Measures such as Gross Regional Product (GRP), gross-base contribution analysis, and location quotient provide information to compare economic performance. They can be used to highlight areas of regional strength and competitive advantage.    

Gross Regional Product

Gross Regional Product (GRP) measures the final market value of all goods and services produced in the region. It is essentially GDP for any region smaller than the United States. It is one of the most commonly cited metrics to assess the size of the economy and rate of growth.

Output is equal to the value of an industry's production, which is sales plus net inventory change. For wholesale and retail sectors, output is equal to gross wholesale margin or gross retail margin, not gross sales. The value of production for wholesale and retail sectors is the value of the services they provide; it does not include the value of the items sold within their establishment.

Employment is a mix of full-time, part-time, and seasonal employment.  It is an annual average that accounts for seasonality. It is not equal to full time equivalents.  It includes wage and salary employment and proprietors.

Output and Employment

Location Quotient

The location quotient (LQ) helps identify exporting and importing industries based on national averages. An exporting industry (LQ > 1.25) is one where the industry not only meets the local demand for its products, but also produces enough so it can sell outside of the region. An importing industry (LQ < 0.75) is one where local production levels are insufficient to meet local demand. In between the two, is when an industry is meeting demand. The presence of an exporting industry often indicates a local competitive advantage. County Share is the percent of total employment from that industry to the region. LQ Growth Status evaluates whether the location quotient has had growth, been shrinking, is an industry that no longer exists in the region, is a new industry to the region, or is ambiguous (unknown). An unknown status indicates a very significant increase (> 300%) in the location quotient. These industries could have experienced significant growth, but it can also be caused when an industry has a very small starting employment. Even small increases in employment can have a large effect on the percentage change in the LQ, and these industries have been flagged for closer scrutiny.