Cradle Coast RegionEconomic profile
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Cradle Coast Region

Location quotient by industry

In 2015/16, Mining was a major specialisation in Cradle Coast Region in terms of Value Add.

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 - Value Add2015/162010/11Change
Industry
(Click rows to view sub-categories)
%Tasmania %Location Quotient (Tasmania)%Tasmania %Location Quotient (Tasmania)2010/11 to 2015/16
Agriculture, Forestry and Fishing15.610.51.4815.010.21.47+0.01
Mining4.51.33.545.01.43.62-0.02
Manufacturing12.88.41.5414.79.81.50+0.02
Electricity, Gas, Water and Waste Services4.45.50.803.86.20.61+0.30
Construction7.47.70.977.37.21.01-0.04
Wholesale Trade4.33.41.244.13.61.15+0.07
Retail Trade6.46.70.966.06.40.93+0.03
Accommodation and Food Services2.83.30.842.73.20.84-0.01
Transport, Postal and Warehousing10.57.31.4410.57.41.42+0.01
Information Media and Telecommunications1.13.00.371.12.60.41-0.08
Financial and Insurance Services3.46.60.523.67.10.51+0.02
Rental, Hiring and Real Estate Services1.92.50.741.52.10.72+0.02
Professional, Scientific and Technical Services2.03.80.521.73.30.52-0.02
Administrative and Support Services2.32.11.132.82.51.16-0.02
Public Administration and Safety4.07.00.584.78.00.58-0.01
Education and Training5.97.70.775.97.60.78-0.01
Health Care and Social Assistance8.010.00.817.28.30.86-0.06
Arts and Recreation Services0.30.70.410.30.70.38+0.08
Other Services2.32.50.922.22.40.90+0.02

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 Tasmania location quotient: 1.48 Mining for Cradle Coast Region relative to Tasmania location quotient: 3.54 Manufacturing for Cradle Coast Region relative to Tasmania location quotient: 1.54 Electricity, Gas, Water and Waste Services for Cradle Coast Region relative to Tasmania location quotient: 0.80 Construction for Cradle Coast Region relative to Tasmania location quotient: 0.97 Wholesale Trade for Cradle Coast Region relative to Tasmania location quotient: 1.24 Retail Trade for Cradle Coast Region relative to Tasmania location quotient: 0.96 Accommodation and Food Services for Cradle Coast Region relative to Tasmania location quotient: 0.84 Transport, Postal and Warehousing for Cradle Coast Region relative to Tasmania location quotient: 1.44 Information Media and Telecommunications for Cradle Coast Region relative to Tasmania location quotient: 0.37 Financial and Insurance Services for Cradle Coast Region relative to Tasmania location quotient: 0.52 Rental, Hiring and Real Estate Services for Cradle Coast Region relative to Tasmania location quotient: 0.74 Professional, Scientific and Technical Services for Cradle Coast Region relative to Tasmania location quotient: 0.52 Administrative and Support Services for Cradle Coast Region relative to Tasmania location quotient: 1.13 Public Administration and Safety for Cradle Coast Region relative to Tasmania location quotient: 0.58 Education and Training for Cradle Coast Region relative to Tasmania location quotient: 0.77 Health Care and Social Assistance for Cradle Coast Region relative to Tasmania location quotient: 0.81 Arts and Recreation Services for Cradle Coast Region relative to Tasmania location quotient: 0.41 Other Services for Cradle Coast Region relative to Tasmania location quotient: 0.92
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: 0.01 Mining, Change: -0.02 Manufacturing, Change: 0.02 Electricity, Gas, Water and Waste Services, Change: 0.30 Construction, Change: -0.04 Wholesale Trade, Change: 0.07 Retail Trade, Change: 0.03 Accommodation and Food Services, Change: -0.01 Transport, Postal and Warehousing, Change: 0.01 Information Media and Telecommunications, Change: -0.08 Financial and Insurance Services, Change: 0.02 Rental, Hiring and Real Estate Services, Change: 0.02 Professional, Scientific and Technical Services, Change: -0.02 Administrative and Support Services, Change: -0.02 Public Administration and Safety, Change: -0.01 Education and Training, Change: -0.01 Health Care and Social Assistance, Change: -0.06 Arts and Recreation Services, Change: 0.08 Other Services, Change: 0.02
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 value add in Cradle Coast Region in 2015/16 shows the three industries with the highest location quotient relative to Tasmania were:

  • Mining (3.5)
  • Manufacturing (1.5)
  • Agriculture, Forestry and Fishing (1.5)

The three industries with the lowest location quotient relative to Tasmania were:

  • Information Media and Telecommunications (0.4)
  • Arts and Recreation Services (0.4)
  • Professional, Scientific and Technical Services (0.5)

Emerging groups

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

The largest changes in the value add LQ between 2010/11 and 2015/16 in Cradle Coast Region were for this industry:

  • Electricity, Gas, Water and Waste Services (+0.3)

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