Space Coast Target Clusters

Preliminary SlidesAugust 2011

Hamilton Galloway EMSI

National Economic Conditions to Consider…the recruitment game is getting tougher

19,354 U.S. cities…all fighting for the same, shrinking # of

new companies and jobs

6,217

4,856

4,442

Company Expansions/ Relocations, U.S.

4,000 2010 (estimated)

2009

2007

2005

Regional economic conditions to consider…The region’s businesses and workers are becoming more entrepreneurial…by necessity

almost 23% of total employment is captured as 1099 income workers

20012002

20032004

20052006

20072008

20092010

20112012

20132014

20152016

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

1099 Employment

All Employment

W-2 Employment

A regional economy grows through different flows of money…

Avenues for growth…

• Higher value manufacturing and service firms can be established/expanded to increase exports

• Supplier networks can be established to reduce imports

Workforce…The region’s workforce has become smarter over the last decade: 36% increase in college degrees

Less Than 9th Grade

9th Grade to 12th Grade

High School Diploma

Some College Associate's Degree

Bachelor's Degree

Graduate Degree and

Higher

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2001 Pop2011 Pop

Some terms we use to evaluate strengths of the Central Florida economy…

• Comparative and Competitive Advantage: refers to industries 1) outperforming national expectations and/or 2) high regional concentration

• Job multiplier effect: the number of additional jobs created through supply-chain linkages and employee spending

Defining your economic values…

Different industries (and clusters) have different economic characteristics…defining what economic characteristics you value can assist in identifying the “targets” you wish to pursue

1. Historical Growth2. Future Growth Projection3. Industry Concentration4. Industry Competitive

Effects5. Export Orientation

6. Job Multiplier Effects7. Earnings Multiplier Effects8. Industry Average Wage9. Excess Demand10. Workforce Compatibility

Clean Energy: Recovery already underway and new development picking up pace

Highlights: • Hourly wages: $24• Outperform U.S.

clean energy growth over the next 5years

• Job Multiplier: 1.5

• R&D in photovoltaic• Expansion of solar farms• Biosolid green energy• Energy Efficient Lighting• Composite turbine blade manufacturing

Clean Energy: Projected to outperform state and national growth trends starting this year

Some of the strengths of clean energy in Central Florida…

• Largest employment growth projected in:– Engineering/Architecture Services– Commercial HVAC– Semiconductor Manufacturing (includes LED)

• Fastest-growing counties:– Brevard, Seminole, Hillsborough, and Orange

• Comparative/Competitive Advantage:– Air purification; steam/AC supply; semiconductor;

materials recovery & waste collection/disposal

Aerospace Cluster: Slight recovery in 2011

Highlights: • High hourly wages:

$30 • Consistently

outperformed U.S. since 2007

• High job multiplier: 2.4

Recent areas of growth:• Commercial jet assembly• Other aircraft assembly• Investment in commercial space travel

Aerospace Cluster: Consistently outperforms state and national trend by significant margin

Aerospace strengths in Central Florida include…

• Largest employment growth projected in:– Nautical system instruments– R&D in physical, engineering and life sciences– Guided missile and space vehicle manufacturing

• Fastest-growing counties:– Orange, Pinellas, Hillsborough, Manatee, and Volusia

• Comparative/Competitive Advantage:– Guided missile and space vehicle; flight training; nautical

system instruments

IT & Telecommunications Cluster…some economic recovery in 2011

Recent areas of growth:• Digital media• IT equipment• Health Care IT• E-commerce

Highlights: • Hourly wages: $25• Consistently

outperformed the U.S. since 2005

• High job multiplier: 2.0

IT & Telecommunications Cluster: Outperforms state and national trend

IT & Telecommunications strengths in Central Florida include…

• Largest employment growth projected in:– Computer systems design & programming services– Data processing– Software publishers

• Fastest-growing counties: Orange, Seminole, Hillsborough, Brevard, and Pinellas

• Comparative/Competitive Advantage:– Optical instrument and lens mfg.; bare printed circuit

board mfg.; wireless communications equipment mfg.

Bio-Life Sciences Cluster: Marginal economic recovery in 2011Growth Sectors:• Healthcare communication• Health scanning/diagnostics• Biomedical and pharmaceutical

research

Highlights: • Hourly wages: $21• Consistently

outperformed both state and national growth

• Job multiplier: 2.0

Bio-Life Sciences Cluster: Consistently outperforms state and national trend by significant margin

Bio-Life Sciences strengths in Central Florida include…

• Largest employment growth projected in:– R&D in biotechnology– Surgical instrument and appliance manufacturing– Pharmaceutical preparation manufacturing

• Fastest-growing counties: Hillsborough, Pinellas, Sarasota, Orange, and Volusia

• Comparative/Competitive Advantage– Surgical and medical equipment; pharmaceutical prep

manufacturing; medicinal and botanical manufacturing

Homeland Security/Defense Cluster: Some recovery in 2011Growth Sectors:• Cyber security• Training simulators• Optical instruments• Composite materials

Highlights: • Hourly wages: $21• Underperform

national growth • Job Multiplier: 1.9

Homeland Security/Defense Cluster: Outperforms state but underperforms national trend

Homeland Security/Defense strengths in Central Florida…

• Largest employment growth projected in:– Semi-conductor manufacturing– Computer systems design and programming– Optical equipment

• Fastest growing counties: Orange, Brevard, Pinellas, Seminole, Volusia, Hillsborough, Polk and Pasco

• Comparative/Competitive Advantage: – Optical equipment; semi-conductors; electron tube and

components; search/detection/navigation equipment