Identification of Industry Clusters for Guiding Economic Development Efforts in the Cincinnati MSA
Prepared for:
Cincinnati USA Partnership Employment by Industry
- Cincinnati’s economy is no longer dominated by manufacturing industries. Today, more people are employed in professional and business services than in manufacturing.
- The most important changes that have occurred in the Cincinnati area’s industrial composition between 1990 and 2000 are the increases in various service sectors and the decline in manufacturing.
- In the next five years, Cincinnati’s economy will be affected by national growth in service-producing sectors. Some of the most rapid growth is expected to occur in industries that have considerable employment in high skill-high wage positions.
Employment by Occupation
- Overall, the occupation structure in the Cincinnati area is similar to the national structure, though Cincinnati has significantly more employment in production-related occupations, and an above average number of workers in high-paying executive, professional, and technical occupations.
- Between 1990 and 2000, occupational employment in the Cincinnati area showed tremendous growth in service occupations as well as executive, professional, & technical occupations. Precision workers, machine operators & blue collar occupations showed little growth through the period.
- In the next five years, the greatest increases are expected in the first three areas. Of these occupation groups, the first two are mostly made up of positions requiring at least a four-year college degree. The third area, service, includes a wide variety of job types, including many that also require at least some amount of specialized post-secondary training, if not a college degree.
Use of Cluster Analysis
- Structural changes in the Cincinnati area economy call for new approaches to economic development. Cluster analysis helps economic development specialists monitor and understand these economic changes and take appropriate actions for the benefit of their communities.
- Cluster policy is most valuable in identifying targets for recruitment and retention. The ten Cincinnati USA clusters proposed as candidates for targeting by the Partnership for Greater Cincinnati include:
- 3 Office-Oriented Clusters
- Business Management
- Financial Services
- Architectural & Engineering Services
- 3 Technology-Oriented Clusters
- Biotechnology
- Software And Data Processing
- Digital Equipment & Telecomm
- 4 Manufacturing-Oriented Clusters
- Chemicals And Plastics
- Motor Vehicle Manufacturing
- Aerospace
- Advanced Manufacturing
- 3 Office-Oriented Clusters
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