Florida Chamber Chief Economist Dr. Jerry Parrish Details The Coronavirus’ Threats on Florida’s Economy

“With companies cutting their GDP forecasts, 30-year mortgages at an eight-year low, and manufacturers idling their factories because of supply-chain issues, all of this is having an effect on Florida’s economy.”

– Dr. Jerry Parrish

TALLAHASSEE, Fla (February 25, 2020) – Florida Chamber Foundation Chief Economist Dr. Jerry Parrish says Florida should be “concerned, but not panicked” about the coronavirus’s threats on Florida’s economy.

“Yesterday the Dow dropped by more than 1,000 points, companies are cutting their GDP forecasts, 30-year mortgages are at an eight-year low, manufacturers are idling their factories because of supply chain issues. All of this is having an effect on Florida’s economy, and it could continue. This is certainly a concern, but it’s not anything to panic about,” Dr. Parrish explained in his latest Florida By The Numbers report.

According to Dr. Parrish, Florida’s most vulnerable industries include:

• International Visitors
• Cruise Passengers
• Imports/Exports
• Manufacturing Jobs

The 10-year government bond, and the three-month T-bill are now showing an inversion.

“An inversion of the yield curve has been a reliable, but not perfect signal, of a future recession. This is one of the metrics that goes into the calculation of the probability of a Florida recession which is on TheFloridaScorecard.org,” Dr. Parrish explained. “The probability of Florida being in a recession over the next nine months has now increased to 24.1 percent.”

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Growing Florida’s Manufacturing Industry

 

Download One Pager    Learn More About Manufacturing    Trade & Logistics 2.0 Report

 

Why It Matters to Florida

Did you know manufacturing contributes more than $40 billion to Florida’s economy?

In fact, manufacturing jobs are estimated to grow by four percent by 2021 and for every 10 jobs created in Florida’s export-oriented manufacturing, 12 more jobs are created in transportation, warehousing and retail. Florida has more than 360,000 manufacturing employees earning, on average, more than $54,000 annually, which is higher than the state’s average wage.

The impact of manufacturing on Florida’s global economy is significant. Growing Florida’s manufacturing industry is essential, especially as Florida continues to be a global hub for trade. Florida’s manufacturing industry provides more than 92 percent of Florida exports and creates private-sector jobs while diversifying Florida’s economy.

Florida’s Competitiveness Agenda

The impact that the manufacturing industry has on Florida is undeniable. In order to help continue growing Florida’s manufacturing industry, the Florida Chamber will continue to champion efforts that support Florida’s manufacturing industry. The Florida Chamber is committed to following the recommendations in the Trade and Logistics 2.0 Report, which seeks to create 150,000 new jobs in industries like trade, logistics, manufacturing and exporting.

As Florida’s economy moves toward innovation and high wage, high-value jobs in emerging industries, we must have the workforce ready to fill these new positions. With 265,200 jobs looking for people and 369,000 people looking for jobs, the problem isn’t workforce quantity, it’s workforce quality. A strong pool of globally competitive employees will be a powerful lure for businesses who hope to prosper in our state. Together we can ensure Florida remains a leader in producing a talented workforce for every industry.

The Fight for Free Enterprise Continues

Florida continues to move in the right direction by growing private-sector jobs, expanding new industries and strengthening international trade and logistics relationships. But our work is far from over. The Florida Chamber believes a globally competitive business climate helps businesses and families succeed. But in order to become the number one state in the nation for innovation and economic development, we must continue to attract and retain high-skill talent, target growing industries and continue to work toward the recommendations set forth in the Florida Chamber Foundation’s most recent Trade and Logistics Report.

Act Now

For more information on Trade and Logistics 2.0 recommendations or to engage your business in our international efforts, contact Alice Ancona at aancona@flchamber.com.

EFI Partners with Manufacturing Associations to Help Local Companies Grow

Originally Published in Florida Trend

Today, Enterprise Florida, Inc. (EFI) announced two new partnerships to assist small and medium-sized Florida manufacturers. EFI signed Memorandums of Understanding (MOU) with the Manufacturing Association of Central Florida (MACF) and the Economic Development Commission of Florida’s Space Coast Manufacturing Association (MASC). These partnerships will provide Florida businesses with additional resources and grant opportunities to help develop and expand their international markets.

“Enterprise Florida is thrilled to partner with the Manufacturing Associations of Central Florida and the Space Coast,” said Manny Mencia, senior vice president of international trade and development. “We look forward to helping more Florida manufacturers expand internationally and grow their client base.”

“MACF is excited about the opportunity to collaborate with Enterprise Florida to promote, expand, and grow Central Florida manufacturing to markets across the globe,” said Sherry Reeves, Executive Director of the Manufacturers Association of Central Florida. “This strategic partnership will create new opportunities and add value to our manufacturing membership.”

 

Click here to read the complete article.

Rebalancing Trade to Support Manufacturing

What About Florida’s Agriculture?

Florida’s agriculture issues remain unaddressed in the USMCA. Read Florida Chamber position here.

Representatives Carlos Curbelo (FL-26) and Al Lawson Jr. (FL-08), introduced bipartisan legislation to guarantee specialty crop growers the seasonality/perishable provisions that are currently lacking in the USMCA. The Agricultural Trade Improvement Act of 2018 would amend the Tariff Act of 1930 and allow American specialty crop growers to request the imposition of anti-dumping or countervailing duties. Similar legislation has been introduced by Florida Senators Bill Nelson and Marco Rubio.

Below are links to documents from the U.S. Trade Representative on USMCA:

Should you have any questions, please feel free to contact Alice Ancona directly at aancona@flchamber.com or 850-521-1210.

Did You Know: Florida’s Manufacturing Industry Employs More than 360,000 Floridians

In fact, Florida’s manufacturing industry is growing faster than the U.S.

The Florida Chamber Foundation met with hundreds of manufacturers from around the state at FloridaMakes’ Make More Manufacturing Summit last week in Orlando – a national hub for advanced manufacturing. From discussions on the future of Florida’s manufacturing industry and the Florida Chamber Foundation’s Trade & Logistics reports, to why the Move, Make, Multiply strategy is key to securing Florida’s global competitiveness and how we can continue to build our talent workforce- manufacturing leaders are making sure the right conversations are happening.

In a letter to the editor submitted to the Orlando Sentinel, Kevin Carr, CEO of FloridaMakes, discusses the importance of building Florida’s manufacturing economy:

“The development of a current and future talent base, the adoption and application of advanced manufacturing technologies, and an increase in our share of the domestic and international market for manufactured goods will translate to a more resilient and robust manufacturing economy in Florida.”

Share Your Thoughts on Florida’s Manufacturing Industry

The impact of manufacturing to Florida’s $1 trillion economy is significant. Tell us what you think about Florida’s manufacturing future by clicking here to take the Florida Chamber’s manufacturing survey.

Florida Manufacturing Grows Faster than the Nation – But is Our Region Ready for the Future?

Author: Kevin Carr, CEO, FloridaMakes

Submitted to: Orlando Sentinel

 

According to the Florida Chamber Foundation, Florida’s manufacturing continues to grow at a rate faster than the U.S. In a recent Forbes Article, the Orlando, Miami, and West Palm regions are ranked 1, 4, & 5 in top regions where manufacturing is thriving in our country.

The Central Florida region exemplifies how impactful the convergence of industry, business, and talent is for economic development. An article in Chief Executive Magazine stated the Orlando area is the “nation’s foremost hub for optics technology and advanced manufacturing”.

With more than 21,500 manufacturing businesses and more than 375,000 manufacturing jobs in Florida, we must look to the future and continue to accelerate growth between now and 2030. The development of a current and future talent base, the adoption and application of advanced manufacturing technologies, and an increase in our share of the domestic and international market for manufactured goods will translate to a more resilient and robust manufacturing economy in Florida.

FloridaMakes focuses on engaging and applying manufacturing assets throughout Florida- from industry, academia, and the public sector- to accelerate access to the right resources for business and industry leaders to be able to succeed. We have launched the Make More Manufacturing Summit to engage industry and government leaders from around the state to work together to chart a path toward a more resilient, diversified economy overall in Florida, leading to a prosperous future for our citizens.

Learn more about the summit at www.FloridaMakes.com/events.

 

Share Your Thoughts on Florida’s Manufacturing Industry

The impact of manufacturing to Florida’s $1 trillion economy is significant. Tell us what you think about Florida’s manufacturing future by clicking here to take the Florida Chamber’s manufacturing survey.

Solidifying Florida’s Role in Trade and Logistics

 

Download One Pager    Learn More Our International Program    Trade & Logistics 2.0 Report

 

Why It Matters to Florida

If Florida were a country, we would have the 16th largest economy in the world. Florida is not just competing with other states, we are competing with other countries. This speaks to the need to continuing to focus on diversifying our economy and markets of opportunity is an important strategy for success and continued growth. Florida is well positioned to not only benefit from international trade but play a pivotal role in new and emerging trade lanes. Eighty percent of the world’s purchasing power, 90 percent of economic growth, and 95 percent of consumers will live outside of U.S. borders. By 2030:

  • The volume of global goods trade and the value of services trade is expected to nearly double.
  • The world’s population will increase to 8.4 billion.

Florida’s GDP is fueled by trade. Florida is the seventh-largest export state in the U.S., with $52 billion in exports originating from Florida in 2016. Exporting is big business in Florida – 60,000 Florida companies export and we have the second highest concentration of exporters behind California. Economic development in areas such as international trade, sea port, manufacturing, aerospace, aviation and other targeted clusters is tied directly to innovation, diversification and how well Florida can adapt to growing and changing trends.

Florida’s Competitiveness Agenda

According to the Florida Chamber Foundation’s Trade and Logistics 2.0 Report, Florida can create more than 150,000 high-wage jobs by growing manufacturing, exports and trade and logistics. In order to take advantage of changing trade routes, a historic expansion of the Panama Canal, and targeted infrastructure investments, we must continue to leverage and grow opportunities.

Strengthening Florida’s rapidly growing manufacturing industry will be the key to ensuring a robust global future. The Florida Chamber supports initiatives that encourage growth in the manufacturing, trade and logistics industries as well as assist Florida companies be more competitive and have greater access in the global marketplace. The Florida Chamber will also continue to support strategic investments in our trade infrastructure, work to build a “talent supply chain” for trade, logistics and manufacturing workers and ensure an ongoing strategic presence in Washington, D.C. – advocating and positioning Florida for a leadership role at the federal level.

The Fight for Free Enterprise Continues

In order to become the number one state in the nation for innovation and economic development, we must continue to attract and retain high-skilled talent, target growing industries and continue to work toward the recommendations set forth in the Florida Chamber Foundation’s Trade and Logistics 2.0 Report.

Act Now

Learn how you can become involved in the Florida Chamber’s International efforts by contacting Alice Ancona at aancona@flchamber.com and Dan Tapia at dtapia@flchamber.com or visit www.FloridaChamber.com/InternationalProgram.

October is Manufacturing Month. Governor Rick Scott Issues Proclamation

 

Download the Proclamation   Manufacturing Issue Page

 

October 1 marks the start of National Manufacturing Month; see the proclamation issued this week by Florida Governor Rick Scott recognizing the contributions of the manufacturing sector to the economy.

Did You Know Manufacturing Contributes More Than $40 Billion to Florida’s Economy?

In fact, for every 10 jobs created in Florida’s export-oriented manufacturing, 12 more jobs are created in transportation, warehousing and retail. Florida has more than 330,000 manufacturing employees earning more than $54,000 annually, which is higher than the state’s average wage. Click here to learn more.

Solidifying Florida’s Role in Trade and Logistics

> DOWNLOAD Our International One Pager

As Florida becomes the third most populous state in the nation and with an estimated six million new residents settling in our state by 2030, our state has to find new solutions that help, not only the way we view resources, but the way we run international business.

The global economy is expected to double in size throughout the next 20 years. One billion new consumers will enter the middle class by 2020, with two thirds living in emerging markets. By 2030, the world’s population will increase to 8.4 billion, 80 percent of the world’s purchasing power, 90 percent of economic growth, and 95 percent of consumers will live outside of U.S. borders.

Continuing to focus on diversifying our economy and markets of opportunity is an important strategy for success and continued growth. Free trade agreements adopted and under consideration create new business opportunities and have opened Florida to new markets. Florida is well positioned to not only benefit from international trade but play a pivotal role in new and emerging trade lanes.

Economic development in areas such as international trade, sea port, manufacturing, aerospace, aviation and other targeted clusters is tied directly to innovation, diversification and how well Florida can adapt to growing and changing trends.

According to the Florida Chamber Foundation’s Trade and Logistics 2.0 Report, Florida can create more than 150,000 high-wage jobs by growing manufacturing, exports and trade and logistics. In order to take advantage of changing trade routes, a historic expansion of the Panama Canal, and targeted infrastructure investments, we must continue to leverage and grow opportunities.

Strengthening Florida’s rapidly growing manufacturing industry will be the key to ensuring a robust global future. The Florida Chamber will support increasing Enterprise Florida’s budget for international trade and marketing activities and will continue to support initiatives that encourage growth in the manufacturing, trade and logistics industries.

The Florida Chamber will also continue to support strategic investments in our trade infrastructure, work to build a “talent supply chain” for trade, logistics and manufacturing workers and ensure an ongoing strategic presence in Washington, D.C. – advocating and positioning Florida for a leadership role at the federal level.

In order to become the number one state in the nation for innovation and economic development, we must continue to attract and retain high-skilled talent, target growing industries and continue to work toward the recommendations set forth in the Florida Chamber Foundation’s Trade and Logistics 2.0 report.

Learn how you can become involved in the Florida Chamber’s International efforts by contacting Alice Ancona or visit www.FloridaChamber.com/InternationalProgram.

Florida Chamber-Backed Manufacturing Bill Passes Committee

The Florida Chamber of Commerce applauds the Senate Commerce and Tourism Committee today for passing a Florida Chamber-backed manufacturing bill by a 6-1 vote.

SB 98, sponsored by Senator Dorothy Hukill (R-Port Orange) will ensure a permanent reduction of the state’s Sales Tax on Manufacturing Machinery and Equipment and allow companies to more easily invest in additional equipment.

In 2013, the Florida Chamber, thanks to efforts by Governor Scott and the Florida Legislature, led the charge with the Manufacturers Association of Florida to help create a program that would reduce the Sales Tax on Manufacturing Machinery and Equipment for three years. But Florida’s manufacturers need a more permanent solution. In order to provide Florida manufacturers with predictability and certainty and help continue growing Florida’s manufacturing industry, the Florida Chamber will continue to support permanently eliminating the Sales Tax on Manufacturing Machinery and Equipment.

Learn More:

Did you know manufacturing contributes more than $40 billion to Florida’s economy? Learn how you can get involved in the Florida Chamber’s efforts by contacting us today at cjohnson@flchamber.com.

Manufacturing Contributes More than $40 Billion to Florida’s Economy

Manufacturing is a key driver in Florida’s economic recovery, creating exports for domestic and international trade and generating high-wage, high-skill jobs that diversify and strengthen the state economy. For every 10 jobs created in manufacturing, 12 more are created in transportation, warehousing and retail and 8 jobs in business services, resulting in a $41.5 billion economic impact to the state GDP.

The demand for manufacturing jobs will continue to rise, with a recent Deloitte study indicating that 3.5 million manufacturing jobs will be needed by 2025. However, our students must develop the skills to fill those jobs or they will likely go unfilled. As Florida Chamber Foundation research shows, STEM education and technical training is vital to bridging this skills gap and enabling Florida’s future workforce to compete in a global economy.

Get Involved

October is Manufacturing Month and the perfect time to support Florida’s 18,200 manufacturers. Click here for a short message on manufacturing from Mark Wilson, President and CEO of the Florida Chamber, and learn how you can join us in supporting our partners at the Manufacturers Association of Florida.

Senator Hukill Works to Grow Manufacturing Sector

Please take a moment to thank Sen. Hukill (R-Port Orange) for sponsoring and fighting for legislation that would strengthen and grow Florida’s manufacturing industry.

Senator Hukill’s efforts would provide job creators with certainty, make Florida more competitive and grow Florida’s manufacturing sector.

Take Action Now

Click here to send Sen. Hukill an email thanking her for fighting to grow manufacturing jobs in Florida.

Manufacturing Creates Jobs in Florida

For every 10 jobs created in Florida’s export-oriented manufacturing, 12 more jobs are created in transportation, warehousing and retail? With an additional eight jobs created in business services, there are a total number of 30 jobs supported by Florida export manufacturing. In fact, manufacturing has the highest jobs “multiplier” of any sector because it leads to the creation of more indirect and induced jobs in other sectors in the economy.

Simply put, expanding manufacturing in Florida diversifies the economy and provides high-wage jobs. In 2013, the Florida Legislature passed a three-year exemption from sales and use taxes on industrial machinery and equipment used in manufacturing in Florida. This exemption is expected to increase capital investment in Florida by manufacturers, improve productivity, and help Florida’s manufacturers compete better in world markets.

Florida needs manufacturing. Consider the facts:

  • Florida is the 12th-highest state in number of people employed in manufacturing.
  • Florida has 330,544 manufacturing employees, with an average annual wage of more than $54,000.
  • Floridians receive $17.9 billion in manufacturing wages in Florida.
  • There are 19,206 manufacturers in Florida – an increase of 696 over the last year.
  • Manufactured Goods Exports in 2013 equal $56.4 billion.
  • Manufacturing’s Share of Florida’s Exports in 2013 was 93.3 percent.

Besides diversifying the economy, manufacturing firms perform around 70 percent of U.S. Industry Research and Development, even though manufacturing accounts for only about 11 percent of the U.S. economy.

“The impact Florida’s manufacturing industry has on our state’s small businesses is undeniable,” said Michael Myhre, Network State Director for Florida’s Small Business Development Center (SBDC) Network. “Manufacturing helps diversify Florida’s economy and helps create high-wage jobs for Floridians. When Florida remains competitive, small businesses succeed.”

Beginning today, the Manufacturers Association of Florida is hosting their annual Manufacturing Days event in Tallahassee this week. Manufacturing Days will feature speakers on topics important to manufacturers including water policy, the sales tax exemption for manufacturing machinery and equipment, tax issues, and the Florida Chamber’s Legislative Priorities.

Share Your Manufacturing Story:

Is your community diversifying its economy by adding manufacturing companies and manufacturing jobs?  How are your local and regional educational institutions helping prepare your workforce for the manufacturing jobs of the future?  Tell us by contacting us at jparrish@flfoundation.org.

About the Florida Scorecard Did You Know:

The Florida Scorecard, located at www.TheFloridaScorecard.com, presents metrics across Florida’s economy. Each month, the Florida Chamber Foundation produces a Scorecard Stat that takes an in-depth look at one aspect of Florida’s economy. If you would like additional information on the Weekly Scorecard Stat or on the Florida Scorecard, please contact Dr. Jerry Parrish with the Florida Chamber Foundation at 850.521.1283 or jparrish@flfoundation.org. You can also follow the Florida Chamber Foundation on Twitter at @FLChamberFDN.

The Global Marketplace Will Double, Adding 1 Billion Consumers by 2020

Throughout the next 20 years, the size of the global marketplace will double, adding more than one billion new consumers by 2020. More than 95 percent of the world’s economic activity will take place outside of Florida. Florida’s ability to secure our future prosperity depends in part on how we are able to capture portions of that growth.

We live in an era unlike any before. The speed of global communication, the exponential advances of technology and the ingenuity of entrepreneurial activities have created a new landscape for global commerce that we continue to adapt to. According to global trends research from Ernst and Young, “estimates show that 70% of world growth over the next few years will come from emerging markets, with China and India accounting for 40% of that growth.

Take manufacturing costs in America for instance. Recent in-depth research on the global manufacturing landscape conducted by Boston Consulting Group (BCG) states that current conditions have led to a “redrawing of the map of global manufacturing cost competitiveness.” Simply put, the United States is now benefitting as one of the top 25 leading export economies. In fact, according to the BCG report, the U.S. is now ranked as a rising global star:

 Cost structures in Mexico and the U.S. improved more than in all of the other 25 largest exporting economies. Because of low wage growth, sustained productivity gains, stable exchange rates, and a big energy-cost advantage, these two nations are the current rising stars of global manufacturing. We estimate that Mexico now has lower average manufacturing costs than China on a unit-cost basis. And except for China and South Korea, the rest of the world’s top-ten goods exporters are 10 to 25 percent more expensive than the U.S.

 

Chart_GlobalMarketplace

What Does This Mean for Florida?

In our own state, the nation’s growth is echoed. In fact, as manufacturing trends shift away from Asia and toward North America, Florida firms can leverage this to expand economic growth. This will mean a growing emphasis on the skill-sets needed to compete in the 21st Century economy. As the global market grows, so does the need for greater manufacturing capacity, high-tech skills, and logistics systems to get goods to market.

“Continuing to promote the growth and expansion of manufacturing in Florida is vital to our success as a state,” said Al Stimac, Owner and President, Metal Essence, Inc. “With the influx of new residents and increasing opportunities to sell and ship Florida-origin goods internationally- the future for Florida’s manufacturers’ looks bright. With Florida’s top-notch business climate and trade and logistics assets, it’s like we’re sitting on a goldmine.”

In Florida, we have a great opportunity to use these global trends for our benefit. Florida’s global resources, current international trade relationships and infrastructure lend our state to work with growing markets and become more globally competitive. Consider that there are more than 10,000 multinational companies operating in our state and in 2011, foreign direct investment by multinational companies employed more than 238,000 Floridians.

Additionally, Florida’s existing logistics infrastructure makes us uniquely suited to capture a good portion of this shift. Consider that:

 

  • Florida’s infrastructure is ranked No. 1 in the US
  • Florida has the 3rd highest cluster of logistics and distribution establishments in the US
  • Florida is the 6th largest exporting state in the US and a leading global hub
  • Florida is No. 5 for Foreign Trade Zone warehouse and distribution activities in the U.S.
  •  Florida is No. 2 for Foreign Trade Zone exports in the US

 

More than ever, trade equals new high-wage jobs. According to data released by the U.S. Commerce Department, just in 2013 alone Florida’s exports supported more than 275,000 jobs. Research completed by the Florida Chamber Foundation highlights as many as 150,000 new jobs in trade, transportation and logistics in Florida are possible. But realizing the potential requires vision.

“This is a long-term advancement opportunity,” said John Hartnett, V.P. of Global Business Development, Endoscopy Replacement Parts, Inc. “Understanding the current global economic patterns presents an incredible advantage for our state just in manufacturing alone. Florida is positioned to capitalize on these shifts if our approach is comprehensive, strategic and aggressive. By continuing to address our manufacturing capacity and aligning our resources such as our STEM talent pipeline, business expansion ability, logistic infrastructure and high-tech job growth, we can become the epitome of 21st Century global competitiveness. We have many of the pieces in place, and we have much of the plan identified.”

 

Recognizing the shift and its implications for Florida is just the first piece – how we strategically plan for leveraging the dynamic changes in the global market will make the difference between being a passive participant and a global leader.

You Can Help Secure Florida’s Future:

Join us at the 2014 Future of Florida Forum, September 29 – October 1,as business leaders, industry experts and elected officials discuss and explore how to secure Florida’s future. The program features top level executives and identifies connection points and partnerships that will make Florida a state with vibrant communities, high-wage jobs and endless opportunities for global competitiveness. Register today and be part of generating solutions.

Tell Us Your Story:

How is your organization impacted by global manufacturing? Where do you see room for Florida to improve its competitive position?

 

About the Florida Scorecard Did You Know:

The Florida Scorecard, located at www.TheFloridaScorecard.com, presents metrics across Florida’s economy. Each week, the Florida Chamber Foundation produces a Scorecard Did You Know that takes an in-depth look at one specific statistic. If you would like additional information on the Weekly Scorecard Did You Know or on the Florida Scorecard, please contact Tracey Lowe with the Florida Chamber Foundation at 850.521.1200 or TLowe@FLFoundation.org. You can also follow the Florida Chamber Foundation on Twitter at @FLChamberFDN.

Approximately Five Percent of Florida’s $800 Billion Economy Consists of Manufacturing

Approximately five percent of Florida’s $800 billion economy consists of manufacturing? That figure, relatively stable throughout the past 10 years, nationally ranks the Sunshine State 47 in manufacturing’s share of economic activity – a ranking that Florida is working to improve on.

Today’s modern manufacturing is far removed from the images of dirty assembly lines and smoke-filled die-cutting plants. Instead, today’s manufacturing industry is highly technical, provides higher-than-average wages and requires a highly-skilled workforce.

In fact:

  • Florida is home to more than 18,000 manufacturers, employing more than 300,000 Floridians, producing nearly $40 billion in economic activity in 2013.
  • From 2010 to 2012 alone, the industry created more than 9,000 new, private-sector high-wage jobs.
  • The industry’s average annual salary in Florida is $53,286 – almost 30 percent higher than the average annual state wage of $41,140.

The health of Florida’s manufacturing industry is inextricably tied to our growth in other industry sectors – especially international trade. A healthy, robust and growing manufacturing sector is a key component to growing Florida’s position as a global hub. As larger ships consider where to dock, our ability to fill those ships will be one of the fundamental considerations to whether those ships dock in one of Florida’s 15 seaports or somewhere else on the Atlantic seaboard. Florida’s geographic advantage and numerous trade and logistics assets place Florida in prime position for manufacturing goods to export, but we must have in place the talent pool, infrastructure and logistics systems to accommodate the emerging markets.

Growing Florida’s manufacturing industry is essential, especially considering that as other industries saw layoffs and declines, international trade grew by double digits during the 2007-2009 recession. The Florida Chamber Foundation’s Trade & Logistics Study 2.0 report points that Florida can continue to thrive in international markets and become a dominant global hub for trade. The results would be like a snowball – more manufacturing jobs created by increasing global trade leading to more exports, which in turn would create even more jobs, and so on.

So, Where Does Florida Stand?

Over the past 10 years, Florida’s manufacturing output has ranged from a high of 5.5 percent of the State’s GDP in 2007 to a low of 4.9 percent in 2013. Examining this figure for all 50 states, Florida’s share ranks us 47th for 2013. In addition, the gap between Florida’s ranking and successful manufacturing states is a wide one to close. Moving Florida from its current position to the top half of all states would require more than doubling our share of manufacturing output (Pennsylvania ranks 25th with manufacturing equal to 12 percent of its economy). Becoming a top-10 state would require more than tripling our share (Ohio ranks 10th with manufacturing accounting for 17.7 percent of the State’s economy).

“Growing Florida’s economy over the long term will mean a commitment to expanding the health and vitality of our manufacturing industry. Manufacturing origination and the sustainable employment associated with it are essential components to a strong economy and will help us attract top talent seeking above-average wages,” said John Hartnett, V.P., Global Business Development with Endoscopy Replacement Parts, Inc., a full-service precision manufacturing facility. “It’s like we have a diamond ready to be cut and polished. We have a tremendous amount of potential as a state and need to harness the benefits while improving in strategic areas. That means ensuring our talent pool is globally competitive, our workforce system is strategically adapting to challenges and our logistics systems are prepared for 21st century markets.”

In Case You Missed It:

 

Nancy Stephens, Executive Director of the Manufacturers Association of Florida, in an interview earlier this year talks about the importance of Florida’s manufacturing industry on the Florida Chamber’s Bottom Line. Click here to watch Nancy discuss Florida’s manufacturing sales tax exemption.

Here Are Three Ways You Can Help Secure Florida’s Future

  1. Register and attend a Trade & Logistics Study 2.0 regional roll out. Click here for dates and locations.
  2. Register to attend the Future of Florida Forum on September 29 – October 1. The forum features top-level executives and identifies connection points and partnerships that will make Florida a state with vibrant communities, high-wage jobs and endless opportunities for global competitiveness.
  3. Become a Florida Chamber Foundation Trustee and help provide strategic direction for Florida’s future, to 2030 and beyond.

 

Tell Us Your Story:

How has your business grown through international trade and export opportunities? Where do you see room for Florida to improve its manufacturing business climate?

 

About the Florida Scorecard Did You Know:

The Florida Scorecard, located at www.TheFloridaScorecard.com, presents metrics across Florida’s economy. Each week, the Florida Chamber Foundation produces a Scorecard Did You Know that takes an in-depth look at one specific statistic.