Growth of the Nation
Jennifer Nietz - Director of Operations
Every month, I have been writing and reporting on a particular industry; however, I believe there is sometimes a different way to break down growth markets. That is by region or geography. What we find is that industries could have positive growth trends but only in certain areas of the nation. This month, as I was exploring industries, I came across a report out on the U.S.’s growth regions and thought it was very applicable for our clients.
What the U.S. is experiencing is a population shift to the Southern and Western regions. With bustling metro areas of Atlanta, Dallas, Seattle, and Portland, this probably doesn’t come as a surprise. The U.S. Census Bureau reports that between 2000 and 2010, the West and South grew 13.8% and 14.3% respectively, while the Midwest and Northeast grew just 3.9% and 3.2%. Florida overtook New York in 2014 to become the nation’s third-most populous state. By 2015, the 10 fastest-growing populations were in the South and West.
What I have found the most interesting through my findings is the growth that is taking place in the West and what industries are out there outside of the common tech giants. You may be surprised yourself!
IBISWorld explores the West in a recent article contributed by Dmitry Diment, Rory Masterson and Darryle Ulama. While the West includes only Alaska, California, Hawaii, Nevada, Oregon and Washington, these six states encompass one of the largest territorial expanses in the United States. Alaska, located in the northwest extremity of North America, is nearly three times larger than the next closest state (Texas), with a total area of over 665,000 square miles.
The region also includes the country’s most populous state, California, which boasts a population of 39.1 million and an economy with annual output of $2.3 trillion. California dominates the region’s economic profile. The state is among the largest and most diverse economies in the world; its total economic output would make it among the 10 largest economies in the world if it were its own country.
Examined as whole, the economy of the West has produced new jobs at nearly twice the rate of the rest of the country. Alongside rapid population growth, California, Nevada, Oregon and Washington are experiencing flourishing healthcare and housing sectors, as well as expanding knowledge-based industries in advanced manufacturing, technology and finance.
Although the historic success of entertainment and the recent rise of high-tech industries in the West are well known, the region’s importance to manufacturing is typically underestimated. Because of its abundance of research centers, the long existence of a robust technology community and a highly skilled workforce, California is by far the largest location for aerospace and aviation companies.
However, the state of Washington also plays an important role in the sector as the headquarters of Boeing’s manufacturing operations. Consequently, many suppliers have set up operations in the state and surrounding regions. A total of 27.0% of all establishments involved in the Aircraft, Engine and Parts Manufacturing industry are located in the West. Likewise, this region contains 35.6% of establishments in the Space Vehicles and Missiles Manufacturing industry, with California leading the way and accounting for a 31.1% share of industry establishments, which necessitate the use of the state’s numerous domestic spaceports, including the Ames Research Center, the Dryden Flight Research Center and the Jet Propulsion Laboratory.
The image below shows the percentage of establishments by state that make up all U.S. establishments.
To read more regarding the Southern regions of the U.S., I encourage you to check out the full article!
Questions or comments? Please contact Jennifer Nietz at jnietz@teamCOACT.com.