Maine struggle from historic economy based on natural resources and manufacturing to 21st century

economy providing a decent quality of life for its people.

Key economic indicator

GDP

Per Capita Income

Productivity

Job Growth

Demographic trends

An aging population

Shrinking workforce

Current level of prosperity is a consequence of fixed assets and marine resources and also a product of
the industries that have emerged as a result of these inherited and evolving assets such as forestry, boat
building and related industries

Maine wants to analyze its agriculture, seafood and food and beverages processing cluster and its
potential for growth

Cluster driver economy

How maine could build on the strengths of its industries as a spring board for business growth and jobs
creation

Focus of the analaysis was on traded industries

Regional economic activity view through cluster captures the value of spillover from ones industry know
how, skilled worker and information to related industries

Cooperative solutions and resources that benefits multiple companies

Industries in strong cluster creates new businesses and employment faster

Benefit

Dynamic employment growth

Higher wage

No. of establishment
Patenting rate

Traded Cluster vs Non Traded Cluster

Looking for competitive advantage and benefits like inherited assets (natural resource) and other
benefits (entrepreneurship culture, policies, research institution)

Multiplier effect

150 years ago the maine farmers had cleared regions forest to its lowest level. 70% is cleared

Was considered breadbasket for new England with more than 520 grist mills

Forefront of processing innovation canning business corn,apple,peas, bean,sardines and lobster

Over the year requirement increases and expansion take place

Required more feed like grain and silage. So they start importing grain and meat

Local infrastructure of producing, processing and storing crop grew shifted and disappear

Shift from manufacturing based economy to service based economy due to higher interest from the
regional competition.

Problem

Education

Transportation and distribution cost

Aging workforce

Low population density

Below avg economic condition

Pros

Land

Water

Marine resource

Low energy and living cost

Issues

Prosperity
Wages

Private sector jobs

Labor productivity

New business