There was a time when a company’s decision to locate in one state over another might hinge on the size of an incentives package. But with the world’s changing demographics — marked by retiring Baby Boomers — those location decisions are increasingly driven by another question: Do you have the right labor force?
As the third most populous state — and 1,000 more people moving here every day — Florida certainly has the volume. Those numbers are also supported by the nation’s top education system, according to U.S. News & World Report.
Those factors, however, don’t come close to telling the story of what the Sunshine State is doing to build a labor pool that can support the needs of key industries, including aerospace, advanced manufacturing, aviation, health care, financial technology and defense.
Ted Astolfi, chief executive officer of the Economic Council of Martin County considers his county's own efforts to develop its labor force. A partnership between Indian River State College and the local school district recently established a new charter high school (Indiantown High School) focused on technical trades. They’re also building the REACH (Reimagining Education and Career Help) workforce training center for aviation-related skills.
The training center will tap into the region’s growing legal immigrant population. There will be classes on English as a second language, but with an emphasis on aviation. “It will be trade-specific English, not the typical how to communicate on the street,” Astolfi says. “You’re going to learn rivets and wings and all the terminology.”
Education
To understand the true value of the state’s education system, you have to look at what’s happening outside the classroom. University professors, researchers and students are playing key roles in the state’s economy. Partnerships with businesses, local governments and the military help foster the development of ideas and new companies to put them into practice.
This synergy is on display throughout the state, including Orlando where the National Center for Simulation has its home in the Central Florida Research Park.
The park serves as a hub that brings together the military, government, academia and companies. The center was borne out of a shared need (by the military and a wide range of companies, including Walt Disney World) for workers skilled in modeling and simulation.
“They do a fabulous job of working with the universities and state colleges and developing the talent pipeline in those fields,” says Kellie Jo Kilberg, chairman of the Florida Defense Alliance.
A similar dynamic is found in St. Petersburg, where the University of South Florida serves as an anchor for the St. Pete Innovation District. The waterfront enclave brings together a wide range of businesses under the umbrellas of health care, technology, marine science and entrepreneurship. Included in that mix is the Greenhouse — an example of the many business incubator/accelerators linked to Florida’s universities.
One of the advantages of that network is it’s ability to nurture the valuable ideas borne out of the collaboration between existing businesses, aspiring entrepreneurs and the university, says Suzanne Christman, director of business development for Pinellas County Economic Development.
“We're trying to make sure that we've got every stage covered to make it as easy as possible for the ideas and research coming out of the university,” Christman says. “We have businesses that want to be close to the university. They want those ideas and those people coming out of that university system.”
Building Skills
In some areas, the state is jumping in to foster skill development. In recent years, Florida has invested millions of dollars across the state, often through its Job Growth Grant Fund, creating and bolstering programs designed to meet the labor needs of current and future employers.
Among the most significant initiatives is Florida’s push into the semiconductor industry. In 2023, the state earmarked more than $28 million to expand semiconductor and chip manufacturing through five projects. The biggest recipient was Osceola County’s NeoCity program, which received $17.5 million to build a multi-use semiconductor lab to support young companies with affordable space. Valencia College was awarded $4.17 million to expand its Robotics and Semiconductor Technician program.
Among other recent initiatives:
- St. Petersburg College was given $7.2 million to build a SMART Tech 4.0 lab focusing on semiconductors, artificial intelligence and machine learning. The program was also supported by the Workforce Development Capitalization Grant Program.
- Pensacola State College received $4.4 million to establish a new airframe and powerplant mechanics program.
- Indian River State College received $4 million to create advanced technology workforce development programs and build a new Center of Ballistics and Emerging Technology to manufacture safety equipment for law enforcement and the military.
- Miami-Dade College was given $1.8 million to establish the Miami-Dade College Construction Trade Institute — a centralized location for the college’s growing technical construction program.
- Space Florida, the state’s aerospace finance and development authority, is partnering with 23 Florida school districts to create its Space Florida Academy Program. The goal is to help students gain the skills and credentials needed by the aerospace industry.
Florida is also working to alleviate one of the challenges facing many areas of the nation, and particularly those with vibrant economies. The Live Local Act aims to spur the development of mixed-income housing developments across the state.
The act offers incentives for developers who include affordable housing units within their projects. Doing so gains quicker approvals from local governing bodies and offers more freedom in terms of building height and density.
“It’s for your manufacturing, logistics, distribution, nurses, policemen and teachers,” says Smallridge, from Palm Beach County, where several developers are taking advantage of the program. “We’re hoping these workforce housing options will create a bigger supply and bring down the average cost per unit.”
Force of Attraction
As clusters of businesses form around the state, a certain force of gravity follows. Larger companies are eager to have their suppliers nearby. And companies hoping to break into a sector are just as eager to get close to potential partners.
One need look no further than Florida’s Space Coast, which now serves as the epicenter for the state’s commercial launch industry. Make no mistake — that industry stretches across the entire state. But the Space Coast is the primary draw for this sector, says Casey Barnes, client services leader for aerospace and defense markets at BRPH.
“Birds of a feather kind of flock together. Nobody wants to be the first one in,” Barnes shares. “Everyone wants to be in an ecosystem.”
The same force — with assistance from local economic development officials — is what drew several medical sterilization companies to Pinellas County, home to multiple medical device manufacturing firms. When those companies first arrived, they were forced to send their products to Atlanta for sterilization — adding considerable production costs.
That gravity also brings workforce benefits, says Suzanne Christman, with Pinellas County Economic Development. That is particularly true whenever firms need to recruit highly specialized workers, who are often more willing to consider a location rich with potential employers.
“It’s a much easier sell to get that person to relocate here,” she says. “They have some comfort knowing that, if this one doesn't work out, there are other opportunities.”
That also makes it easier for future employers to target areas of the state with the right existing labor pool.
And with rich diversity, the state also offers distinct advantages for companies looking to do business in Central and South America, says Bob Swindell, president of the Greater Fort Lauderdale Alliance.
“Being able to speak the language is a big help, but there's more to it than that,” Swindell says. “The way you do business in Argentina is different than the way you do business in Chile or Colombia. Folks with very close ties are able to understand those cultures.”
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