Luis Nieves-Ruiz, AICP

Principal Planner

Orange County Planning Division

September 14, 2011

Economic Corridor Study

SR 429 Initiative

Economic Analysis

Cluster Study

Economic Corridor Study

SR 429 Initiative

Economic Analysis

Cluster Study

Partnership between Orange County, Apopka, Ocoee, and Winter Garden

Use the expansion of SR 429 as a catalyst to create economic development opportunities in the area

SR 429 Group

Jurisdictions assets presentations

Established contact with University of Florida for assistance with economic impact projects

EDA Grant Application

Economic Cluster Study

Achievements/Projects

Economic Corridor Study

SR 429 Initiative

Economic Analysis

Cluster Study

Economic Structure Analysis

There are two types of businesses:

Basic Industries (export)

Drive economic growth

High multiplier effect

Link between local companies

Non-Basic Industries (local consumption)

Regional economies specialize in products and services they are most competitive

Location Quotient

Ratio between the local economy and reference economy

Measures regional economic specialization

Easy to understand

LQ < 1

LQ = 1

LQ > 1

Regional employment proportion is less than national proportion

Regional employment proportion is same as national proportion

Regional employment proportion is greater than national proportion

LQ Assumptions

A high location quotient implies economic competitiveness

The excess capacity in a particular industry translates into export potential

Not meant to put a value on specific industries

Should not discourage economic diversification efforts

Economic Data Structure

NAICS Industry classification system

20 industrial sectors

6-digit level of complexity

Natural Resources and Mining

11 Agriculture, Forestry, Fishing & Hunting

114 Fishing, Hunting, and Trapping

1141 Fishing

114111 Finfish Fishing

Highest Location Quotients in Orange County

NAICS Code Industry and Description Location Quotient

713110 Amusement and Theme Parks 60.12

711190 Other Performing Arts Companies 14.48

561590 Other Travel Arrangement Services 13.04

561520 Tour Operators 8.42

111310 Orange Groves 8.19

561920 Convention and Trade Show Organizers 7.58

33331 Commercial and Service Industry Machinery 6.42

485510 Charter Bus Industry 5.93

448320 Luggage and Leather Goods Stores 5.68

238192 Other Nonresidential Exterior Contractors 5.59

721110 Hotels and Motels, Except Casino Hotels 5.30

485999 All Other Ground Passenger Transportation 5.07

Source: BLS Location Quotient Calculator (2009 employment data)

Economic Geography

• Firms often agglomerate within an area to increase competitiveness

• These agglomerations are often called “clusters”

• Not every agglomeration is a cluster

• A cluster is comprised of interrelated exporting firms, as well as a network of materials and services suppliers

Red = Main Establishments Purple= Supporting Industries

Leisure and Hospitality agglomerations

State Road 429 Industry Study

State Road 429 Initiative

Economic Structure Analysis

Cluster Study

Definition of Study Area SR 429 interchanges were used

as central points to define study area

Created 3 mile buffers from most of the interchanges

Buffers were combined to create one polygon

Study area also includes 2 additional buffers north of the last interchange

Technology and Data Sources

ArcGIS Software

Produce buffers

Query Establishments by Location and Type

InfoUSA Data Layer

BLS Location Quotient Calculator

Google searches

Preliminary Study Findings

Total of 3,990 businesses within the study area

Comprised of 471 industry classifications

Over 60 percent of all establishments have less than 5 employees

Most businesses are non-basic industries

Number of Establishments by Industry

NAICS Code

Industry Description

Number of Establishments

722110 Full-Service Restaurants 193

813110 Religious Organizations 160

621111 Offices Of Physicians Except Mental Health 105

236115 New Single Family General Contractors 103

531210 Offices Of Real Estate Agents & Brokers 94

444220 Nursery Garden & Farm Supply Stores 77

424930 Nursery & Florist Merchant Whls 73

812112 Beauty Salons 68

561730 Landscaping Svcs 64

524210 Insurance Agencies & Brokerages 59

Source: INFOUSA, 2010

Industry Agglomeration Characteristics

There are six significant industry agglomerations

High location quotients (LQ)

High number of establishments

- Unrelated establishments were taken off the list

Relative proximity between establishments

Presence of supporting firms such as suppliers and other related industries

Building and Real Estate

NAICS Code

Industry Description#

FirmsLQ

236115New Single-Family General

Contractors99 0.5

531210Offices Of Real Estate Agents &

Brokers92 2.53

236220 Commercial Building Construction 41 0.7

238220 Plumbing & Hvac Contractors 39 0.83

238320 Paint & Wall Covering Contractors 29 0.94

444190 Other Building Material Dealers 28 0.59

238910 Site Preparation Contractors 22 0.58

238210 Electrical Contractors 22 0.85

236118 Residential Remodelers 21 0.5

Nursery and Floriculture

NAICS Code

Industry Description#

FirmsLQ

444220 Nursery Garden & Farm Supply Stores

76 0.4

424930 Nursery & Florist Merchant Wholesalers

72 1.77

561730Landscaping Services 64 1.27

111421Nursery and Tree Production 12 ND

424910 Farm Supplies Merchant Wholesalers

8 0.08

423820 Farm & Garden Equipment Merchant Wholesalers

7 0.19

325311 Nitrogenous Fertilizer Manufacturing

2 3.12*

325314 Fertilizer, Mixing Only, Manufacturing

1 3.12*

111422Floriculture Production 1 4.71

*Based on 5 digit NAICS

Tourism Support and Entertainment

NAICS Code Industry Description

# Firms LQ

512110Motion Picture & Video

Production11 0.61

711510Independent Artists,Writers & Performers

10 1.4

561520 Tour Operators 7 8.42

711190Other Performing Arts

Companies5 14.48

485510 Charter Bus Industry 2 5.93

334512Automatic Environmental

Control Manufacturing1 0.63

Information Technology

NAICS Code Industry Description

# Firms LQ

518210 Data Processing & Related Services 9 1.78

541512 Computer Systems Design Services 9 0.8

541511Custom Computer Programming

Services8 0.93

443120 Computer & Software Stores 5 0.87

541614Process & Logistics Consulting

Services2 0.67

541330 Engineering Services 1 1.34

Health CareNAICS Code Industry Description

# Firms LQ

621111Offices Of Physicians Except

Mental Health104 0.95

621210 Offices Of Dentists 36 0.54

621310 Offices Of Chiropractors 21 0.83

621399Offices Of Misc Health

Practitioners12 1.62

621340 Offices Of Specialty Therapists 12 0.71

621493Freestanding Emergency Medical

Centers10 1.36

621999Miscellaneous Ambulatory

Health Care Services9 ND

423450 Medical Equip Merchant Whls 7 0.91

621511 Medical Laboratories 6 0.99

Metallurgy and Die Tools

NAICS Code Industry Description

# Firms LQ

332212 Hand & Edge Tool Manufacturing 6 ND

423510 Metal Merchant Wholesalers 4 0.47

423840Industrial Supplies Merchant

Wholesalers4 0.28

332312Fabricated Structural Metal

Manufacturing3 0.44

311421 Fruit & Vegetable Canning 2 ND

332710 Machine Shops 2 ND

332812Metal Coating & Non-Precious

Engraving2 0.03

332311Prefabricated Metal Buildings &

Components1 0.62

332322 Sheet Metal Work Manufacturing 1 0.48

Conclusions

Largest Number of Firms - Building and Real Estate

Most Mature - Nursery and Floriculture

Solid Agglomerations - Tourism Support and Health Care

Promising Agglomerations - IT and Metallurgy

Industry linkages need further study to devise an economic strategy for the SR 429 Corridor

For more information, check the Planning Division’s Economic Outlook publications or contact Luis Nieves-

Ruiz at Luis.Nieves-Ruiz@ocfl.net