Target Industries
Total Page：16
File Type：pdf, Size：1020Kb
BAYTOWN WEST CHAMBERS COUNTY ECONOMIC DEVELOPMENT FOUNDATION TARGET INDUSTRY ANALYSIS MAY 19, 2017 TARGET CLUSTER IDENTIFICATION 6 Cluster Evaluation & Selection Selecting target clusters for a community is an iterative process that integrates quantitative and qualitative information. Factors such as global trends, existing industry base, workforce skills and educational programs, and the community’s goals and vision are all considered. Growing target clusters in a community requires a multi-faceted approach. Community leaders should commit to working together to create an environment in which each cluster can thrive. This involves investing in infrastructure, real estate, workforce training and education programs, entrepreneurship capacities, and smart public policies that address the cluster’s needs. The community must also lead marketing and business development activities – both at home and outside of the community – to raise awareness among target cluster businesses and influencers. The Strategic Economic Vitality Program, the final report in this strategic planning process, will recommend specific activities needed to help grow its target clusters. HIGH IMPACT CLUSTER To identify target clusters, four broad questions are explored to filter the universe of potential targets into a EVALUATION highly focused, actionable list: Which clusters have strong 1. Which clusters have strong projected performance within the US and world? projected performance 1 Local strengths and assets are an important component of the cluster selection process. Examining regional, within the US and world? national, and international trends places local information into a broader context. 2. Which clusters have an existing presence in the region and the community? Answering the second question in the evaluation process involves examining regional dynamics such as current local cluster concentrations and those of surrounding communities. Which clusters have an existing presence in the 2 region and in the community? 3. Which clusters are best suited to the community’s and the region’s many assets? The Discovery phase of this strategic planning process examined local dynamics, strengths and assets that can enhance cluster activity and support cluster ecosystems. 4. Which clusters align with community values and provide a high return on investment? Which clusters are best High impact clusters must reinforce the values of the community and have the highest potential to accelerate the suited to the community’s 3 community toward its vision. Conversations with residents, business owners, education representatives, and many assets? political leaders in the community helped the consulting team understand local values. It is important to note that having target clusters does not mean that the community ignores other industry sectors. Economic vitality resulting from target cluster growth will bring new dollars into the community, boosting Which clusters align with the community’s values wealth creation, generating new business opportunities, and enhancing residents’ standards of living. and provide a high 4 return on investment? 7 Target Cluster Identification Following the review process outlined in this chapter, the consulting team recommends the following three target clusters and supporting niche sectors for the EDF service area: Advanced Manufacturing Logistics & Distribution Healthy Lifestyles & Recreation These targets provide high-growth opportunities to attract investments and jobs within the EDF service area while ultimately contributing to the community’s economic resiliency and the wellbeing of residents. TARGET CLUSTER NICHE SECTORS Advanced Materials & Composites Fabricated Metal Manufacturing ADVANCED MANUFACTURING Machinery & Robotics Manufacturing Petrochemical & Plastics Manufacturing Predictive Maintenance Technologies Freight Transportation Support LOGISTICS & DISTRIBUTION Logistics Management Technologies Retail Distribution & Online Retail Fulfillment Centers Refrigerated Storage Retail & Dining HEALTHY LIFESTYLES Ecotourism & RECREATION Healthcare Services 8 ADVANCED MANUFACTURING NICHE SECTORS Advanced Materials & Composites Fabricated Metal Manufacturing Machinery & Robotics Manufacturing Petrochemical & Plastics Manufacturing Predictive Maintenance Technologies 9 ADVANCED Cluster Overview Advanced Manufacturing is the transformation of raw materials into more refined materials, component pieces, and finished products using complex machinery. Despite many reports to MANUFACTURING the contrary, the death of US manufacturing has been greatly exaggerated. The US remains the world’s second-leading manufacturer and employment has increased during each of the last five years. NICHE SECTORS US Advanced Manufacturing has proven remarkably resilient in the face of growing competition globally thanks to sustained increases in domestic productivity. Productivity gains Advanced Materials & Composites have been powered by the integration of a skilled workforce capable of operating highly automated production systems. The complexity of modern manufacturing machinery often Fabricated Metal Manufacturing requires employees with specialized training and/or extensive professional experience, contributing to relatively high wages within the sector. Machinery & Robotics Manufacturing Infrastructure and workforce availability are critical to Advanced Manufacturing operations. Companies typically invest in locations with a skilled, low-cost workforce and plentiful, Petrochemical & Plastics Manufacturing affordable energy supplies. Both attributes are critical in maximizing productivity and reducing costs. Advanced Manufacturing firms often locate in close proximity to an interstate, Predictive Maintenance Technologies major port, and/or intermodal rail facilities, as the presence of these infrastructural assets can help facilitate delivery of both raw materials and finished products. Given the outsized capital investment of Advanced Manufacturing facilities, they are among the country's most highly sought after clusters and often command comprehensive incentives packages from prospective communities. Global Forces In recent years, US Manufacturing has stabilized thanks to increased automation, stagnant domestic wages, rising foreign labor costs, and lower North American energy prices. The fracking revolution has been especially beneficial to the petrochemical industry, as energy prices represent a disproportionately high share of the sector’s overall production cost. Between 2005 and 2015, US natural gas production increased 50%. During this period, the price of natural gas declined approximately 70%. While the Trump administration has emphasized its commitment to an expanded manufacturing industry, talk of imposing stiff tariffs on imported goods has raised the specter of a trade war that would threaten domestic manufacturing. Additionally, possible renegotiations of trade agreements such as NAFTA would likely have significant impacts on US manufacturing, though the ultimate impacts remain highly speculative in the absence of additional details. Should trade policies stay consistent, the EDF service area is in a competitive position to continue its robust manufacturing and trade activity. 10 ADVANCED Niche Sectors Advanced Materials & Composites – Advanced Materials & Composites involve the research, MANUFACTURING development, and fabrication of materials derived from innovations in metal, polymers, glasses, composites, and textiles. Advanced Materials & Composites combine high performance with lightweight design and are often used for automotive, aerospace, medical, and military applications. For example, the introduction of Advanced Materials & Composites NICHE SECTORS such as carbon-fiber and reinforced epoxies has contributed to the weight reduction of modern aircraft, helping the aerospace industry deliver increasingly fuel efficient fleets. In Advanced Materials & Composites healthcare, Advanced Materials are employed to enhance or replace natural functions. The convergence of technology and textiles may lead to the creation of “functional fabrics” with novel properties such as exceptional flame resistance, extraordinary strength, or sensing Fabricated Metal Manufacturing capabilities. Thermoplastics, which can be reformed into other shapes, represent a small but growing niche due to their inherent flame retardant nature and resistance to corrosion. Such Machinery & Robotics Manufacturing attributes make them ideal for industries such as aerospace and oil & gas. Petrochemical & Plastics Manufacturing Fabricated Metal Manufacturing – Fabricated Metal Manufacturing involves the transformation of metal into component parts or finished products. Individual components may be crafted by forging, stamping, and machining raw metal inputs. More complex items may involve welding Predictive Maintenance Technologies and assembling constituent parts into an end-use product. Fabricated Metal Manufacturing parts and products support a variety of industries, including agriculture, oil and gas, architecture and construction, and aerospace and defense. When these industries faltered during the recession, so too did Fabricated Metal Manufacturing. In recent years, however, Fabricated Metal Manufacturing employment has rebounded as the health of these industries ADVANCED MANUFACTURING have improved; between 2010 and 2015, the sector added more than 90,000 jobs. Within EMPLOYMENT GROWTH, 2011-2016 Texas, the recovery of Fabricated Metal Manufacturing has been