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Florida's Diverse Economy

Sometimes we need to be reminded of things. When we think of our local economy, we naturally think first of tourism and the military. But we often forget about manufacturing and agriculture. Our other top industries in Florida include cleantech, aerospace and aviation, information technology, headquarters, life sciences, logistics and distribution, and financial and professional services.

All of these industries create jobs and add economic vibrancy to Florida.

A diverse economy allows for some stability. While one sector may ebb and flow, others may remain strong. The Bureau of Economic Analysis ranked Florida the 4th largest economy in the United States in 2019.  Even more impressive, consider this.  If Florida was a country, it would be the 17th largest economy in the world!

Inflation Plus Recession Equals Stagflation

We talk a lot about economic developers facilitating the creation of high-wage jobs and partnering with educational institutions to offer programs equipping students with skills needed by employers. This work requires a lot of effort and energy at the best of times. Economic developers are needed now more than ever during a time when wages are not keeping up with inflation, we are getting poorer and the economy is slowing. We need them to encourage companies to relocate to our communities, make large capital investments, and create more jobs. One Okaloosa EDC does this for Okaloosa County. At any given time, One Okaloosa EDC is working with many prospective businesses considering relocating to Okaloosa County.

Fueling Economic Development

Economic development has flourished since the Industrial Revolution (1760-1840) when economies transitioned from primarily agriculture and crafts to industry, manufacturing, and transportation. Jobs were created exponentially.

Initially, workers were miserable and impoverished. Conditions were unsanitary. Long hours, no protections, and lack of job security were prevalent. Innovation, regulations, and social reform were the catalysts for better conditions.

The technologies developed improved agriculture providing more food for more people. New basic materials, like iron and steel, were incorporated.  Fuels and power, such as coal, the steam engine, electricity, petroleum, and the internal-combustion engine transformed lives by providing people with more material conveniences and the ability to travel faster and communicate more rapidly.

The Evolution of Education

History as Blueprint

Education today is on two tracks. The traditional K-12 model culminating in a college degree remains predominant. But, training in specific STEM subjects and other disciplines beginning in elementary grades has gained momentum. Students often leave high school with certifications and/or a year or two of college under their belts. This second track is deemed a positive development because not every student is interested in or has the disposition for college.

Certifications often help students obtain high-wage jobs out of high school. Having a year or two of college before entering college helps save time and money. Either way, the purpose of education in a modern complex society is to prepare students to be productive members of society.

Stakeholder Capitalism

How Does it Affect Economic Development?

I read an interesting article in the Wall Street Journal. The authors write about the Dark Ages, the Industrial Revolution, Capitalism, and Stakeholder Capitalism. It made me wonder if the scenario they described could eliminate economic development and the good work economic developers do.

In the article, they quote Karl Marx as saying capitalism,

“accomplished wonders far surpassing Egyptian pyramids, Roman aqueducts, and Gothic Cathedrals…achieving more massive and colossal productive forces than have all preceding generations together in scarce one hundred years.”
 

Lots of Jobs and Lack of Workers

4.4 million people quit their jobs in February. They call this The Great Resignation.  According to the Bureau of Labor Statistics, 11.3 million jobs were open nationwide. The resignations increased in retail, durable goods manufacturing and local/state government education and decreased in insurance and finance. The March data will be released on May 3rd. Many quit for better jobs, but 1.4 million had not returned from the pandemic.

I went to Lowe’s this weekend. A new employee couldn’t help me. He actually said he did not know what I was talking about when I asked to buy a bag of soil. I talked to an employee I always see, and he said they couldn’t keep workers. He said it was worse this year than last year. There is a sign posted saying they will interview today. That sign has been there for some time. Adequate training is a big issue, but what if people don’t stay long enough to be trained?

New Urbanism & Small Town Planning

Many of you have heard the term New Urbanism. Even if you haven’t heard the term, you’ve seen it in action. Look at Andres Duany’s Seaside for example – the first New Urbanist town in the United States. In articles about Seaside, you will find terms like “internationally famous,” and “iconic.”

The Congress of the New Urbanism defines the term as follows: “New Urbanism is a planning and development approach based on the principles of how cities and towns had been built for the last several centuries: walkable blocks and streets, housing and shopping in close proximity, and accessible public spaces. In other words: New Urbanism focuses on human-scaled urban design.”

It all sounds great doesn’t it?
 

Why We Should Pay More Attention to Farming

Besides Not Being Able to Live Without It

You may have heard that Florida’s citrus growers – a dwindling group already – are preparing for yet another challenging year.  Citrus greening, fruit drop and weather challenges are the culprit.   According to the Florida Department of Citrus, Florida is projected to produce 56 million boxes of oranges this season, which would be the state’s second smallest citrus output in the last 20 years.  For those of us who live outside the citrus belt, these impacts may be less obvious – until we buy orange juice and other citrus products.  We pay attention when there are food and toilet paper shortages in the store. When those things are gone, everything else pales in comparison.

 

The Construction Industry - Feast and Famine

We have all heard building is booming. Interest rates have been at historic lows. End users and investors are taking advantage of this environment.

In Okaloosa County, we can see the residential and commercial construction taking place. Remodeling and re-roofing are also a large part of the construction activity. 

The construction industry is a vital component of economic development. Obviously it creates construction jobs. It creates homes and businesses for people to live and work. But it also drives the demand for products and materials and the jobs associated with these products.  Whether it’s a company selling concrete, lumber, shingles or flooring, these jobs are sustained by ongoing demand

In Our Current Environment, Economic Development is Easier in Florida

What do I mean by that? For almost two years it has become increasingly harder to do economic development in many states.

It started with policy. It manifested in events like riots, COVID-19, school shutdowns, lockdowns, censorship, mandates and more policies such as tax increases.

Last year I wrote about riot-torn cities where businesses were damaged, looted and burned down.  At that time I asked the economic development organizations in Portland, Seattle and Chicago how they were coping. They never responded to my question.