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SEPTEMBER 2004

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FLORIDA SPOTLIGHT



Kelley:
'Emphasis on Manufacturing'

   
The same factors that make Florida a secure location for financial services companies lure mission-critical manufacturers.
      Darrell Kelley, president and CEO of Enterprise Florida, tells Site Selection that Florida is becoming a national hub for manufacturing and R&D in the following sectors: medical devices; modeling, simulation and training; defense contracting; and heavy equipment.
      "We are placing an emphasis on manufacturing in our economic development strategy," says Kelley, a former high-tech company executive and longtime economic development leader in Orlando. "Florida's base is different from traditional manufacturing. Our base tends to be more advanced manufacturing and medical technology."
Tampa saw 3.8-percent job growth between 2002 and 2003. What's more, its 2002 wage scale came in at approximately 66 percent of New York City's.
      Some 72 percent of Florida's manufacturers employ 10 or fewer people, reflecting the state's concentration of low-volume, high-margin manufacturing and the comparatively small operations that make these products. Nearly 400,000 Floridians hold manufacturing jobs.
      Two clusters in Florida are homeland security and aviation-aerospace. Florida ranks in the top six states in homeland security manufacturers for a good reason, says Kelley.
      "Florida serves as a laboratory for the entire nation with 100 languages spoken here," he says. "If we can figure out how to protect the military bases, ports and theme parks in Florida, we can do it anywhere. Plus, we have some of the best modeling, simulation and training R&D taking place anywhere in the world."
      CyTerra Corp., an Orlando company that manufactures hand-held minesweepers using newer ground-penetrating radar, has seen its annual revenues grow from $2.5 million in 2000 to a projected $18 million in 2004. This year, the company won a $4.3-million contract from the U.S. Army to develop a mine detector that can be mounted on a robot.
      Other big wins for Florida defense companies this year include a $5-billion, 20-year Army contract for Lockheed Martin to build the Joint Common Missile and AT&T Government Solutions' Orlando division's $74-million Army contract to develop a new battlefield training system.
      In many cases, hefty defense contracts spur new facilities. Matthews Associates Inc. in Central Florida, one of the foremost suppliers of military battery assemblies for the U.S. military, is
In June 2004, the Tampa Port Authority unveiled its 10-year container port expansion plan, expected to cost $70 million. "Including the rapidly expanding local market of West Central Florida, we are confident that the Port of Tampa can competitively serve a market in excess of 200,000 TEUs," said Wade Miller, the Port Authority's senior director of marketing.
building a $2.3 million, 40,000-sq.-ft. (3,716-sq.-m.) manufacturing plant and will add 180 workers over the next two years.
      In aviation and aerospace, Kelley says Florida recruits parts manufacturers that will support the next generation of aircraft manufacturing. Florida has one of the largest concentrations of aircraft maintenance, repair and overhaul (MRO) firms in
the country.
      "Places like Embry-Riddle Aeronautical University and other schools throughout Florida do an excellent job of training and equipping the work force for this industry,"
Kelley said.
      Success stories abound. On June 28, 2004, Crestview Aerospace Corp. opened a $3.8-million expansion that will create 100 jobs in Okaloosa County. The 52,000-sq.-ft. (4,831-sq.-m.) facility in Crestview in northern Florida was built primarily with federal grant funds.
      In Brevard County, Massachusetts-based Avidyne Corp. will build a 60,000-sq.-ft. (5,574-sq.-m.) office building and 20,000-sq.-ft (1,858-sq.-m.) aircraft hangar at Melbourne International Airport. The $7-million investment by the maker of advanced integrated avionics will create 180 jobs and a net new wage impact of $20.5 million.
      The Economic Development Commission of Florida's Space Coast competed for 18 months to land the project. While Avidyne executives seriously considered other locations throughout the U.S., they said that the final decision "rested primarily on the competitive package compiled by the EDC."


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