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Economic Base Analysis of San Francisco

An economic base is all the exporting activities of a particular economy. Something that is produced in the local economy but sold outside of its boundaries is an export. A strong economic base is essential to the growth of an area because the amount of exports determines the total level of local economic activity. A particular Metropolitan Statistical Area’s (MSA) economy may be analyzed to see what exactly makes up the base and non-base. Economic base analysis concentrates on the importance of exports to the local economy. A local area has little influence on the demand for the goods and services it exports. This demand is determined outside the local area by economic conditions in the region and the entire nation. The diversity of a local economy may also be determined by an economic base analysis. A healthy economy is a diverse one. It is smart to have a “diversified economic base” to assure a more stable economic system for a MSA. If total export employment is spread over various industries, then it is better equipped to handle a few of them having decreased economic activity.

The MSA of interest in this particular analysis is San Francisco, California. The analysis will examine the economic base of this MS


The second largest industry to be analyzed is Administrative & Support Services. This is also a base industry but a weak one at best. Employment in this industry, in terms of San Francisco’s MSA, is found mainly in two sectors. The larger of the two is in employment services, NAICS 5613, which accounts for a little over half of all employment in this sector. The second is temporary help services, NAICS 51320, which has about half the employment of employment services.

The MSA of San Francisco is a healthy economy overall. As with any economic system, there are always areas that could be improved upon. Considering the current diversification of the economy along with the exception that San Francisco is a major tourist attraction as a whole city, it can be concluded that the economy may be labeled as thriving.

The next base industry is Funds, Trusts, and Other Financial Vehicles with a location quotient of 5.53 and also made up of only .2% of the total employment. Industries in this sector are comprised of legal entities organized to pool securities or other assets on behalf of shareholders or beneficiaries of employee benefit or other trust funds. The portfolios are customized to achieve specific investment characteristics, such as diversification, risk, rate of return, and price volatility. Establishments with employees devoted to the management of funds are classified in Industry Group 5239: Other Financial Investment Activities. For San Francisco, the majority of workers are found in other investment pools & funds, NAICS 5259, and real estate investment trusts, NAICS 525930.

Comprised of 0.1% of the total employment population, Scenic and Sightseeing Transportation is the fourth largest base industry in San Francisco. As previously displayed in table 1.1, the location quotient is 4.23. Industries under this sector utilize transportation equipment to provide recreation and entertainment. The Scenic and Sightseeing Transportation subsector is separated into three industries based on the mode: land, water, and other. In the San Francisco MSA, employment is evenly distributed between land transportation, NAICS 487110, and water transportation, NAICS 487210. Land transportation includes buses, cable cars, monorail, railway, trolley, etc. Water transportation includes such modes as airboat, fishing charters, harbor sightseeing, whale watching, etc. There is significantly less employment in the “other” transportation, NAICS 487990. This industry comprises establishments primarily engaged in providing scenic and sightseeing transportation (except water/land). The services provided are usually local and involve same-day return to place of departure. Such activities may include aerial cable car, tramway, glider excursions, hot air balloon rides, etc.

511 Publishing Industries 34,526 3.3%

Some topics in this essay:
San Francisco, Francisco MSA, Publishing Industries, Examining MSA, Related Activities, Area’s MSA, Care Services, San Francisco’s, Authorities-Central Bank, Financial Vehicles, san francisco, location quotient, total employment, largest location, economic base, water transportation, transportation naics, employment industry, local economy, san francisco msa, security commodity, largest location quotient, ambulatory health care, financial investment activities, scenic sightseeing transportation,

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Approximate Word count = 2573
Approximate Pages = 10 (250 words per page double spaced)


  

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