Presentation Transcript

1. Target Industry Evaluation FLORIDA’S RESEARCH COAST ECONOMIC OPPORTUNITIES S B M & Moran, Stahl & Boyer Site Selection and Economic Development Consultants
2. Topics for Discussion A brief “Economic Development 101.” Summary of the Target Industry Study for St. Lucie County. Marketing the Region. B S M & Open Dialog . . . Ask Questions at any Time. 1
3. Local Economic Portfolio Resources (Real estate, labor, utilities, education/training, transportation, etc.) Level 1 - Primary Industries Employers that infuse money into the county from outside sources, such as: State/Federal Government Agriculture Manufacturing Tourism-Related Businesses Business Services (with outside clients) Regional Healthcare Operations Regional Retail Operations Level 2 - Business Support Services Provide support service to the primary industries located in the county Level 3 - Consumer Services Provide services to local residents (Retail, personal services, local gov’t) B S M & Consider: Quality/variety of jobs, size of tax base vs. demand for local services, and resource requirements vs. available resources. 2
4. Economic Opportunities vs. Impacts B S M & 3
5. Levels of Real Estate Readiness Level 1 - Developed site, new building needing finish or minor modifications. Level 2 - Developed site, building shell in place or existing building needing modest renovation. Level 3 - Developed site with virtual permitted building. Level 4 - Developed site ready for building construction. Level 5 - Undeveloped Shovel Ready site. Level 6 – Properly zoned but in hands of original owner. Level 7 - Land zoned agriculture but is to be zoned industrial or office/industrial. Building in Place LOW . . . . . . . . HIGH Developed Site B S M & Undeveloped Site 4
6. The Old Adage on Real Estate . . . “If you build it*, they might come. But if you don’t build it, it’s a guarantee that, even if they do come, they won’t stay.” *Could mean a building or a site. B S M & 5
7. How Does Economic Development Work? B S M & Some think it’s just money in . . . somehow jobs magically appear. 6
8. Why Define Target Industries . . . Requires realistic evaluation of local situation. Aligns efforts with an overall strategy. Supports the setting of priorities. Helps build momentum . . . gets everyone “pullin’ together.” B S M & 7
9. Key Elements of Analysis 1. Economic Opportunities With Favorable/Sustainable Potential Target Industry Opportunities 2. State/Regional Target Industries 3. Local Stakeholder Needs/Input 4. Local/Regional Industry Presence and Available Resources (Real Estate, Labor Skills, Education/Training, R&D, Utilities, Transportation Access and Quality of Life Attributes) B S M & 8
10. Market Trends . . . Opportunities Overall Market Drivers/Trends Global Dynamics (Europe/Asia) Technology Trends Impacts From Recession World Unrest/Terrorism Sourcing/Logistics Strategies Government Policies Demographic Shifts Sustainability Cost of Energy Examples of Market Needs Categories Education Food/Nutrition Health Communications Entertainment Energy Transportation Defense/Security Opportunities Manufacturing Tourism Services Commerce B S M & Strategic Location With Access to Resources and Community Support 9
11. Key Industry and Technology Trends Metal Alloys Rapidly Evolving Use of Materials Radical New Processes: 3D Printing (Additive vs. Subtractive Technology) Glass & Ceramics Polymers Composites Biomaterials Fibers Less energy, less waste, less time, more customized . . . B S M & 10
12. Key Industry and Technology Trends . . . complex components with improved properties. B S M & 11
13. Key Industry and Technology Trends Remote Monitoring, Analysis and Control Convergence of Functionality Calendar Clock/Watch/Timer Camera Newspaper E-Mail Phone/Voice Mail Maps/GPS Virtual Reality Software/Hardware Internet Access Music B S M & 12
14. Key Industry and Technology Trends Solar Cell Road Pavement B S M & 13
15. Reshoring of Manufacturing Again MADE IN THE USA B S M & 14
16. Reshoring Defined The return of Components/Parts Final Assembly operations to the U.S. that serve the North American market. Opportunity:boost U.S. manufacturing activity by $20B. B S M & 15
17. Why Reshoring is Taking Place Factors That Drive Businesses Back to the United States: Cost of fuel is nearly 4X what it was in 1995. Labor, real estate, energy and other costs in China continue to escalate. Supply chain inventory and pre-pay requirements add additional costs and cash flow issues. Reduced product life cycles . . . smaller runs. Variation in quality . . . unpredictable and costly. Increased use of technology . . . protection of patent rights. More opportunities for automation applications. Bring R&D, engineering and production closer together. New strategies to produce goods near markets served. B S M & 16
18. Target Industries By Location B S M & 17
19. Target Industries By Location B S M & 18
20. #1 Ag to Energy, Nutraceuticals & Food BUTANOL FUEL FLAVONOIDS B S M & GREEK YOGURT 19
21. Dairy Processors in Florida Yogurt Production B S M & 20
22. Niche: Authentic/Organic Food U.S. Organic Food Sales Have Grown 20% Per Year Since 1990: $30B Industry Organic Foods Sampling of Foods Grown in South Florida Citrus Tomatoes Avocados Peppers Cucumbers Squash B S M & 21
23. #2 Farm Raised Fish, Shrimp, etc. TALAPIA, SALMON . . . HARBOR BRANCH AQUACULTURE B S M & 22
24. #3 Parts/Components Manufacturing Final Assembly of Equipment (OEM’s) Product / Process Design Final Assembly / Quality Assurance Marketing / Sales / Service Tier 1 Suppliers (Major Components) Tier 2 Fabricated Parts (Plastics, Metals, Composites, Ceramics, Electronics, etc.) B S M & Tier 3 Materials (Metals, Fabric, Glass, etc.) 23
25. Aerospace Equipment & Parts >50,000 25,000 to 50,000 10,000 to 25,000 5,000 to 10,000 <5,000 B S M & 24
26. Boat Building Sales/Employment New Powerboat, Engine, Trailer and Accessory Purchases by State ($Millions) >$1,000 $500 to $1,000 $250 to $500 $100 to $250 <$100 B S M & 25
27. Machinery Manufacturing >50,000 25,000 to 50,000 10,000 to 25,000 5,000 to 10,000 <5,000 B S M & 26
28. #4 Solar Brackets/Installation Florida Solar PV Capacity (Megawatts) Cost of Solar PV Panels 1977: $76.67 per watt 2013: $0.74 per watt B S M & 27
29. #5 Software for Virtual School New eTextbook Concept . . . It’s Coming Florida Gov. Rick Scott commits $30 million for high-skill, high-wage job training (Includes STEM training) B S M & 28
30. Software for Virtual School Education Apps Unlimited potential Course Development Using local industries as a subject platform for Math, Science and other subjects: Marine Science Oceanography Aerospace Plastics Life Science Agriculture Tradition Studio as Development Center B S M & The “Wave of Opportunity” 29
31. #6 Data Centers Types of Data Centers Dedicated with HQ Dedicated/Remote Co-located/Third-Party Operated Key Location Criteria Access to Skilled Talent Site/Building at High Readiness Low Cost/High Performance Utilities Low Disaster Risk Reasonably Accessible B S M & 30
32. #7 Warehousing/Distribution Types of Warehousing Retail Industrial/Commercial Highly Automated Climate Controlled Other Key Location Criteria Strategic Location to Serve Market Available Space or High Readiness Site Access to Labor (some highly skilled) Ability to Expand Access to Interstate/Rail/Port/Airport Reasonable Operating Cost Jacksonville Area ($3.50/SF) Space Coast ($5.50/SF) Orlando ($4.50/SF) Research Coast ($5.25/SF) Southeast Coast ($6.45/SF) B S M & 31
33. How Do Companies Find a Community? Go there on vacation or business travel (conference). Referral from friend, family or business associate. Read about it on the Internet. Referral from state agencies. GIS mapping for interstate access or demographics. Industry presence by employment. Strategic location to reach a specific market or customer. Available site or building. B S M & 32
34. Location Selection Process Many evaluations don’t make it past Phase 1. Step 3 is the “cutting floor” for many communities. Step 1 Define the Business Case Phase 1 Step 2 Prepare Risk vs. Cost Feasibility Step 3 Location Screening Process Step 4 On-Site Visits to Top Candidates Phase 2 Step 5 Negotiations/Selection B S M & Step 6 Implement Relocation Phase 3 33
35. Location Screening: Step 3 Details Client Discussion: Define Key Selection Criteria Geographic positioning to optimize logistics Right to Work state Industry presence (for specific skills and support services) Transportation access (rail (bulk/container), air, interstate and water port) Demographics (population size by age group, education, etc.) Other resources available (land/buildings, utility cost and capacity, training resources, etc.) Screen Locations and Profile Top Candidates Engage in location screening based on client needs defined above. Profile top locations that pass the screen. Present Results to Executive Team B S M & 34
36. Site/Community Evaluation Proximity (30-45 minutes) Labor resources Quality of life/housing costs Business/R&D partners Airport access Access to Primary Highway/Amenities Interstate Access Restaurants/motels/shopping/services Business services Site Conditions Overall size of site/lot sizes Options for future expansion Wetlands/flood plains/soil Utility capacity, cost, backup Zoning/adjacent site use Level of site readiness Building Size/age/condition of structure Layout/types of space/flexibility Cost and buy vs. lease options Level of readiness B S M & 35
37. Resource Requirements Location Real Estate Utilities Labor/Talent and Education B S M & 36
38. Population vs. Interstate Access Population Concentration (Residents/sq mi) > 1,000 500 - 1,000 100 - 499 <100 Indian River Atlantic Ocean Okeechobee St. Lucie Glades Martin B S M & Lake Okeechobee Palm Beach 37
39. Florida Branding When was the first year they put “SUNSHINE STATE” on the Florida License Plate? Became the state’s official nickname in 1970. B S M & 38
40. Florida Branding FIRST COAST EMERALD COAST Highest Level Recognition Sunshine State Florida Orange Juice Orlando/Disney Keys/Key West NASA/Cape Kennedy College/Pro Sports Teams Miami/South Beach Everglades Daytona Beach FORGOTTON COAST SPACE COAST Orlando NATURE COAST TREASURE COAST Other Places Fort Lauderdale Palm Beach “Boca” Sarasota Jacksonville Destin/Panama City Fort Myers/Naples Tampa/St. Pete GOLD COAST SUN COAST Miami B S M & The Keys Key West 39
41. It’s Time for a Change . . . Florida’s Gold Coast . . . gain more notoriety among our peers. B S M & 40
42. A Brand Sets Expectations A Location Brand Reflects . . . Types of activities/venues Business presence/reception Career opportunities Local culture . . . and Sends a Message. B S M & 41
43. Key Elements of “Research” Location Well Known University Basic/translational research Engineering for concept development Private Sector R&D/Production Research/product development Interface with university Pilot plant operations Innovation Culture Meeting places Low cost start-up space Entrepreneurial bent Attracts younger population B S M & 42
44. Transfer From R&D to Viable Product Translational Research Market-Back Needs Research Breakthroughs R&D Operations Product Development Applied Research Basic Research Product Commercialization SCIENCES Chemistry Biology Biochemistry Physics Bioinformatics Computer Modeling ENGINEERING (Product & Process) Chemical Mechanical Materials Product Design Electronics Biomedical Computer Science BUSINESS TEAM Leadership Legal/Licensing Financial Sources Production/Staffing Marketing Engineering/R&D B S M & 43
45. Vision for the Next 20 Years . . . Research-related activities have stimulated 10+ businesses in ag and marine derivative medicine, biotechand aquaculture with over 500 employees. Area respected as advanced parts manufacturer for aerospace and boatbuilding. Center for education apps has national reputation and is must-see tourist destination to view new apps. Region known for its high quality organic foods and aquaculture. B S M & 44
46. Reflections . . . Next Steps A region is stronger than its individual communities. Build a strong, committed and diverse resource team. Define the opportunities for each community/county. Develop a real estate strategy for the I-95 corridor. Develop, implement and support a marketing strategy. (Resource Profile, host conferences/consultants, e-media, etc.) Leverage/expand existing R&D activities. Celebrate success as a team. B S M & 45
47. S B M & Moran, Stahl & Boyer Site Selection and Economic Development Consultants Connecting Companies With Communitiesfor Nearly 50 Years.