Analyzing and Profiling the Local Economy

Question 1

to develop an effective economic development plan, economic development practitioners must ____

Answer 1

understand the driving forces in the economy, the economic base industries, development capacity, and external trends and events that affect the community’s development

Question 2

Assessment of the local economy identifies

Answer 2

1. challenges the economy is facing or is likely to face
2. existing and potential competitive advantages and how the advantages compare to other communities
3. obstacles to attaining economic development goals and objectives
4. regional, national, and international environments in which your local economy exisits, their impacts on the local economy, and what factors are likely to change over time
5. local resources for implementation of the economic development plan
6. socio-economic make-up of the community and migration trends
7. skill level of the workforce
8. opinions and perceptions of your community that may help or hinder results

Question 3

info and analysis generated from studying the local economy can be used to

Answer 3

1. ID local assets and liabilities that will affect economic development
2. project or forecast local economic development trends
3. monitor economic performance over time

Question 4

Local economic studies should address

Answer 4

1. employment and unemployment broken out by activity and location, fiscal well-being measured by tax rates and taxing capacity
2. current economic activity including number of firms, their industry type, size, age, location, wage levels and new investment
3. future trends and developments like legislation, changes in economic structure, and new business starts
4. size of labor pool, wages rates, market size, area income, market growth rates, land and building availability, and community amenities like quality of life
5. development capacity including local public and private resources and institutions that can administer specific economic development projects and programs

Question 5

Avoid economic study pitfalls by

Answer 5

1. limiting info gathering to an identified area of analysis
2. keep info gathering simple - collect data that has an immediate use, will help you understand the local economy and lead to decision making
3. gather and analyze info over time
4. make info relevant and understandable to decision makers

Question 6

How do you define the region of analysis or economic area for study?

Answer 6

think about dominant economic influence = do commuters from outside the political jurisdiction contribute significantly to workforce?

Question 7

Three resources commonly used to gather data for economic studies

Answer 7

Census, BLS, or Bureau of Economic Analysis

**these sources typically aggregate information by “place” - city, county, MSA, etc.

Question 8

to gather a full understanding of the economic environment you should look at _______

Answer 8

local and regional economic setting

Question 9

areas of study for full understanding of local and regional economic setting include

Answer 9

1. region-wide analysis of broader economic trends like business concentration, population, employment, and unemployment
2. city-wide factors like income, business starts, population, employment/unemployment
3. Sub-city areas like CBD and neighborhoods
4. sector analysis like manufacturing sector, service sector, and labor force

Question 10

communities under ____ can have problems using regular data sources because they aggregate info into political jurisdictions like states, counties, and large cities

Answer 10

50,000; surveys and focus groups are alternatives

Question 11

audits on institutional capacity should____

Answer 11

identify and assess potential implementation resources, their competencies, and abilities to take on additional tasks, and their strengths and weaknesses

Question 12

institutional capacity audits should look at

Answer 12

1. labor: availability, cost, and skills
2. financial resources: types, availability, reliability
3. existing programs and services: service techniques and processes, capacity, and reputation/credibility
4. formal partnerships: MOAs and other binding agreements
5. Infrastructure

Question 13

economic condition describes

Answer 13

the current level of economic activity in a community

Question 14

to determine the profile of an economy

Answer 14

employment
unemployment
number of firms by industry and size
wages
area income
output by industry
new business starts
retail sales
new housing sales
average price of homes sold

Question 15

POPULATION characteristics and trends provide___

Answer 15

insights into the potential workforce pool, nature of the local market and needs for local goods and services like schools

Question 16

use ____, _____, and _____ to determine the characteristics of the population

Answer 16

size and growth
distribution by age, sex, race income, and education levels
characteristics by geographical sub-areas

Question 17

LABOR FORCE characteristics detail ________ of the community and provide insight regarding

Answer 17

occupational mix; skill base of the local workforce

Question 18

OCCUPATIONAL MIX is based on:

Answer 18

percentage of workforce in high-skilled jobs vs. percent of workforce in low-skilled jobs

Question 19

find out about local labor force by looking at

Answer 19

1. participation rates
2. occupations
3. wage rates
4. skill level
5. transferable skills
6. educational attainment
7. location (local or commuters)
8. productivity
9. availability
10. underemployment

Question 20

PHYSICAL CONDITION is an inventory of available development sites for

Answer 20

manufacturing, retail, or downtown development

Question 21

a complete business facilities and sites inventory provides info on

Answer 21

high quality sites, special districts, businesses operating at less than full capacity, facilities in poor condition or that are obsolete

Question 22

these details can provide insight into spatial and physical qualities of a location

Answer 22

land use, zoning, and location
land values and cost
conditions of buildings: age, size, access, and availability
vacancy rates and absorption
building activity
parking facilities
condition and capacity of infrastructure: air, rail, waterways, roadways, utilities
environmental conditions, including air and water quality

Question 23

business climate provides:

Answer 23

insight into how supportive the local economic environment is to business … who is locating and why? who is successful or failing and what are the reasons? do companies feel like they have the support of the local economy? what are the public and private financing programs?

Question 24

These items provide information on how the community promotes and supports business development

Answer 24

1. community attitudes
2. labor relations
3. business taxes
4. business regulations
5. level and quality of municipal services
6. business services (lawyers, computer and copy services, etc)
7. workforce training programs
8. manufacturing extension programs
9. access and cost of capital
10. transportation access - airports, train, highways

Question 25

Knowledge-based resources provide insight into the

Answer 25

technical and scientific resources available to support industry development

Question 26

knowledge-based resources include:

Answer 26

federal labs
science and research parks
industry incubators
colleges and universities
technical training schools

Question 27

quality of life/general living conditions

Answer 27

describes the cultural, historical, recreational, natural, and other characteristics of a community - NO UNIVERSAL Definition

Question 28

quality of life indicators

Answer 28

• housing availability, conditions and cost
• public services: type, level, quality
• quality of public education systems
• universities, colleges, and vocational schools
• crime rates
• cultural and recreational opportunities
• personal taxes

Question 29

a target industry analysis can

Answer 29

project industry growth and land absorption into the future

Question 30

a retail leakage analysis:

Answer 30

indicates which retail categories are adequately serving residents from within city limits and indicates which retail types are serving residents from other locations

Question 31

target industries are

Answer 31

industries that are a best fit for a community based on the Economic Base Analysis and business climate factors. Works best with industrial and office sectors. These targets become the focus for retention and attraction efforts

Question 32

land use demand forecasting

Answer 32

can be calculated based on predicted job growth for industrial office and retail sectors

Question 33

with GIS mapping___

Answer 33

locations of retail, industrial, and office jobs can be plotted so that clusters, circulation and land uses can be compared – mapping of local businesses by types

Question 34

fiscal impact analysi

Answer 34

various land uses generate different levels of property, sales, and other taxes and each land use type has different costs associated with utilities, public safety, traffic and other impacts. this analysis projects the relevant net benefit to a community as it expands its industrial, commercial, retail and housing acreage