IMPROVING THE PRACTICE OF INDUSTRY TARGETING OVERVIEW

In the last decade, economic development consultants have used national census reports more extensively to draw conclusions about which industries have the greatest impact on local jobs. Using these widely published data bases and indicators has given organizations the ability to identify locally important industries, and therefore to focus and target their efforts to those industries. Despite its general appeal, the practice of setting industry targets using census data can be full of "pitfalls that lead to failed efforts, wasted dollars and general disappointment. " (Moses) This Issue Profile will identify the major benefits, as well as the pitfalls which development agencies encounter when attempting to target their economic development efforts to certain industries. It also suggests occasions when target industry identification is or is not the proper decision-making tool. Target industry identification, as it is traditionally practiced, can be useful in the following ways:- Target industry identification provides valuable information on the level of production of an industry as well as product sales activities. When final product information is critical, it is an excellent starting point for "narrowing " the economic development approach, for example, in an initial market segmentation analysis of export-oriented companies.- Target industry identification offers a descriptive view of current industry status. Thus, it is an excellent starting point for identifying the types of industries which make up the local economy; which might be used in an industry retention program.- Because few other information resources exist, target industry identification is also accepted as a means to segment markets for the purpose of industrial recruitment-oriented marketing promotion efforts. Target industry identification has been used as a tool for economic development decision-making in situations which were clearly inappropriate