City of Brimbank

Location quotient by industry

In 2019/20, Transport, Postal and Warehousing was a major specialisation in the City of Brimbank in terms of Employment (Total).

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

Data source

National Economics (NIEIR) - Modelled series

Current benchmark:
Comparison year:
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Location quotient
City of Brimbank - Employment (Total)2019/202014/15Change
Industry (Click rows to view sub-categories)%. Victoria%Location Quotient Victoria%. Victoria%Location Quotien Victoria2019/20 - 2014/15
Agriculture, Forestry and Fishing0.
Electricity, Gas, Water and Waste Services1.
Wholesale Trade5.83.71.606.43.81.70-0.06
Retail Trade9.59.90.9610.510.60.99-0.03
Accommodation and Food Services4.25.80.735.26.60.79-0.08
Transport, Postal and Warehousing13.25.22.5311.95.02.36+0.07
Information Media and Telecommunications0.91.90.450.82.20.37+0.22
Financial and Insurance Services0.
Rental, Hiring and Real Estate Services1.01.60.621.21.60.72-0.14
Professional, Scientific and Technical Services3.49.50.362.78.20.33+0.11
Administrative and Support Services3.13.40.923.03.50.86+0.08
Public Administration and Safety4.55.50.813.65.30.68+0.19
Education and Training6.98.30.848.78.80.99-0.16
Health Care and Social Assistance12.013.10.9111.312.40.91+0.00
Arts and Recreation Services0.61.90.330.82.10.39-0.16
Other Services3.23.60.903.73.70.99-0.09
Total Industries1001001.00100100+1.000

Source: National Institute of Economic and Industry Research (NIEIR) ©2021. Compiled and presented in by .id (informed decisions). NIEIR-ID data are adjusted each year, using updated employment estimates. Each release may change previous years’ figures. Learn more

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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 employment (total) in the City of Brimbank in 2019/20 shows the three industries with the highest location quotient relative to Victoria were:

  • Transport, Postal and Warehousing (2.5 )
  • Manufacturing (1.8 )
  • Wholesale Trade (1.6 )

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

  • Mining (0.3 )
  • Financial and Insurance Services (0.2 )
  • Agriculture, Forestry and Fishing (0.1 )

Emerging groups

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

The largest changes in the employment (total) LQ between 2014/15 and 2019/20 in the City of Brimbank were for these industries:

  • Information Media and Telecommunications (+0.2)
  • Public Administration and Safety (+0.2)
  • Mining (-0.2)
  • Agriculture, Forestry and Fishing (-0.2)

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