Cluster Employment and LQ

Definition
The number of employees working in Racine County's manufacturing and other major clusters (jobs) and the concentration of employment in these clusters compared to the national average (location quotient).

Why it matters
Industry clusters bring substantial benefits to the region. The larger a cluster becomes, the larger is its impact on the regional economy. Clusters tend to attract both professionals and employers to a region.

Professionals may move to region seeking employment in that cluster, and related businesses follow in order to take advantage of a growing labor pool with industry-specific skills. This process has a synergistic effect as more workers and firms move to a particular metropolitan area, the incentive for others to relocate increases.

Performance
—Manufacturing cluster is one of the built in advantages of Racine County that help it in competing with the national as well as global economy. It creates high-quality jobs, spur innovation, and generate growth among numerous interconnected industries. Within Racine County, the manufacturing cluster contains 19,128 jobs in 2015 with an average earning of $90,319 per job (above national average of $79,107).

The top three prominent industries in Racine County are Electrical Equipment, Appliance, and Component Manufacturing, Chemical Manufacturing, and Machinery Manufacturing. Businesses in theElectrical Equipment, Appliance, and Component Manufacturing industry have experience the highest growth as shown by the change in LQs from 2001. Other high growth industries are Nonmetallic Mineral Product Manufacturing, and Fabricated Metal Product Manufacturing.

Benchmark
The purpose of this metric is to track economic trends within the County over time. Benchmark data is embedded in the LQ which compares industry concentration to the National Average. 

Data Source
Economic Modeling Specialists Intl. (EMSI)

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