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06-07 Target Industry Plan Feb 2007 Update

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06-07 Target Industry Plan Feb 2007 Update Economic Development Target Industry Plan Fiscal Year 2006/2007 Economic Development Target Industry Plan Fiscal Year 2006/07 Executive ummary In 2001, the Portland Development Commission (PDC) was asked by the Mayor of Portland to reate a new e onomi development strategy for the ity of Portland. Through a pro ess of resear h, analysis, onsultation and debate, a new e onomi development strategy emerged. A entral theme of this strategy was the analysis and promotion of a number of &targeted industries'. Target industry analysis and development has be ome a entral omponent of regional e onomi development strategies. (tili)ing various forms of e onomi data, in luding lo al wages, lo ation quotients, growth patterns and shift-share, target industry analysis aims to reate a thorough pi ture of the state of an industry in an area. (tili)ing this information, e onomi development pra titioners are able to implement mu h more effe tive industry programs, apitali)ing on regional strengths and bolstering weaknesses. The final targeted industries were hosen for a number of reasons, in luding high wages, high growth potential, lo al strength and high lo al on entration in the Portland Metropolitan Area. These industries now play a entral role in the Portland Development Commission,s e onomi development a tivities, and are reported upon in the yearly Target Industry Plan. The industries hosen for targeted e onomi development a tivity are- A tivewear and .utdoor /ear0 1ios ien es0 Creative 2ervi es0 Distribution and 3ogisti s0 4ood Pro essing0 5igh Te h0 Metals and Transportation Equipment, Professional 2ervi es, and 2ustainable Industries. 7ithin the ompiled Target Industry Plan, data and analysis are reported on an annual industry-by- industry basis. Industries are defined by appli able 8AIC2 odes, and all data is olle ted utili)ing these odes. 4urther analysis is based upon this data and observations and ommuni ations by members of the Portland Development Commission,s e onomi development department with industry representatives. Ea h industry plan in ludes a se tion defining the targeted industry, in luding a des ription of the main types of ompanies and their produ ts along with 8AIC2 odes whi h are used to define the industry. /eneral observed and measured trends in the industry are reported, along with spe ifi workfor e trends. .bservations regarding the growth or de line of the industry are also in luded. Ea h plan ends with a summary of the development strategy implementation for the target industry, along with a dis ussion of the top issues fa ing the industry and the a tion items to be arried out to assist in developing and promoting the industry in the ne9t fis al year. A number of initiatives related to the targeted industries are being worked on by e onomi development staff during the 06-07 fis al year to promote and develop the target industries. Please note that these are only key proje ts for ea h industry, for a omplete listing of industry proje ts, please turn to the orresponding industry plan- - A tivewear and .utdoor /ear- Convene industry roundtables on two the following topi s- establishment of foreign produ tion partners0 importing goods/produ ts0 and, industry training and professional development needs and opportunities. - 1ios ien es- Complete intergovernmental agreement between PDC and .regon 5ealth 2 ien es (niversity regarding bios ien e industry development and re ruitment in the 8orth Ma adam (rban Renewal Area. - Creative 2ervi es- 2ponsor two or more areer & business development workshops in partnership with various reative servi e industry organi)ations. - Distribution and 3ogisti s- 2upport and implement the Portland 4reight Master Plan in partnership with the City of Portland 4reight Committee. - 4ood Pro essing- 1olster ompetitive position of Portland-area food pro essors through support and implementation of the 8orthwest 4ood Pro essors Asso iation Cluster Initiative. - 5igh Te h- 7ork with the City of Portland to deploy the itywide wireless network0 (nwire Portland, over the ne9t 1-2 years. - Metals and Transportation Equipment- 7ork with industry organi)ations to find a suitable lo ation for the 8orthwest Center for Manufa turing and Infrastru ture Engineering. - Professional 2ervi es- Assist in ontinued development of lo al strengths in environmentally sustainable ar hite ture and engineering. - 2ustainable Industries- Complete feasibility study regarding e9pansion of biodiesel produ tion in .regon. All industry plans were reviewed in draft format by a panel of industry representatives prior to the ompletion of the plan in the final form as it appears here. 4eedba k from industry parti ipants has shaped the a tion items outlined in the Target Industry Plan (a list of reviewers is in luded within the appendi es of the target industry plan for ea h industry). Plans are revisited on a quarterly basis during the fis al year to ensure that all target industry e onomi development initiatives are aligned with industry priorities. Commonly used terminology referenced throughout this document North American Industry Classification ystem (NAIC ) @ An industry lassifi ation system used by statisti al agen ies to fa ilitate the olle tion, tabulation, presentation, and analysis of data relating to establishments. 8AIC2 is ere ted on a produ tion-oriented on eptual framework that groups establishments into industries a ording to similarity in the pro ess used to produ e goods or servi es. (nder 8AIC2, an establishment is lassified to one industry based on its primary a tivity. 8AIC2 was developed jointly by Canada, Me9i o, and the (nited 2tates to provide omparability in e onomi statisti s. It repla ed the 2tandard Industrial Classifi ation (2IC) system in 1AA7. tandard Industrial Classification ( IC) A numeri al ode s heme previously used for lassifying industries and produ ts. Although the 2IC was formally repla ed by the 8orth Ameri an Industry Classifi ation 2ystem (8AIC2) in 1AA7, ertain industry data is more readily available in 2IC. Therefore, ertain data presented in this report was only available in 2IC. 7here available, 8AIC2 data was presented. Time Frame Presented for Data Analysis This do ument uses olle ted industry data from 2001, 2004 and 200C in its data tables. These years have been hosen due to refle t the hange in data olle tion standards, from 2tandard Industrial Classifi ation (2IC) odes to the 8orth Ameri an Industry Classifi ation 2ystem (8AIC2) odes, used by a number of federal, state and lo al agen ies. This transition reated a break in industry-related time-series data, and the time period data presented in the tables only represents information olle ted after the instatement of the 8AIC2 system. Note: All tables in each industry plan are based on NAIC coding with the exception of Appendices A & ,, which are based on tandard Industry Classifications ( IC) due to database limitations. /owever, the Appendices are valid for rough approximations of industry revenue and si0e ran1ings. The local concentration (2location 3uotient4 or 56) is the al ulated ratio between the lo al e onomy and the e onomy of some referen e unit, in this ase the 7est Coast states. This ratio is al ulated for all industries to determine whether or not the lo al e onomy has a greater share of that industry than e9pe ted. If an industry has a greater share than e9pe ted of a given industry, then that De9traD industry employment is assumed to have a greater on entration and importan e to the lo al e onomy be ause those jobs are above what a lo al e onomy should have to serve lo al needs. If an industry has a on entration of more than 1, it is assumed to be lo ally on entrated. Anything below 1 is not lo ally on entrated. The shift7share is a measurement of the de line or gain in employment of an industry ompared to the de line or gain of a larger geography. In this ase, the shift-share shows the per ent differen e in the de line or gain of Portland region industries to the 7est Coast states. Industries included in the PDC’s Target Industry Plan: Activewear/Outdoor Gear Biosciences Creative Services Distribution & Logistics Food Processing High Tech Metals & Transportation Equipment Professional Services Sustainable Industries Activewear/8utdoor 9ear Target Industry Plan 200672007 1. Industry Definition/ ummary The Portland metropolitan area and .regon have a long tradition of being home to footwear, a tivewear, outdoor gear and y ling ompanies. 2ome leading pioneers an tra e their history ba k de ades -- Pendleton 7oolen Mills was born in 1E630 Columbia 2portswear in 1A3E0 /erber 3egendary 1lades in 1A3A0 and Portland,s single 4ortune C00 ompany, 8ike, in 1A72. 7hile re ogni)ing the important ontribution these larger firms have made in establishing the region,s reputation as an industry leader nationally and internationally, industry growth is also fueled by the emerging and small to mid-si)ed ompanies, many of whi h are spin-offs of the larger ompanies. The growth of these industries has been fueled in the past 10-20 years by the in reasing national popularity of outdoor re reational a tivities, the development of new fabri s and te hnologies, and the fusion of outdoor-inspired styles into more general fashion ir les. In addition, the jobs in this industry tend to provide living wage jobs that bring together the opportunity for individuals to ombine their vo ation, spe iali)ed e9pertise and re reational preferen es. Today, the Portland region and .regon are re eiving national and in reasingly international re ognition as a enter of the footwear, a tivewear, outdoor gear and y ling industry, referen ed hereafter as &A tivewear/.utdoor /ear.' 7hile the leadership role of many area firms in these industries has long been re ogni)ed, A tivewear/.utdoor /ear was not spe ifi ally identified as a target industry in the 2002 ity-wide e onomi development strategy.
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