Manufacturing Decline Within
LA County:
Using Cluster Analysis to Understand the
Trends and Potential Policy Approaches
GIS: UP206a
Erin Coleman
3/14/2011
INTRODUCTION:
Decline in Number of MNFN Establishments between 1998
and 2008 throughout California Counties
Manufacturing as a whole has
declined dramatically within the U.S.,
California, and LA County between
1998 and 2008. In 1998,
manufacturing contributed about
18% of the total annual payroll within
the U.S. By 2008, it contributed only
12 percent. Within California, in
1998, manufacturing also contributed
about 18% of the annual payroll to
the state. By 2008, it contributed
about 11 percent.
In terms of establishment counts, we
see that the greatest number decline
between 1998 and 2008 within
California has occurred within LA
County.
What has this decline looked like in
the county and how can cluster
analysis provide insights into policies
which can aid the local economy?
By: Erin Coleman, Source: U.S. Census County Business Patterns
MANUFACTURING DECLINE WITHIN LA COUNTY
1998 Percentage Breakdown of Annual Payroll within LA County:
Manufacturing
Unclassified establishments
Mining
Auxiliaries (exc corporate,
subsidiary & regional mgt)
Educational services
Real estate & rental & leasing
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Professional, scientific &
technical services
Health care and social
assistance
Mining, quarrying, and oil and
gas extraction
Educational services
Real estate and rental and
leasing
Manufacturing
Finance and insurance
Information
Wholesale trade
Information
Other services (except public
administration)
Retail trade
Retail trade
Admin, support, waste mgt,
remediation services
Arts, entertainment &
recreation
Construction
Management of companies &
enterprises
Transportation & warehousing
1998 Percentage Breakdown of Establishments within LA County:
Forestry, fishing, hunting, and
agriculture support
Mining
Management of companies &
enterprises
16%
14%
12%
10%
8%
6%
4%
2%
0%
Industries not classified
Wholesale trade
Accommodation & food
services
Auxiliaries (exc corporate,
subsidiary & regional mgt)
Professional, scientific, and
technical services
Health care and social assistance
Forestry, fishing, hunting, and
Agriculture Support
Finance & insurance
Other services (except public
administration)
Utilities
2008 Percentage Breakdown of Annual Payroll within LA County:
Retail trade
14%
12%
10%
8%
6%
4%
2%
0%
Unclassified establishments
Professional, scientific &
technical services
Health care and social assistance
Wholesale trade
Other services (except public
administration)
Manufacturing
Accommodation and food
services
Arts, entertainment, and
recreation
Transportation and warehousing
2008 Percentage Breakdown of Establishments within LA County:
Professional, scientific, and
technical services
Retail trade
Forestry, fishing, hunting, and
Agriculture Support
Mining, quarrying, and oil and gas
extraction
Utilities
Industries not classified
Management of companies and
enterprises
Arts, entertainment &
recreation
Information
Health care and social assistance
Wholesale trade
Other services (except public
administration)
Accommodation and food
services
Manufacturing
Construction
Transportation and warehousing
Transportation & warehousing
14%
12%
10%
8%
6%
4%
2%
0%
Accommodation & food services
Educational services
Educational services
Administrative and Support and
Waste Mang and Remediation
Srvs
Management of companies and
enterprises
Construction
Construction
Real estate & rental & leasing
Admin, support, waste mgt,
remediation services
Finance & insurance
Information
Finance and insurance
Administrative and Support and
Real estate and rental and leasing
Waste Mang and Remediation…
Arts, entertainment, and
recreation
SELECTION OF APPAREL INDUSTRIES: 315232 and 315212
Within LA County, the apparel industries 315232, Women’s & Girls’
Apparel Manufacturing, and 315212, Cut and Sew Apparel Contractors
ranked among the top 7 between 1998 and 2008 in terms of employee
counts, establishment counts, and total annual payroll contributed to the
county.
315232
In 1998, Los Angeles county had over 80 percent of the state's share of the
315232 industry. In 2008, this share increased to just under 90 percent. Due to
this, Los Angeles County is used as the baseline for which to compare overall
change.
315212
For the Industry 315212, this data shows that in 1998, 77% of all
establishments within all counties in CA were located within La County. In
2008, this figure increased to 83 percent. Due to these findings, my baseline
measure for comparing change in establishment counts, size, and employee
counts is LA County as a whole, rather than the state at large or even the 5
county metropolitan area.
Location Quotient Analysis: Comparing LA County Zip codes to the County as Whole
Location Quotient Analysis: Comparing LA County Zip Codes to the County as a Whole
315212 Cross Year Analysis: Absolute Count Comparison of Employees and Establishments
1998-2008 Percentage Change Comparison of Employee and Establishment Counts
315232 Contraction in Establishment Range Between 1998 and 2008
SUNRISE BRANDS
Employees: 100-249
801 S FIGUEROA ST #
2500, 90017
323-780-8250
315232 Women & Girls
Apparel Manufacturing
Location of Largest Establishments by
employee size according to EDD
WOW KNIT INC
Employees: 100-249
1115 E 14TH ST
90021
213-688-0404
CARESSE LINGERIE
Employees: 100- 249
2313 S SANTA FE AVE.
90058
213-239-0503
ONE CLOTHING
Employees: 100-249
2121 E 37TH ST, 90058
323-846-5700
Employee Names and Contact
information sourced from EDD
Los Angeles
JUST FOR WRAPS
Employees: 100-249
5815 SMITHWAY ST,
90040
323-585-6878
315232 Hotspot Analysis: Cluster Identification (LA County 1998-2008)
Hot Spot Analysis Cluster Index:
Calculated with Raster Calculator
Variables Included:
1. 232empch: shows the percentage change
The four variables at right were given equal weighting in this
index
in average employee counts between 1998
and 2008 – included because places with
high levels of employee growth might
indicate clustering
2. 232essc: shows the percentage change in
average establishment size (by employee)
between 1998 and 2008 – included because
places with increase in average
establishment size might indicate clustering
3. 232lsemp: shows the percentage change
of average employee counts between 1998
and 2008 within each zip divided by the
change in employee counts during this time
span within LA County at large – included
because zip codes with a lower level of
decline than the county might show signs of
agglomeration/ local resilience.
4. 232lqest: shows the percentage change in
number of establishments between 1998 and
2008 within each zip divided by the change
in establishment counts during this time span
within LA County at large- included because
zip codes with a lower level of decline than
the county might show signs of
agglomeration/local resilience.
MODELING
Raster
Reclassify
Original Data
Metadata
Skills
Modeling
Metadata
Measurement: Using graphics features to display distance
Original data
Hotspot analysis
Inset Map
Geoprocessing: Clipping , Dissolve: (zip code field)
Select by attribute: (Location quotients)
Radar charts
Hotspot analysis index: using raster calculator
Rasterizing and reclassifying layers
Projecting data
Point graduated symbols
THE END
Thank you!