Manufacturing cluster growth methodology and model for the Arizona-Sonora (Mexico) region

In a rapidly changing environment, societies and firms need to quickly react and take advantage of opportunities. This particularly applies to the manufacturing industry in the Arizona-Sonora (Mexico) region. Not only is the industry threatened by global competition and rapid technological innovation, but simultaneously, the economic rules are changing due to the North American Free Trade Agreement (NAFTA). In order to take advantage of these modifications and give the firms in the region a competitive advantage, the states of Arizona and Sonora have instituted a project to identify local action that supports the growth of the manufacturing industry in the region.; The Manufacturing Cluster Growth Methodology and Model were developed in this research as learning and communication tools for economic development. Based on Michael Porter's determinant framework, the model generates effective recommendations to enhance manufacturing growth in the region. It simulates the growth characteristics of regional manufacturing clusters. Using a systems-based approach, the methodology utilizes a simulation model that incorporates both in static and dynamic modes, in addition to a schematic representation of the model. It is applied in three phases: determining the current cluster condition, identifying solutions and prioritizing recommendations. It supplies unifying and simplifying assumptions to focus the attention to the cause and effects of the alternatives for improvement; helps the participants gain greater understanding of the regional manufacturing industry as a system; and supports the discovery of creative solutions. The graphical feedback clarifies to the participants the likely impact of those actions. It helps them: (1) identify high leverage ideas, (2) improve the recommendations, and (3) prioritize a recommended plan of action. The model was implemented in a spreadsheet (Excel) as well as in a dynamic simulation system, i-think.; This methodology was applied to the Arizona-Sonora Manufacturing Study. To determine the current condition of the clusters, a questionnaire was designed and sent to all Arizona manufacturing firms. Utilizing the model, three cluster sessions were held with industry leaders to verify the current conditions, address weaknesses, identify high-leverage recommendations, and generate an effective plan for action. The participants supplied expert evaluation and validated the results of the methodology and model.; This research contributes the development of a proven methodology and the creation of a demonstrable tool that supports economic development.