how seattle uses data driven marketing to identify and ... · understanding these industries ......

How Seattle uses data driven marketing to identify and promote the City’s strengths

CASE STUDY

https://seattle.ecdev.org/#industry-advantages-toolhttps://seattle.ecdev.org/#industry-advantages-toolhttps://seattle.ecdev.org/#industry-advantages-toolhttps://seattle.ecdev.org/#industry-advantages-toolhttps://seattle.ecdev.org/#industry-advantages-toolhttps://seattle.ecdev.org/#industry-advantages-toolEXPLORE WEBSITE

City of Seattle

744,955

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Business AttractionBusiness Retention & ExpansionEntrepreneurial Growth

Major city

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COVID-19: PREPARING FOR THE ECONOMIC RECOVERY

SOLUTIONLocalintel’s Industry Advantages helps Seattle’s economic development department understand, monitor and promote what makes their city special. Furthermore, by embedding directly into the City’s economic development website, Industry Advantages makes it easier for businesses and investors to uncover the industries and clusters that are driving Seattle’s economy and generating opportunities.

CHALLENGEWith increasing pressure on budgets, economic development departments are being asked to do more with less. The City of Seattle is always looking for innovative ways they can use technology to help drive economic development more effectively and affordably. When Localintel launched its ground-breaking new economic development tool called Industry Advantages, Seattle was one of the first cities in the country to add it to their website.


www.ecdev.org

Solution

Localintel’s Industry Advantages includes 6 modules that use data driven by machine learning and engaging visualizations to identify and promote Seattle’s:

Seattle’s Largest Industries

MODULE #1

This module promotes the largest industries in Seattle. These industries represent strengths that the City can build on and leverage while simultaneously assessing any threats that could detrimentally impact them. Understanding these industries is also valuable market intelligence for businesses, site selectors and entrepreneurs.

What are Seattle’s largest industries?

Using Localintel’s Industry Advantages we can see that 9 of Seattle’s 10 largest traded industries are associated with 3 sectors: technology (145,876 jobs), aircraft manufacturing (105,263 jobs) and corporate and regional headquarters (85,344 jobs).

Largest Industries

Specialist Industries

Fast Growing Industries

Underrepresented Industries

Top Clusters

Opportunity Clusters


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What are Seattle’s specialist industries?

Industry Advantages shows the following five manufacturing industries are highly concentrated in the Seattle metropolitan area and this specialization has increased in recent years:

1. Other Aircraft Parts and Auxiliary Equipment Manufacturing (NAICS 336413)

2. Electromedical and Electrotherapeutic Apparatus Manufacturing (NAICS 334510)

3. Overhead Traveling Crane, Hoist, and Monorail System Manufacturing (NAICS 333923)

4. Other Electronic Component Manufacturing (NAICS 334419)

5. Sporting and Athletic Goods Manufacturing (NAICS 339920)

Using Industry Advantages we can also identify that the combined employment of these five manufacturing industries in the Seattle metropolitan area is 28,409 jobs and the location quotient for these industries ranges from 3.7 to 10.6.

THE IMPORTANCE OF LEVERAGING YOUR SPECIALIST INDUSTRIES

Focusing on local advantages is critical to economic development. A report prepared by the Brookings Institute states that:

“One of the most basic functions of an economic development officer (EDO) is to selectively invest in capacities that make a region “sticky” for specific types of firms and talent, spurring a cycle of self-reinforcing growth in certain industries. Nearly everything that an EDO does – from business attraction incentives, to workforce training to startup accelerators – should align to ensure that firms in some set of industries have to be in the region, whatever the cost. The point is that, when an EDO defines an industry as a “target,” it is making a claim about an industry specialization: either that one exists and should be protected, or that an emerging one could be deepened through targeted investments.”

Making economic development strategies more strategic, Brookings Institute (2017)

Seattle’s Specialist Industries

MODULE #2

This module promotes the industries that Seattle specializes in. Many types of businesses want to locate where their industry has a strong presence to benefit from existing value chains. As the concentration of an industry in a particular location grows, so does the availability of skilled labor, suppliers and the volume of knowledge spillovers.


www.ecdev.org

What are Seattle’s fast growing industries?

Seattle’s prosperity over the last 5 years has been driven by the growth in its traded industries. This in turn has dramatically increased the City’s population, household incomes and demand for local industries. Industry Advantages shows that of Seattle’s 10 fast growing industries, 7 were traded industries (+68,322 jobs) and 3 were local industries (+35,621 jobs).

What are Seattle’s underrepresented industries?

Seattle’s relatively young and affluent population influences the level of demand for different types of local industries. For example, Localintel’s Industry Advantages shows the concentration of most health industries, drug stores and funeral services in Seattle is well below the typical levels seen across the country. Industry Advantages also provides insights into local industries that should be in high demand in Seattle but are currently underrepresented in the city, including: household appliance stores, automotive repair shops, cosmetics stores and other personal care services.

Seattle’s Underrepresented Industries

MODULE #4

This module identifies local industries that may be underrepresented in Seattle. Economic developers can use these insights to target new businesses or help existing businesses expand. Identifying underrepresented industries also gives businesses the opportunity to capitalize on unmet demand throughout their value chain.

Seattle’s Fast Growing Industries

MODULE #3

This module promotes the industries that have been growing and driving job creation in Seattle over the last 5 years. With a better understanding of their local economy, the City can work with business, other government agencies and community partners to support and promote their high growth industries.


www.ecdev.org

What are Seattle’s top clusters?

Industry Advantages shows that the largest traded cluster in the Seattle metropolitan area is Business Services which employs a total of 201,075 people. Firms in this cluster include establishments and services primarily designed to support other aspects of a business or to assist unrelated companies. This includes corporate headquarters, professional services such as consulting, legal services, facilities support services, computer services, engineering and architectural services, and placement services. Industry Advantages identifies the 33 industries in the cluster and how many people each of these industries employs across the city.

What are Seattle’s opportunity clusters?

Using Industry Advantages we can see that the Aerospace Vehicles and Defense cluster employs 36,019 people in Snohomish County and a further 25,970 people in King County. Most of these jobs are associated with aircraft manufacturing (NAICS 336411 and 336413). Only 849 jobs are generated by businesses manufacturing search and navigation equipment (NAICS 334511). Given the City of Seattle already has specializations in technology and aircraft manufacturing, an opportunity may exist to support the growth of search and navigation equipment manufacturing in the municipality.

Seattle’s Opportunity Clusters

MODULE #6

This module identifies the largest traded clusters in Seattle’s broader region to help uncover new opportunities for businesses and economic developers. This is valuable information because Seattle can leverage strong clusters in neighboring areas to drive economic growth in the City. This is known as cluster-based economic development.

Seattle’s Top Clusters

MODULE #5

This module promotes the largest traded clusters in Seattle. Encouraging and supporting traded clusters have been shown to strengthen competitiveness and promote job creation through increased collaboration and productivity. For many types of businesses, being a part of a large industry cluster is essential to their value chain and success.


www.ecdev.org

OUTCOMESOne of the most important tasks for any economic developer is to understand their community’s strengths and actively promote them to create new opportunities. This has traditionally been a time consuming and expensive process that often requires the help of expensive external consultants. By adding Localintel’s next-generation Industry Advantages to its website, the City of Seattle is using advanced technology to do a better job of:

Identifying valuable insights about strengths and opportunities in their economy

Promoting these insights on their website

Saving time and money

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QUOTE“Data is only useful if it is easily accessible. That’s why I’m so excited about Localintel’s Industry Advantages. Through a beautiful and engaging interface, businesses and the City’s economic developers have access to insights that can them help make choices about where and how to do business in Seattle.”

Dave Parsell, CEO, Localintel Economic Development


www.ecdev.org

Localintel’s Industry Advantages will be a valuable online asset that the City of Seattle’s economic development staff and local businesses can turn to during the recovery phase necessitated by the COVID-19 crisis.

Now is a good time to start planning for the recovery phase of the crisis. Here we identify 3 strategies that will help your economy recover.

COVID-19: PREPARING FOR THE RECOVERY

When restrictions associated with COVID-19 begin to ease and the economic recovery starts, businesses will need to rehire, restock and promote themselves. This takes money which, for most businesses, means applying for loans. Businesses can improve the quality of their loan applications by undertaking business planning and local market research using reliable data.

Helping existing businesses reopen and recover

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The economic downturn from 2007 to 2009 was followed by a dramatic upswing in entrepreneurship, as laid-off workers pursued their entrepreneurial dreams. Entrepreneurs are more likely to succeed if they undertake thorough business planning and have access to local market research and adequate capital.

Helping entrepreneurs start and grow their business

When economic developers are ready to start shifting their focus from crisis response to recovery, competition between locations will resume and quickly ramp up. Start getting ready by making improvements to your organization’s number one marketing tool, which is your website.

Resuming and ramping up business attraction and lead generation activities


www.ecdev.org

ABOUT LOCALINTELLocalintel is your online economic development assistant. Adding our flexible suite of tools to your website is the easiest, most affordable way to promote local advantages, support businesses and drive economic development.

Our clients range from small rural villages to states and global cities including Texas EDC, Washington DC Economic Development Partnership, New Orleans Business Alliance, Indy Chamber and the cities of Seattle, Cleveland, Tulsa and Fort Lauderdale.

Get in touch and find out how we can put solutions like these to work for you.

206.356.6504

Dave Parsell, [email protected]

https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/https://www.linkedin.com/in/dave-parsell-10b2481b/

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