The Energy (ENGY) cluster includes industries associated with the production and distribution of energy, as well as the waste disposal industries associated with the remediation and environmental cleanup related to energy production. In the cluster you will find a wide variety of industries, from petroleum refineries to battery manufacturing to generator manufacturing. 2012 2017 Employer Units 5,917 5,750 Number of Jobs 142,586 133,907 Percent of Total Pennsylvania Jobs 2.6% 2.3% Average Annual Wages $71,952 $81,958 Location Quotient 1.13 1.16 Cluster Summary Pennsylvania defines industry clusters to serve as the basis for data-driven workforce development policies. An industry cluster includes industries closely linked by common products, labor pools, technologies, supplier chains and training needs. They take on strategic importance for long-term economic planning as changes that benefit one group member will generally impact other members of the cluster. Industry clusters are comprised of specific six-digit North American Industry Classification System, or NAICS, codes. They are mutually exclusive, so that no two clusters contain the same NAICS code. Currently, there are 12 clusters identified, along with several critical sub-clusters. Combined, these 12 industry clusters account for nearly 83 percent of all employment in the Commonwealth. Energy cluster employment decreased by six percent over the last five years. However, Pennsylvania’s competitiveness in this sector can be seen in comparison with the nation, as the Location Quotient (LQ) has grown to 1.16. This competitiveness is further evident in specific local areas ( as seen on page 3) like the Southwest Corner and Northern Tier Workforce Development Areas (WDAs), who have LQs of 4.26 and 3.24, respectively. The cluster pays an average wage much greater than the statewide average for all jobs ($53,996) and the cluster's average wage has increased 14 percent in the time period. Center for Workforce Information & Analysis 651 Boas St. Harrisburg, PA 17121 www.workstats. dli. pa.gov Winter 2019 Energy Energy LQs greater than one suggest a competitive advantage.
Transcript
DescriptionThe Energy (ENGY) cluster includes industries associated with the production and distribution of energy, as well as the waste disposal industries associated with the remediation and environmental cleanup related to energy production. In the cluster you will find a wide variety of industries, from petroleum refineries to battery manufacturing to generator manufacturing.
2012 2017
Employer Units 5,917 5,750
Number of Jobs 142,586 133,907
Percent of Total Pennsylvania Jobs 2.6% 2.3%
Average Annual Wages $71,952 $81,958
Location Quotient 1.13 1.16
Cluster Summary
Pennsylvania defines industry clusters to serve as the basis for data-driven workforce development policies. An industry cluster includes industries closely linked by common products, labor pools, technologies, supplier chains and training needs. They take on strategic importance for long-term economic planning as changes that benefit one group member will generally impact other members of the cluster.
Industry clusters are comprised of specific six-digit North American Industry Classification System, or NAICS, codes. They are mutually exclusive, so that no two clusters contain the same NAICS code. Currently, there are 12 clusters identified, along with several critical sub-clusters. Combined, these 12 industry clusters account for nearly 83 percent of all employment in the Commonwealth.
Energy cluster employment decreased by six percent over the last five years. However, Pennsylvania’s competitiveness in this sector can be seen in comparison with the nation, as the Location Quotient (LQ) has grown to 1.16. This competitiveness is further evident in specific local areas (as seen on page 3) like the Southwest Corner and Northern Tier Workforce Development Areas (WDAs), who have LQs of 4.26 and 3.24, respectively. The cluster pays an average wage much greater than the statewide average for all jobs ($53,996) and the cluster's average wage has increased 14 percent in the time period.
Center for Workforce Information & Analysis651 Boas St.
Harrisburg, PA 17121www.workstats.dli.pa.gov
Winter 2019
EnergyEnergy
LQs greater than one suggest a competitive advantage.
Top Industries Based on Employment• Electric Power Distribution
• Support Ac�vi�es for Oil & Gas Opera�ons
• Oil & Gas Pipeline Construction
• Solid Waste Collection
• Water Supply & Irrigation Systems
• Primary Battery Manufacturing
• Power & Communica�on System Construc�on
• Natural Gas Distribution
• Fuel Dealers
• Current-Carrying Wiring Device Manufacturing
• Air, Water & Waste Program Administration
• Sewage Treatment Facilities
• Natural Gas Extraction
• Recyclable Material Merchant Wholesalers
• Nuclear Electric Power Generation
• Bituminous Coal Underground Mining
• Environment & Conservation Organizations
• Fossil Fuel Electric Power Generation
• Other Petroleum Merchant Wholesalers
• Petroleum Refineries
Center for Workforce Informa�on & Analysis www.workstats.dli.pa.gov
Winter 2019
Major Employers• East Penn Manufacturing Company
• Tyco Electronics Corpora�on
• PECO Energy Power Company
• Exelon Genera�on Company LLC
• PPL Electric Utilities
• Waste Management of PA Inc.
Percent Employment by County
> 7.0%
7.0% - 3.0%
3.0% - 1.6%
< 1.6%
Employment Concentration
A location quotient, or LQ, compares a cluster’s share of local employment to its share of national employment. This value can be used when evaluating the strength of an industry cluster within an area. An LQ greater than one indicates that the cluster has, on average, more employees locally than typically expected implying a possible competitive advantage. The Southwest Corner, Northern Tier, Berks County, Westmoreland-Fayette Counties, Central, and South Central WDAs all have LQs greater than one and have also increased their competitiveness since 2012.
Center for Workforce Information & Analysis www.workstats.dli.pa.gov
Winter 2019
Southwest Corner
Northern Tier
Berks County
North Central
Tri-County
Westmoreland-Faye�e Coun�es
Luzerne-Schuylkill Coun�es
Central
Southern Alleghenies
Northwest
South Central
Three Rivers
West Central
Montgomery County
Pocono Coun�es
Bucks County
Delaware County
Philadelphia County
Lackawanna County
Lehigh Valley
Lancaster County
Chester County
4.26
3.24
2.94
2.60
2.24
1.55
1.32
1.31
1.28
1.17 2017
1.07 2012
0.89
0.78
0.78
0.74
0.73
0.71
0.69
0.67
0.65
0.60
0.50
0.0 1.0 2.0 3.0 4.0 5.0
25% 24%
22% 29%
Occupations with Significant Employment
The following table lists occupations that employ at least 1,500 people in the ENGY cluster.
Center for Workforce Information & Analysis www.workstats.dli.pa.gov
This graph illustrates the minimum educa� onal a� ainment levels for jobs found in this cluster’s various industries. Only 25 percent of ENGY jobs require formal postsecondary training of any kind. Partnered with high average wages, this is an industry cluster that off ers high rewards to those willing to work hard and learn on the job.
