Base analysis distinguishes which industries are responsible for overall growth and change. Base industries produce exports or derive their sales or income directly from outside sources, or indirectly by providing supplies to export industries. These activities bring in outside dollars to circulate within the local economy.
More About Economic Base Analysis
For example, to provide a more accurate picture of the agricultural sector we can link agricultural production to other segments of the economy that directly and indirectly support agriculture. This cluster of industries is known as agribusiness, and includes services such as processing food products, trucking, storage, sales of farm equipment and supplies; as well as impacts on credit institutions and commodity brokers.
Tourism is another good example because it generates jobs in a range of industries including accommodations, food services, admissions, transportation and shopping. The importance of tourism in the regional economy is covered in more depth later in this report.
Regional services include hospitals, airports or regional construction industries that build highways or other infrastructure.
Another base industry is created by households that spend money earned elsewhere. For example, a retiree whose income comes from outside of the county is supporting many traditional local resident services jobs. Some jobs cannot be directly assigned to these categories, but do support the base industries, these are designated as indirect unassigned jobs.
The following updates to the Economic Base Analysis show trending in the economic bases for the five-county area of Southwest Colorado.