1%, 0.93, 1,427 Diversified Manufacturing 4.2%, 0.80, 1, Chemical Manufacturing -0.1%, 0.73, 499 DECLINING EMERGING % 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry cluster from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry cluster than found statewide, and industry clusters with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry cluster in

25 Manufacturing Industry Cluster Summary Table NAICS Code MANUFACTURING Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Printing and Related Support Activities Industrial, Metal Working, and Other General Purpose Machinery Manufacturing Diversified Manufacturing % $45,974 $44, % 0.4% % $47,432 $59, % 0.2% 3362 Motor Vehicle Body and Trailer Manufacturing % $40,989 $40, % 0.3% Miscellaneous Manufacturing Professional and Commercial Equipment and Supplies Merchant Wholesalers Miscellaneous Durable Goods Merchant Wholesalers Miscellaneous Nondurable Goods Merchant Wholesalers % $69,699 $59, % 0.1% % $53,211 $64, % 0.1% % $44,271 $40, % 0.1% % $56,458 $60, % 0.5% Diversified Manufacturing Summary 1,411 1, % $49,557 $52, % 1.7% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 25

26 Manufacturing Industry Cluster (continued) Summary Table NAICS Code MANUFACTURING (continued) Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Coating, Engraving, Heat Treating, Allied Activities, and Other Fabricated Metal Product Manufacturing Transportation Equipment Manufacturing (except Motor Vehicle Body and Trailer Manufacturing) Machine Shops; Turned Product: and Screw, Nut, and Bolt Manufacturing Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers Machinery, Equipment, and Supplies Merchant Wholesalers Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance Machinery Manufacturing % $62,584 $53, % 0.1% % $33,115 $35, % 0.2% % $49,283 $48, % 0.1% % $55,624 $57, % 0.3% % $60,903 $62, % 0.8% % $47,860 $50, % 0.2% Machinery Manufacturing Summary 1,314 1, % $55,103 $55, % 1.5% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 26

27 Manufacturing Industry Cluster (continued) Summary Table NAICS Code MANUFACTURING (continued) Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Chemical Manufacturing 325 Chemical Manufacturing % $89,278 $95, % 0.4% Plastics Product Manufacturing Rubber Product Manufacturing % $54,175 $57, % 0.1% % $43,737 $7, % 0.0% Chemical Manufacturing Summary % $79,920 $82, % 0.5% MANUFACTURING SUMMARY 3,354 3, % $56,767 $57, % 3.9% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 27

28 Concentration 2015 Investment Support Industry Cluster The Investment Support industry cluster had 2,072 employees, declined by 4.7 percent annually, and reported an employment concentration of The cluster posted 2015 annual average wages of $54,619, slightly above the region s total industry 2015 annual average wage of $52,406. The largest industry was Activities Related to Real Estate with 501 employees. Lessors of Real Estate showed the largest employment concentration at 0.89, followed closely by Activities Related to Real Estate at Over the study period, Nondepository Credit Intermediation experienced the largest growth rate at 12.8 percent annually. Securities and Commodity Contracts Intermediation and Brokerage reported the highest annual average wage in 2015 at $115, MATURE Investment Support Industry Cluster GROWING Depository Credit Intermediation -10.9%, 0.57, 492 Lessors of Real Estate -0.4%, 0.89, 324 Insurance Carriers -7.2%, 0.58, 296 Activities Related to Real Estate 2.4%, 0.87, Offices of Real Estate Agents and Brokers -10.0%, 0.33, Agencies, Brokerages, and Other Insurance Related Activities -4.4%, 0.31, 190 Securities and Commodity Contracts Intermediation and Brokerage 0.0%, 0.26, 53 Nondepository Credit Intermediation 12.8%, 0.17, 55 Other Financial Investment Activities -11.4%, 0.15, 50 Activities Related to Credit Intermediation 0.0%, 0.09, DECLINING EMERGING -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry cluster from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry cluster than found statewide, and industry clusters with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry cluster in

29 Investment Support Industry Cluster Summary Table NAICS Code INVESTMENT SUPPORT Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Depository Credit Intermediation Nondepository Credit Intermediation Activities Related to Credit Intermediation Securities and Commodity Contracts Intermediation and Brokerage Other Financial Investment Activities % $47,648 $51, % 0.5% % $126,261 $97, % 0.1% % $36,542 $40, % 0.0% % $86,357 $115, % 0.1% % $79,145 $80, % 0.1% 5241 Insurance Carriers % $64,177 $70, % 0.3% 5242 Agencies, Brokerages, and Other Insurance Related Activities % $65,226 $75, % 0.2% 5311 Lessors of Real Estate % $34,569 $41, % 0.3% Offices of Real Estate Agents and Brokers Activities Related to Real Estate % $46,003 $46, % 0.1% % $35,472 $37, % 0.5% INVESTMENT SUPPORT SUMMARY 2,517 2, % $50,650 $54, % 2.2% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 29

30 Concentration 2015 Information Technology and Telecommunications Industry Cluster The Information Technology and Telecommunications industry cluster had 2,058 employees in 2015, had an annual average wage of $64,508, grew by 7.1 percent annually, and reported an employment concentration of Computer Systems Design and Related Services was the largest industry with 716 employees, and experienced the largest growth rate at 37.9 percent. Computer and Electronic Product Manufacturing reported the highest wages at $78,661. Broadcasting had the highest employment concentration rate of Information Technology and Telecommunications Industry Cluster Broadcasting (except Internet) 0.8%, 1.01, Telecommunications -1.7%, 0.87, Computer Systems Design and Related Services 37.9%, 0.45, Publishing Industries (except Internet) -1.8%, 0.24, Computer and Electronic Manufacturing 0.40%, 0.28, 435 Motion Picture and Sound Recording Industries 0.0%, 0.09, % -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Compound Annual Growth Rate Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages Chart interpretation: A bubble s position on the horizontal axis represents the level of employment growth experienced by that industry cluster from 2010 to 2015 as measured by the compound annual growth rate. Bubbles positioned on the right of zero indicate job growth and left of zero denotes job loss. The vertical position represents the employment concentration relative to California in 2015 (the higher the bubble, the greater concentration). A concentration greater than 1.0 indicates a higher concentration of jobs in the industry cluster than found statewide, and industry clusters with a LQ of 1.25 or higher are considered heavily concentrated. A high concentration indicates a competitive advantage and an area of regional specialization compared to the state. The size of the bubble indicates the employment (number of jobs) in that industry cluster in

31 Information Technology and Telecommunications Industry Cluster Summary Table INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS NAICS Code Industry Description Compound Annual Growth Rate Wages 2010 Wages 2015 Concentration 2010 Concentration Computer and Electronic Product Manufacturing % $92,139 $78, % 0.5% Publishing Industries (except Internet) Motion Picture and Sound Recording Industries % $40,815 $47, % 0.1% % $16,786 $16, % 0.1% 515 Broadcasting (except Internet) % $63,702 $57, % 0.3% 517 Telecommunications % $76,841 $74, % 0.5% 5415 Computer Systems Design and Related Services % $100,850 $60, % 0.8% INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS SUMMARY 1,567 2, % $75,782 $64, % 2.2% Source: California Development Department, Labor Market Information Division, Quarterly Census of and Wages 31

32 Data Sources California Development Department (EDD), Labor Market Information Division (LMID) Quarterly Census of and Wages (QCEW) Program, 2010 (2 nd Quarter 2010 through 1 st Quarter 2011) 2015 (2 nd Quarter 2014 through 1 st Quarter 2015) ( The Quarterly Census of and Wages (QCEW) Program, also known as the ES-202 Program, is a Federal-State cooperative program operated by the Development Department s (EDD) Labor Market Information Division (LMID). The EDD staff compiles the data from reports filed by employers each quarter. The QCEW Program produces a comprehensive tabulation of employment and wage information for workers covered by California Unemployment Insurance (UI) laws and Federal workers covered by the Unemployment Compensation for Federal Employees (UCFE) program. More information about the program can be found at the Labor Market Information Division website. U.S. Department of Labor (DOL), Bureau of Labor Statistics (BLS) Concentration, 2015 ( The Concentration, or Location Quotient (LQ), is calculated using data from the Quarterly Census of and Wages (QCEW) Program. The quotient compares regional employment concentration to the national or statewide employment concentration. The resultant measure is a ratio called "location quotient" that indicates the level of specialization of the industry within the selected geographic area. The LQ is used to indicate the extent to which the local economy is importing, self-sufficient, or exporting goods and services. State of California Labor and Workforce Development Agency Development Department The EDD is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities. Requests for services, aids, and/or alternate forms need to be made by calling (voice). TTY users, please call the California Relay Service at