4.5A Location Quotient (L.Q.) for
Transportation Equipment
(NAICS #336)


a measure of the relative significance of a phenomenon (e.g. employment in transportation equipment) in a region (Washington State) compared with its significance in a larger ("benchmark") region (United States).


EXAMPLE:

L.Q.:


   Employment in Transportation Equipment Manufacturing (Washington)
      -----------------------------------------------------------
               Total Manufacturing Employment (Washington)
           ==================================================
  Employment in Transportation Equipment Manufacturing (United States)     
        -------------------------------------------------------
              Total Manufacturing Employment (United States)

The Location Quotient is able to measure both (the contribution of a regional activity to) the Specialization/Diversification Characteristics of a Region as well as the Localization/Dispersion Characteristics of an Activity, but only in as much as one activity and one region are concerned

Specialization
/Diversification

Localization
/Dispersion

L.Q. =
88,612
328,511
1,848,558
16,888,016
.
= .26974
.
.
= .10946
.
 _=_2.4643_=
.
.047936 =
.
.
.019452 =
.
88,612
1,848,558
328,511
16,888,016
 = L.Q.


In Washington State, the Transport Equipment Industry (NAICS Code # 336) makes up a larger share of total manufacturing than in the United States (To that extent, the Transportation Equipment Industry contributes to Washington's "Specialization")

 =

Washington State has a larger share of the National Transport Equipment Industry than it has in all Manufacturing (To that extent the Transportation Equipment Industry is "localized")

SOURCE: U.S. Manufacturing Census 1997 (Click here!)


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