An essential aspect of economic analysis associated with planning efforts is identifying the composition of existing economic activity and understanding historical trends in economic change. The shift‐share model is a useful and inexpensive tool for this purpose. Shift‐share analysis evaluates changes in local economic activities relative to changes in a reference area (usually the state or nation). Economic change is separated into a reference area component, an industry mix component, and a local share component. These measure, respectively, the effect on the local economy due to changes in the reference area, factors specific to the local mix of industries, and the changing competitive position of the local area relative to the reference area.