FinalUnformatted

Mining, Quarrying, & Oil & Gas Extraction, 0.0%

Location Quotient Analysis

A location quotient (LQ) is an analysis that measures a community’s industrial specialization relative to a larger geography, and in this case that would be Hanahan’s parent geographies of Berkeley County, the BCD Region and South Carolina. Using the employment opportunities provided by industry at the city level and then compared to that of the county, region and state level, industries with high concentrations are identified, forming a description of Hanahan’s economic base. A ratio of 1.00 indicates that Hanahan’s industrial specializations are like those exhibited by larger parent geographies. A ratio above or below 1.00 indicates that Hanahan has a higher or lower concentration of certain industries relative to what exists in Berkeley County, the region, and the state.

As seen in Table 3, the location quotient analysis for 2022 reveals that Hanahan has a high concentration of production- and trade-type industries such as Wholesale Trade, Transportation & Warehousing, Construction, and Manufacturing when compared across all parent geographies. The top employment industries (Prof., Sci. & Tech Services, Manu. And Edu Services) were among Hanahan’s top concentrated industries. It should be noted that the Transportation & Warehousing, Wholesale Trade, Construction, and Educational Services industries increased in concentration the larger the parent geography.

Similarly, the BCD Region has high concentrations of Transportation & Warehousing, Professional, Scientific, & Technical Services, Administrative & Support & Waste Management, and Real Estate and Leasing when compared to the state. This shows the economic development that has occurred in Hanahan is aligned with regional diversity. This can also fuel future growth as the region continues to pursue expanding and recruiting these industries.

When identifying industries that potentially constitute the city’s economic base, it is important to consider the total employment opportunities they provide as well as the concentration of an industry. Hanahan has a ratio of at least 0.90 for nine of the twenty NAICS industries when compared to Berkeley County, of which Hanahan’s top three employment industries are at least as equally concentrated as Berkeley County. Therefore, based on total employment by industry and the ratios from the location quotient analysis, Hanahan’s economic base would likely be in Professional, Scientific, & Technical Services, Manufacturing, Construction, Transportation & Warehousing, and Wholesale Trade.3