AQUA BOOK 2014 II - Page 10

DIVERSITY AND SPECIALIZATION Industry Trends llllllllllll llllllllllll 8 Coastal Bend Industry Dynamics How do our local industries compare with the corresponding industries outside this region? This question can be addressed through the two measures of comparative advantages again: location quotient and shift-share ratios. A location quotient essentially captures the relative size of an industry in a region in comparison with the relative size of that industry nationwide. The accompanying chart plots readings of location quotients on the vertical axis for the broad industries in the Coastal Bend. The size of a bubble reflects the relative regional employment size of an industry. Construction and oil and gas extraction are not the largest industries in the region, but their shares of employment each at about 8 percent are atypical by national standards. The location quotient for oil and gas extraction is 12 (off the scale of the chart), meaning that oil and gas employment in the Coastal Bend is 12 times of oil and gas employment across the nation. The horizontal axis represents growth of individual industries in the past 15 years relative to the growth of those industries nationwide. The further to the right of the chart, the higher the growth rate of an industry relative to that industry nationally. The chart indicates that employment in wholesale trade and health care has growth relatively faster. On the contrary, the construction and oil and gas extraction industries, both play a relatively significant role in Coastal Bend today, have expanded at about the same pace as elsewhere in the nation between 2001 and 2014. However, employment in these two industries has accelerated in recent years. Source: EMSI Analyst Online The location quotient for oil and gas extraction is 12 (off the scale of the chart), meaning that oil and gas employment in the Coastal Bend is 12 times of oil and gas employment across the nation. Overall, the bubble chart shows a positive correlation between the location quotients and shiftshare ratios across industries. This means that industries with stronger historical growth tend to play a relatively greater role in the regional economy today. Review of South Texas Business Conditions