The State of Minority- and Women- Owned ... - Cleveland.com

Defining the Relevant Markets
Statistical Area (MSA) and the Akron, OH MSA account for the large majority of contracting
and procurement expenditures by the City of Cleveland during the study period. The Cleveland-
Elyria-Mentor, Ohio MSA includes the counties of Cuyahoga, Geauga, Lake, Lorain, and
Medina. The Akron, OH MSA includes the counties of Portage and Summit.
As shown in Table 3.4, the overall share of payments made to establishments located in either
the Cleveland-Elyria-Mentor MSA or the Akron MSA (hereafter, the Cleveland Market Area or
CLEVMA) is 82.6 percent. The share is highest in AE-CRS (91.9 percent) and lowest in
Commodities (64.2 percent).
For purposes of this Study, therefore, we define the primary geographic market area to be the
Cleveland-Elyria-Mentor, OH MSA and the Akron, OH MSA. The City of Cleveland also
expends substantial funds within the State of Ohio as a whole, as can be seen from the bottom
panel of Table 3.4.
Table 3.4. Distribution of Contracting Dollars by Geographic Location
Location
Dollars Awarded
Construction
(%)
AE-CRS
(%)
Services
(%)
Commodities
(%)
Total
(%)
Inside Cleveland Market Area 91.4 91.8 77.2 62.9 81.3
Outside Cleveland Market Area 8.6 8.2 22.8 37.1 18.7
Dollars Paid
Inside Cleveland Market Area 91.4 91.9 79.6 64.2 82.6
Outside Cleveland Market Area 8.6 8.1 20.4 35.8 17.4
Dollars Awarded
Inside Ohio 95.9 93.8 86.2 73.2 88.1
Outside Ohio 4.1 6.2 13.8 62.8 11.9
Dollars Paid
Inside Ohio 95.9 94.0 87.7 71.7 88.5
Outside Ohio 4.1 6.0 12.3 28.3 11.5
Source: NERA calculations from Master Contract/Subcontract Database.
Outside of the Cleveland Market Area, counties with a significant amount of spending activity
(in decreasing order of importance) were as follows. 203
In Construction:
203 We define “significant” here, somewhat arbitrarily, as counties that accounted for more than 0.50 percent of total
award and paid dollars among three or more establishments.
NERA Economic Consulting 69