Texas Workforce Commission: Employment Forecast

Transcription

1 Texas Workforce Commission: Employment Forecast RDA Global March 17, 2010

2 Texas Workforce Commission: Employment Forecast RDA Global March 17, 2010

3 Texas Local Workforce Development Area (LWDA) The Texas Workforce Commission (TWC) reports employment statistics for 28 Local Workforce Development Areas (LWDA) in the State of Texas. The location of these LWDAs is indicated in the following slide. This report summarizes RDA Global s forecasts for employment in each of these 28 LWDAs. In addition the report summarizes these forecasts by 2-digit industry break-downs.

4 1) Panhandle 2) South Plains 3) North Texas 4) North Central 5) Tarrant County 6) Dallas 7) North East 8) East Texas 9) West Central 10) Upper Rio Grande 11) Permian Basin 12) Concho Valley 13) Heart of Texas 14) Capital Area 15) Rural Capital 16) Brazos Valley 17) Deep East Texas 18) South East Texas 19) Golden Crescent 20) Alamo 21) South Texas 22) Coastal Bend 23) Lower Rio Grande Valley 24) Cameron County 25) Texoma 26) Central Texas 27) Middle Rio Grande 28) Gulf Coast

5 Texas Industries and Employment The largest sectors of the Texas economy are, in declining size: Health Care, Retail, Education and Accommodation and Food. Many of these industry segments experienced weak or negative job growth in 2009 but generally industry sectors in Texas performed better than was the case for the nation as a whole. And while the job growth recovery in the Texas industry sectors is forecast to be relatively moderate over the next couple of years, it will be more robust than is the case for the U.S. economy as a whole. Growth in public administration will create 30,000 jobs in reflecting continued growth in public sector expenditures.

6 Texas Employment by Industry Sector Accommodation and Food Administration and Waste Arts Construction Education ,000 1, Employment (Thousands) ,000 1, ,000 1,500 Finance Health Care Information Management Enterprise Manufacturing Mining Other Services Professional Public Administration Real Estate ,000 1,500 Retail Transportation Unclassified Utilities Wholesale

7 Texas and USA Employment Growth by Industry Accommodation and Food Administration and Waste Arts Construction Education Finance Health Care Information Management Enterprise Manufacturing Annual Growth Mining Other Services Professional Public Administration Real Estate Retail Transportation Utilities Wholesale year RDA Texas Forecast RDA USA Forecast

8 Employment in the Local Workforce Development Areas Gulf Coast, Dallas, Alamo, Tarrant County and North Central are the five largest LWDAs in terms of employment. Virtually all of the LWDAs experienced employment decline in And most of the LWDAs will experience a moderate recovery in employment growth over the period. There are though some LWDAs that will experience very anemic growth during this period: Golden Cresent, North Texas, North East Texas, South East Texas, Texoma, Concho Valley, and Dallas.

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12 Texas Employment Trends Employment in the 28 Texas LWDAs totaled 10.2 million in RDA Global estimates that employment declined by 2.2 percent in 2009 to just under 10 million. In 2010 we expect employment to grow by about 1 percent bringing the employment numbers just over 10 million. In 2011 and 2012 we are forecasting annual employment growth of about 1.5 percent which will bring total employment to about 10.4 million.

13 Employment (Thousands) 0 2,000 4,000 6,000 8,000 10,000 10,192 Texas Employment Forecast 9, ,060 10,212 10, Annual Percent Change Year RDA Global 2009

14 Texas Jobs: 2012 and Growth (1000s)

15 Texas Jobs: 2012 and Growth (Positives) In 2012, the four largest industry segments in terms of employment are: Health Care, Education, Retail, and Accommodation and Food Three of these will experience significant job creation over the period: Health Care (122,000 new jobs); Education (60,000); and Accommodation (80,000). Retail will provide 1.2 million jobs in 2012 but this is essentially the same level the sector was at in Growth in public administration will create 30,000 jobs in reflecting continued growth in public sector expenditures.

16 Texas Jobs: The Largest Job Gains LWDA Name Employment Industry New Jobs Percent Change Gulf Coast 282,450 Health Care 29,355 12% Gulf Coast 229,370 Accommodation and Food 19,492 9% Dallas 161,055 Health Care 17,728 12% Alamo 136,550 Health Care 15,730 13% Alamo 108,041 Accommodation and Food 15,006 16% Gulf Coast 202,628 Professional 14,795 8% Gulf Coast 261,773 Education 13, % Forth Worth 89,526 Health Care 10,614 13% Austin/Travis 62,258 Accommodation and Food 9,795 19% North Central 80,739 Health Care 9,520 13% Gulf lfcoast 84,637 Public Administration i ti 7,578 10% Lower Rio Grande 60,867 Health Care 6,987 13% Forth Worth 77,014 Accommodation and Food 6,697 10% North Central 104,125 Education 5,767 6% Dallas 106,027 Education 5,759 6% Austin/Travis 58,850 Health Care 5,519 10% Austin/Travis 55,378 Professional 5,497 11% Alamo 93,164 Education 5,197 6% North Central 71,848 Accommodation and Food 4,293 6% Gulf Coast 129,761 Transportation 4,216 3% Forth Worth 70,819 Education 4,004 6% Austin/Travis 51,922 Public Administration 3,481 7% North Central 99,828 Retail 3,238 3% Alamo 53,833 Finance 2,249 4% Austin/Travis 55,655 Retail 2,206 4%

17 Health Care: The Largest Job Creating Sector in Texas In the U.S. 10 of the 20 fastest growing occupations are healthcare related Nation-wide healthcare is expected to generate 3.2 million new wage and salary jobs between 2008 and 2018, more than any other industry, largely in response to rapid growth in the elderly population. In 2012 it will be the largest employer in the state, employing 1.3 million people Between 2008 and 2012 the sector will create 122,000 jobs in Texas which represents about one-third of all new jobs created during this period.

18 Accommodation and Food: Slower but Strong Growth Recently this sector has had greater than average employment growth in the state. Reduced disposable income will slow this growth. Nevertheless in period it will create 78,000 jobs; and increase of 9 percent over this four year period.

19 Education: Tracking National Trends Employment in the U.S. education sector is expected to grow by about 1.2 percent annually over the next ten years according to the Bureau of Labor Statistics. Driving this growth is increasing student enrolments at all levels of education. Given Texas demographics, which tend to be younger than the national average, this student enrolment growth will be higher in the state. In Texas we expect annual growth in education employment of about 1.4 percent for the period. By 2012 this will be the second largest employer in Texas employing 1.1 million people and it will add about 63,000 jobs over the 2008 and 2012 period.

20 Public Administration: Counter-cyclical Local Government Government employment tends to grow during periods of economic contraction and have no reason to expect otherwise in this recession period and in the post-recession period of high unemployment Much of the growth will take place at local government levels. Annual growth in government employment will be about 1.8 percent during this four year period, creating about 31,000 jobs.

21 Texas Jobs: 2012 and Growth (Negatives) Manufacturing continues its secular decline in the period the sector will shed approximately 100,000 jobs in this period. Construction and the Management and Waste sectors will also experience significant job loss partially a fallout of problems in both consumer and commercial real estate markets.

22 Texas Jobs: The Largest Job Losses LWDA Region Employment Industry Lost Jobs Gulf Coast 210,734 Manufacturing 34,688 Gulf Coast 190,916 Construction 20,859 Dallas 113,198 Manufacturing 20,156 Forth Worth 76,484 Manufacturing 10,671 Dallas 77,657 Construction 8,819 Dallas 115,933 Professional 8,394 North Central 65,345 Manufacturing 7,484 Forth Worth 83,742 Retail 7,137 Dallas 127,779 Administration and Waste 6,947 Gulf Coast 174,921 Administration and Waste 5,937 Gulf Coast 266,365 Retail 5,334 Dallas 103,114 Wholesale 3,454 Alamo 53,682 Construction 3,426 Gulf Coast 137,183 Wholesale 3,290 Dallas 134,750 Retail 3,246 Alamo 58,848 Administration and Waste 1,997 Forth Worth 55,282 Administration and Waste 1,876 Gulf Coast 90,307 Mining 1,202 Dallas 106,503 Finance 765

23 Manufacturing: Decline will Continue Manufacturing activity in Texas will stabilize and experience moderate improvement in the period. Manufacturing employment will not recover to the same extent the numbers employed in manufacturing will continue to decline in the period. Continued global competition in the manufacturing sector (and a recently appreciating U.S. dollar) will put pressure on Texas exports it will also mean that larger firms will continue the trend of out sourcing jobs off-shore. Small and medium size manufacturing firms are an important source of job creation these small and medium size firms have been particularly negatively affected by the recent financial crisis that has resulted in a significant reduction in bank lending to small and medium size firms.

24 Construction: Significant Decline During the period , employment in construction will decline by approximately 60,000 jobs. Employment in construction declined significantly in 2009 and we do not expect any significant growth in the construction sector in

25 Dallas Jobs: 2012 and Growth Mediocre job growth over Of its six largest employment sectors, only 1 (Health Care) shows robust growth while a second (Accommodation and Food) will just barely have positive growth. The other four of its six largest employment sectors all show declining employment in three cases quite substantial (Manufacturing, Professional, and Administration and Waste). And some of its smaller employment sectors like wholesale, construction, and other services will experience relatively large employment losses.

26 Dallas Job Growth

27 Dallas Jobs: 2012 and Growth (1000s)

28 Tarrant County Jobs: 2012 and Growth Mixed employment situation for Two of its four largest employment sectors Health Care and Accommodation and Food will turn in robust growth over this period The other two of its four largest employment sectors will experience significant employment declines Manufacturing and Retail.

29 Tarrant County Job Growth:

30 Tarrant County Jobs: 2012 and Growth (1000s)

31 Gulf Coast Jobs: 2012 and Growth Moderately positive employment situation for Two of the large employment sectors Manufacturing and Construction will see significant job losses during the period. This is counter-balanced though by quite strong performance in four sectors: Health Care, Professional, Education, and Accommodation and Food.

32 Gulf Coast Jobs Growth

33 Gulf Coast Jobs: 2012 and Growth (1000s)

34 Capital Area Jobs: 2012 and Growth Strong employment growth for All six of the top employment sectors in the Capital Area are forecast to turn in quite robust growth rates over the period. Employment will grow by around 10 percent (or higher) in Health Care, Accommodation and Food, and Professional. There is declining employment in some sectors, such as Manufacturing, but the rate of decline is less than in other parts of the state.

35 Capital Area Job Growth

36 Capital Area Jobs: 2012 and Growth (1000s)

37 North East Texas Jobs: 2012 and Growth Stable employment growth for The North East region s largest employment sector is Manufacturing which is expected to shed about 1,600 jobs in the period. Three of the largest employment sectors Health Care, Education, and Public Administration will generate about 2,200 jobs over the period. Construction and Transportation will loose about 700 jobs.

38 North East Job Growth

39 North East Jobs: 2012 and Growth (1000s)

40 Alamo Jobs: 2012 and Growth Positive employment situation for Most employment sectors in the Alamo Region will either experience growth or no change in employment over the period. The exceptions are Construction and and Administration and Waste but even here the job losses will be less significant than in many other regions of the state. And on the positive side, some of the region s largest employers Accommodation and Food and Health Care will experience significant employment growth.

41 Alamo Job Growth

42 Alamo Jobs: 2012 and Growth (1000s)

43 Brazos Valley Jobs: 2012 and Growth Slow growth in employment for With the exception of Manufacturing and Administration and Waste, the employment sectors in the Brazos Region with be stable or generate weak rates of employment growth. The overall best performing sector will be Accommodation and Food with about 10 percent growth for the period. The other sectors that do experience growth will have rates of growth that are relatively anemic.

44 Brazos Valley Job Growth

45 Brazos Valley Jobs: 2012 and Growth (1000s)

46 Coastal Bend Jobs: 2012 and Growth Mixed employment situation for Moderate levels of growth in some of the region s largest employment sectors: Health Care, Accommodation and Food, and Education. But also moderately high levels of job losses in Manufacturing, Construction, Retail and Mining.

47 Coastal Bend Job Growth

48 Coastal Bend Jobs: 2012 and Growth (1000s)

49 Cameron Jobs: 2012 and Growth Slow growth in employment for Moderate levels of growth in the region s largest five employment sectors: Health Care, Accommodation and Food, Education, Public Administration, and Retail. But Manufacturing experiences significant employment loss and Construction and Administration and Waste will see moderate job losses over the period.

50 Cameron Job Growth

51 Cameron Jobs: 2012 and Growth (1000s)

52 Central Texas Jobs: 2012 and Growth Stable growth in employment for Moderate levels of growth in the region s largest five employment sectors: Health Care, Accommodation and Food, Education, Public Administration, and Retail. But Manufacturing, Construction and Administration and Waste will see moderate job losses over the period.

53 Central Texas Job Growth

54 Central Texas Jobs: 2012 and Growth (1000s)

55 Deep East Texas Jobs: 2012 and Growth Declining growth in employment for Most employment sectors in the region are losing jobs or experiencing no change in employment in some cases like Manufacturing the job losses are significant. There are sectors that will experience job growth Health Care, Education, Accommodation and Food, and Public Administration but the growth will be relatively anemic compared to other regions of the state.

56 Deep East Texas Job Growth

57 Deep East Texas Jobs: 2012 and Growth (1000s)

58 Golden Cresent Jobs: 2012 and Growth Declining growth in employment for The Golden Cresent region will experience significant job loss in Manufacturing, Construction and Mining sectors that rank amongst the region s largest employers. There are sectors that will experience job growth Health Care, Education, Accommodation and Food, and Public Administration but the growth will be relatively anemic compared to other regions of the state.

59 Golden Cresent Job Growth

60 Golden Cresent Jobs: 2012 and Growth (1000s)

61 Lower Rio Grande Jobs: 2012 and Growth Solid growth in employment for The Lower Rio Grande region will experience significant job growth in two of its largest employment categories: Health Care and Education 12,000 jobs will be created over the period. Moreover, the region will experience job losses in only two sectors, Manufacturing and Construction but the job losses are relatively limited compared to other regions in the state.

62 Lower Rio Grande Job Growth

63 Lower Rio Grande Jobs: 2012 and Growth (1000s)

64 Middle Rio Grande Jobs: 2012 and Growth Stable growth in employment for There will be growth in the larger employment sectors of the Middle Rio Grande region Health Care and Public Administration will turn in reasonably good performance, creating about 12,000 jobs. The Retail sector which is one of the largest sectors in the region will just barely avoid loosing jobs. And Manufacturing will take a reasonably big hit, loosing 4,000 jobs over the period.

65 Middle Rio Grande Job Growth

66 Middle Rio Grande Jobs:2012 and Growth (1000)

67 South East Texas Jobs: 2012 and Growth Significant declines in employment for Virtually all of the employment sectors in South East Texas will experience job losses during this period. South East Texas will experience significant declines in its largest employment sectors; in particular loosing 2,800 jobs in Manufacturing and Construction. The region is also expected to loose about 500 jobs in Retail and Health Care. The only minor bright spot is Accommodation and Food that will create 200 jobs.

68 South East Texas Job Growth

69 South East Texas Jobs: 2012 and Growth (1000s)

70 South Texas Jobs: 2012 and Growth Strong growth in employment for ,300 jobs will be created in the region s two largest sectors: Education and Health Care. Manufacturing and Construction are not major employers in South Texas and will account for less than 500 lost jobs during the period. The nine largest employment sectors in the region will experience solid growth during the period Retail is an exception where growth is anemic

71 South Texas Job Growth

72 South Texas Jobs: 2012 and Growth (1000s)

73 Texoma Jobs: 2012 and Growth Stable employment for Texoma will see no employment growth over the period. The two largest employment sectors in Texoma Education and Health Care will create just over 1,000 jobs, a rate of job creation lower than in other regions of the state. 1,000 jobs will be lost in Manufacturing and Construction a rate on par with that of other regions in the state The remaining sectors of the Texoma economy will see very most changes in their employment levels

74 Texoma Job Growth

75 Texoma Jobs: 2012 and Growth (1000s)

76 Concho Valley Jobs: 2012 and Growth Stable employment for Concho Valley will loose 1,000 jobs in Manufacturing and Construction over the period. This will be counter-balanced by approximately 1,000 new jobs in Health Care and Accommodation and Food. The remaining sectors of the Concho Valley economy will see very modest changes in their employment levels

77 Concho Valley Job Growth

78 Concho Valley Jobs: 2012 and Growth (1000s)

79 East Texas Jobs: 2012 and Growth Stable employment growth for East Texas two largest employment sectors Health Care and Education will generate 6,500 jobs over the period. The region will loose about just over 4,000 jobs in Manufacturing and Construction. Most of the other sectors of East Texas will generate positive employment growth over the period.

80 East Texas Job Growth

81 East Texas Jobs: 2012 and Growth (1000s)

82 Heart of Texas Jobs: 2012 and Growth Stable employment growth for The Heart of Texas region s two largest employment sectors Health Care and Education will generate 2,600 jobs over the period. Accommodation and Food and Public Administration will create about 1,500 jobs. Construction and Manufacturing are the only two sectors to experience significant job losses about 1,300 jobs.

83 Heart of Texas Job Growth

84 Heart of Texas Jobs: 2012 and Growth (1000s)

85 North Central Jobs: 2012 and Growth Stable employment growth for The four largest employment sectors of North Central Health Care, Education, Retail, and Accommodation and Food will generate 25,000 jobs over the period. Finance and Public Administration will create about 4,000 jobs. Construction, Manufacturing and Administration and Waste will loose about 1,400 jobs.

86 North Central Job Growth

87 North Central Jobs: 2012 and Growth (1000s)

88 North Texas Jobs: 2012 and Growth Declining employment for In the period, North Texas will loose a total of 1,200 jobs in two of its largest employers: Retail and Manufacturing. Most other sectors of the economy will experience moderate job loss.

89 North Texas Job Growth

90 North Texas Jobs: 2012 and Growth (1000s)

91 Panhandle Jobs: 2012 and Growth Stable employment for The largest employment sectors of the Panhandle will for the most part create jobs during the period: Health Care, Retail, Education, Accommodation and Food, and Public Administration will generate about 3,200 jobs. Manufacturing and Construction will shed a total of 3,000 jobs. In some of the smaller sectors such Art, Wholesale and Finance there will be moderate numbers of jobs created.

92 Panhandle Job Growth

93 Panhandle Jobs: 2012 and Growth (1000s)

94 Permian Basin Jobs: 2012 and Growth Moderate employment growth for The five largest employment sectors of the Permian Basin will experience positive employment growth (6,500 jobs) during the period: Mining, Health Care, Retail, Accommodation and Food, and Education. Job losses will be confined essentially to Manufacturing and Construction (a loss of 1,200 jobs). The other sectors of the economy will experience moderate employment growth.

95 Permian Basin Job Growth

96 Permian Basin Jobs: 2012 and Growth (1000s)

97 Rural Capital Jobs: 2012 and Growth Strong employment growth for The four largest employment sectors of the Rural Capital will experience strong employment growth (10,000 jobs) during the period: Health Care, Retail, Accommodation and Food, and Education. Job losses will be confined essentially to Manufacturing, Construction and Administration and Waste (a loss of 3,000 jobs). The other sectors of the economy will experience moderate employment growth.

98 Rural Capital Job Growth

99 Rural Capital Jobs: 2012 and Growth (1000s)

100 South Plains Jobs: 2012 and Growth Moderate employment growth for Three of the five largest employment sectors of the South Plains will experience employment growth (3,400 jobs) during the period: Health Care, Accommodation and Food, and Education. Job losses will be confined essentially to Manufacturing, Construction and Retail (a loss of 1,500 jobs). The other sectors of the economy will experience moderate employment growth.

101 South Plains Job Growth

102 South Plains Jobs: 2012 and Growth (1000s)

103 Upper Rio Grande Jobs: 2012 and Growth Moderate employment growth for The top three employment sectors of the Upper Rio Grande region will experience employment growth (6,500 jobs) during the period: Health Care, Retail, and Accommodation and Food. Job losses will be confined essentially to Manufacturing, Construction and Administration and Waste (a loss of 2,500 jobs). Another 3,500 jobs will be created in Pubic Administration, Transportation, Education, and Professional.

104 Upper Rio Grande Job Growth

105 Upper Rio Grande Jobs: 2012 and Growth (1000s)

106 West Central Jobs: 2012 and Growth Stable employment for The top four employment sectors of the West Central region will experience employment growth (3,500 jobs) during the period: Education, Health Care, Retail, and Accommodation and Food. Significant job losses will be confined essentially to Manufacturing, Construction and Administration and Waste (a loss of 1,700 jobs). On balance the other sectors of the economy will generate a small net drop in jobs.

107 West Central Job Growth

108 West Central Jobs: 2012 and Growth (1000s)

109 Appendix: NAIC Industry Definitions

110 NAIC Industry Definitions: Accommodation and Food The Accommodation and Food Services sector comprises establishments providing customers with lodging and/or preparing meals, snacks, and beverages for immediate consumption. The sector includes both accommodation and food services establishments because the two activities are often combined at the same establishment.

111 NAIC Industry Definitions: Administration and Waste The Administrative and Support and Waste Management and Remediation Services sector comprises establishments performing routine support activities for the day-to-day operations of other organizations. These essential activities are often undertaken in-house by establishments in many sectors of the economy. The establishments in this sector specialize in one or more of these support activities and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: office administration, hiring and placing of personnel, document preparation and similar clerical services, solicitation, collection, security and surveillance services, cleaning, and waste disposal services.

112 NAIC Industry Definitions: Arts The Arts, Entertainment, and Recreation sector includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. This sector comprises (1) establishments that are involved in producing, promoting, or participating in live performances, events, or exhibits intended for public viewing; (2) establishments that preserve and exhibit objects and sites of historical, cultural, or educational interest; and (3) establishments that operate facilities or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby, and leisure-time interests.

113 NAIC Industry Definitions: Construction The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector.

114 NAIC Industry Definitions: Education The Educational Services sector comprises establishments that provide instruction and training in a wide variety of subjects. This instruction and training is provided by specialized establishments, such as schools, colleges, universities, and training centers. These establishments may be privately owned and operated for profit or not for profit, or they may be publicly owned and operated. They may also offer food and/or accommodation services to their students.

115 NAIC Industry Definitions: Finance The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified: 1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale, and risk. This activity is known as financial intermediation.

116 NAIC Industry Definitions: Finance (continued) 2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees, insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment. 3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs.

117 NAIC Industry Definitions: Health Care The Health Care and Social Assistance sector comprises establishments providing health care and social assistance for individuals. The sector includes both health care and social assistance because it is sometimes difficult to distinguish between the boundaries of these two activities. The industries in this sector are arranged on a continuum starting with those establishments providing medical care exclusively, continuing with those providing health care and social assistance, and finally finishing with those providing only social assistance. The services provided by establishments in this sector are delivered by trained professionals. All industries in the sector share this commonality of process, namely, labor inputs of health practitioners or social workers with the requisite expertise. Many of the industries in the sector are defined based on the educational degree held by the practitioners included in the industry.

118 NAIC Industry Definitions: Information The Information sector comprises establishments engaged in the following processes: (a) producing and distributing information and cultural products, (b) providing the means to transmit or distribute these products as well as data or communications, and (c) processing data.

119 NAIC Industry Definitions: Management Enterprise The Management of Companies and Enterprises sector comprises (1) establishments that hold the securities of (or other equity interests in) companies and enterprises for the purpose of owning a controlling interest or influencing management decisions or (2) establishments (except government establishments) that administer, oversee, and manage establishments of the company or enterprise and that normally undertake the strategic or organizational planning and decisionmaking role of the company or enterprise. Establishments that administer, oversee, and manage may hold the securities of the company or enterprise.

120 NAIC Industry Definitions: Manufacturing Establishments in the Manufacturing sector are often described as plants, factories, or mills and characteristically use power-driven machines and materials-handling equipment. However, establishments that transform materials or substances into new products by hand or in the workers home and those engaged in selling to the general public products made on the same premises from which they are sold, such as bakeries, candy stores, and custom tailors, may also be included in this sector. Manufacturing establishments may process materials or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing.

121 NAIC Industry Definitions: Mining The Mining, Quarrying, and Oil and Gas Extraction sector distinguishes two basic activities: mine operation and mining support activities. Mine operation includes establishments operating mines, quarries, or oil and gas wells on their own account or for others on a contract or fee basis. Mining support activities include establishments that perform exploration (except geophysical surveying) and/or other mining services on a contract or fee basis (except mine site preparation and construction of oil/gas pipelines).

122 NAIC Industry Definitions: Other Services The Other Services (except Public Administration) sector comprises establishments engaged in providing services not specifically provided for elsewhere in the classification system. Establishments in this sector are primarily engaged in activities, such as equipment and machinery repairing, promoting or administering religious activities, grant making, advocacy, and providing dry-cleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services, and dating services.

123 NAIC Industry Definitions: Professionals The Professional, Scientific, and Technical Services sector comprises establishments that specialize in performing professional, scientific, and technical activities for others. These activities require a high degree of expertise and training. The establishments in this sector specialize according to expertise and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: legal advice and representation; accounting, bookkeeping, and payroll services; architectural, engineering, and specialized design services; computer services; consulting services; research services; advertising services; photographic services; translation and interpretation services; veterinary services; and other professional, scientific, and technical

124 NAIC Industry Definitions: Public Administration The Public Administration sector consists of establishments of federal, state, and local government agencies that administer, oversee, and manage public programs and have executive, legislative, or judicial authority over other institutions within a given area. These agencies also set policy, create laws, adjudicate civil and criminal legal cases, provide for public safety and for national defense. In general, government establishments in the Public Administration sector oversee governmental programs and activities that are not performed by private establishments. Establishments in this sector typically are engaged in the organization and financing of the production of public goods and services, most of which are provided for free or at prices that are not economically significant.

125 NAIC Industry Definitions: Real Estate The Real Estate and Rental and Leasing sector comprises establishments primarily engaged in renting, leasing, or otherwise allowing the use of tangible or intangible assets, and establishments providing related services. The major portion of this sector comprises establishments that rent, lease, or otherwise allow the use of their own assets by others. The assets may be tangible, as is the case of real estate and equipment, or intangible, as is the case with patents and trademarks.

126 NAIC Industry Definitions: Retail The Retail Trade sector comprises establishments engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise; retailers are, therefore, organized to sell merchandise in small quantities to the general public.

127 NAIC Industry Definitions: Transportation The Transportation and Warehousing sector includes industries providing transportation of passengers and cargo, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation. Establishments in these industries use transportation equipment or transportation related facilities as a productive asset. The type of equipment depends on the mode of transportation. The modes of transportation are air, rail, water, road, and pipeline.

128 NAIC Industry Definitions: Unclassified This code, not part of the official NAICS, is used in the Statistics of U.S. Businesses to designate those establishments were NAICS classification information is not available

129 NAIC Industry Definitions: Utilities The Utilities sector comprises establishments engaged in the provision of the following utility services: electric power, natural gas, steam supply, water supply, and sewage removal. Within this sector, the specific activities associated with the utility services provided vary by utility: electric power includes generation, transmission, and distribution; natural gas includes distribution; steam supply includes provision and/or distribution; water supply includes treatment and distribution; and sewage removal includes collection, treatment, and disposal of waste through sewer systems and sewage treatment facilities.

130 NAIC Industry Definitions: Wholesale The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The merchandise described in this sector includes the outputs of agriculture, mining, manufacturing, and certain information industries, such as publishing. The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for resale (i.e., goods sold to other wholesalers or retailers), (b) capital or durable nonconsumer goods, and (c) raw and intermediate materials and supplies used in production.