Policy for Using Strategic Clusters for Workforce Investments
The Workforce Training and Education Coordinating Board has adopted a policy on using strategic clusters for workforce development. The policy relies partly on an industry cluster analysis conducted by William Beyers and Andrew Wenzl of University of Washington and Paul Sommers of Seattle University who used detailed industry data to define regional specialties, develop maps of industry clusters and prioritize clusters for regional development purposes.This policy derives from a process begun with Skills For the Next Washington initiative.
Workforce Board Strategic Cluster Policy
- Strategic industry clusters shall be identified for the purpose of guiding and informing policy and investment decisions for workforce education and training, such as the awarding of discretionary funds for cluster-based workforce development initiatives.
- Rankings of strategic clusters shall be used to steer investments toward those clusters that are most strategic for workforce development. The Board will guide investments toward clusters that are at the higher rather than the lower end of the strategic rankings.
Guiding Principles
- Methodologies for identifying strategic clusters inform and guide investment decisions by basing them on evidence-based, quantitative data.
- Workforce and economic development partner agencies, such as Community, Trade and Economic Development, may work from different lists of strategic clusters because investment strategies vary.
- In the interest of consistency, the Workforce Board encourages partner agencies to use a shared set of cluster source data and indexing processes to identify strategic clusters.
- Clusters are but one of many strategies for workforce and economic development.
- Local areas may provide supplemental data and supporting evidence that the Workforce Board can use to improve lists of strategic clusters.
- Potential (or “emerging”) clusters are not identified in the scope of the 2008-09 analysis of clusters and strategic clusters. They do, however, have a role in other workforce and economic development initiatives.
- The geographic locus of strategic clusters is regional, not statewide.
- Strategic cluster lists shall be updated periodically to keep pace with changing economic conditions.
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Process for Proposing Changes to the State List of Strategic Clusters
Industry Cluster Analysis
Statewide Findings & Conclusions
Cluster Analysis Power Point Presentation
Complete Report (124 pages, 5 mg file)
Skills for the Next Washington
Targeting Industry Clusters as an Economic Development Strategy (powerpoint by Bryan Wilson)
Other Related Links:
State Sector Strategy Website
High Skills, High Wages Strategic Plan for Workforce Development
Industry Skill Panels
High Skills High Wages Strategic Fund (Grants focusing on regional cluster strategies) |
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STRATEGIC INDUSTRY CLUSTERS
FOR WORKFORCE DEVELOPMENT
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Industry cluster rankings are based on Workforce Board's policy for using Strategic Clusters for Workforce Investments. The Workforce Ranking listed is based on an index that adds weight to an industry's employment, and percent of occupation in middle and high regions.
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| Olympic Workforce Development Area - Region 1 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Navy Focused Cluster |
1 |
1 |
| Ship and Boat Building |
2 |
2 |
| Architectural and Engineering Services |
3 |
3 |
| Construction |
4 |
7 |
| Wood Products Focused Cluster |
5 |
4 |
| Sporting Goods Mfg. |
6 |
5 |
| Business Support Services |
7 |
6 |
| Nursing and Residential Care Facilities |
8 |
9 |
| Amusement, Gambling, & Recreation |
9 |
8 |
| Fishing |
10 |
10 |
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| Pacific Mountain Workforce Development Area - Region 2 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Forest Products |
1 |
1 |
| Animal Production - except Cattle & Poultry |
2 |
2 |
| Coal Mining |
3 |
4 |
| Heavy and Civil Engineering Construction |
4 |
5 |
| Sporting Goods Mfg. |
5 |
3 |
| Health care services |
6 |
7 |
| Business Support Services |
7 |
6 |
| Fishing, Seafood Processing & Shipbuilding |
8 |
8 |
| Travel Trailer & Camper Mfg. |
9 |
9 |
| Animal Production and Cattle Ranching |
10 |
10 |
| Agriculture and Forestry Support |
11 |
11 |
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| Northwest Workforce Development Area - Region 3 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Petroleum Refining |
1 |
1 |
| Boat Building |
2 |
2 |
| Forest Products |
3 |
3 |
| Agriculture-Food Products |
4 |
7 |
| Fishing & Seafood Processing |
5 |
4 |
| Heating Equipment |
6 |
5 |
| Aluminum |
7 |
8 |
| Cement and Concrete Manufacturing |
8 |
9 |
| Canvas and Rope Manufacturing |
9 |
6 |
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| Snohomish County Workforce Development Area - Region 4 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Aerospace |
1 |
1 |
| Abrasive Products Mfg. |
2 |
2 |
| Sheet Metal Products |
3 |
3 |
| Military |
4 |
4 |
| Electrical Machinery |
5 |
5 |
| Specialty Trades Construction (utlility, heavy) |
6 |
6 |
| Metal Forming Machine Tools |
7 |
9 |
| Boat Builders |
8 |
7 |
| Forest Products |
9 |
8 |
| Doll-Toy-Game Mfg. |
10 |
10 |
| Wood Kitchen Cabinets |
11 |
11 |
| Custom Steel Roll Forming |
12 |
12 |
| Fisheries & Seafood Products |
13 |
13 |
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| Seattle-King County Workforce Development Area - Region 5 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Software/Computer Services, including Programming |
1 |
1 |
| Aerospace |
2 |
2 |
| Health Care |
3 |
4 |
| Water Transportation (water transportation of passengers and cargo) |
4 |
3 |
| Scientific Research & Development |
5 |
6 |
| Nonstore retailers (sales of merchandise in venues other than stores. Example: Sodexho) |
6 |
5 |
| Telecommunications |
7 |
8 |
| Specialty Construction (utility, street/bridge, heavy) |
8 |
7 |
| Travel Arrangement (such as Holland America) |
9 |
9 |
| Depository Credit |
10 |
10 |
| Overhead Cranes & Hoist Mfg. |
11 |
11 |
| High Tech Manufacturing (includes computers, computer peripherals, instrumentation and electrical devices) |
12 |
14 |
| Heavy Truck Mfg. |
13 |
13 |
| Spectator Sports |
14 |
12 |
| Air Transportation |
15 |
16 |
| Fisheries |
16 |
15 |
| Sporting Goods and Toy Mfg. |
17 |
18 |
| Performing Arts |
18 |
17 |
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| Tacoma-Pierce County Workforce Development Area - Region 6 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Military |
1 |
1 |
| Computer Services |
2 |
2 |
| Aircraft Parts Mfg. |
3 |
3 |
| Gypsum Products Mfg. |
4 |
4 |
| Offices of Physicians, Dentists and Other Health Care Practitioners |
5 |
7 |
| Construction |
6 |
9 |
| Office administrative services (office-based support of day-to-day operations of other organizations) |
7 |
5 |
| Plastic Bottle Mfg. |
8 |
6 |
| Forest Products |
9 |
10 |
| Concrete Products Mfg. |
10 |
8 |
| Health Care Services |
11 |
11 |
| Fishing & Seafood Processing |
13 |
15 |
| Warehousing and Storage |
14 |
12 |
| Confectionary Mfg. |
15 |
14 |
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| Southwest Washington Workforce Development Area * - Region 7 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Forest Products |
1 |
4 |
| Federal Electrical Utilities |
2 |
1 |
| Health Care Services |
3 |
2 |
| Industrial Machinery, including Sawmill and Paper Machinery Mfg. |
4 |
3 |
| Construction |
5 |
6 |
| Semiconductors |
6 |
5 |
| Pump & Pumping and Air & Gas Equipment Mfg. |
7 |
7 |
| Commercial and Service Industry Machinery Mfg., including Audio & Video Equipment |
8 |
9 |
| Auto Rental |
9 |
8 |
| Lighting Fixture Mfg. |
10 |
10 |
| Food Products Manufacturing, include Poultry Processing |
11 |
11 |
| Gambling |
12 |
12 |
| * Southwest Washington includes clusters that overlap into the Portland Metropolitan Area (Multnomah, Clackamas and Washington Counties). In particular, those clusters include the following industries that have high location quotients in both Southwest Washington and the Portland Metro Area: industrial machinery, sawmill and paper machinery, pump equipment, semiconductors, and audio and video equipment. |
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| North Central Workforce Development Area - Region 8 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Health Care Services |
1 |
1 |
| Agriculture & Food Products |
2 |
2 |
| Electrical Utilities |
3 |
3 |
| Cut Stone production |
4 |
4 |
| Metal Manufacturing, including Foundaries and Castings |
5 |
5 |
| Forest Products |
6 |
6 |
| Gambling & Recreation |
7 |
7 |
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| South Central Workforce Development Area - Region 9 |
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| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Agriculture & Food Products |
1 |
1 |
| Motor Home Mfg. |
2 |
2 |
| Ornamental metalwork |
3 |
3 |
| Forest Products |
4 |
4 |
| Health Care Services |
5 |
5 |
| Warehousing |
6 |
6 |
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| Eastern Washington Partnership Workforce Development Area - Region 10 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Mining |
1 |
1 |
| Forest Products |
2 |
2 |
| Heating Equipment Except Warm Air Furnaces |
3 |
3 |
| Depository Credit Organizations |
4 |
6 |
| Agriculture & Food Products |
5 |
5 |
| Agricultural & Forestry Support Services (independent establishments from actual producers, such as farm or forestry management). |
6 |
4 |
| Cattle Ranching |
7 |
7 |
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| Benton-Franklin Workforce Development Area - Region 11 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| Computer Related Services |
1 |
1 |
| Waste Remediation & Management (includes portions of the Hanford reservation) |
2 |
2 |
| Health Care Services |
3 |
4 |
| Architecture & Engineering |
4 |
5 |
| Scientific Research & Development |
5 |
6 |
| Other Basic Inorganic Chemical Mfg. |
6 |
3 |
| Agriculture & Food Products |
7 |
7 |
| Nonstore retailers (sales of merchandise in venues other than stores. Example: Sodexho) |
8 |
10 |
| Cattle Farms |
9 |
8 |
| Rail Transport |
10 |
9 |
| Gambling & Recreation |
11 |
11 |
| Grain Farms |
12 |
12 |
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| Spokane Area Workforce Development Area - Region 12 |
| Cluster or Industry |
Workforce Rank |
Overall Rank |
| High Tech Manufacturing (includes computers, computer peripherals, instrumentation and electrical devices) |
1 |
2 |
| Health Care Services |
2 |
4 |
| Construction |
3 |
6 |
| Prof. & Technical Services |
4 |
1 |
| Metal & Machinery Manufacturing |
5 |
3 |
| Sheet Metal & Metal Bldgs |
6 |
7 |
| Federal Electric Power Services |
7 |
5 |
| Concrete Products Mfg. |
8 |
8 |
| Wood Kitchen Cabinet mfg. |
9 |
11 |
| Business Support Services |
10 |
9 |
| Travel Trailer & Camper Mfg. |
11 |
10 |
Criteria for Identifying Strategic Industry Clusters
for Workforce Development
Strategic clusters for workforce development shall be identified by creating an index of the 12 variables provided in Sommers et al (2008) plus output per employee and weighting three workforce variables to count twice, as shown below.
Cluster Analysis Variables |
Workforce Index |
Location Quotient |
Count once |
Employment |
Count twice |
Output |
Count once |
Earnings/ Worker |
Count once |
Percent of Occupations in Middle Wage Range |
Count twice |
Percent of Occupations in High Wage Range |
Count twice |
Change in Establishments 2001-07 |
Count once |
Change in Employment 2001-07 |
Count once |
Change in Wages 2001-07 |
Count once |
Projected Empoyment. Increase 2006-16 |
Count once |
R & D Occupations as a Percent of Total Empl. |
Count once |
Exports as a Percent of Output |
Count once |
Output/Employment |
Count once |
Rationale: Of all the characteristics examined in the cluster study, employment and the percent of middle- and high-wage occupations (jobs) are the variables that offer the most direct indicators of a cluster’s potential to offer good and plentiful employment opportunities to the state’s workforce.
Sommers et al, Industry Cluster Analysis for Washington State Workforce Development Areas, November 2008. http://www.wtb.wa.gov/ClusterAnalysis.asp
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