The Key to Economic Development, with GIS Maps: 

Many organizations and companies involved in economic development can use GIS mapping software to create strong and prosperous communities, and community identities. This encourages more people to visit and live in areas that are undergoing economic development.   

The key aspect of understanding and carrying out economic development, whether it be government agencies or private companies and organizations is by focusing on data.

Many people have experienced going to their favorite shop or restaurant to one day find the shutters all firmly closed and a ‘Closed, out of business’ sign hanging outside. This scenario is very common in communities all over the world, both poor and rich. When businesses suddenly and unexpected close down it undoubtedly creates immediate mass unemployment and drags down the prosperity of the community.

New businesses need to be attracted to empty sites as soon as possible, but knowing where to start can seem daunting for local economic development agencies. How can a site where a business has just failed be transformed in to an enticing location with potential?

It’s all in the data. The data needed can all be plotted, visualized and analyzed with GISmapping software. You need to know the types of people who live, work and shop in a certain community, their buying habits, what they like and dislike, and much more. To best assess the viability of a business, you need data that answers basic questions about the demographics, lifestyles and spending habits of the population in an area.

GIS mapping software can provide vital information such as the characteristics of a population. You can plot, visualize and analyze a breakdown of variables such as gender, age, income, housing, family type, education, and employment. This data can answer key questions in relation to demographics.

Who are the people who live in the area?

• Retirees or young families?
• Mostly single or married?
• Do most families have children?
•  Do most of the population have a significant salary or do they struggle to get by?
• Are they new arrivals or have they lived in the area for a long time? 

This information enables a city’s economic development staff to better promote a site by showing prospects a real and quantified description of the types of customers who live nearby. Analysts can provide maps based on the demographics of age, income and household type, that shows who lives where.

When evaluating an area’s potential, analysts can compare the data between different groups. (For example, seniors or daytime populations that work in an area separately as additional revenue sources). With this information, economic development staff can see which type of restaurants or shops do well. Restaurant and retail development companies can also establish areas that contain populations within targeted income or age ranges.

What do people do who live in the area? (Lifestyle) 

Visualizing household income is a good start, but more detailed information about the preferences and habits of a population, (lifestyle/segmentation data) can be added to demographics.

Lifestyle data adds a new perspective to demographics. The principle is based on the idea that people with similar tastes and lifestyles are likely to seek others like themselves and group together within a society.

People generally move through a number of life stages;

• Single
•  Education and work
• Marriage and having children
• Retirement 

People tend to move to neighborhoods where those who are at a similar stage in their lives live. Although individual residents may come and go, the character of a neighborhood tends to remain stable over time once it has been established.

After carrying out an analysis of a neighborhood, analysis could narrow the types of prospective businesses who are likely to find a site appealing. Armed with lifestyle information, staff could show restaurant chains the demographics of certain areas, as well as the lifestyle choices and media preferences of the population. This information provides a valuable insight into the likelihood that residents in an area will eat out at a restaurant, and the best way to communicate with them.

People tend to move to neighborhoods where those who are at a similar stage in their lives live. Although individual residents may come and go, the character of a neighborhood tends to remain stable over time once it has been established.

After carrying out an analysis of a neighborhood, analysis could narrow the types of prospective businesses who are likely to find a site appealing. Armed with lifestyle information, staff could show restaurant chains the demographics of certain areas, as well as the lifestyle choices and media preferences of the population. This information provides a valuable insight into the likelihood that residents in an area will eat out at a restaurant, and the best way to communicate with them.

How do people spend their money?  

Spending data provides detailed information on how the local population use their income. Compare spending by households in a certain area for a wide variety of categories. You can determine actual spending as well as the potential demand for different types of businesses, such as restaurants.

Site selection analysis:

Location is a critical element for any site selection or trade area analysis. Studying the competitive landscape is necessary. From analyzing all restaurant types such as fast food outlets, to fancy sit down places, it is all key to determining a viable location for a new restaurant, without damaging the business of existing ones.  

Distance and drive time is also another important thing to consider. Most of the targeted population live within 20 minutes of a site. Proximity to an interstate and an upscale shopping area would be added assets.

Putting it all together:

Incorporating demographic, lifestyle, spending maps, and the other information in the analysis enabled the staff to quickly see the types of restaurant companies they should focus on in promoting the empty building. A family-style restaurant with a varied menu and a bar where patrons could visit and watch sports would be a good candidate for the site in this scenario. Staff members compiled a list of restaurants that met the criteria and created presentations illustrated with charts and maps.

Demographics, lifestyle, and spending data can provide answers to the who, what, where, and how questions that businesses can use to evaluate potential sites efficiently and avoid a scattershot approach. This information can also help cities market commercial sites by identifying and pitching to businesses that would be a good fit for an area. In either case, data, spatial analysis, and maps provide actionable answers to business questions.