9-line access access management access point accessibility ADA air quality alignment amenity antiplanner atlanta BART BID bike Blogs boston branded bus branded buses brookings brt bus Bus Rapid Transit BYU capacity car pool cars central link Centrality certification commuter rail condo conformity congestion congestion pricing connections consistency coverage crossings CRT cycling DART dedicated dedicated right of way density denver depreciation developers development dynamic pricing economics efficiency Envision Utah equity eugene exclusive extension FAQ favela Federal Funding Flex Bus florida free fare zone freeways Frequent Transit Network frontrunner frontunner Gallivan garden cities gas prices geotagging goat Google grade-separation Granary District growth headway heavy rail hedonic High Speed Rail history housing housing affordability housing bubble housing prices HOV income infill innovative intersections intensity ITS junk science LA land use LEED legacy city light rail linear park location LRT lyft M/ART malls mapping maps market urbanism metrics metro MetroRail missoula mixed mixed traffic mixed-traffic mobile mode choice Mode Share multi-family MXD neighborhood networks news NIMBY office online op-ed open letter Operations parking parking meters peak travel pedestrian environment phasing Photomorphing planning Portland property property values Provo proximity quality_transit rail railvolution rant rapid rapid transit RDA real estate redevelopment reliability research retail Ridership ridesharing right of way roadway network ROW salt lake city san diego schedule schedule span seattle separated shuttle silver line single family SLC SLC transit master plan slums smartphone snow sprawl standing stop spacing streetcar streetscape streetscaping subdivision subsidy Sugarhouse Sugarhouse Streetcar Tacoma taxi technology tenure termini time-separation TOD townhouse traffic signal tram transit transit networks transit oriented development Transit Planning transponder transportation travel time TRAX trip planning trolley tunnel uber university of utah urban design urban economics urban land UTA UTA 2 Go Trip Planner utah Utah County Utah Transit Authority vmt walking distance web welfare transit Westside Connector WFRC wheelchairs zoning

Tuesday, December 20, 2011

Industry Clustering

Different 'economic bases' are attracted to different packages of amenities. Similar firms tend to cluster in the same metropolitan labor because they are seeking the same amenities. Specifically, labor-intensive work requiring skilled workers often co-locate.

Innovative industries are characterized with a high rate of 'churn', with high employee turnover, as new firms are created, staff up, and either grow explosively or implode.

Locating within a metropolitan area that possesses an existing pool of skilled labor represents a competitive advantage because it makes hiring cheaper and simpler. Also makes firms more efficient, because the incentive to 'conserve' an expensively assembled labor force is less--the 'assembly cost' of acquiring replacement workers are lower.

Metropolitan 'sector' growth stops when the existing pool of skilled labor is becoming depleted, and the competition for limited workers causes wages begin to rise. While rising wages initially draw in skilled workers from outlying areas, that pool is also finite. Additionally, the high level of skill required takes years to develop, so the 'lead time' for developing additional workers. Requires educational programs to anticipate the demand for technical skills in advance of the rise of wages.

(What of Capital Intensive Industries?)