1. GIS for Economic Development
Incorporating Economic and Census Data into
Geospatial Analysis
Matt Kures
Center for Community & Economic Development
University of Wisconsin-Extension
Wisconsin Land Information Association Fall Regional Meeting
October 27, 2011
Neenah, WI

2. Defining Economic Development
“The process of retaining, expanding, and attracting jobs, income and
wealth in a manner that improves individual economic opportunities
and the quality of human life.”
Geography Sociology
Economic
Economics Development Design
Planning Real Estate

3. Distinguishing Between Growth and Development

4. Eras or Waves of Economic Development Approaches
Cost Competition Regional
Industrial Recruiting
Era (Early 1980s to Early Competitiveness
(1950s to 1980s)
1990s) (Early 1990s to Present)
• Innovation &
Driver • Export Base • Scale Economies
Entrepreneurship
• Financial incentives to • Industrial consolidation • Entrepreneurship
Strategies firms and cost cutting • Clusters
• Industrial parks • Deregulation • Commercial research
• Government funds for • Distinct regional assets
subsidies and tax such as industry
Keys to • Health of existing
breaks specializations, human
Success industries
capital, higher
• Industrial infrastructure education & amenities
Source: Drabenstott, 2005

5. Center for Community & Economic Development (CCED)
Working with UW-Extension county and campus partners we create, apply and transfer
multi-disciplinary knowledge to help people understand community change and identify
opportunities.
Communities often ask:
• What types of comprehensive economic development strategies can we
pursue?
• What challenges and opportunities are facing our local and regional
economies?
• How can we create sufficient jobs with livable wages to support families?
• How can we improve the competitiveness of our community’s downtown,
neighborhood shopping district, regional economy, etc?
• How can we build stronger capacity in our community to deal with change?

6. GIS in Community and Economic Development
Examples of how we use GIS in community and economic
development:
• Policy Analysis and Strategy Development;
• Asset Mapping and Monitoring/Benchmarking;
• Business Attraction, Retention and Expansion Analysis;
• Market Research;
• Labor Market Analysis;
• Applied Research

13. Creating a Geographic Profile of Customers
MSA All
Spring Summer Fall Winter
(drive time) Seasons
Chicago, IL
28.7% 23.9% 31.1% 31.4% 21.2%
(4.2 hours)
Milwaukee, WI
19.1% 23.5% 16.1% 16.8% 26.8%
(2.5 hours)
Madison, WI
5.9% 6.2% 5.8% 5.7% 6.1%
(3.2 hours)
Appleton, WI
5.6% 8.3% 4.3% 4.3% 9.2%
(1.5 hours)
Green Bay, WI
5.3% 7.8% 3.8% 3.5% 10.0%
(0.8 hours)
Minneapolis, MN
4.3% 3.3% 5.2% 5.2% 1.3%
(5.5 hours)

14. Creating a Demographic Profile of Customers
Demographic Study Area
Spring Summer Fall Winter Total
Category Average
Average
Household Size 2.6 2.6 2.6 2.6 2.6 2.5
Median Age 36.3 36.7 36.7 36.2 36.5 36.0
Average Family
Income $64,171 $72,018 $66,845 $65,149 $68,630 $47,351
Executive or
Professional 18.5% 21.0% 18.9% 18.8% 19.8% 12.0%
Occupation
College
31.3% 34.2% 31.9% 31.7% 32.8% 25.4%
Degree
Home
72.1% 75.5% 73.9% 72.3% 74.2% 68.1%
Owner

15. Customer Prospecting - What Demographic Criteria
Differentiate Customers from the General Population?
1. Logistical Regression: Customer (yes/no) = β0 + β1 median age +
β3 median household income + β4 educational attainment + βn
2. Conditional Means or
Distributions of
Demographic Variables

17. Assessing Accessibility and
Spatial Mismatches in Supply and Demand

22. Typical Questions Asked as Part of a
Regional Industry Analysis
• What assets do we have in our region that might be a source of
competitive advantage for certain industries?
• How do various industries contribute to the regional economy?
• What industries are either currently aligned or could be aligned with
assets in the region?
• How does the region compare to the other regions that may be
competitive locations?
• What factors might encourage or discourage industries or entrepreneurs
to consider the region as a location? Are these factors controllable or
uncontrollable at the local level?
• How can we work with local industries to better understand their needs?

23. Assessing Factors of Regional Competitive Advantage
• Industry Structure - Differentiation, competitiveness and concentration;
• Human Capital – Knowledge and skills of the labor force;
• Natural Assets – Quantity, quality and uniqueness;
• Research and Educational Institutions – Drive innovation and train the labor
force;
• Physical and Information Infrastructure – Allow for information sharing and
decreases friction;
• Social Capital – Professional relationships and networks for knowledge sharing
and spillovers;
• Quality of Life – Quality of life matters, particularly in economies based on
knowledge and innovation;
• Cost of Doing Business – Financial capital, regulatory environment, etc.

25.  Chart

31. Measuring Spatial Association and Significance
• Spatial Lag and Other Neighborhood Weighting Functions –
Weighted averages or other statistics based on values in
neighboring areas;
• Local Measures of Spatial Autocorrelation - Indicate the presence
or absence of significant spatial clusters or outliers for each
location;
• Locational Correlations and Spatial Regression – Used to determine
if activities or industries are co-located in space;
Good overview of spatial analysis, spatial autocorrelation and spatial
regression through the GeoDa Center for Geospatial Analysis and
Computation (http://geodacenter.asu.edu/eslides)

32. Using Spatial Analysis to Examine Supply Chains
Ag-Processing
Ag-Production Support
Support Supporting Educational, Research and
Farm Machinery Sales Development Organizations Plastic, Metal and
& Repair Paperboard Packaging
Agricultural Agricultural
Transportation Production Processing
Packaging Machinery
Animal Support Food and Beverage
Grain,
Services (Vets, Manufacturing
Vegetable Printing
Breeding Services) (Animal Processing Dairy
and Fruit
Products, Animal Food,
Production Machinery and
Animal Feed Bakeries, Beverages,
Machinery Repair
Production Fruit, Vegetable and
Dairy, Grain, Processing, etc.) Plastic and Plumbing
Professional, Poultry and
Fixtures
Technical & Financial Livestock
Services Production Future Bio-Ag Value
Wholesale
Added Industries
Wholesale Warehousing
Customers (Food Service, Utilities,
Utilities
Retail, Institutions, Wholesale, etc.)
Transportation

40. WI Department of Workforce Development – WORKnet
http://worknet.wisconsin.gov/worknet/default.aspx
• Quarterly Census of Employment and Wages (ES-202) – Data on employment,
wages and number of establishments by industry. Quarterly/Annual data by state
and county starting with 1990. Figures are based on UI filings. Some data will be
suppressed;
• Large Employers – Up to 25 largest employers in each industry for counties, cities,
towns and villages;
• Plant Closings and Mass Layoffs - Businesses employing 50 or more persons in the
State of Wisconsin must provide written notice 60 days before implementing a
"business (plant) closing" or "mass layoff" in the state (with some exceptions)
• Unemployment Statistics (LAUS) – Monthly/Annual figures for U.S., Wisconsin,
counties, metropolitan/micropolitan areas, certain cities, etc. (1990 to present).
• Top 5/Bottom 5 – Industries that are growing/declining the fastest in each county;
highest and lowest paying industries by county (2009 to 2010);

41. Occupational Information Network - O*NET OnLine
http://www.onetonline.org/

42. Bureau of Economic Analysis – Regional Economic Accounts
http://www.bea.gov/regional/index.htm
• National, State, Metro/Non-Metro, and County Data - Population, personal income,
transfer payments, farm income and expenses, proprietors’ income, employment
and compensation by industry and more. Starting with 1969 for most measures;
• Gross Domestic Product (GDP) by industry for states and metropolitan areas
• Consistent source of farm production employment and income – Farm employment
is not fully available through the Quarterly Census of Employment and Wages;
• Employee compensation and earnings by industry - Employee compensation
includes the sum of wage and salary disbursements and supplements to wages and
salaries. Earnings include employee compensation as well as proprietors’ income;
• Important differences from the Quarterly Census of Employment and Wages data:
1. Employment by industry includes proprietors;
2. Government employment includes government employees across all sectors
(public administration, education, health care, etc.)

43. Census Bureau Local Employment Dynamics
Quarterly Workforce Indicators (QWI)
http://lehd.did.census.gov/led/datatools/qwiapp.html
Quarterly Workforce Indicators -
Detailed county, WIA and MSA
estimates of employment, earnings,
gross job creation and destruction by
detailed industry, gender and age of
workers. (Currently through Q3 2010)
QWI avoids many of the data
disclosure problems associated with
other data sets. However, it does so by
introducing noise (distortions) into the
data.
Tutorial available at:
http://lehd.did.census.gov/led/datatools/elearning/QWI_Online/index.htm

44. Census Bureau Local Employment Dynamics - Industry Focus
http://bit.ly/epmCHb
Industry Focus Tool:
• Determine the top industries for your
local area and your local workers;
• Focus on a particular industry to see
how it ranks among top industries;
• Examine characteristics of those who
work in that industry;
• Also relies on noise introduced into the
data.
Tutorial available at:
http://lehd.did.census.gov/led/datatools/elearning/Industry_focus/index.htm

45. U.S. Census Bureau Local Employment Dynamics - OnTheMap
http://lehdmap.did.census.gov/
OnTheMap - Mapping and reporting
application showing:
• Where workers are employed and where
they live;
• Companion reports on worker
characteristics;
• Filtering by age, earnings, or industry
groups;
• Based on synthetic data that are
statistically analogous to actual worker
counts and locations but not exact.
Tutorial available at:
http://lehd.did.census.gov/led/datatools/elearning/OnTheMap/index.html

46. Other Notable Census Bureau Resources
• Decennial Census and American Community Survey (ACS) Data…
• Population Estimates - Annual estimates of total population; components of
change; population by age, sex, race, and Hispanic origin. National, state, MSA
and county level data. Some place level data also available;
• County Business Patterns - Annual estimates of establishments, mid-March
employment, first quarter payroll, and annual payroll by industry . National,
state, county, zip code and metropolitan areas. 2009 is most current;
• 2007 Economic Census – Data on establishments, payrolls, employment, sales,
etc. by industry categories – Detailed data for small areas is likely suppressed;
• Non-Employer Statistics - U.S. and sub-national economic data by industry for
businesses that have no paid employees and are subject to federal income tax.
All Available through American FactFinder

47. Data Sources for Quality of Life Indicators
www.uwex.edu/ces/cced/communities/QualityofLifeDataIndicatorsDataSources.cfm

48. Some More Favorites
• Headwaters Economics Economic Profile System - Detailed socioeconomic
profiles for counties http://www.headwaterseconomics.org/eps/
• WI DOA Demographic Services Center – Population and housing estimates,
projections, and components of change for WI counties, cities, towns and
villages http://bit.ly/hgUlLb
• WI DWD Office of Economic Advisors – County workforce profiles and other
datasets http://dwd.wisconsin.gov/oea/county_profiles/
• Data.gov – Clearinghouse of government data sets.
http://www.data.gov/catalog/raw
• 2007 Census of Agriculture - National, state, and county data on a wide-variety
of agricultural topics http://www.agcensus.usda.gov/
• Private Data Providers - ESRI, Nielsen Claritas, AGS, InfoUSA, Dun and
Bradstreet, etc

49. Some More Favorites
• YourEconomy.org – Industry and business data from the Edward Lowe
Foundation classified by composition, growth and industry (states, counties
and MSAs) http://www.youreconomy.org/
• StatsIndiana – Official Indiana data center with information on other
geographic areas throughout the U.S. http://www.stats.indiana.edu/
• Atlas of Rural and Small Town America -
http://www.ers.usda.gov/Data/RuralAtlas/index.htm
• Home Mortgage Disclosure Act Data http://www.ffiec.gov/hmda/ - Home
lending data compiled by the Federal Financial Institutions Examination
Council (FFIEC).
• National Historical Geographic Information System (NHGIS) – Free census
data and GIS files for areas between 1790 and 2000. http://www.nhgis.org/
• IRS Statistics of Income Migration Data – Returns, Exemptions and Income
http://www.irs.gov/taxstats/article/0,,id=212683,00.html

50. Sage Advice about Using Data
“It ain’t what you don’t
know that gets you into
trouble.
It’s what you know for sure
that just ain’t so.”
Mark Twain

51. For More Information on Today’s Presentation
Matt Kures
University of Wisconsin-Extension
Center for Community & Economic Development
www.uwex.edu/ces/cced
twitter.com/uwexcced
610 Langdon Street, Room 335, Madison, WI 53703
Phone 608-265-8258 matthew.kures@uwex.edu