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Economic Development Analysis

Employment Analysis

By utilizing employment data, a location quotient can be obtained that shows the relative economic strengths of the region. The location quotient is a measurement of the concentration of a given industry as measured against the national average. A location quotient (LQ) of 1.0 represents the national average, therefore anything measured greater than 1.0 represents a higher locational concentration of that industry. An LQ below 1.0 indicates a lower concentration of an industry than the national average. The table below lists each county with the 2019 average annual employment LQ for each of 17 industries.

2019 Average Annual Employment Location Quotient for five counties and the LC-LG Region
Industry
Clinton
Essex
Hamilton
Warren
Washington
 LC-LG Region 
Ag, Forestry, Fishing & Hunting 
0.0
0.98
1.14
0.30
2.59
1.0
Mining, Quarrying, Oil/ Gas Extraction 
0.0
1.24
0.0
0.72
1.69
0.73
Utilities
0.91
0.44
0.0
0.0
0.0
0.27
Construction
0.89
0.79
0.89
0.76
0.95
0.86
Manufacturing 
1.14
0.71
0.05
1.0
1.96
0.97
Wholesale Trade 
0.52
0.56
0.0
0.55
0.52
0.43
Retail Trade
1.37
1.12
1.08
1.33
1.15
1.21
Transportation & Warehousing 
1.18
0.22
0.73
0.0
0.0
0.43
Information 
0.54
0.64
0.33
1.05
0.34
0.58
Finance and Insurance 
0.29
0.45
0.0
0.79
0.32
0.37
Real Estate and Rental/Leasing 
0.78
0.51
0.0
0.58
0.30
0.43
Professional Science & Technical Services 
0.40
0.21
0.0
0.55
0.18
0.27
Management of Companies & Enterprises 
0.14
0.24
0.0
0.95
0.07
0.28
Admin, Waste Management and remediation 
0.55
0.17
0.18
1.03
0.53
0.49
Educational Services 
0.21
0.91
0.0
0.41
0.05
0.32
Health Care & Social Assistance 
1.19
0.94
0.0
1.19
0.83
0.83
Arts, Entertainment & Recreation 
0.45
1.86
4.94
2.06
0.88
2.04
Accommodations & Food Service 
0.92
1.77
1.64
1.55
0.46
1.27
Other (excluding public admin)
0.94
1.10
0.62
1.25
0.90
0.96
Not classified 
0.89
2.01
2.60
1.04
1.54
1.62
 Public Administration 
1.02
3.11
4.1
0.83
3.35
2.48
 Source: U.S. Bureau of Labor Statistics, QCEW NAICS-Based Data Files, 2019.

 Clinton County: 

  • Retail Trade
  • Health Care and Social Services
  • Transportation & Warehousing  
  • Manufacturing

Essex County: 

  • Public Administration  
  • Unclassified 
  • Arts, Entertainment & Recreation  
  • Accommodations & Food Service 

Hamilton County: 

  • Arts, Entertainment & Recreation  
  • Public Administration  
  • Unclassified
  • Accommodations & Food Service

Warren County: 

  • Arts, Entertainment & Recreation 
  • Accommodations & Food Service 
  • Retail Trade 
  • Other Services

Washington County: 

  • Public Administration  
  • Agriculture, Forestry, Fishing & Hunting 
  • Manufacturing
  • Mining, Quarrying and Oil & Gas Extraction 

Regionally, five industries that have an average employment LQ greater than 1.0; Public Administration; Arts, Entertainment & Recreation; Unclassified; Accommodations & Food Service; and Retail Trade. Retail Trade is the only industry where all five counties have an employment LQ greater than 1.0. 

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Industry Cluster Analysis

The annual average employment Location Quotients for Industry Clusters within the five counties is shown. Each county has its own clusters where the Location Quotients exceed the national average, further showing the dynamic nature of the economy within the LC-LG Region.

Annual Average Employment Location Quotients for Industry Clusters within the five counties
Industry
2019 Annual Average Employment Location Quotient 
Clinton
Essex
Hamilton
Warren
Washington
Crop Production 
2.99
1.19
-
-
1.36
Animal Production and Aquaculture  
7.01
1.37
-
-
9.95
Forestry and Logging 
-
2.85
27.19
1.91
-
Mining, except Oil and Gas 
-
4.39
-
2.53
3.67
Construction of Buildings 
1.29
1.61
2.51
0.55
0.77
Heavy and Civil Engineering Construction 
1.75
0.60
-
0.39
0.23
Specialty Trade Contractors 
0.55
0.55
0.50
0.92
1.31
Wood Product Manufacturing 
0.55
2.44
-
2.27
4.26
Paper Manufacturing 
2.91
-
-
-
19.09
Printing and Related Support Activities 
-
-
-
0.58
1.41
Chemical Manufacturing 
1.15
0.08
-
-
0.36
Plastics and Rubber Products Manufacturing 
5.35
-
-
-
-
Nonmetallic Mineral Product Manufacturing 
-
0.29
-
1.27
9.30
Fabricated Metal Product Manufacturing 
0.57
-
-
0.62
1.75
Electrical Equipment and Appliance Manuf. 
-
-
-
-
-
Miscellaneous Manufacturing 
0.87
-
-
9.73
5.80
Motor Vehicle and Parts Dealers 
1.35
0.99
-
1.63
1.58
Furniture and Home Furnishing Stores 
1.05
-
-
1.12
-
Electronics and Appliances Stores 
1.57
-
-
0.48
-
Building Material and Garden Supply Stores 
2.90
1.44
-
1.70
1.66
Food and Beverage Stores
0.97
1.34
1.39
1.11
1.70
Health and Personal Care Stores
1.29
0.97
-
1.10
1.32
Gasoline Stations
2.25
2.33
5.97
1.54
2.48
Clothing and Clothing Accessories Stores
0.99
0.58
-
1.98
-
Sport, Hobby, Music Instrument, Book Stores
1.39
1.90
-
1.41
0.16
General Merchandise Stores
1.36
0.93
1.10
1.26
0.45
Miscellaneous Store Retailers
0.81
-
0.71
1.25
0.60
Nonstore Retailers
0.61
1.56
-
0.39
2.15
Transit and Ground Passenger Transportation
-
-
-
0.50
1.34
Support Activities for Transportation
2.83
-
-
-
-
Couriers and Messengers
1.51
-
-
-
-
Warehousing and Storage
0.94
-
-
-
-
Broadcasting, except internet
1.13
-
-
0.51
-
Other Information Services
-
0.78
-
5.12
1.03
Administrative and Support Services
0.50
0.14
0.19
1.07
0.44
Waste Management and Remediation Services
1.72
0.88
-
0.23
2.25
Ambulatory Health Care Services
0.85
0.52
0.29
1.07
-
Nursing and Residential Care Facilities
-
2.64
-
-
3.02
Social Assistance
1.17
-
-
1.11
-
Performing Arts and Spectator Sports
0.27
0.77
-
1.40
1.59
Museums, Historical Sites, Zoos and Parks
1.45
5.19
-
1.23
0.39
Amusements, Gambling and Recreation
0.40
1.85
2.64
2.33
0.72
Accommodation
0.91
6.29
5.79
4.08
0.24
Food Services and Drinking Places
0.92
1.00
0.92
1.12
0.49
Source: U.S. Bureau of Labor Statistics, QCEW NAICS-Based Data Files, 2019.

The top five regional employment LQ industry clusters are Forestry and Logging; Paper Manufacturing; Animal Production and Aquaculture; Accommodations; and Miscellaneous Manufacturing.

Industry
Cluster
2019 Regional Employment LQ
Agriculture, Forestry, Fishing and Hunting
 Forestry and Logging 
7.99
 Animal Production and Aquaculture 
3.67
 Crop Production 
1.11
 Mining, Quarrying and Oil & Gas Extraction 
 Mining, except Oil and Gas 
2.12
Manufacturing
 Paper Manufacturing 
4.40
 Non-Metallic Mineral Product Manufacturing 
2.27
 Miscellaneous Manufacturing 
3.28
 Wood Product Manufacturing 
1.90
 Retail Trade 
 Gasoline Stations 
2.91
 Building Material and Garden Supply Stores 
1.54
 Food and Beverage Stores 
1.30
 Motor Vehicle & Parts Dealers 
1.11
 Nonstore Retailers 
0.94
 General Merchandise Stores 
1.02
Information
Other Information Services
1.02
Administrative and Waste Services
Waste Management and Remediation Services
1.02
Health Care & Social Assistance
 Nursing and Residential Care Facilities 
1.13
Arts, Entertainment & Recreation
 Amusements, Gambling and Recreation 
1.59
 Museums, Historical Sites, Zoos and Parks 
1.65
Accommodations & Food Service
 Accommodation 
3.46
 Source: U.S. Bureau of Labor Statistics, QCEW NAICS-Based Data Files, 2019.   
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Growth Sectors

By analyzing growth sectors of business types, additional analysis can be obtained to understand the regional economy of the LC-LG Region.  Using 2014 and 2019 data from the 2014 and 2019 U.S. Bureau of Labor Statistics, QCEW NAICS-Based Data Files, growth rates within industries can be viewed to determine growth patterns.  

In 2019, Health Care and Social Assistance provided the most private sector jobs within the LC-LG Region, followed by Retail Trade, and Accommodations and Food Services. Almost 17% of all employees within the region work within the government sector, the majority within Public Administration (9,400 employees) and Educational Services (5,689 employees).

Annual Average Employment Location Quotients for Industry Clusters within the five counties
Industry
 2019 Average Annual Employment 
Agriculture, Forestry, Fishing & Hunting
577
Mining, Quarrying, and Oil & Gas Extraction
326
Utilities
140
Construction
 4,392
Manufacturing
10,189
Wholesale Trade
2,194
Retail Trade
14,071
Transportation and Warehousing
 1,671
Information
2,094
Real Estate and Rental and Leasing
948
Professional and Technical Services
2,597
Management of Companies and Enterprises
739
Administrative and Waste Services
4,345
Educational Services
735
Health Care and Social Assistance
15,387
Arts, Entertainment and Recreation
2,340
Accommodations and Food Services
11,985
Other Services
3,404
Unclassified
113
Unclassified
79,665
Total, All Government
15,915
Total, All Industries
95,580
Source: U.S. Bureau of Labor Statistics, QCEW NAICS-Based Data Files, 2014 & 2019.

Average annual employment in the LC-LG Region has experienced a 2.9% growth rate. The greatest increase in employees in the private sector has been in the Wholesale Trade industry (989 new employees), followed by the Construction industry (539 new employees) and Heath Care and Social Assistance industry (509 new employees). The government sector has increased by 181 employees over the five year period, the majority of which are in the Educational Services industry (2,225 new employees). All other government sector jobs, including those in the Transportation and Warehousing, Finance and Insurance, Health Care and Social Assistance, and Public Administration have all seen a decrease in employment, resulting in only a 1.2% growth rate overall. Significant private sector employment loss from 2011 – 2016 can be seen in the Administrative and Waste Services, and Unclassified industries.

Annual Average Employment Location Quotients for Industry Clusters within the five counties
Industry
 2016 Average Annual Employment 
 2019 Average Annual Employment 
Change
% Growth
Agriculture, Forestry, Fishing & Hunting
564
577
31
2.3%
Mining, Quarrying, and Oil & Gas Extraction
248
326
78
31.5%
Utilities
26
140
114
438.5%
Construction
3,853
 4,392
539
14.0%
Manufacturing
10,258
10,189
-69
-0.7%
Wholesale Trade
1,205
2,194
989
82.1%
Retail Trade
14,478
14,071
-407
-2.8%
Transportation and Warehousing
 1,561
 1,671
110
7.0%
Information
1,493
1,418
-75
-5.0%
 Finance and Insurance 
2,028
2,094
66
3.3%
Real Estate and Rental and Leasing
876
948
72
8.2%
Professional and Technical Services
2,233
2,597
364
16.3%
Management of Companies and Enterprises
716
739
23
3.2%
Administrative and Waste Services
4,888
4,345
-543
-11.1%
Educational Services
514
735
221
43.0%
Health Care and Social Assistance
14,878
15,387
509
3.4%
Arts, Entertainment and Recreation
2,264
2,340
76
3.4%
Accommodations and Food Services
11,818
11,985
167
1.4%
Other Services
3,141
3,404
263
8.4%
Unclassified
127
113
-14
-11.0%
Unclassified
77,169
79,665
2,496
3.2%
Total, All Government
15,734
15,915
181
1.2%
Total, All Industries
92,903
95,580
2,677
2.9%
Source: U.S. Bureau of Labor Statistics, QCEW NAICS-Based Data Files, 2014 & 2019.
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Innovation Index 2.0

The Innovation Index 2.0 was created by the Indiana Business Research Center at Indiana University's Kelley School of Business. The Index, which can be found at www.statsamerica.org, is funded in part by the U.S. Commerce Department's Economic Development Administration. This tool, in its second iteration, was developed to provide insight into the innovative capacity and output of a region. Five parameters were utilized within the analysis; 

  1. Human Capital and Knowledge Creation – Utilizes population and labor force information to gauge the population’s ability to innovate. 
  1. Business Dynamics Index – Analyses the region’s entry and exit of individual firms to gauge competitiveness.  
  1. Business Profile Index – Assesses the resources available to entrepreneurs and local business environment.  
  1. Employment and Productivity Index – Gauges the direct outcome of innovation and the economic improvement.  
  1. Economic Well-Being Index – Weighs the standard of living and economic well-being of residents.  

The table below shows each of the counties within the LC-LG Region, as well as the region as a whole, and their scores as processed by the Innovative Index in 2016. Washington County has the highest Economic Well-Being Index score while Clinton County has the highest Business Dynamics Index score. Warren County has the highest score in Human Capital & Knowledge Creation and Employment and Productivity Index, however, Clinton County, based on the model, has a higher overall Innovative Index and is ranked highest of the five counties when compared to all counties nationwide (3,110 Counties total). The LC-LG Region, when ranked against the 384 other Economic Development Districts within the United States is number 167.

Annual Average Employment Location Quotients for Industry Clusters within the five counties
Region
Human Capital & Knowledge Creation
 Business Dynamics Index 
 Business Profile Index 
Employment & Productivity Index
Economic Well-Being Index
Innovative Index
National Rank 
Clinton
109.2
76.4
77.5
91.0
110.3
91.0
932
Essex
89.7
62.4
79.1
90.0
119.8
85.2
1447
 Hamilton 
86.3
29.3
61.8
71.7
117.4
68.7
2854
 Warren 
119.2
48.0
71.1
98.6
111.5
88.4
1152
 Washington 
103.8
72.9
50.4
88.7
123.0
84.3
1545
 LC-LG Region 
108.0
83.2
99.0
95.2
122.1
98.0
167
Source: Indiana Business Research Center, “Innovative Index 2.0,” Kelly School of Business, Indiana University.
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External Forces and Trends

With few exceptions, the region has shifted away from a goods-producing toward a service-providing base economy. From 2014 – 2019, average annual employment in manufacturing jobs reduced by 69 jobs, while Accommodations & Food Service and Arts, Entertainment & Recreation increased by 243 jobs. The primary concern about a shift away from a goods-producing economy towards a service-based economy is that service jobs, on average, pay significantly less than factory jobs. The disparity in pay between goods producing and service providing related employment is illustrated in the table below. In each of the five counties, the average service position is as much as $344 less per week than the average goods producing position. In addition, many service related jobs are seasonal, and do not provide benefits and steady employment year round. As this trend continues, residents have less disposable income and fewer full-time jobs.

2019 Average Annual Weekly Wage for Goods Producing and Service Providing jobs in the five counties
County
Human Capital & Knowledge Creation
 Difference 
 Goods Producing 
 Service Providing 
Clinton
$1,084
$731
$353
Essex
$1,137
$687
$450
 Hamilton 
$649
$534
$115
 Warren 
$1,198
$811
$387
 Washington 
$1,086
$670
$416
Source: U.S. Bureau of Labor Statistics, QCEW NAICS-Based Data Files, 2019.
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Economic Resiliency

There are numerous economic sustainability plans that have been developed by local entities, however, none of them encompasses the LC-LG Region as a whole. Nonetheless, many partner agencies of the Regional Planning Board have put work in to assessing economic sustainability needs, including those listed in the documents below;     

Hazard Mitigation

Hazard mitigation planning is a comprehensive identification of risks and vulnerabilities within a community or county as they pertain to natural disasters. The goal of hazard mitigation planning is to reduce the impacts that natural disasters have on an area by breaking the cycle of disaster damage, reconstruction, and repeated damage. All five counties within the LC-LG Region have Hazard Mitigation Plans, all within various levels of updating. These plans identify the natural and human-based properties that are of importance for protection in the event of a natural disaster. These plans have been created through extensive outreach to communities and the public.  

New York Regional Economic Development Councils

In 2011, New York State formed ten Regional Economic Development Councils (REDC) charged with creating a Strategic Plan to utilize for state funding for economic development. The LC-LG Region spans two of the ten REDC’s, Capital District (Warren, Washington, Saratoga, Rensselaer, Schenectady, Albany, Columbia and Greene Counties) and North Country (Hamilton, Essex, Clinton, Franklin, St. Lawrence, Jefferson and Lewis Counties).

The Capital District REDC’s five-year strategic plan is entitled “Success Today, Opportunities Tomorrow,” outlines eight goals: Leverage and Collaborate; Open New Doors; Prepare for Tomorrow; Build a Superhighway; Bring Cities to Life; Celebrate and Optimize Our Surroundings; Showcase our Beauty; and Spotlight Our Strengths.

The North Country REDC’s five-year strategic plan, entitled “Transformational,” lists seven goals: Energize Micropolitan Cities; Attract and Nurture Entrepreneurs; Create Capacity for College Graduates; Encourage small-business startups; Maintain Quality of Life; Activate Tourism; Propagate Agriculture; and Create a Green Energy Economy.

Tied to these goals are Priority Projects and Actions, as well as the Upstate Revitalization Initiative. Funding for projects is applied for on a competitive basis through the New York State Consolidated Funding Application system.

Partners for Economic Development

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