4_CWU Tech Transfer Agenda 20260519

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66 | Old Heat CERB Feasibility Study REFERENCES AND METHODOLOGY • 2020 Decennial Census: United States Census Bureau • US Census “Profiles” 2023 Washington: https://data.census.gov/profile/ Washington?g=040XX00US53 • US Census “Profiles” 2023 King County: https://data.census.gov/profile/ King_County, Washington?g=050XX00US53033 • US Census “Profiles” 2023 Kittitas County: https://data.census.gov/profile/ Kittitas_County,_Washington?g=050XX00US53037 • US Census “Profiles” 2023Yakima County: https://data.census.gov/profile/ Yakima_County,_Washington?g=050XX00US53077 • CWU BCS Regional Contribution Continuum (2025): https://www.cwu. edu/about/offices/business-community-services/bcs-regional-contribution- continuum-white-paper-1.0.pdf U.S. Bureau of Economic Analysis: Retrieved 7/23/2025: https://apps.bea.gov/ This feasibility study integrates multiple levels of economic analysis to determine the appropriateness of Old Heat as a commercialization hub for Central Washington. The methods below explain how data were gathered, which industries were selected, and how results were calculated for each section of the study. INTRODUCTION “OLD HEAT COMMERCIALIZATION CENTER” Industries were grouped using the CWU BCS’s (2025) Regional Contribution Continuum (RCC) framework, which classifies firms as Extractive, Retentive, Additive, or Accelerative depending on their net contribution to long-term regional prosperity. This provided the foundation for identifying structural gaps in Kittitas County’s economy. Section A: A product market analysis linked to economic development To assess regional economic position, we compiled and compared data from the Washington State Employment Security Department (median and hourly wages) and the U.S. Census Bureau’s Local Employment Dynamics program. These data allowed comparison of Kittitas County to Yakima County, King County, and the state overall. The analysis focused on median wage levels, educational attainment, and industry employment structure. SECTION C: TARGETED INDUSTRIES Industries were selected based on three criteria: 1. Wage and Skill Intensity – industries with compensation significantly above Kittitas County’s median wage; 2. Alignment with State and National Clusters – sectors such as aerospace, ag-tech, and advanced materials where Washington already has comparative advantages; and 3. Compatibility with CWU and Local Capabilities – fit with university STEM programs, applied research, and nearby supply chain assets. Industry data were drawn from the U.S. Census Annual Survey of Manufactures and BEA input-output tables. NAICS codes used included 336412 (Aircraft Engine and Engine Parts), 336413 (Other Aircraft Parts and Auxiliary Equipment), and 333111 (Agricultural Machinery). Import penetration ratios and supply chain gaps were identified by comparing U.S. shipment values with import values, highlighting opportunities for reshoring and regional capture. SECTION H: DIVERSIFICATION AND ECONOMIC IMPACT Economic concentration and diversification were measured using two standard indexes: the Normalized Shannon–Weaver Index (to capture breadth of industries) and the Herfindahl–Hirschman Index (HHI, to capture employment concentration). County-level employment data were sourced from Washington State ESD and the U.S. Census. To model industry-level economic impacts, IMPLAN input-output modeling software was applied to simulate the direct, indirect, and induced effects of introducing new aerospace and agricultural machinery activities into Kittitas County. This produced estimates of employment multipliers, output per worker, and secondary spending effects. SECTION N: WAGE ESTIMATION Wage levels for targeted industries were calculated using a combination of IMPLAN industry tables and Bureau of Labor Statistics Occupational SOURCES