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ANALYSIS OF THE TANEY COUNTY LABOR MARKET AREA, 2016

Prepared by:


Table of Contents Introduction ................................................................................................................................2 Analysis of the Taney County Labor Market Area .......................................................................3 Defining the Taney County Labor Market Area .......................................................................3 Population Trends ...................................................................................................................4 Labor Force Trends .................................................................................................................6 Demographic Characteristics of Workforce .............................................................................7 Analysis of Occupational Employment ....................................................................................9 Analysis of Occupations by Labor Clusters ........................................................................... 11 Potential Compatible Occupations ......................................................................................... 13 Targeted Industries .................................................................................................................... 16 References ................................................................................................................................ 30 Exhibit A: Map of Labor Market Area...................................................................................... 32 Exhibit B: Industry Concentration by State............................................................................... 33

List of Figures Figure 1 - County of Residence for Taney County Workers, 2014 ...............................................4 Figure 2 - Taney County Labor Market Area Population – 2000 to 2015 and Projected 2021 ......4 Figure 3 - Region Age Groupings as a Percent of Total Population, 2000-2021 ...........................5 Figure 4 - Population by Age Group, 2000-2015 .........................................................................6 Figure 5 - Regional Labor Force Trends, 2006-2016 ...................................................................7 Figure 6 - Gender Balance within Labor Market Industry Employment, 2006-2016.....................8 Figure 7 - Labor Market Industry Employment by Age Group, 2006-2016 ..................................9 Figure 8 - Percentage Distribution of Employment by Occupational Group, 2016 ..................... 10 Figure 9 - Percentage Distribution of Employment by Labor Clusters, 2016 .............................. 12

List of Tables Table 1 - Percent of Industry Employment in Business Support Occupations ............................ 14 Table 2 - Percent of Industry Employment in Production and Transportation & Material Handlers Occupations .............................................................................................................................. 15

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Introduction In November 2015, Jonas Arjes, Executive Director of the Taney County Partnership (TCP) contacted the Institute for Decision Making (IDM) requesting that IDM update the targeted industry analysis IDM completed for TCP in 2013. Since there had been little changes to many of Taney County’s key economic development assets – available site and buildings, infrastructure, transportation network and regional industry base – and many Taney County businesses were experiencing workforce challenges, the TCP and IDM discussed whether there was a need to conduct a full targeted industry analysis. TCP and IDM agreed in July 2016 the most effective and efficient approach would be for IDM to update the “Analysis of the Taney County Labor Market Area” section of the 2013 Targeting Report completed by IDM to determine if Taney County’s labor market area had changed. IDM agreed to update the labor market analysis and also validate TCP’s existing industry targets based on the results of the labor market analysis. IDM has previously worked with TCP and its partners in the development of a strategic plan for the organization, and has continued to provide TCP with technical assistance as it implemented economic development efforts for Taney County. As a part of the update of the Taney County Labor Market Area, IDM analyzed the zip codes of where Taney County workers live in order to define the laborshed area. IDM then analyzed the region’s population trends and labor force trends. Next, IDM analyzed occupational employment and labor clusters in the Taney County area. After completing the analysis of the Labor Market Area, IDM validated TCP’s industry targets and updated the industry profiles for each of the targeted industries. The Institute for Decision Making is the community economic development group in the Business and Community Services Division of the College of Business Administration at the University of Northern Iowa (UNI). No portion of this report may be reproduced or used in any manner without the prior written consent of IDM and the Taney County Partnership.

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Analysis of the Taney County Labor Market Area Defining the Taney County Labor Market Area As explained in the 2013 report prepared by IDM, understanding a community’s and its broader region’s labor force is a critical part of the industry targeting process. Area Development magazine has surveyed corporate executives and site selection consultants for 30 years, asking them to rate site selection factors in terms of importance. Over these 30 years they have found that the importance of skilled labor has increased, the concern about labor costs has decreased in importance, while training programs have increased in importance. Further, as skilled labor has increased in importance, so has the emphasis on quality of life in order to attract that labor. The following sections of this report include IDM’s analysis of the region’s workforce and how that potential workforce may match with the labor needs of potential targeted industries. The first step IDM undertook was determining the geography of Taney County’s labor market area, often called a laborshed area. To do this, IDM utilized data from the Local Employment Dynamics (LED) Program, which is a partnership between the U.S. Census Bureau and state workforce agencies. Map 1 (Exhibit A) shows the primary zip codes of where Taney County workers live. The analysis of the LED data showed that 79.8% of Taney County’s workers come from within Taney County and the six additional counties shown in Figure 1. Ozark County and Carroll County, Arkansas, not shown below, are also included in the labor market region because of their close proximity to Taney County, although they each contributed less than one percent of Taney County’s workforce. The laborshed area in this 2016 update includes Barry County which now represents 1.3 percent of Taney County’s workforce, but did not contribute significantly to the workforce in 2013. When comparing the current laborshed area to the 2013 laborshed area, it should be noted that 20.2 percent of workers come from “all other counties” currently, whereas 16.2 percent of workers came from “all other counties” in 2013. This is simply due to a redistribution of where workers are coming from. For example, fewer workers are coming from Stone County but more are coming from Barry County now as compared to 2013.

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Figure 1 - County of Residence for Taney County Workers, 2014

Source: U.S. Census Bureau, Center for Economic Studies, On The Map

Population Trends After the revised geography of the Taney County labor market area was determined, IDM examined the basic demographics and population trends for the area. Figure 2 shows steady growth in total population for the nine counties that make up Taney County’s labor market area. From 2000 to 2015 the labor market area’s total population grew by 99,793 residents for a change of 20.8 percent. The region has grown 2.0 percent in the three years since IDM completed the first report. A growing population typically indicates a growing labor force and is a positive sign for businesses considering a region for locating a company. The region’s population is projected to continue to grow through 2021. Figure 2 - Taney County Labor Market Area Population – 2000 to 2015 and Projected 2021

Source: U.S. Census Bureau and EASI

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IDM divided the population into five age groups as they relate to analysis of the potential labor force. Figure 3 shows the region’s age groupings as a percent of total population from 2000 and projected to 2021. The under 18 “Future Workforce” segment is shrinking as a percentage of total population, as are the “New Entries” and “Current Workforce” segments. The “preRetirees” and “Retirees” segments both have grown as a percentage of the total population, reflecting the aging population of the region. Figure 3 - Region Age Groupings as a Percent of Total Population, 2000-2021

Source: U.S. Census Bureau, Missouri Census Data Center, EASI

During the time period between 2000 and 2015, each of the five age groups did grow in population, however the growth was not even across the five age groups (see Figure 4). The “Pre-Retirees” age group of people age 55-64 grew 58.3 percent between 2000 and 2015 and the “Retirees” age group of people 65 and older grew 48.6% during this time period. Once again, this reflects the overall demographic shifts taking place in the U.S., but some of this growth is likely due to retired and semi-retired individuals moving into the region.

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Figure 4 - Population by Age Group, 2000-2015

Source: U.S. Census Bureau, Missouri Census Data Center

Labor Force Trends The size of the labor force in the Taney County labor market area has grown over the last 10 years. The labor force is considered to be made up of individuals that are currently employed and individuals who are unemployed and have actively sought employment over the previous four weeks. As of July 2016, the region’s resident labor force was 295,537 individuals (282,082 employed individuals and 13,155 unemployed individuals). In July of 2006, the region’s labor force size was 288,951 individuals (277,134 employed individuals and 11,817 unemployed individuals). Figure 5 shows the region’s labor force trends from January 2006 through July 2016. Over this period of time, the region’s labor force peaked at 295,647 in June 2016 and had a low of 270,453 in January 2006. The seasonal dynamic in the Taney County labor market is tied to the industry structure of the region’s economic base. The region’s unemployment rate trends higher during the months of January, February and March which also reflects the seasonal employment of accommodation and food service workers as well as construction workers.

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Figure 5 - Regional Labor Force Trends, 2006-2016

Source: U.S. Bureau of Labor Statistics (Local Area Unemployment Statistics)

Demographic Characteristics of Workforce In addition to providing data on the commute of industry workers, the Local Employment Dynamics (LED) Program provides significant data on the demographic characteristics of workers. It should be pointed out that the LED data is generated by the linking of unemployment insurance data and the Quarterly Census of Employment and Wages (QCEW) data from the state workforce agencies with a number of Census Bureau data sets. Due to the data sources used there are slight differences in the LED employment numbers for the region compared to BLS employment data for the region. Figure 6 shows that there have been some slight shifts in the gender composition of the workforce employed by industries in the Taney County labor market area. From 2006 through the end of 2008, which was the start of the “Great Recession�, the percent of males and females in the workforce were fairly similar with seasonal fluctuations impacted if there were more males or females working. Between 2008 and 2012 there were more female workers than male workers. The pattern since 2012 is similar to what occurred from 2006 to 2008. In the most recent quarter available, 4th quarter 2015, there were 130,387 male workers (50.1 percent) and 129,837 female workers (49.9 percent). In the earliest quarter shown, 1st quarter 2006, the labor market area had 117,892 male workers (50.0 percent) and 117,828 female workers (50.0 percent).

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Figure 6 - Gender Balance within Labor Market Industry Employment, 2006-2016

Source: U.S. Census Bureau, Center for Economic Studies, Quarterly Workforce Indicators

The LED data breaks workers into seven different age groups with the youngest being workers age 14 to 18 and the oldest being workers 65 and older. Over the past decade there have been some shifts in the age of workers in the Taney County labor market area from 2006 to 2015. Figure 7 illustrates the movement of these trends. In the 1st quarter 2006, the group that had the most workers was the 35 to 44 age group with 22.8 percent of the workers. In the 4th quarter 2015, the largest group was the 25 to 34 age group with 21.6 percent. The percent of older workers in the workforce has increased in recent years while the percent of younger workers has decreased. In 4th quarter 2015, workers age 55 to 64 represented 15.9 percent of the workforce, which is 3.2 percent higher compared to the 1st quarter 2006, and workers 65 and older represented 5.6 percent which is 2.0 percent higher than in the 1st quarter 2006.

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Figure 7 - Labor Market Industry Employment by Age Group, 2006-2016

Source: U.S. Census Bureau, Center for Economic Studies, Quarterly Workforce Indicators

Analysis of Occupational Employment The talents and skills of the individuals in a community or region’s workforce will significantly impact the types of employers who could be attracted to that community or region. Therefore, an essential step in the analysis of the Taney County labor market area was to examine the types of occupations held by workers in the region. The type of occupations and numbers of individuals employed in those occupations provide an indication of the labor skills that could potentially be available to expanding employers in Taney County or new employers to Taney County. Figure 8 breaks out the occupational employment in Taney County and in the larger labor market area into 20 broad occupational groups. Taney County’s workforce is overwhelmingly employed in service-related occupations. Nearly 20 percent (19.6 percent) of the workers in Taney County are employed in food preparation and serving related occupations. Another 18.0 percent of workers are employed in sales and related occupations and 14.6 percent of workers are employed in office and administrative support occupations. The broader labor market area is also dominated by service-related occupations. Office and administrative support occupations account for 16.5 percent of the jobs followed by sales and related occupations (11.9 percent) and food preparation and serving related occupations (10.8 percent). However, the broader labor market area does have higher percentages of transportation and material moving jobs and production jobs than Taney County.

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Figure 8 - Percentage Distribution of Employment by Occupational Group, 2016

Source: EMSI, Q3 2016

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Analysis of Occupations by Labor Clusters It is important to recognize that the types of employers within a community or region dictate the types of occupations held by the community’s or region’s workforce. With Taney County’s industry base being so heavily focused on tourism-related industries, it is understandable that there is a heavy concentration of workers in occupational groups such as food preparation and serving related, sales and office and administrative support occupations. To gain an understanding of the skills likely held by workers in those various occupations and the potential other occupations those workers might be qualified for based on transferable skills, IDM sorted the estimated occupational employment data into 21 different labor clusters. Each labor cluster consists of occupations that require similar base knowledge, skills and attributes. Figure 9 is a breakout of the 21 labor clusters based on each labor cluster’s percentage share of Taney County’s and the larger labor market area’s total industry employment. Over a third of the jobs in Taney County are in occupations that fall into the semi-skilled service workers labor cluster (35.8 percent). Another 16.4 percent of the jobs are in occupations that fall into the legal, clerical, and administrative support staff labor cluster. Those two labor clusters also had the highest employment levels in the broader labor market area. The third largest labor cluster in Taney County was the skilled laborers and machine operators labor cluster which accounted for 9.5 percent of the county’s total employment.

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Figure 9 - Percentage Distribution of Employment by Labor Clusters, 2016

Source: EMSI, Q3 2016

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Potential Compatible Occupations IDM next undertook a detailed examination of the individual occupations that make up the largest labor clusters in Taney County and the broader labor market area. Utilizing the Occupational Information Network (O*NET) database from the U.S. Department of Labor and EMSI’s occupation comparison analysis tool, IDM profiled the occupations with the highest employment levels to determine the key skills required for the occupation and to identify other occupations that required similar knowledge and skills and could mean potential skill transferability. As was done in 2013, as IDM identified potential compatible occupations, it divided those occupations into two groupings. The first group is production and transportation and material handlers occupations and the second group is what IDM calls “business support” occupations consisting of a variety of occupations from the business and financial operations, sales, and office and administrative support occupational groups. Next, IDM analyzed national industry staffing patterns data from the Bureau of Labor Statistics’ National Industry-Specific Occupational Employment and Wage Estimates to identify industries that employ significant numbers of workers in occupations that fall into the “business support” occupations group and the production and transportation and material handlers occupations group. Table 1 identifies 27 non-manufacturing industries at the 4-digit NAICS level that have 20 percent or more of their total workforce in business support occupations that were identified through IDM’s analysis. When comparing this list of occupations to the list from the 2013 report, it should be noted that there are many more occupations today that have 20 percent or more of their total workforce in business support occupations (27 occupations currently compared to 10 in the 2013 report).

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Table 1 - Percent of Industry Employment in Business Support Occupations NAICS

Industry

Total

5242 5241 5231 5223 4251 5614 4885 5321 4232

Agencies, Brokerages, and Other Insurance Related Activities Insurance Carriers Securities and Commodity Contracts Intermediation and Brokerage Activities Related to Credit Intermediation Wholesale Electronic Markets and Agents and Brokers Business Support Services Freight Transportation Arrangement Automotive Equipment Rental and Leasing Furniture and Home Furnishing Merchant Wholesalers Hardware, & Plumbing & Heating Equipment & Supplies Merchant Wholesalers Apparel, Piece Goods, and Notions Merchant Wholesalers Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers Legal Services Chemical and Allied Products Merchant Wholesalers Lumber and Other Construction Materials Merchant Wholesalers Machinery, Equipment, and Supplies Merchant Wholesalers Electronic Shopping and Mail-Order Houses Office Administrative Services Other Financial Investment Activities Metal and Mineral (except Petroleum) Merchant Wholesalers Miscellaneous Durable Goods Merchant Wholesalers Professional and Commercial Equipment and Supplies Merchant Wholesalers Wireless Telecommunications Carriers (except Satellite) Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers Other Professional, Scientific, and Technical Services Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Grocery and Related Product Merchant Wholesalers

66.4% 48.1% 47.9% 41.8% 40.6% 40.1% 37.7% 37.3% 36.1%

4237 4243 4248 5411 4246 4233 4238 4541 5611 5239 4235 4239 4234 5172 4231 5419 5331 4244

36.0% 33.7% 32.0% 30.7% 29.4% 28.8% 28.6% 28.0% 27.8% 26.3% 26.0% 25.9% 25.1% 22.3% 21.8% 21.2% 20.6% 20.0%

Source: U.S Bureau of Labor Statistics

Table 2 identifies 26 manufacturing industries at the 4-digit NAICS level that have 20 percent or more of their total workforce in the production and transportation and material handlers occupations identified by IDM through its analysis. Twelve of the manufacturing industries included in Table 2 have a buyer-supplier linkage at the U.S. economy level with manufacturing industries that have a significant presence in the broader 19-county Taney County region. Fewer industries currently have 20 percent or more of their workforce in the production and transportation and materials handlers occupations (26 industries) than when the previous analysis was completed in 2013 (39 industries with at least 20 percent of their workforce in these occupations).

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Table 2 - Percent of Industry Employment in Production and Transportation & Material Handlers Occupations NAICS

Industry

Production

Transportation & Material Handlers

Total

3116 3117

Animal Slaughtering and Processing Seafood Product Preparation and Packaging

49.1% 46.3%

10.3% 10.5%

59.3% 56.8%

3222 3231

Converted Paper Product Manufacturing Printing and Related Support Activities

39.5% 38.8%

8.1% 5.4%

47.6% 44.2%

3271 3221

Clay Product and Refractory Manufacturing Pulp, Paper, and Paperboard Mills

33.3% 33.9%

6.7% 4.8%

40.0% 38.7%

3365 3272

Railroad Rolling Stock Manufacturing Glass and Glass Product Manufacturing

35.8% 26.8%

2.6% 9.2%

38.4% 36.0%

3279 3324

Other Nonmetallic Mineral Product Manufacturing Boiler, Tank, and Shipping Container Manufacturing

27.7% 26.3%

4.1% 2.9%

31.9% 29.2%

3328

Coating, Engraving, Heat Treating, and Allied Activities

21.7%

6.4%

28.1%

3114 3274

Fruit and Vegetable Preserving and Specialty Food Manufacturing Lime and Gypsum Product Manufacturing

19.1% 20.7%

8.7% 6.1%

27.8% 26.8%

3122 3119

Tobacco Manufacturing Other Food Manufacturing

20.5% 15.3%

6.2% 11.3%

26.8% 26.6%

3113 3115

Sugar and Confectionery Product Manufacturing Dairy Product Manufacturing

12.8% 17.3%

13.8% 7.9%

26.6% 25.2%

3161 3256

Leather and Hide Tanning and Finishing Soap, Cleaning Compound, and Toilet Preparation Manufacturing

17.2% 17.5%

7.7% 6.5%

24.8% 24.1%

3366 3211

Ship and Boat Building Sawmills and Wood Preservation

22.2% 6.4%

1.5% 17.1%

23.7% 23.5%

3323 3362

Architectural and Structural Metals Manufacturing Motor Vehicle Body and Trailer Manufacturing

20.4% 19.5%

3.0% 3.1%

23.4% 22.6%

3112

Grain and Oilseed Milling

14.9%

7.3%

22.2%

3262 3111

Rubber Product Manufacturing Animal Food Manufacturing

19.4% 13.7%

2.2% 7.5%

21.6% 21.1%

Source: U.S Bureau of Labor Statistics

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Targeted Industries IDM used the same process to examine potential targeted industries that it used in 2013. This included examining:        

Skill levels and occupations of the labor market area’s potential available workforce Labor requirements of industries Industry growth rates Industry wage levels Potential buyer-supplier relationships with key existing industries Average establishment size Industry presence in the region Available sites and buildings in Taney County

The analysis based on these factors showed that the targeted industries identified in the 2013 report are still a good match for Taney County. Many of the other industries that were possible matches in the Business Support Occupations group were wholesalers, which are typically not recruited to an area as they tend to locate where manufacturers logistically need them. When examining industries that employ production workers and transportation and material handlers workers, IDM found that many of these industries did not match well with the assets of Taney County. Many of these industries need to be located near the raw materials used in production, including clay product and refractory manufacturing, pulp, paper and paperboard mills, nonmetallic mineral product manufacturing, lime and gypsum product manufacturing and so forth. No new industries surfaced as good matches for Taney County, so the list of targeted industries remains as follows. Each industry profile has been updated for this report. Financial/Business Services Industries NAICS 518210 – Data Processing, Hosting and Related Services NAICS 524290 – Third-Party Administrators & Insurance Claims Adjusters NAICS 561110 – Office Administrative Services NAICS 561410 – Document Preparation Services NAICS 561422 – Telemarketing and Call Centers

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Manufacturing NAICS 326111 – Plastic Bag and Pouch Manufacturing NAICS 326112 – Plastics Packaging and Sheet Manufacturing NAICS 331222 – Steel Wire Drawing NAICS 332322 – Sheet Metal Work Manufacturing NAICS 332911 – Industrial Valve Manufacturing NAICS 333995 – Fluid Power & Actuator Manufacturing NAICS 336999 – All Other Transportation Equipment Manufacturing A brief description of each industry follows. Several measures are included, such as total average earnings per worker, number of establishments, average establishment size and plant capacity utilization (the maximum or optimum level of production or output). Appendix B includes updated industry concentrations by state.

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Industry Profile Data Processing & Hosting Services NAICS 518210 Industry Definition This industry comprises establishments primarily engaged in providing infrastructure for hosting or data processing services. These establishments may provide specialized hosting activities, such as web hosting or application hosting. Data processing establishments provide specialized reports from data supplied by clients. Services range from data processing to automated data entry services. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 4.2 percent through 2021. Industry growth has been driven by a continued move of large corporations’ and internet-based firms’ IT needs to third parties. The advent and popularization of cloud computing has also led to greater demand for services in this industry. IBISWorld also reports that many companies have moved away from internal IT management, opting to outsource work to reduce costs without limiting performance. Investment in internet companies has additionally benefited industry growth. Companies will increasingly capture more data, requiring outside expertise of industry operators to manage their data needs. Targeting Criteria and Selection Rationale     

Projected employment growth 2016-26: 10.0% Projected annual revenue growth 2016-21: 4.2% Business support workers make up 18.0% of workforce Electric rates and supply Fiber access and redundancy

2015 Total Average Earnings: $98,652 2015 Establishments: 17,796 Avg. Establishment size: 16.7 employees Major companies:   

Hewlett-Packard Company International Business Machines Google

This industry is expected to show strong growth in employment through 2026. This industry employs business, finance, office and administrative workers and other business support workers which are available in Taney County. Utility providers offer competitively priced electricity and multiple, redundant telecom and fiber networks. The Mountain Data Center flex tech office building is available for companies in this industry.

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Industry Profile Third-Party Administrators & Insurance Claims Adjusters NAICS 524292 Industry Definition This industry is composed of three segments. The first segment includes investigating, appraising and settling insurance claims; the second consists of claims processing and administrative services; and the third focuses on insurance advisory or risk management operations. Services range from general back-office and administrative support to plan processing and claims-related operations. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 2.5 percent for the next five years. During this time period, increased outsourcing activity by pension funds and direct insurers will continue to drive revenue growth. Technology investments will drive productivity gains, and efficiencies will improve with economies of scale due to consolidation activity. IBISWorld also reports that the industry will benefit from insurance carriers and employeebenefit funds outsource claims processing and administrative services to industry operators. A renewed focus on risk management by insurers, as well as by employee-benefit fund administrators, will boost demand for industry risk advisory and actuarial consulting services. Increases in the number of employees and retirees will boost downstream demand for industry services. Targeting Criteria and Selection Rationale     

Projected employment growth 2016-26: 25.0% Projected annual revenue growth 2016-21: 2.5% Business support workers make up 66.4% of workforce Available office buildings Fiber access and redundancy

2015 Total Average Earnings: $68,186 2015 Establishments: 6,788 Ave. Establishment size: 26.0 employees Major companies:  No major players  Marsh & McLennan Companies  Aon PLC  Willis Group Holdings

This industry is projected to show very strong growth in employment through 2026. This industry employs a high percentage of business, finance, office and administrative workers and other business support workers which are available in Taney County. Office buildings are available for companies in this industry.

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Industry Profile Office Administrative Services NAICS 561110 Industry Definition This industry comprises establishments primarily engaged in providing a range of day-to-day office administrative services, such as financial planning; billing and recordkeeping; personnel; and physical distribution and logistics for others on a contract or fee basis. These establishments do not provide operating staff to carry out the complete operations of a business. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 1.3 percent for the next five years. Industry operators have experienced strong demand from small and medium-sized businesses as the economy recovered from the recession. Small companies often choose to focus on core activities and outsource unrelated functions. Also, changing health care regulations have increased the number of medium businesses that offer coverage, increasing demand for benefits administration services. IBISWorld also reports that as growth for corporate profit and the number of businesses slows, the industry will experience slightly lower growth. However, downstream customers are expected to continue to outsource tasks not related to their core business in order to better compete in their respective markets. Targeting Criteria and Selection Rationale    

Projected employment growth 2016-26: 19.0% Projected annual revenue growth 2016-21: 1.3% Business support workers make up 27.8% of workforce Available office buildings

2015 Total Average Earnings: $85,430 2015 Establishments: 48,008 Ave. Establishment size: 9.9 employees Major companies:  No major players  Automatic Data Processing Inc.  Paychex Inc.  Aon Hewitt

This industry is expected to have very strong employment growth through 2026. This industry employs business, finance, office and administrative workers and other business support workers which are available in Taney County. Office buildings are available for companies in this industry.

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Industry Profile Document Preparation Services NAICS 561410 Industry Definition This industry comprises establishments primarily engaged in one or more of the following: (1) letter or resume writing; (2) document editing or proof-reading; (3) word processing or desktop publishing; and (4) transcription or dictation, and other secretarial services. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 0.1 percent for the next five years. Industry revenue will plateau as competition from other sectors, such as voice recognition technology, is increasing. Moving forward, increasing health expenditure associated with newer health care regulations will help boost revenue as demand for transcription services increases from the health care sector. However, increasing external competition from user friendly software solutions could offset most of this growth in the long term. IBISWorld also reports that health care providers are one of the industry’s primary markets and account for the largest percentage of industry revenue. Total health expenditure is expected to increase in 2016, representing a potential opportunity for the industry. Targeting Criteria and Selection Rationale 2015 Total Average Earnings: $36,799    

Projected employment growth 2016-26: 8.0% Projected annual revenue growth 2016-21: 0.1% Business support workers make up 40.1% of workforce Available office buildings

2015 Establishments: 7,578 Ave. Establishment size: 5.9 employees Major companies:  Nuance Transcription Inc.  MModal Inc.  Medical Transcription Billing

This industry is projected to have good employment growth through 2026. This industry employs business, finance, office and administrative workers and other business support workers which are available in Taney County. Office buildings are available for companies in this industry.

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Industry Profile Telemarketing and Call Centers NAICS 561422 Industry Definition This industry comprises establishments primarily engaged in operating call centers that initiate or receive communication for others via telephone, email, or other communication modes for purposes such as: (1) promoting clients’ products or services; (2) taking orders for clients; (3) soliciting contributions for a client’s products or services. These establishments do not own the product or provide the services they are representing on behalf of clients. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 0.7 percent for the next five years. Call centers have increasingly used technological advancements, including cloud-based systems, social media, voice recognition software and other broadbandenabled technology, to become more efficient. As technology becomes less costly, new operators will enter the industry. IBISWorld also reports that, over the next five years, the industry will likely benefit from rising corporate profit, which will enable clients to increase their use of the telemarketing industry to attract new business and handle customer relations. In the long term, these technologies will reduce labor costs. Targeting Criteria and Selection Rationale  

    

Projected employment growth 2016-26: 34.0% Projected annual revenue growth 2016-21: 0.7% Business support workers make up 40.1% of workforce Electric rates and supply Fiber access and redundancy Midwest location Available building

2015 Total Average Earnings: $33,519 2015 Establishments: 7,191 Avg. Establishment size: 66.7 employees

Major companies:  Convergys Corporation  West Corporation  Teleperformance SA  TeleTech Holdings

This industry is projected to have exceptionally strong employment growth through 2026. This industry employs a very high percentage of office and administrative workers and other business support workers which are available in Taney County. Competitively priced electricity and multiple, redundant telecom and fiber networks are available. Companies in this industry often prefer Midwest time zones or locations to be able to reach both coasts and because workers tend to have neutral accents.

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Industry Profile Plastic Bag and Pouch Manufacturing NAICS 326111 Industry Definition This industry comprises establishments primarily engaged in converting plastics resins into plastic bags. Industry operators form, coat or laminate plastic film and sheets into single-wall or multi-wall plastic bags. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 3.8 percent. Companies in the retail supply chain experienced increased demand for products, which increased the need for the industry’s plastic bags and packaging materials. The food, beverage, tobacco and other consumer goods manufacturing market also expects demand for its products to grow over the next five years. U.S exports of packaged foods will grow, as domestic plastic packaging manufacturers develop and implement newer, more efficient technologies. According to IBISWorld, plastic packaging manufacturers that can offer advanced barrierprotection technologies will gain market share in the food export market, giving the industry some defense against low-cost imports. Targeting Criteria and Selection Rationale  

   

Projected employment growth 2016-26: 15.0% Projected annual revenue growth 2016-21: 3.8% Production workers make up 11.3% of workforce Transportation and material handlers make up 7.4% of workforce Identified linkages to existing industries in the area Industry presence in the Midwest

2015 Total Average Earnings: $49,287 2015 Establishments: 449 Ave. Establishment size: 69.5 employees Major companies:  Bemis Company  Sigma Plastics Group  Printpack Inc.

Plant capacity utilization 75.2%

This industry is projected to experience strong employment growth through 2026. This industry employs production workers and transportation and material handlers and Taney County has workers with these skills. Existing companies in the region have a need for plastics bags. With plant capacity utilization at 75.2%, expansions may be planned by some companies in this industry.

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Industry Profile Plastics Packaging Film and Sheet Manufacturing NAICS 326112 Industry Definition This industry comprises establishments primarily engaged in converting plastics resins into plastics packaging (flexible) film and packaging sheet. Food, beverage and consumer goods manufacturers use plastics packaging. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 3.8 percent. Demand will be driven by stronger industrial production, construction and exports. The food, beverage, tobacco and other consumer goods manufacturing market also expects demand for its products to grow over the next five years. U.S exports of packaged foods will grow, as domestic plastic packaging manufacturers develop and implement newer, more efficient technologies. According to IBISWorld, plastic will win further market share in most packaging markets, due to improvements in laminations, co-extrusions, barrier resistance and printing technologies. In addition, the residential construction sector is set for a recovery over the next several years, gradually increasing demand for plastic film products. Targeting Criteria and Selection Rationale  

   

Projected employment growth 2016-26: 45.0% Projected annual revenue growth 2016-21: 3.8% Production workers make up 11.3% of workforce Transportation and material handlers make up 7.4% of workforce Identified linkages to existing industries in the area Industry presence in the Midwest

2015 Total Average Earnings: $60,736

2015 Establishments: 341 Ave. Establishment size: 55.6 employees Major companies:  Bemis Company  Sigma Plastics Group  Printpack Inc.

Plant capacity utilization 75.2%

This industry is projected to have exceptionally strong employment growth through 2026. This industry employs production workers and transportation and material handlers and Taney County has workers with these skills. Existing companies in the region have a need for plastics packaging. With plant capacity utilization at 75.2%, expansions may be planned by some companies in this industry.

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Industry Profile Steel Wire Drawing NAICS 331222 Industry Definition This industry comprises establishments primarily engaged in drawing wire from purchased steel. Wire products are used abundantly in a variety of industries, including construction, electrical energy, aerospace and transportation, and to a lesser extent in mining and medical appliances. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 1.1 percent over the next five years as the economy continues to recover and demand from downstream construction and automotive manufacturing markets continues to grow. According to IBISWorld, reinvigorated construction activity is anticipated to lead to higher demand for products manufactured from steel wire. Similarly, increased industrial production is expected to boost demand for steel sheet and wire throughout the entire manufacturing sector. The oil and gas markets also make extensive use of wire. Exports to China are expected to increase due to the country’s rising demand for steel in its manufacturing sectors. Targeting Criteria and Selection Rationale  

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Projected employment growth 2016-26: 28.0% Projected annual revenue growth 2016-21: 1.1% Production workers make up 12.2% of workforce Transportation and material handlers make up 5.3% of workforce Identified linkages to existing industries in the region Strong industry presence in the Midwest

2015 Total Average Earnings: $52,322 2015 Establishments: 242 Ave. Establishment size: 45.4 employees Major companies:  Keystone Steel & Wire Co.  Rea Magnet Wire Co.  Southwire Co.  International Wire Group Inc.

Plant capacity utilization 60.3%

This industry is expected to rebound with the economy and strong employment growth is expected through 2026. This industry employs production workers and transportation and material handlers and Taney County has workers with these skills.

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Industry Profile Sheet Metal Work Manufacturing NAICS 332322 Industry Definition This industry comprises establishments primarily engaged in sheet metal work. These products are primarily used in building construction, maintenance and repair. Products include ventilation and air conditioning duct systems; roofs; siding; rain gutters; downspouts; and skylights. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 2.8 percent over the next five years. Economic recovery has boosted demand for products used in renovations and repairs across all construction markets. Significant upswings in the residential and commercial construction industries and increased consumer spending on home renovations and improvements will drive the industry forward over the next several years. According to IBISWorld, recent demand for sheet metal products was largely driven by the need to install energy-efficient air conditioning, heating and ventilation systems in older buildings and to perform other types of renovation and maintenance work on these systems. Additionally, the popularity of decorative sheet metal products and increased architectural restoration has been growing, helping drive up demand for this sector. Targeting Criteria and Selection Rationale  

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Projected employment growth 2016-26: 14.0% Projected annual revenue growth 2016-21: 2.8% Production workers make up 20.4% of workforce Transportation and material handlers make up 3.0% of workforce Identified linkages to existing industries in the area Strong industry presence in the Midwest

2015 Total Average Earnings: $50,090 2015 Establishments: 4,297 Ave. Establishment size: 24.1 employees Major companies:  There are no major players.  Quanex Building Products Corp.  Griffon Corp.  Euramax International

Plant capacity utilization 62.4%

This industry has been rebounding with the economy and strong employment growth is expected through 2026. This industry employs production workers and Taney County has workers with these skills. Existing companies in the region have a need for sheet metal work.

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Industry Profile Industrial Valve Manufacturing NAICS 332911 Industry Definition This industry comprises establishments primarily engaged in manufacturing industrial valves and valves for water works and municipal water systems. Examples of products include: fire hydrants, ball valves, butterfly valves, check valves, gate valves, globe valves, steam traps and valves for nuclear applications. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 1.8 percent. The need for infrastructure replacement indicates that demand for valves from this market will increase. Unconventional oil producers and renewable power generation facilities have increasingly sought out specialized valves with better resistance to corrosion, high pressure and extreme temperatures. According to IBISWorld, strong growth in the commercial aerospace and pharmaceutical markets boosted demand for pneumatic valves and similar products. Increased federal funding for water infrastructure maintenance or expansion projects will boost demand for valves, fittings and other flow control devices from the waterworks market segment. Targeting Criteria and Selection Rationale  

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Projected employment growth 2016-26: 15.0% Projected annual revenue growth 2016-21: 1.8% Production workers make up 10.3% of workforce Transportation and material handlers make up 3.0% of workforce Identified linkages to existing industries in the area Strong industry presence in the Midwest

This industry is expected to rebound with the economy and strong employment growth is expected through 2026. This industry employs production workers and Taney County has workers with these skills. Existing companies in the region have a need for industrial valves.

2015 Total Average Earnings: $67,059 2015 Establishments: 565 Avg. Establishment size: 48.8 employees Major companies:  Parker Hannifin  Emerson Electric Co.  Pentair PLC  Cameron International Corp. Plant capacity utilization 62.4%

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Industry Profile Fluid Power Cylinder and Actuator Manufacturing NAICS 333995 Industry Definition This industry comprises establishments primarily engaged in manufacturing fluid power (i.e., hydraulic and pneumatic) cylinders and actuators. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 2.2 percent over the next five years. Manufacturing and construction activity have strengthened in the U.S., as credit conditions have remained favorable and downstream markets have expanded output. Businesses have renewed their investment in machinery and equipment. This industry provides tools and equipment to industrial manufacturers, which will lead to higher sales volumes for the industry. According to IBISWorld, automobile manufacturing and housing construction will drive demand for products in this industry, while exports to industrializing countries will continue to ensure that exports remain high. The industrial production index, which measures U.S. manufacturing activity, is expected to increase, creating more demand for fluid-power equipment. Targeting Criteria and Selection Rationale  

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Projected employment growth 2016-26: 6.0% Projected annual revenue growth 2016-21: 2.2% Production workers make up 9.8% of workforce Identified linkages to existing industries in the region Strong industry presence in the Midwest

2015 Total Average Earnings: $58,982 2015 Establishments: 363 Avg. Establishment size: 48.1 employees Major companies:  Johnson Electric  Duff-Norton  Worthington Cylinders Corp. Plant capacity utilization 59.6%

This industry is expected to rebound with the economy and employment growth is expected through 2026. This industry employs production workers and Taney County has workers with these skills. Existing companies in the region have a need for products in this category.

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Industry Profile All Other Transportation Equipment Manufacturing NAICS 336999 Industry Definition This industry comprises establishments primarily engaged in manufacturing transportation equipment such as all-terrain vehicles, go-carts, golf carts and similar motorized passenger carriers, race cars, and snowmobiles and parts. Industry Outlook IBISWorld forecasts that industry revenue will increase at an average annual rate of 0.3 percent over the next five years. This industry’s revenue growth has been aided by higher disposable income, renewed interest in recreational activity and greater investment in recreational equipment. While spending on products in this industry have increased in the U.S., exports to Canada, the largest foreign consumer of industry products, have slowed. According to IBISWorld, technological advances in ATVs will help open more trails to riders, spurring interest in ATVs in key markets and generating demand for segment products. An increase in demand from golf courses and country clubs benefits this industry by increasing demand for golf carts, which lifts demand at the manufacturing level. Golf cart technology will focus on enhancing cart efficiency while reducing costs. Targeting Criteria and Selection Rationale  

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Projected employment growth 2016-26: 15.0% Projected annual revenue growth 2016-21: 0.3% Production workers make up 9.4% of workforce Transportation and material handlers make up 6.5% of workforce Increasing use of ATVs for farm activities Technological advances will help spur industry growth

This industry is expected to continue to rebound and strong employment growth is expected through 2026. This industry employs production workers and Taney County has workers with these skills.

2015 Total Average Earnings: $52,363 2015 Establishments: 478 Avg. Establishment size: 30.7 employees Major companies:  Textron Inc.  Kawasaki Motors Corp.  Arctic Cat Plant capacity utilization 60.1%

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References 2012 Commodity Flow Survey (2016). Washington, DC: U.S. Department of Transportation, Research and Innovative Technology Administration, Bureau of Transportation Statistics and U.S. Census Bureau. American Factfinder, https://factfinder.census.gov/ ATV, Golf Cart & Snowmobile Manufacturing in the US (June 2016). New York, New York: IBISWorld Inc. County Business Patterns – 2014 (2016). Washington, DC: U.S. Department of Commerce, Census Bureau. County Population Estimates – 2000 to 2015. Washington, DC: U.S. Department of Commerce, Census Bureau, Population Estimates Program. Data Processing & Hosting Services in the US (March 2016). New York, New York: IBISWorld Inc. Document Preparation Services in the US (July 2016). New York, New York: IBISWorld Inc. EASI (Easy Analytic Software), www.easidemographics.com EMSI Covered Employment – Q3, 2016. Moscow, Idaho: Economic Modeling Specialists Intl. Human Resources & Benefits Administration in the US (August 2016). New York, New York: IBISWorld Inc. Industry employment and output projections to 2024 (December 2015). Washington, DC: U.S. Department of Labor, U.S. Bureau of Labor Statistics, Employment Projections Program. Local Area Unemployment Statistics – 2006 to 2016. Washington, DC: U.S. Department of Labor, U.S. Bureau of Labor Statistics, Occupational Employment Statistics. Local Employment Dynamics – OnTheMap – 2014. Washington, DC: U.S. Department of Commerce, Census Bureau, Longitudinal Employer-Household Dynamics (LEHD) Program. Local Employment Dynamics – Quarterly Workforce Indicators – 2006 to 2015. Washington, DC: U.S. Department of Commerce, Census Bureau, Longitudinal Employer-Household Dynamics (LEHD) Program. May 2015 National Industry-Specific Occupational Employment and Wage Estimates (March 2016). Washington, DC: U.S. Department of Labor, U.S. Bureau of Labor Statistics, Occupational Employment Statistics. 30


Missouri Census Data Center, mcdc.missouri.edu. Plastic Film, Sheet & Bag Manufacturing in the US (April 2016). New York, New York: IBISWorld Inc. Power Tools & Other General Purpose Machinery Manufacturing in the US (February 2016). New York, New York: IBISWorld Inc. Quarterly Census of Employment and Wages, 2015 Annual Averages. Washington, DC: U.S. Department of Labor, Bureau of Labor Statistics. Quarterly Survey of Plant Capacity Utilization (September 2016, Quarter 2). Washington, DC: U.S. Department of Commerce, Census Bureau, Economic Planning and Coordination Division. ReferenceUSA (2016). Omaha, NE: infoUSA. Sheet Metal, Window and Door Manufacturing in the US (August 2016). New York, New York: IBISWorld, Inc. Steel Rolling & Drawing in the US (July 2016). New York, New York: IBISWorld Inc. Telemarketing & Call Centers in the US (April 2016). New York, New York: IBISWorld Inc. Third-Party Administrators & Insurance Claims Adjusters in the US (July 2016). New York, New York: IBISWorld Inc. Valve Manufacturing in the US (September 2016). New York, New York: IBISWorld Inc.

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Exhibit A: Map of Labor Market Area

32


Exhibit B: Industry Concentration by State NAICS Industry

State Establishments

326111 Plastic Bag & Pouch Manufacturing

CA TX IL OH NJ MO

43 31 30 29 18 5

326112 Plastics Packaging Film and Sheet Mfg

CA IL WI TX OH MO

36 34 33 24 24 11

331222 Steel Wire Drawing

CA PA OH TX MO SC

28 23 18 15 13 12

332322 Sheet Metal Work Manufacturing

CA TX FL NY OH MO

526 322 192 188 180 66

332911 Industrial Valve Manufacturing

TX CA PA OH IL MO

83 63 40 26 25 11

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NAICS Industry

State Establishments

333995 Fluid Power Cylinder & Actuator Mfg.

CA OH IL MI WI MO

31 30 29 24 19 1

336999 All Other Transportation Equipment Mfg

CA FL IN MI PA MO

55 30 28 23 20 9

518210 Data Processing, Hosting & Related Services

CA TX NY FL IL MO

2,098 984 854 835 581 227

FL CA TX NY PA MO

1,245 1,115 885 720 548 201

CA TX FL NY IL MO

4,393 3,754 2,613 2,265 1,157 453

52490 Other Insurance Related Activities

561110 Office Administration Services

34


NAICS Industry

State Establishments

561410 Document Preparation Services

CA FL NY TX IL MO

544 409 326 271 184 77

561422 Telemarketing & Call Centers

FL CA TX NY OH MO

406 337 278 204 156 115

(Source: County Business Patterns 2014)

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2016 uni idm labor market update  
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