< Previous198 MAY 2021 S I T E S EL E C T I O N a great office that overlooks all of Columbus, including the park where I proposed to my wife.” Upstart finds a plentiful supply of workers locally from Ohio State University and other higher-education institutions, the city’s financial services sector and research labs, says Schneider. “We have also been able to attract folks from outside the area as well. In terms of the best of both worlds, one of the ways we’re able attract candidates is to offer them the Midwestern option and the Bay Area option. A hire might want to try one and later switch to the other. As we become a bigger and bigger employer in Columbus, I fear we may plateau and run out of people. We haven’t gotten there yet, but we have been investing in Columbus as a city and making sure we get folks here. Our biggest challenge pre-pandemic was getting candidates to come visit. There were perceptions we were battling and pre-conceived notions. But once they come and experience these ‘eight blocks of New York City,’ usually they’re blown away and it’s just a matter of passing the interview process. When we get them here to Columbus, they tend to fall in love with it.” Schneider’s take on the state business climate is “amazing. You contrast it with some other cities where there is antagonism toward or vilification of business, and there’s genuine excitement about what we’re doing here and the job creation aspect of that. The taxes, the costs have been good, we haven’t run into too much regulation. We work with a lot of bank partners and that’s a very regulated area, but in terms of running the business, that’s not the case. There is a pro-active nature to it where I feel like different people in the city want to help us succeed without any direct benefit to them. Because of some of the excitement about what we’ve been able to do so far, we get to be on panels to tell our story, which is great. As an ecosystem in our area grows, we can only benefit from that.” (continued from page 194) S I T E S E L E C T I O N MAY 2021 199 INVES TMENT PROFILE: ENTERPRISE FLORIDA ‘The Domino Effect Has Only Begun’ Tech migration tidal wave swells across Florida. This is not your father’s Florida. If you still think that Florida is nothing more than beaches, theme parks, sunshine, lightning shows and sand, think again. The Sunshine State has become an economic juggernaut that rivals that of large countries. With a trillion-dollar annual GDP, Florida’s economy would rank 17th in the world, larger than Saudi Arabia, the Netherlands, Argentina and Switzerland. While Florida has been booming for quite some time, the events of the past year have added fuel to the fires of growth. “The impacts of the last year have accelerated recognition of Florida’s business- friendly climate that has existed for many years,” says Jamal Sowell, Florida Secretary of Commerce and President and CEO of Enterprise Florida, the state’s official economic development agency. “Currently, we are seeing what we believe to be the largest relocation of investment capital firms and hedge funds in history. This has transformed by RON STARNER ron.starner@siteselection.com B. Braun Medical Inc. continues to expand in Daytona Beach. Images courtesy of B. Braun Medical Inc.200 MAY 2021 S I T E S EL E C T I O N Florida into an anchor for investment and capital formation. e domino e ect has only begun.” ese companies are moving to Florida because they are chasing the dollars, and in that race, there is not even a close second. According to Bloomberg, Florida takes in $ . billion more than it loses in wealth each year as high-net- worth people relocate to the Sunshine State. at sum is about seven times the amounts netted by the next closest states: Texas, Washington and South Carolina. In fact, Bloomberg reports, Florida annually ranks as the No. recipient of wealth being transferred from individual states. Illinois, New Jersey and New York combine to pump approximately $ billion into Florida per year. Some of the biggest gainers are communities like Panama City and Naples-Marco Island. U.S. Postal Service data reveal that Panama City experienced . % increase in net in-migration in , while Naples-Marco Island registered a % net increase. Ranked in terms of change from , Panama City placed No. in the country, while Naples came in th. Where all these movers and their money go, employers follow. Blackstone announced last fall that it would place its new regional technology headquarters in Miami. ey are not alone. “On tech, every sector has encountered shifts in day-to-day business models,” says Sowell. “ is disruption is also creating some innovative responses — and innovators and entrepreneurs able to pivot and think outside the box have been in the middle of it all.” Orlando, Tampa, Miami Are Job Magnets Increasingly, these pivots are bringing tech employers to Florida. “Over the last decade, Florida’s tech employment has grown by almost %, and today more than , Floridians are employed in high-tech jobs.” According to the CompTIA Cyberstates report, information technology employment in Florida grew by nearly , net new jobs in . e report states that Florida ranks fourth nationally in net tech employment and third in the total number of jobs added. “In fact, positions in emerging technologies accounted for . % of all tech job postings in Florida last year,” CompTIA notes. e biggest net gainers in tech job growth were Orlando, which grew . % in net tech employment between and , Tampa (up . %) and Miami (up . %). Orlando also ranked sixth nationally in the percentage increase ( . %) in year-over-year tech employment. Sowell says there are several reasons behind this surge. “Long before Orlando became a theme park capital, Lockheed Martin opened to support America’s space race and has since grown its operations to employ over , Floridians,” he says. “Lockheed Martin has partnered with multiple higher education entities, including the second-largest university in the country, the University of Central Florida [in Orlando], and recently announced an apprenticeship partnership with our workforce partner, CareerSource.” Education plays a signi cant role, too. U.S. News & World Report has ranked Florida’s public university system as the best in the nation for three straight years. Florida is also making tremendous strides in upgrading its K- system. “Our high school graduation rate now stands at . % — a % increase since ,” notes Sowell. Tech job growth in Florida is occurring not just in the largest markets, but in virtually all pockets of the state. “We are seeing exponential growth across all of Florida’s metros,” says Sowell. “Fintech is creating a name in Jacksonville. Did you know Orlando is one of only four major optics and photonics clusters in the U.S.?” Florida’s tech sector is expanding because the six industries driving GDP growth in Florida are all investing heavily in new technology: tourism, agriculture, international trade, aerospace and aviation, life sciences and nancial services. We are seeing the largest relocation of investment capital rms and hedge funds in history. is has transformed Florida into an anchor for investment and capital formation. e domino e ect has only begun.” — Jamal Sowell, Florida Secretary of Commerce and President and CEO of Enterprise Florida We are seeing the largest relocation of We are seeing the largest relocation of investment capital rms and hedge funds in We are seeing the largest relocation of S I T E S E L E C T I O N MAY 2021 201 Rx for Life Science Firms: Lots of Sun Pete von Lersner, vice president and general manager of B. Braun Medical Inc., says that his company chooses to invest in Daytona Beach because that location is the best t for the rm. “We make solution products for dialysis, and this is a fairly freight-intensive operation,” he says. “We get pretty good freight rates coming out of Florida; and Florida is one of the largest patient markets in the country. Recruitment seems to be pretty easy in terms of getting quali ed sta . We don’t have any problem attracting quali ed workers.” He notes that the company has been expanding on site since . “We are at employees now, but that number will go up as we plan to go to / operations,” says von Lersner. “We are within two miles of Interstate , and we are just one exit north of Interstate . at was one of the main reasons the plant was put here. For trucking purposes, it is a very good location.” He also likes the business climate. “It has been very positive,” he adds. “O cials have been very accommodating to our growth needs. ey process our requests quickly. It is a very pro-business environment. ere is a good diversity of housing that is available and a ordable. From million- dollar mansions to smaller homes, housing options are very good. And commuting times are very reasonable. ere is not gridlock around here.” Michael Ansorge, CEO of Oculus Surgical Inc. in Port St. Lucie, says the St. Lucie County location on Florida’s southeast coast gives the rms many competitive advantages. “ is location is in the southern part of the U.S. and very central to the Americas,” he notes. “ at was one of the main reasons we picked Port St. Lucie.” A global leader in the medical device industry, Oculus is completing a $ million, ,-sq.-ft. manufacturing facility in the Tradition Center for Commerce. A three-year-long expansion process is taking the company from employees to . “We are very well located between the Miami and Orlando areas,” says Ansorge. “We want to keep our employees here. is area is very nice. People like to move here. You can create loyal workers here. We also want to have a short distance between engineering and production. We have about acres of land, and we have the ability to grow this new building.” Ansorge is a transplant himself. “I moved here from Charlotte,” he says. “We plan to move into our new building by the end of . We had a record year in ling patents, and we will have some new product launches. Plus, two or three colleges in our backyard can assist in workforce training. We plan to be here for a very long time.” You hear that a lot when you talk to CEOs and other business leaders around Florida. Once they move to Florida, they typically don’t want to leave. Another good example is Redwire Space, an aerospace company that announced earlier this year it would relocate its corporate headquarters to Jacksonville. “We have locations in Massachusetts, Colorado, California and other places,” says Austin Jordan, marketing and communications director for Redwire, a rapidly growing aerospace company. “ e mother ship is now located in Jacksonville. is is really a story in how an aerospace company can be successful in Florida.” Recruitment seems to be pretty easy in terms of getting quali ed sta . We don’t have any problem attracting quali ed workers.” — Pete von Lersner, Vice President and General Manager, B. Braun Medical Inc., Daytona Beach Recruitment seems to be of getting quali ed sta . Florida ranks fourth nationally in net tech employment and third in the total number of jobs added. Source: CompTIA Cyberstates 2020202 MAY 2021 S I T E S EL E C T I O N Jordan notes that both Space Florida and JAXUSA were very helpful in the move. “They are looking to attract companies like Redwire and keep them here,” he says. “Our proximity to the Kennedy Space Center on Cape Canaveral is a big advantage.” The move was made after Redwire acquired Jacksonville-based Made In Space last June. That company, originally founded in Silicon Valley, had made its way from California to Florida earlier in 2020. When Redwire announced its move, CEO Peter Cannito said that the firm would make Jacksonville “the center of our innovation ecosystem.” He added that, “by strengthening our presence in Florida, we will access to a skilled aerospace workforce, strategic partnerships, and operational infrastructure to support our growth.” Aggressive Policies Add Momentum Florida’s tech growth encompasses the cybersecurity sector as well. OPSWAT, a leader in critical infrastructure protection (CIP), announced on Jan. 4 that it would relocate its corporate headquarters from San Francisco to Tampa. “Relocating our headquarters to Tampa is an incredible milestone that not only signals rapid growth but also our commitment to providing the best-in-class infrastructure protection to our global customers,” said Benny Czarny, CEO and Founder of OPSWAT. “While San Francisco will continue to be a strategic office location given its proximity to Silicon Valley and our West Coast partners and customers, we are excited to strengthen our East Coast presence and join Tampa’s emerging technology and cybersecurity ecosystem.” The move comes after OPSWAT acquired Tampa-based Impulse, another cybersecurity firm. Over the next three years, the company plans to hire 100 employees in Tampa to add to its current roster of 350 people worldwide. That growth will be aided by a recent infusion of capital, as OPSWAT announced in early April that it had secured $125 million from Brighton Park Capital. Sowell says that Enterprise Florida would continue to make the case both nationally and globally that Florida should be considered a preferred destination for tech companies. “First, we have a governor and Legislature that are aggressive about innovating public policy to encourage research and development of new products,” he says. “For example, Florida is leading the charge to create the legal options for testing unmanned vehicles. That includes drones, cars and even semitrucks. “Second, we offer the broad-based benefits of a low tax structure,” he adds. “Lastly, we have connectivity, accessibility and affordability. Florida is home to one of the top five telecom hubs in the world. The Network Access Point (NAP) in Miami serves as a major switching station for Internet traffic coming to and from Latin America, while other high-speed networks, such as the Florida Lambda Rail and LA Grid, facilitate R&D efforts.” Actually, that was not his last point; he closed out our discussion by citing the weather. “Our average annual high temperature is 81 degrees, while the average low remains a comfortable 60 degrees,” he said. “And all Florida residents live within 60 miles of a coastline.” So, yes, if you think of Florida and picture a warm, sunny day at the beach, you’re not alone. This Investment Profile was prepared under the auspices of Enterprise Florida. For more information, contact Natalie McElwee at 850-530-2701 or by email at nmcelwee@enterpriseflorida.com. On the web, go to www.enterpriseflorida.com. Oculus Surgical Inc. is building a new plant in Port St. Lucie. Images courtesy of Oculus Surgical Inc.FL O RID A Even before the global pandemic, people and companies were moving to Florida in droves. From Wall Street fi rms making a beeline to Tampa Bay to med-tech companies setting up shop in Greater Orlando, the Sunshine State had a welcome mat larger than any other. en came , and something happened to that pace of relocation. It accelerated. What was already a steady stream turned into a gushing waterfall. e gravitational pull of sun, sand, warmth, low taxes, pro-business climate and highly educated talent became too much for many employers to resist. If you want to know why so many high-growth fi rms are fl eeing the Northeast, Midwest and West Coast to open shop in Florida, talk to the people making these moves. People like Texas billionaire Robert Bass, who founded Aerion Corp. in to commercialize supersonic fl ight. S T A TE SPO TLIGHT FLORIDA Top 5 Projects by Capital Investment COMPANY CITY CAPEX $M Eagle LNG Partners Jacksonville 500 Atlantic Sapphire USA Miami 340 Coca-Cola Beverages Florida Tampa 303 Aerion Supersonic Melbourne 300 Dollar Tree Ocala 233 Source: Conway Projects Database by RON STARNER ron.starner@siteselection.com FLORIDA & THE HEALING POWERS OF SUNSHINE Higher Ed. R&D Expenditure in $000s: 2,475,305 Number of NCRCs: 115,416 | Percent Improvement 2019–2020: 0.31% Business Tax Climate Rank Change 2020–2021: 0 Industrial power cost per kWh: $7.11 Total Revenue as Share of Total Expenses, FY 2004-2019: 104.7% 2020 Workers’ Comp Index Rate: 1.81 S I T E S E L E C T I O N MAY 2021 203 Aerospace rm ies from Reno to Melbourne in quest for talent and growth. Jacksonville, Florida, courtesy of Enterprise Florida T Source: Site Selection State of the States Report, January 2021 National Rankings204 MAY 2021 S I T E S EL E C T I O N Aerion started working on developing supersonic business jets in 2004. By 2020, the company had grown to a point where a new home made sense for multiple reasons. On December 10, Aerion announced it had commenced work on a new $300 million, 2-million-sq.-ft. headquarters complex at Orlando Melbourne International Airport on Florida’s Space Coast. The 110-acre campus, called Aerion Park, will be home to research, design, production and interior completion of the firm’s AS2 supersonic business jet. Production of the Mach 1.4 AS2 is scheduled to start in 2023, with initial flight of the aircraft slated for 2025 and delivery to customers in 2027. Columbus, Ohio-based NetJets recently ordered 20 of the AS2 supersonic jets, and the backlog of orders for the aircraft now stands at $11 billion. The company chose to relocate its headquarters from Reno, Nevada, to Florida for multiple reasons, says Tom Vice, chairman, president and CEO of Aerion. “The considerable aerospace legacy in the state of Florida and the existing talent pool in engineering and manufacturing offered a major attraction to our company as we look to add around 675 new jobs ahead of production of the AS2 starting in 2023,” Vice says. “We also selected the state of Florida and the City of Melbourne due to the excellent educational system, the right business climate with global access, the unique attributes of the Orlando Melbourne International Airport, and the growing cluster of aerospace and innovative aviation technology companies that populate the region.” Vice says that Aerion considered other locations across the country for its future home, “and Melbourne emerged as the clear choice. The Space Coast is home to some of the most innovative minds on the planet. At Aerion, we are a team of passionate entrepreneurs, The Ocean Course at Ponte Vedra Ocean Inn & Club Photo courtesy of Florida Historic Coast206 MAY 2021 S I T E S E L E C T I O N collaborative innovators and courageous creative engineers, bonded by unwavering integrity, and driven to build the next generation of global transportation networks — networks that significantly reduce the time and friction of travel while leaving no carbon footprint behind — and I know we will find many like-minded future co-workers here.” Vice adds that “we will transition progressively from our current Reno headquarters to Melbourne over the next two years. We will maintain a presence in Palo Alto, California, with Aerion Technologies.” Incentives were not the decisive factor in the deal, but Vice notes that they helped seal it. “We are enthused by the sense of partnership expressed by the state of Florida, Brevard County and the local Melbourne community and their shared passion for our mission,” he says. “As a privately owned company we do not disclose the details of our contracts, but as detailed in an announcement, Space Florida made a multi-million-dollar investment in our company.” New Bill is a ‘Lifeline to Small Businesses’ Aerion was the fourth-largest capital investment in Florida in . e only bigger deals came from Eagle LNG Partner in Jacksonville ($ million), Atlantic Sapphire USA in Miami ($ million), and Coca-Cola Beverages Florida in Tampa ($ million). Site selection consultant and corporate headquarters relocation expert John H. Boyd of e Boyd Company Inc. says that a new sales tax bill signed into law by Florida Gov. Ron DeSantis should make the Sunshine State even more attractive to many companies. “Relief from Florida’s commercial rent tax and the impending spike in unemployment insurance could not come at a better time,” says Boyd. “Passage of SB- is a lifeline to thousands of the state’s small businesses, many in the hospitality sector, reeling from the consequences of the pandemic. Several of our clients with major office operations in Florida have long lobbied for relief from the onerous .% rent tax, the only such tax in the nation.” Florida’s Foreign Trade Zones (continued on page )Next >