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Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan <br /> <br />19 <br /> <br />C. Analysis of Industries and Occupations with Existing and Emerging Demand <br /> <br />The RPU analyzed location quotient, total jobs, and competitive effect data to identify <br />industries and occupations with emerging demand. An analysis of location quotient data <br />demonstrated which occupations and industries are specialized in the Orange County <br />region (compared to the national average). The competitive effect indicates how much <br />job change results from some distinct competitive advantage in the area. The competitive <br />effect measures the job change that cannot be explained by national growth and industry <br />mix. The difference in competitive effect points to regional-specific factors on the change <br />in local employment numbers. Factors such as labor force training and education, skills, <br />transportation, supply chains, aging demographics, and other regionally influenced <br />factors may impact these industries’ and occupations’ competitiveness. <br /> <br />Using the 3-digit NAICS code, the <br />emerging industries identified had a <br />location quotient that increased <br />between 2017 and 2022 and had a <br />location quotient of less than 1.2. The <br />industry list was filtered to include <br />industries with a competitive effect <br />greater than 1 percent change in jobs <br />higher than 10% and more than 1,000 jobs. The following chart consists of a list of the <br />top thirteen emerging industries in Orange County. This combined list of sectors <br />accounted for 321,154 jobs in 2022. This group of industries is projected to grow to <br />490,109 jobs by 2027. <br /> <br />Industries with Emerging Demand <br />NAICS Description 2017 <br />Jobs <br />2022 <br />Jobs <br />2017 - <br />2022 <br />Change <br />2017 - <br />2022 % <br />Change <br />Competitive <br />Effect <br />2017 <br />Location <br />Quotient <br />2022 <br />Location <br />Quotient <br />812 Personal and Laundry Services 14,962 17,548 2,586 17% 3,022 0.92 1.12 <br />621 Ambulatory Health Care Services 83,749 96,902 13,153 16% 5,060 1.04 1.12 <br />624 Social Assistance 41,158 49,209 8,051 20% 4,189 1.00 1.11 <br />446 Health and Personal Care Stores 11,540 12,173 633 5% 1,104 0.98 1.09 <br />611 Educational Services 26,794 32,837 6,044 23% 5,177 0.86 1.03 <br />325 Chemical Manufacturing 7,937 8,844 908 11% 315 0.87 0.92 <br />454 Nonstore Retailers 5,371 6,377 1,006 19% 405 0.84 0.91 <br />623 Nursing and Residential Care Facilities 26,290 26,328 39 0% 2,887 0.71 0.81 <br />814 Private Households 1,624 1,903 278 17% 690 0.51 0.81 <br />312 Beverage and Tobacco Product <br />Manufacturing 1,862 2,359 497 27% 124 0.64 0.68 <br />622 Hospitals 31,995 32,653 658 2% 516 0.58 0.59 <br />902 State Government 25,468 25,822 354 1% 940 0.50 0.52 <br />515 Broadcasting (except Internet) 962 1,006 44 5% 177 0.32 0.40 <br />484 Truck Transportation 5,016 6,074 1,058 21% 776 0.31 0.36 <br />481 Air Transportation 903 1,119 216 24% 237 0.17 0.21 <br />Source: LIGHTCAST, 2023 <br />Mature Growing <br />Location Quotients are <br />greater than 1.2 and <br />steadily decreasing <br />Location Quotients are <br />greater than 1.2 and <br />steadily increasing <br />Declining Emerging <br />Location Quotient is less <br />than 1.2 and steadily <br />decreasing <br />Location Quotient is less <br />than 1.2 and steadily <br />increasing <br />EXHIBIT 1