Regional Industry Forecasting

by Theodore Andersen



Business planning often requires the development of regional industry forecasts of general business conditions, for specific planning purposes management has an even greater interest in the outlook for its industry in the specific regions where production and marketing efforts are being programmed. Area analysis is particularly important because the variance among regional markets can be substantial, ranging from declining trends to very rapid growth rates. Thus, the regional industry forecast is usually a valuable tool for management in its planning activities. This article provides a review of several forecasting methodologies, which warrant major consideration in preparing regional industry forecasts. Since there generally are less economic data available for regional areas than for the national economy, there are particular difficulties in developing reasonably accurate regional industry forecasts. As in most economic forecasting, some degree of error is almost certain in regional forecasts; however, they are frequently necessary to business firms trying to cope with market uncertainties. Therefore, forecasts need to be continuously reviewed and occasionally revised, with careful attention given to forecasting methodology.

California Management Review

Berkeley-Haas's Premier Management Journal

Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

Learn more
Follow Us