Research Strategy

This approach leverages the tool's Finished Visualization manager to create a series of targeted, focused visualizations that collectively build a comprehensive sectoral dossier. Rather than creating a single complex dashboard, this method creates a series of clear, purpose-built visualizations that can be downloaded as images and organized into a coherent analytical narrative.

The Sequential Research Strategy

Phase 1: Establish the Fundamental Context

Begin by creating baseline visualizations that establish the sector's basic economic footprint:

  1. Create Visualization #1: Absolute Production Levels
    • Navigate to "Production and Capacity" → "Industrial Production"
    • Select your NAICS code of interest
    • Use a 5-10 year date range for proper historical context
    • Check "Show Seasonally Adjusted Data" to remove cyclical noise
    • Keep this visualization in absolute terms (no transformations)
    • Use "Add Data to Final Visualization" button
    • Add a vertical line marking a significant event if relevant
    • Download this first visualization
  3. Create Visualization #2: Employment Base
    • Navigate to "Current Employment Statistics" → "All Employees"
    • Select the same NAICS code
    • Use the same date range for consistency
    • Similarly keep in absolute terms to show actual employment levels
    • Add to visualization manager, download as your second image
  5. Create Visualization #3: Capital Investment
    • Navigate to "Investment" → "Equipment Investment"
    • Select the same NAICS code
    • Maintain the same date range and absolute values
    • Add to visualization, download as your third image

These three visualizations establish your fundamental sectoral baseline - how much is produced, how many people are employed, and how much is being invested in equipment.

Phase 2: Analyze Growth Momentum and Volatility

Next, create visualizations focused specifically on growth dynamics:

  1. Create Visualization #4: Production Growth Rates
    • Return to "Production and Capacity" → "Industrial Production"
    • Select your NAICS code
    • Apply multiple percentage change transformations:
      • "3 Months" for short-term momentum
      • "12 Months" for annual growth rate
    • Add both to the visualization manager
    • Title it "Production Growth Rates"
    • Download this growth-focused visualization
  2. Create Visualization #5: Employment Growth Momentum
    • Navigate to "Current Employment Statistics" → "All Employees"
    • Apply the same percentage change transformations
    • Add both series to the visualization
    • Compare with production growth rates (similar or divergent patterns)
    • Download this visualization
  3. Create Visualization #6: Wage Growth Dynamics
    • Navigate to "Current Employment Statistics" → "Average Hourly Earnings"
    • Apply "12 Months" percentage change transformation
    • Add recession shading to see how wage growth behaves during downturns
    • Download this visualization

These momentum-focused visualizations help identify acceleration or deceleration patterns that absolute levels might mask.

Phase 3: Examine Supply Chain Position

Create visualizations that reveal the sector's supply chain health:

  1. Create Visualization #7: Inventory-to-Shipments Ratios
    • Navigate to "M3 Manufacturers" → "Inventories to Shipments Ratio"
    • Select your NAICS code
    • Keep in absolute terms (ratios are already normalized)
    • Add horizontal line at the historical average
    • Download this visualization
  2. Create Visualization #8: New Orders vs. Shipments
    • Navigate to "M3 Manufacturers" → "New Orders"
    • Add this to visualization manager
    • Return to "M3 Manufacturers" → "Value of Shipments"
    • Add this to the same visualization
    • Index both to the same reference date for direct comparison
    • Download this paired visualization
  3. Create Visualization #9: Unfilled Orders Growth
    • Navigate to "M3 Manufacturers" → "Unfilled Orders"
    • Apply "12 Months" percentage change transformation
    • Add horizontal reference line at zero
    • Download this trend visualization

These visualizations reveal crucial supply chain dynamics that often predict future production and pricing patterns.

Phase 4: Analyze International Trade Position

Examine the sector's global market position:

  1. Create Visualization #10: Import and Export Levels
    • Navigate to "International Trade" → "Imports"
    • Add this to visualization manager
    • Switch to "International Trade" → "Exports"
    • Add to the same visualization
    • Index both to a common date for direct comparison
    • Download this international flow visualization
  2. Create Visualization #11: Trade Price Competitiveness
    • Navigate to "Price Indices" → "Import Price Index"
    • Add this to visualization manager
    • Switch to "Price Indices" → "Producer Price Index"
    • Add to the same visualization
    • Index both to a common date
    • Download this price comparison visualization
  3. Create Visualization #12: Real Trade Flows
    • Navigate to "International Trade" → "PPI-Deflated Imports"
    • Add this to visualization manager
    • Switch to "International Trade" → "PPI-Adjusted Exports"
    • Add to the same visualization
    • Apply "12 Months" percentage change to both
    • Download this inflation-adjusted trade flow visualization

These trade-focused visualizations reveal the sector's competitive position in global markets.

Create visualizations that place the sector in broader context:

  1. Create Visualization #13: Production Comparison
    • Navigate to "Production and Capacity" → "Industrial Production"
    • Select your primary NAICS code
    • Add broader industry group (3-digit NAICS) for context
    • Add downstream customer industry if relevant
    • Index all to a common date
    • Download this relative performance visualization
  2. Create Visualization #14: Price Transmission
    • Navigate to "Price Indices" → "Producer Price Index"
    • Select your NAICS code
    • Add supplier industry PPI
    • Add customer industry PPI
    • Apply "12 Months" percentage change to all three
    • Download this price relationship visualization

These comparative visualizations show how the sector performs relative to related industries and broader economic segments.

Building Your Dossier: Organizing the Sequential Visualizations

With your series of downloaded visualizations, organize them into a structured analytical dossier:

  1. Executive Summary Section
    • Use visualizations #1, #4, and #10 to show the sector's basic size, growth rate, and trade position
    • These provide the "headline" metrics for quick understanding
  2. Production Capacity Analysis
    • Group visualizations #1, #4, and visualization #13
    • These show absolute production, growth trends, and relative performance
    • Highlight periods of acceleration or deceleration
  3. Workforce Dynamics
    • Group visualizations #2, #5, and #6
    • These show employment levels, growth, and wage trends
    • Note any divergence between employment and production trends
  4. Supply Chain Analysis
    • Group visualizations #7, #8, and #9
    • These show inventory health, order dynamics, and backlogs
    • Identify periods of supply chain stress or excess capacity
  5. Global Competitiveness
    • Group visualizations #10, #11, and #12
    • These show trade volumes, price competitiveness, and real trade flows
    • Assess market share trends and pricing power
  6. Capital Investment Patterns
    • Group visualization #3 with any additional investment visualizations
    • Assess capacity expansion plans and modernization efforts
    • Connect investment patterns with production and trade trends

Advantages of the Sequential Visualization Approach

This sequential approach offers several distinct advantages:

  1. Clarity and Focus
    • Each visualization addresses a specific analytical question
    • Single-purpose visualizations are easier to interpret than complex dashboards
    • Sequential development builds understanding gradually
  2. Narrative Development
    • The sequence of visualizations tells a coherent economic story
    • Each new visualization adds another dimension to the analysis
    • The final dossier presents a logical analytical progression
  3. Flexible Organization
    • Downloaded visualizations can be reorganized based on emerging insights
    • Additional targeted visualizations can be created to address specific questions
    • The dossier structure can evolve as understanding deepens
  4. Effective Communication
    • Clear, purpose-built visualizations are easier to explain to others
    • The sequence can be presented as a logical "economic journey"
    • Specific visualizations can be highlighted for different audiences
  5. Iterative Refinement
    • As insights emerge, new visualizations can be created to test hypotheses
    • The sequential approach encourages progressive analytical thinking
    • The dossier becomes increasingly targeted and insightful

Practical Example: Analyzing the Residential Construction Sector

Here's how this sequential approach might work for analyzing the residential construction sector:

  1. Start with fundamentals:
    • Create visualization #1 showing absolute residential construction investment
    • Create visualization #2 showing construction employment levels
    • Create visualization #3 showing equipment investment in construction
  2. Analyze growth patterns:
    • Create visualization #4 showing 3-month and 12-month construction investment growth
    • Create visualization #5 showing employment growth rates
    • Create visualization #6 showing construction wage growth
  3. Examine supply chain:
    • Create visualization #7 showing inventory-to-shipments for building materials
    • Create visualization #8 comparing new orders vs. shipments for construction supplies
    • Create visualization #9 showing growth in unfilled orders for key materials
  4. Analyze trade position:
    • Create visualization #10 comparing imports and exports of construction materials
    • Create visualization #11 comparing domestic vs. import prices for materials
    • Create visualization #12 showing real trade flow growth rates
  5. Compare with related sectors:
    • Create visualization #13 comparing residential construction with commercial construction
    • Create visualization #14 showing price transmission from raw materials to finished construction

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