Using Advanced GIS Techniques to Analyze the U.S. Freight Economy

Thomas Horan, Lee Munnich, Brian Hilton, Arman Majidi

Esri User Conference, 2016

Analytical ProcessIdentify industry clusters:• Apply cluster analysis to land useLocate commodity freight flow concentrations: • Using hotspots analysis, identify local freight-intensive routesIdentify state freight-intensive corridors through flow concentrations:• Utilizing the data on commodity flows augmented with the LQ function at the state-levelIdentify regional freight corridors:• Utilizing the data on commodity flows augmented with the LQ function at the regional-level• FHWA criteria applied to identify regional freight corridors

(i.e. highways segments with at least 8,500 trucks per day, highway parallel to rail lines with high volume, & rail and waterways with more than 50 million ton of bulk cargo)

Identify national freight flows network (U.S. supply chain):• Utilizing the data on commodity flows augmented with the LQ function nation-wideAnalyze the economic impact of industry clusters and commodity flows• Apply freight transportation intensity function – a ratio of total ton-miles to Gross State

Product & Gross Domestic Product to show the actual freight activity required to produce one unit of goods and services at either state- or national-level (acquired from BTS)

National Freight Economy Atlas

Analytical methods: LQ of commodity flowsNational maps and

analysis:LQ of commodity flows

Regional maps and analysis:

LQ of commodity flows

Analytical methods: Clusters and HotspotsCluster analysis: Identifying industry clusters through land-

use metropolitan areas, statistical areas, and local

municipalities

Hotspot analysis: Locating freight-intensive corridors by

freight flows state, regional, and national

Location of Minnesota Intermodal Facilities & Warehousing/transportation

industry cluster

Concentration of Minnesota Average Annual Daily Truck Traffic

Note : The analysis identifies the Minnesota freight-intensive routes to intermodal facilities

Note : This analysis identifies Minnesota industry clusters through land use by commodity code

Case Study Analysis: Story mapsA story map is a strategy of using a graphical organizer to provide a narrative of elements on a topic or a

description of a series of events through a story-telling application. An example story map of the transport of agricultural products originating in Minnesota distributed across the Great Northern Corridor is provided below.3

Supply Chain Analysis

• Medical services supply chains and computer and electronic manufacturing freight– Starkey Supply Chain– Medtronic Supply Chain

Starkey Hearing Technologies

• Eden Prairie for over 40 years, but international presence

• Distribution/manufacturing centers in Texas, Mexico, China, Japan, Korea, Germany, and in South America

• Two types: custom fit hearing aids and standard• Custom fit hearing aids require a mold to be made at

the hearing specialist’s office

Transport, Logistics, & Supply Chain

• It’s all about speed, reducing lag-time, and minimizing transportation costs

• Predominantly Air Transport– A large fraction of expenses goes into transport and shipping – Hearing aids are small and expensive (weight and expense) a

shipment of 25 kilograms or less and it will cost over 250,000 dollars

• Memphis, the critical supply chain juncture

Starkey Supply Chain

• http://agis.maps.arcgis.com/apps/MapSeries/index.html?appid=d76846ddada842c6a824dbde835cefb1

Medtronic

• Started in a Twin Cities’ garage in the 1940s • Headquarters in Dublin, Ireland• Pacemaker, first major product• Product Groups:• Cardiac/Vascular• Restorative Therapies• Minimally Invasive Therapies• Diabetes

• Ships to 155 different countries, 80 distribution centers globally, and 70 manufacturing plants

Transport, Logistics, & Supply Chain

• State licensing has a significant impact on medical device distribution, manufacturing, and trade

• Lithium battery restrictions• Uses a variety of transportation options depending on

size and cost of product • Memphis, the critical supply chain juncture

Medtronic Supply Chain

• http://agis.maps.arcgis.com/apps/MapJournal/index.html?appid=a5c6eb42346640378858c7beaa8cce67

Future Directions• Finalize Medical Devices and Health Sciences case studies of

locally-linked supply chains and implications for transportation policy.

• Assess public and private stakeholder uses of Atlas, including specialized analyses for planning, policy and private sector considerations.

• Host/Participate in forums on economic competitiveness and supply chains, focusing on information and data needed to inform public policy as well as private transportation decisions.

• Assess value-added benefits of industry clusters to state and regional transportation planning and development.

Conclusion:There is value in understanding industry

clusters at multiple levels• Industry cluster analysis provides insight to economic

growth.

• State analysis of industry clusters connects to communities and local transportation systems.

• Regional analysis of freight corridors shows critical supply and distribution systems.

• National and international analysis shows import/export movement, which is fundamental to economic growth.

Thank You!

Multimedia/GIS TeamBrian HiltonArman MajidiYaser KhoujaDave BourgeoisBetty Martinez Terry Bills

Research TeamLee MunnichFrank DoumaBarbara RohdeWilliam BoulayJohnathan SundbyKory Andersen

Acknowledgements

Project SponsorsBNSF FoundationTPEC ProgramEsri Corporation

Data SourcesHarvard Business SchoolDatamyne Corporation