The Greater Louisville LoDI Index has recently undergone a dramatic update, bringing the data and modeling techniques more in-line with those used for the National LoDI Index. The data used as a predictor of health in the sector is now concentrated on the Trade, Transportation, Utilities, and Manufacturing job levels in greater Louisville area. We believe these numbers will more accurately depict the level of logistics and distribution activity for the area.
In order to keep the index relevant to current logistics and distribution activity, the modeling process was upgraded to take into account only the most recent three years of data using a rolling horizon model. Also, additional economic indicators were incorporated into the model. These components improve the predictive capabilities by allowing the model to account for economic fluctuations in addition to variations in the tonnages shipped through the local infrastructure.
Lastly, the base period used for converting the model output into an index value was updated to September 2012, and the index calculation is now determined using a response factor of 0.5 for each 1,000 job difference from the baseline period. This ties changes in the index value directly to changes in employment levels for a given period.
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