Labor Market Information

Industry Clusters of Orange County

The 2008 Workforce Indicator Report contains an update and re-definition of Orange County’s industry clusters to reflect changes in the economy and alterations in the policy goals for improving economic growth. In some cases, clusters have been re-named, in others, definitions of the components of the cluster were revised to better capture the essence of the cluster. Sub-clusters were added to a few of the clusters to better refine the analysis. Emerging clusters were added to capture fields that have a promising future in Orange County. The cluster naming and definitions are in some cases unique to Orange County as they reflect the local industry environment and future goals. Industry clusters have also been defined by the Employment Development Department (EDD). EDD’s cluster definitions reflect what is relevant and important overall for California and they may not match Orange County’s cluster names and definitions which are related to the local economy.

Business and Professional Services Cluster (Sub-Cluster: Management and Administration)
Emerging Cluster: Energy, Environment, and Green Technologies PDF
FIRE (Finance, Insurance, Real Estate)
Construction Cluster
Healthcare Cluster
Information Technology Cluster
Logistics and Transportation Cluster (Sub-Cluster: Transportation)
Manufacturing Cluster (Sub-Cluster: Advanced Manufacturing)
Emerging Cluster: Biotechnology/Nanotechnology
Hospitality and Tourism Cluster (Sub-Cluster: Hospitality)

Approximately three fourths of all Orange County jobs are in the Clusters. These clusters were chosen to reflect both key economic drivers for the Orange County economy and industries that are central to workforce development. Understanding employment trends in these clusters can and should influence workforce and economic development policy. In addition, understanding comparative salary levels and salary growth trends is vital for education and workforce development policy. This information, combined with information from the indicator on cluster employment growth trends, allows workforce development professionals and the business community to understand how the County’s economy is performing in terms of generating jobs at differing salary levels. For example, if growth of low wage jobs is not balanced by growth of high wage jobs, there will be problems –- especially so in a high cost of living location like Orange County. Additionally, the economic impact for economic sectors are identified through creating numerical values that summarize how investment spent in a sector produces an economic impact throughout the rest of the local economy. These values are called “multipliers.” For example, if the manufacturing sector of the local Orange County economy is said to have an economic multiplier of 2.29, then for every 10 employees hired in manufacturing, a total of 23 jobs will be produced throughout the entire Orange County economy.

	Employers by Industry Sector Orange County 2007	Employment by Industry Sector Orange County 2007	Multiplier Effects (higher number shows bigger impact)	Average Salary 2006
Professional Services	6,050	123,808	2.164	$70,279
Management & Admin	2,503	81,959	2.034	$40,318
Energy, Environment & Green (Emerging)	No data available	No data available	No data available	No data available
FIRE	5,397	123,935	1.796	$77,119
Construction	3,447	78,949	2.201	$52.932
Healthcare	4,197	122,914	1.942	$45,804
Information Technology	1,056	31,751	2.072	$67,497
Logistics & Transportation	4,776	119,329	2.028	$62,362
Manufacturing	5,198	227,272	2.295	$59,139
Biotechnology (Emerging)	No data available	No data available	No data available	No data available
Tourism and Leisure	4,310	122,254	2.079	$19,957
	Total Businesses	Total Employees	Average Multiplier Effect	Average Salary
	36,934	1,032,171	2.07	$55,045

About These Clusters: Clusters marked with a ¤ include Occupations frequently requiring skills in STEM (Science, Technology, Engineering and Math).

Business and Professional Services ¤ The provision of specialized services in support of businesses. These include areas such as law, accounting, architecture, computer programming, consulting market research, and advertising.
* Management and Administration Sub-Cluster: The establishment and staffing or businesses. These include firms involved with management of companies, administrative support, employment and temporary help services, document preparation, telemarketing companies, collection agencies, credit bureaus, janitorial services, locksmiths, security services, and convention and trade show organizations.
Emerging Cluster -Energy, Environment, and Green Technologies ¤ The field of the future that will utilize high technology in transportation, in the construction and modification of the built environment, in economic development in response to climate change, and will respond to the emerging legislative mandates affecting the economy. Green technologies will include efficiencies and re-use and/or transformation of waste into usable products. Recycling and organizing resources in a new way, will respond to energy needs and shortages while also growing the economy.
FIRE - Finance, Insurance, Real Estate ¤ Financial operation of the economy through real estate, banking, and insurance. FIRE includes banks, credit unions, mortgage loan originators, insurance companies, rental centers, and real estate offices.
Construction¤ Construction, design, and development of buildings and built structures. These include firms involved with housing construction, industrial building construction, utility system construction, highway construction, and specialized contractors (plumbers, electricians, roofers, etc.). In addition, the construction cluster includes components of geospatial architectural research and auto-CAD work.
Healthcare Cluster¤ Healthcare services. These include hospitals, outpatient care centers, family planning centers, home healthcare services, ambulance services, nursing care facilities, social assistance agencies, and intermediate (nursing homes) and residential care facilities.
Information Technology Cluster¤ Creation of items used in advanced technology economies. These include computer software, telecommunications, internet service provision, motion pictures, and publishing businesses.
Logistics and Transportation The flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involves the integration of information, transportation, and inventory; warehousing, material-handling, and packaging. Logistic and Transportation businesses include wholesalers, railroads, trucking, taxis, and charter bus businesses.
* Transportation Sub-Cluster: Transport of goods and commercial transportation such as railroads, air cargo, shipping, trucking, taxis, and charter buses.
Manufacturing¤ Create finished goods from raw materials, such as food products, wood products, apparel, printing, paper, plastics, biotechnology goods, glass, aluminum, semiconductors, transportation items (aerospace, automobiles, boats), and furniture.
* Advanced Manufacturing Sub-Cluster: Specialize in emerging elements of high-technology manufacturing. These include biotechnology, pharmaceuticals, medical devices, and aerospace.
Emerging Cluster-Biotechnology/Nanotechnology¤ A future employment cluster which will produce discoveries in biology and technology and mix the two to create new products, services and industries to enhance healthcare and biological care. While pharmaceuticals and medical device manufacturing are two components of this industry, discoveries from the human genome project, nanotechnology, and advances in biological knowledge promise the emergence of fields that can only be imagined now.
Hospitality and Tourism Promotion and services for visitors to a particular location. These include hotels, museums, amusement parks, casinos, restaurants, and caterers.
* Hospitality Sub-Cluster: Hotels and restaurants within the Tourism industry cluster; the provision of accommodation and hospitality services to visitors such as hotels, restaurants, casinos, and caterers.