Cradle Coast RegionEconomic profile
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Cradle Coast Region

Location quotient by industry

In 2015/16, Arts and Recreation Services was a major specialisation in Cradle Coast Region in terms of Domestic (Interregional) Import.

The location quotient is a simple way of seeing which are the main industries in an area, relative to the wider region. LQ shows the percentage of the local economy characteristic (eg. employment, value add) in a particular industry divided by the percentage of the wider area (region, state, nation) that this industry makes up.

  • Where LQ=1, that industry is exactly as prevalent as in the wider region.
  • A LQ greater than 1.2 indicates a significant specialisation of the industry in the local area – possibly a key economic strength. Higher numbers mean greater specialisations. Anything over 2 is a major specialisation.
  • A LQ between 0.8 and 1.2 means the industry is broadly similar in importance in the local area compared to the comparison region and could be seen as representative.
  • An LQ under 0.8 indicates an industry which is more important in the region than the local area, and may represent an economic weakness or opportunity for growth.

LQs should be analysed in combination with the proportional economic share that industry represents. For example, an industry with an LQ of 2 reveals a specialisation but if that industry only represents 3% of the local economy, it may not be significant. Compare with the figures on the Employment by industry (Total), Employment by industry (FTE), Value added pages for this context.

National Economics (NIEIR) - Modelled series

Did you know? By clicking/tapping on a data row in the table you will be able to see sub categories.
Location quotient
Cradle Coast Region - Domestic (Interregional) Import2015/162010/11Change
Industry
(Click rows to view sub-categories)
%West Coast Council area %Location Quotient (West Coast Council area)%West Coast Council area %Location Quotient (West Coast Council area)2010/11 to 2015/16
Agriculture, Forestry and Fishing2.71.32.012.72.21.22+0.65
Mining6.610.40.645.36.40.82-0.22
Manufacturing10.712.80.8414.116.20.87-0.04
Electricity, Gas, Water and Waste Services1.70.36.212.20.37.48-0.17
Construction0.00.0--0.00.0----
Wholesale Trade5.17.90.655.47.10.76-0.15
Retail Trade2.82.71.043.74.50.83+0.25
Accommodation and Food Services2.11.81.181.61.51.04+0.13
Transport, Postal and Warehousing6.110.20.606.08.70.69-0.14
Information Media and Telecommunications4.13.11.324.33.31.29+0.02
Financial and Insurance Services8.210.40.798.110.70.76+0.04
Rental, Hiring and Real Estate Services17.69.11.9414.86.92.14-0.09
Professional, Scientific and Technical Services6.815.00.458.315.10.55-0.18
Administrative and Support Services1.70.53.251.70.53.56-0.09
Public Administration and Safety8.06.21.297.55.71.33-0.02
Education and Training3.11.81.712.61.71.53+0.12
Health Care and Social Assistance9.35.81.598.26.71.24+0.29
Arts and Recreation Services1.90.113.651.70.113.88-0.02
Other Services1.40.53.051.82.50.72+3.24

Source: National Institute of Economic and Industry Research (NIEIR) ©2016. Compiled and presented in economy.id by .id , the population experts.

Data is based on 2014-15 constant prices for all years. NIEIR data are inflation adjusted each year to allow direct comparison, and new data releases normally adjust previous years’ figures to a new base year.

Location quotient by industry sector 2015/16
Location quotient by industry sector 2015/16 Agriculture, Forestry and Fishing for Cradle Coast Region relative to West Coast Council area location quotient: 2.01 Mining for Cradle Coast Region relative to West Coast Council area location quotient: 0.64 Manufacturing for Cradle Coast Region relative to West Coast Council area location quotient: 0.84 Electricity, Gas, Water and Waste Services for Cradle Coast Region relative to West Coast Council area location quotient: 6.21 Wholesale Trade for Cradle Coast Region relative to West Coast Council area location quotient: 0.65 Retail Trade for Cradle Coast Region relative to West Coast Council area location quotient: 1.04 Accommodation and Food Services for Cradle Coast Region relative to West Coast Council area location quotient: 1.18 Transport, Postal and Warehousing for Cradle Coast Region relative to West Coast Council area location quotient: 0.60 Information Media and Telecommunications for Cradle Coast Region relative to West Coast Council area location quotient: 1.32 Financial and Insurance Services for Cradle Coast Region relative to West Coast Council area location quotient: 0.79 Rental, Hiring and Real Estate Services for Cradle Coast Region relative to West Coast Council area location quotient: 1.94 Professional, Scientific and Technical Services for Cradle Coast Region relative to West Coast Council area location quotient: 0.45 Administrative and Support Services for Cradle Coast Region relative to West Coast Council area location quotient: 3.25 Public Administration and Safety for Cradle Coast Region relative to West Coast Council area location quotient: 1.29 Education and Training for Cradle Coast Region relative to West Coast Council area location quotient: 1.71 Health Care and Social Assistance for Cradle Coast Region relative to West Coast Council area location quotient: 1.59 Arts and Recreation Services for Cradle Coast Region relative to West Coast Council area location quotient: 13.65 Other Services for Cradle Coast Region relative to West Coast Council area location quotient: 3.05
Source: National Institute of Economic and Industry Research (NIEIR) ©2016
Compiled and presented in economy.id by .id the population experts
Change in LQ by industry sector, 2010/11 to 2015/16
Change in LQ by industry sector, 2010/11 to 2015/16 Agriculture, Forestry and Fishing, Change: 0.65 Mining, Change: -0.22 Manufacturing, Change: -0.04 Electricity, Gas, Water and Waste Services, Change: -0.17 Wholesale Trade, Change: -0.15 Retail Trade, Change: 0.25 Accommodation and Food Services, Change: 0.13 Transport, Postal and Warehousing, Change: -0.14 Information Media and Telecommunications, Change: 0.02 Financial and Insurance Services, Change: 0.04 Rental, Hiring and Real Estate Services, Change: -0.09 Professional, Scientific and Technical Services, Change: -0.18 Administrative and Support Services, Change: -0.09 Public Administration and Safety, Change: -0.02 Education and Training, Change: 0.12 Health Care and Social Assistance, Change: 0.29 Arts and Recreation Services, Change: -0.02 Other Services, Change: 3.24
Source: National Institute of Economic and Industry Research (NIEIR) ©2016
Compiled and presented in economy.id by .id the population experts

Dominant groups

A location quotient of greater than 1.2 is generally considered a level of industry specialisation, while a LQ of 0.8 or less indicates an industry which doesn’t have a major presence in the area.

An analysis of domestic (Interregional) import in Cradle Coast Region in 2015/16 shows the three industries with the highest location quotient relative to West Coast Council area were:

  • Arts and Recreation Services (13.7)
  • Electricity, Gas, Water and Waste Services (6.2)
  • Administrative and Support Services (3.3)

The three industries with the lowest location quotient relative to West Coast Council area were:

  • Construction ()
  • Professional, Scientific and Technical Services (0.5)
  • Transport, Postal and Warehousing (0.6)

Emerging groups

Changes in location quotients over time reveal emerging or declining industry specialisations.

The largest changes in the domestic (Interregional) import LQ between 2010/11 and 2015/16 in Cradle Coast Region were for these industries:

  • Other Services (+3.2)
  • Agriculture, Forestry and Fishing (+0.6)
  • Health Care and Social Assistance (+0.3)
  • Retail Trade (+0.3)

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