Shift-Share Spreadsheets And Memorandum Analysis

Shift-Share Spreadsheets And Memorandum Analysis

ASSIGNMENT

Re: LQ & Shift-Share Memo Assignment

Weight: 25% of grade

As mentioned in class, please prepare a memorandum report that evaluates the economic profile of a county of your choice in the US compared to the United States. The analysis should be at the 3-digit North American Industrial Classification System (NAICS) level. The Location Quotient analysis should be for the latest year data is available – 2019. The Shift-Share analysis should compare 2012 and 2019.

Prepare the analysis using a spreadsheet software (Excel is preferrable), with the 3-digit NAICS industries listed in the first column on the left of the spreadsheet. You can find the data on-line through the following link –

Census.gov -> search County Business Patterns -> CBP Datasets -> click button “Where Can I Find CPB Data” -> Data -> CBP Tables -> 2019 -> CBP Tables 2019 – Query: Excel, 3-digit NAICS, Geos (nation and your selected county listed by state), Years (2019). Do the same for 2012. Prior years exist, but in PDF rather than database formats, so we’ll stick with years where you can download the data – 2012 and 2019.

Present one spreadsheet for the Location Quotient analysis and one spreadsheet for the Shift-Share analysis. Use as many pages as necessary to accommodate the spreadsheets, but likely no more than one or two pages each. Choose the format that works best for you, but it is likely that the LQ analysis will be in portrait and the Shift-Share in landscape format. Please add a title to each spreadsheet.

After you have prepared the spreadsheet, please prepare a two-page Memorandum report to the Mayor of your findings (11-point font), answering the following questions:

1) What is the County’s top five, strongest base sector, traded industries for which it may have a comparative advantage? What are the five weakest?

2) What are the top five base sector, traded industries that are showing the greatest growth nationally based on the Industry Mix Effect?

3) What are the top five base sector, traded industries that show the best Regional Growth Effect?

4) What are opportunities for converging industries to create a new industry cluster in the County?

5) What shall the City do to help encourage continued growth of the strongest industries?

6) What three other industries would you recommend the City target that are not the strongest, but have potential and would benefit from City support?

7) What development opportunities may exist for developers to support continued growth of the strongest industries?

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