REGIONAL IMPACTS AND TRENDS OF COVID-19 ON INDUSTRY CLUSTERS

look at historical economic trends, an analysis of industries where the region is overperforming and underperforming, as well as benchmark comparisons to the State of Indiana and the United States. Finally, the analysis focuses on key trends that can help shape the future of the region, as well as an evaluation of the specific industry sectors and clusters that can be positioned to drive job growth in the future.

Methodology

The study’s industry analysis uses data to conduct an empirical assessment of the current industry and business climate across the study area. Employment data from EMSI, a proprietary source of industry employment and output data, were analyzed from 2010 to 2019 (pre-pandemic), 2020 (height of pandemic), and 2021 (pandemic recovery). Complete six-digit NAICS code industry data were aggregated and/or proportionally allocated into 49 overarching clusters that guide the analysis. Location quotients (LQs) were used to assess the concentration of industries relative to the U.S. average. The calculation is useful to assess the relative strength or weakness of a given industry locally in relation to the larger region, (in this case the country). In general:

• LQ > 1.0 means that an industry is more concentrated within the study area/ county than the U.S. average.

• LQ < 1.0 means that an industry is less concentrated within the study area/ county than the U.S. average.

• LQ = 1.0 means that an industry is equally concentrated within the study area/ county as the U.S. average.

Location quotients, compared against industry employment growth rates, were used to assess the relative competitive advantage and economic development potential of industries within the study area via six AECOMdefined industry growth segments:

• Undeveloped

• Long-Term Growth

• Medium-Term Growth

• Short-Term Growth

• Mature/Developed

• Supersector

To help simplify this analysis these segments were aggregated into four sectors: Undeveloped (Undeveloped and LongTerm), Core (Medium-Term and Short-Term), Mature, and Supersectors. Undeveloped Sectors require targeted financial or policy intervention to create job growth. Core Sectors include the strongest and most sustainable industries for job creation. This is where we expect to see the highest percentage of jobs. Mature Sectors include well-established industries with regular fluctuation in employment. Supersectors have an impact on the global market.