Any given industry in your region needs other industries to exist. The flour milling plant needs to buy grain and sell flour. If an industry can’t buy what it needs in the region, it buys what it needs from outside of the region, which means that money has left your regional economy. Economists call this “leakage.” A good bit of leakage is unavoidable. For example, every region could close major leakages if only it had its own oil well and petroleum refinery. For obvious reasons, you probably won’t be able to recruit those to your region. However, the more that you close off avoidable economic leakage, the stronger your economy becomes. If the industries that drive your economy must spend money to function, and you can bring their supply chain to them, everybody wins.
To take the first step in combating leakage, you need to understand which industries in your regional economy are leaking. Which industries are sending money out of the region? In the following video, Matt Gaither shows you how to get to the Regional Requirements report in Analyst 3, and find those industries.
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