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Cluster Analysis

Greyhill’s cluster analysis begins by determining the local presence of industry clusters and uncovering emerging assets that will support new growth. By and large, the source of future growth will be driven by the presence of strong existing clusters and emerging sectors that hold future cluster potential.
A comprehensive understanding of the cluster presence in the community requires both a quantitative and qualitative approach.

Quantitative analysis enables an objective description of the clusters employment levels, relative concentration (location quotient - LQ) to national averages and historical trend patterns. For a more nuanced assessment, Greyhill considers industry concentration from multiple angles, including:

  • Employment
  • Wages & Income
  • Gross Regional Product (Output)
  • Capital Investment
  • Business Taxes

Qualitative analysis involves extensive public input through interviews with local companies, academic institutions, economic development stakeholders, chamber of commerce representatives and other industry groups.

The purpose of the cluster analysis process is to obtain a comprehensive inventory of existing industry presence in the region. Such an inventory provides an initial foundation for future analysis, recommendations and action.

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