Securing Florida's Success In The Modern, Global Economy
A new report from one of Florida’s most influential groups of CEOs and business leaders offers an ambitious roadmap for diversifying the state’s economy, attracting higher-wage industries and strengthening Florida’s economic future as a global player.
Beyond Sunshine: Advancing Florida’s World Class Economy for the Next Generation is the title of the new report from the Florida Council of 100, a group of over 150 business leaders dedicated to fostering economic growth in the Sunshine State.
In summary, Beyond Sunshine is a roadmap for “securing Florida’s success in the modern global economy” by focusing on three priorities that FC100 leaders focused on in their research:
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Increase the focus and promotion of high-priority economic clusters in each region.
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Increase jobs in higher-wage industries and align talent at all levels to fill these roles.
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Position Florida domestically and internationally as the best place to start a career, build wealth, and raise a family.
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Florida's Regional Economic Strengths And Targeted Clusters
The report begins with a brief history of Florida post-pandemic when over 1.1 million new residents fled their lockdown states in favor of a state that remained open for business with an attractive mix of low taxes and limited regulation for private sector businesses and aspiring entrepreneurs.
Viewed through a longer historical lens, Florida has seen the emergence of unique regional urban and rural economies supporting various industries across the state’s six geographic regions over the past thirty years.
Working closely with McKinsey & Company over the past year, the Florida Council of 100 examined the state’s six regional economies and identified the industries with the most potential to attract 200,00 higher-wage jobs to these Florida regions by 2030 and contribute $100 billion to Florida’s GDP in the process.
“Our goal is attracting even more investment to these industries in Florida, building resilience and ensuring the state remains the destination of choice for businesses, investors, employees, and their families.” – FC100 President & CEO Michael Simas
Florida's Economy By The Numbers: The Good & The Bad
Before laying out the road map with a deep dive into the six regional clusters, Beyond Sunshine highlights seven areas where Florida’s economy ranks either first or second nationwide. According to the new report, these include:
- #1 in GDP growth
- #1 in entrepreneurship
- #1 in personal income growth
- #1 in disposable income growth
- #2 in unemployment rate
- #2 in YOY job increases
- #2 in per capita GDP growth
With the good news out of the way, the report then highlights several areas where Florida’s economy is still facing challenges. While some of these weaknesses are longstanding, others like the cost of living have only begun to surface in recent years. These weaknesses include:
- Florida ranks last among the Top 10 most populous states in terms of the number of corporate headquarters per capita
- Only 12% of Florida’s jobs are classified as being high-wage
- Florida’s average productivity rate is 25th in the nation
- Depending on the city, the cost of living in Florida is anywhere from 2% to 21% higher than the national average
- Home insurance rates in Florida are five times the national average
- Average home prices in Florida are 60% higher than they were in 2020.
A Focus On Florida's High Opportunity Industry Clusters
The meat of Beyond Sunshine is the region-by-region overview of “Florida’s Best Bets: target industry clusters that will drive the future economy, as well as emerging industry clusters building on these strengths.” For each of Florida’s six regions, FC100 and McKinsey have identified both the “Best Bets” and “Emerging Clusters” base on their attractiveness and competitiveness.
The report defines “Clusters” as groupings of industries related by knowledge, skills, inputs, and demand. For example the “Transportation & Logistics” cluster is comprised of three industry groups which are comprised of multiple industries identified by their 6-digit NAICS codes.
Taking Southeast Florida as an example, Beyond Sunshine describes the region as being “home to a world-class financial sector, major seaports and international airports, and emerging healthcare, aviation, and high-tech ecosystems.”
First, the report identifies three industrial Best Bets in Southeast Florida:
- Distribution & eCommerce: GDP ($38 billion); Direct Jobs (157K); Economic Multiplier (3.0); Venture Capital ($554 MM)
- Finance & Insurance: GDP ($51 billion); Direct Jobs (150K); Economic Multiplier (3.0); Venture Capital ($3.7 Bn)
- IT & Tech: GDP ($9 Bn); Direct Jobs (17K); Economic Multiplier (3.0); Venture Capital ($1.4 Bn)
Next, the report highlights the Emerging Clusters in Southeast Florida:
- Aviation & Aerospace: GDP ($2.4 Bn); Direct Jobs (9K); Economic Multiplier (2.7); Venture Capital ($47 MM)
- Health Services: GDP ($39.3 Bn); Direct Jobs (409K); Economic Multiplier (2.3); Venture Capital ($336.9 million)
- Biopharma & MedTech: GDP ($2.3 Bn); Direct Jobs (9K); Economic Multiplier (2.6); Venture Capital ($392 MM)
And finally, Beyond Sunshine points to the underlying economic Foundations that are most commonly associated as the foundational strengths in each region of the state. For example, the Foundations in Southeast Florida are:
Commercial Services: GDP ($30.8 Bn); Direct Jobs (304K)
Hospitality & Tourism: GDP ($22 Bn); Direct Jobs (372K)
Real Estate: GDP ($43.3 Bn); Direct Jobs (417K)
Transportation & Logistics: GDP ($18.4 Bn); Direct Jobs (157K)
These Florida regional overviews are well researched, clearly outlined data-driven summaries that achieve the FC100’s goal of providing “a framework for the new, globally attractive Florida.”
To download the Beyond Sunshine report, visit the Florida Council of 100 website.
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