Local and statewide partnerships lead to more than 36,000 total jobs and $2.785 billion in capital investment

SARASOTA, FL (August 07, 2014) – Today, Enterprise Florida, Inc. (EFI) held its third Board of Directors meeting of 2014, the first of fiscal year 2014-15. The meeting focused on continuous improvement and recapped the most successful fiscal year yet for economic development in Florida. During the meeting, Secretary of Commerce and president & CEO of EFI, Gray Swoope, recapped EFI’s fiscal year 2013-14 results.

Secretary Swoope said, “Teamwork and relationship building are critical to being successful in economic development. Thanks to our partners at the local and state levels, we saw record numbers across the board last year. Since the 2010-11 fiscal year, total established jobs are up 84 percent and capital investments are up 150 percent. I’m proud of the work we’ve done and look forward to more success in the coming year.”

By working with its community partners, EFI’s activities have championed Florida as a premier destination for business expansion, location and relocation, and have created renewed interest in the state both nationally and internationally. EFI and its partners produced the following results in fiscal year 2013-14:

• 36,207 total established jobs, a 44 percent increase over fiscal year 2012-13
• $2.785 billion in capital investment, a 41 percent increase over FY12-13
• Projected export sales of $820.4 million, a 13 percent increase over FY12-13
• The Florida Sports Foundation created $627 million in economic impact through sporting events and awarded 116 sports grants totaling $3.2 million.
• The Florida Defense Support Task Force awarded $2.6 million in local defense communities to protect Florida’s military installations and missions.
• EFI assisted 30 small businesses with financing, and administered $12.6 million in loan guarantees and $9.7 million in loan participations.

Building on Florida’s success in winning competitive projects, Richard Broome, Executive Vice President of Corporate Affairs and Communications for The Hertz Corporation, spoke about the company’s experience since announcing their headquarters relocation. Hertz has already hired 325 employees at their temporary location in Southwest Florida. “The economic development process in Florida is working very well, underpinned by a great business climate, strong workforce and effective education system. Now is the time to recruit more businesses to the state.”

The meeting also featured breakout sessions focusing on key strategies to continue improving economic development efforts in the state. EFI’s stakeholders participated in a retreat on Wednesday to cover the same strategies. Input from the sessions will be critical in enhancing Florida’s ability to compete for and win more economic development projects.

EFI Board of Directors Vice-Chair, Brett Couch, shared his thoughts on the work done in FY12-13. “I’m very proud of the accomplishments made by EFI and its partners in the last fiscal year. Enterprise Florida is a model for economic development organizations around the nation and it’s a pleasure to serve on a board that oversees what this organization does for the state.”

The board meeting was open to the public with provision for public comment, and was broadcast live on The Florida Channel. In addition, theBoard of Directors section of EFI’s newsroom includes agendas, committee meeting materials, fact sheets and other resources.

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Enterprise Florida, Inc. (EFI) is a partnership between Florida’s businesses and government leaders and is the principal economic development organization for the state of Florida. EFI facilitates job growth for Florida businesses through recruitment and retention, international trade and exporting, promotion of sporting events, and capital funding programs to assist small and minority businesses.

 

By Robert Pittman

My wife Anita and I just returned from the Southern Economic Development Council in Memphis, Tennessee. It’s about a six hour drive from Rabun County in Northeast Georgia and it pretty much shoots the day, with just enough reserve left in the tank for an evening reception. SEDC and the local Tennessee host committee did a fantastic job with a great conference full of learning and networking opportunities. An obvious theme given the Memphis location was logistics and infrastructure. For the benefit of those who could not attend, former Mississippi Governor and Republican National Committee Chair Haley Barbour kicked off the program by reminding the audience of Southern economic developers that favorable business climates (including right to work) and good infrastructure have been key factors in the South’s post-war economic development success. His bottom line: don’t put the horses that got you here out to pasture, and make room for that new team member workforce development that will help carry you into the future. To that we could certainly add telecommunications infrastructure and services that are at the top of most location checklists these days. Representatives from railroads, ports and of course Federal Express brought this and other messages home and brought us up to speed in their industries.

The historic Peabody Hotel was a great venue for the SEDC conference with good food, ample meeting space and a great rooftop deck for the final night’s reception. By the way, the secret to keeping the ducks in the Peabody lobby fountain and not waddling into conference sessions is to keep them a little leery of humans and rotate them off the varsity team if they get adventurous. There was a lot to learn and see away from the conference as well (dare I admit I skipped a session or two to play tourist?). Graceland was marvelous, really conveying a sense of the life and times of Elvis. I went into those famous gates with the same pre-conceived notion (almost a parody) of Elvis that a lot of people share, but came out with a much better appreciation of his talents, musical accomplishments and philanthropy. I highly recommend you go there, as well as those icons of music history, Sun and Stax studios.

The FedEx hub in Memphis is just one of the area’s leading logistics assets.
Photo courtesy of FedEx

It would be hard to imagine life in the southern economic development industry without SEDC. Those of us who have attended over these many years know we are never alone in the business – colleagues we have met and friends we have made through SEDC will be with us through job changes, life changes, and the next board crisis. The same goes for SEDC’s counterparts in other parts of the country – Mid-American Economic Development Council, the Northeast Economic Developers Association and so many great state associations. Of course, the International Economic Development Council is a great organization at the national and international level, but the state and multi-state regional associations offer not only peer-to-peer but neighbor-to neighbor learning.

The Janus Forum and Janus Institute were born of this legacy. We will always strive to complement and magnify, but not duplicate, the learning and networking opportunities provided by these long-established regional and state associations. If associations like IEDC and SEDC are the Hiltons and Sheratons of the economic development industry, the Janus Forum is a boutique hotel where you can probe in depth and learn from reading and discussing a good book in the lobby. Also, along with leading economic developers, site consultants, corporate executives, and other key industry players, you can not only discuss industry best practices – you can create them.

Thanks again to SEDC members, board members and Memphis host organizations for an exceptional educational event that will not soon be forgotten. We look forward to seeing everyone at future economic development association meetings and, of course, at future Janus Forums. Along with our great partner Conway Data, we’ll be announcing 2015 Janus Forum and Institute dates and programs very soon.

 

The goal of the Janus Forum is to advance the economic development profession and professional. With this in mind, the format of the forum allows participants to identify specific topics that they would like to discuss at each Forum. In addition, invited site selectors and industry executives contribute to the forum through one-on-one conversations and breakout sessions, which are led by the Forum participants. The 6th Annual Rabun Janus Forum, held in February of this year, featured some dynamic topics that generated highly engaging conversation. The survey results from the February Forum reinforce the benefit that participants find in this participant-set interactive format.

Among the results:

• 100% of those surveyed rated the session with Beth Osborne, Transportation for America, who discussed proposed federal policy changes in transportation and the impact that it could have on the economic development profession, as good, very good or exceptional.
• 94% of those surveyed found the participant led discussion session with site consultant & corporate executive including: Jeff Troan, Lockheed; Raymond Ocasio, Gulfstream; Jonathan Sangster, Georgia Power; and Kate McEnroe, Kate McEnroe Consulting to be beneficial rating it as good, very good or exceptional.
• Participant selected discussion topic National Target Industries received mixed results with 75% of those surveyed rating this topic as good, very good or exceptional however, some participants voiced their desire to focus conversation on higher level more in-depth discussion in the future.
• 94% of those surveyed rated the participant selected discussion topic, Product Development as good, very good, or exceptional.
• 100% of those surveyed rated the state economic development directors panel as good, very good, or exceptional. State Directors from Iowa, Kentucky, and Michigan shared the results of their director’s forum with Janus Forum participants during a lunch panel, which received high marks with it as good, very good, or exceptional.
• 93% of those surveyed rated the participant led Q&A session with Kate McEnroe, Kate McEnroe Consulting; Jonathan Sangster, Georgia Power; Jeff Troan, Lockheed Martin as very good or exceptional.

When asked what they found “most beneficial about the Forum”, participants unanimously reported networking with peers, site consultants and industry executives as a large benefit at the Forum.

Survey comments include:

“ Networking- talking with peers and sharing ideas/solutions is invaluable”

“ Good sessions, great networking, and opportunity for directed and informal discussion are great benefits of the Janus Forum”

“I found the opportunity for networking with peers and direct access to site consultants and real estate executives to be extremely valuable ”

 

Robert Pittman, Founder and Exec. Dir. Janus Institute

I hope this issue of the Janus Reporter finds each of you enjoying a fun and relaxing summer with family and friends and a successful one in your economic development, corporate real estate and related activities. Following the sixth annual Janus Forum held at our home base of Rabun County, Georgia in June, we (the Janus Institute and partner Conway Data) are busy working with local hosts to schedule future Forums across the nation and also strategizing on how the Janus Forum and Institute will grow over the next few years. However we evolve, a key role of the Janus Forum will continue to be providing a place for local economic development professionals to share ideas and best practices, and contribute to the body of knowledge in the profession.

The Forums in Rabun County this Summer and last, as well as the Forum in Florida at Watercolor this past Spring, however, have shown clearly the benefit of broadening our scope and including site consultants, corporate executives, and community leaders. We started this practice because economic developers who attended the early Forums realized the value of extending our unique brand of peer learning and networking to the entire “value chain” of those who work together from start to finish to locate or expand corporate facilities. Unanimously, the invited consultants and corporate real estate executives from companies such as Gulf Aerospace, Weyerhaeuser, Lockheed Martin and Equinix have given us very positive feedback on the format and model. The free flowing panel sessions with consultants and executives in open dialogue with the audience of economic developers have won rave reviews as one of the best platforms for all these stakeholders to learn from each other and advance the state of the art.

A key recurring theme is our Forums has been how much elected and civic leaders of all stripes impact community and economic development. Many discussions have revolved around how even the best economic development programs and plans can be stymied by unenlightened leadership, and, vice versa, how good leadership can move communities forward. In visits to hundreds of communities in my career as a business location and economic development consultant, I have had the privilege of meeting many wonderful leaders, elected and otherwise, who make a huge difference in the growth and quality of life in their communities. The Janus Institute has begun a periodic award to persons nominated by Forum participants who exemplify the standards of good leadership. Our plan is to bring more outstanding community leaders into our mix of economic developers, consultants and executives to further enhance the discussions and findings. In addition to bringing community leaders more into the Forum mix, we are considering creating a new “Janus Institute Communities” membership class. These Institute Communities could have their own forum where several members from each community that constitute the economic development “team” (economic developer, elected officials, planner, board member, or whomever) come together and learn from each other in a totally new format.

In short, the Janus Forum is evolving into a unique venue where all parties involved in the economic development value chain learn from each other and create new best practices. We thank all Forum attendees and sponsors for their wonderful contributions and support, and we look forward to expanding our Janus family.

 

The Janus Forum hosted its first-ever State Directors Forum at Lake Rabun, Ga., on June 8. Economic development leaders from several states participated in this roundtable discussion, which yielded considerable take-home value for all involved.

One of those who participated was Mandy Lambert, Commissioner of the Kentucky Cabinet for Economic Development. Janus Reporter editor Ron Starner conducted the following interview with her.

JANUS REPORTER: What has been Kentucky’s biggest economic development wins of 2014, year to date?

MANDY LAMBERT: Kentucky continues to have great momentum in the auto industry. In January, Ford announced plans to boost production capacity at the Kentucky Truck Plant, in Louisville, to meet surging demand for F-Series Super Duty trucks. The increase will create 350 new jobs and an $80 million investment. The expansion will allow Ford to boost F-Series Super Duty production capacity by an estimated 15 percent.

The Commonwealth is also taking further steps to strengthen Kentucky’s auto industry. Last month, Governor Steve Beshear launched the Kentucky Auto Industry Association. The association will bring together Kentucky auto manufacturers, suppliers and supporting entities to create a unified voice for an industry. The association will play a vital role in addressing industry challenges, solutions and opportunities. It will also allow us to highlight successes and elevate the state’s contributions to the global automotive industry.

Aside from automotive developments, the demand for Kentucky bourbon is also growing at a record pace. Several of our major distillers have celebrated expansions this year, investing more than $200 million combined. The world is truly gaining a strong taste for one of our most signature products. In fact, there are more aging barrels of bourbon (4.9 million) in Kentucky than people (4.4 million).

JR: The Kentucky Derby in early May is a huge showcase for your state. How does the Kentucky Cabinet use that event to foster business growth in Kentucky?

LAMBERT: The Derby puts a spotlight on us like no other. This is an event that, around the world, is on almost everyone’s bucket list. When you invite people to the Derby, they rarely say no.

We key in on that as our top economic development attraction event for the year. Typically, we host several dozen economic development guests from around the world. It’s a great opportunity to show them Kentucky’s rich heritage and share our traditions and customs. The efforts pay off as many of these folks come back and bring jobs to our area.

We also have another unique opportunity to showcase the Commonwealth this summer when the PGA Championship comes to the famous Valhalla Golf Club in Louisville (August 4-10). We held a similar event when Valhalla hosted the Ryder Cup in 2008. The event was very successful, and we expect more success this year.

JR: What is the one industry sector that is Kentucky’s best-kept secret?

LAMBERT: The industry that is our best-kept secret is actually our largest: aerospace. Most people think of Kentucky as just bourbon and horses, and perhaps vehicles—they have no idea that aerospace makes up a significant part of our economy.

Last year, Kentucky exported $5.6 billion in aerospace products and parts—more than automobiles or any other product. Our success in aerospace exports was instrumental in Kentucky’s record export growth. In 2013, the Commonwealth exported a record $25 billion to nearly 200 countries around the world.

Some of the most cutting-edge aerospace technology is being developed in our state. Morehead State University in eastern Kentucky, for example, specializes in designing and building micro and nano-satellites; extremely small satellites—ranging in size from toaster ovens to dish washers—that orbit Earth in formations. These satellites perform intricate tasks like scanning warehouse inventory from outer space and surveying natural disasters in real-time. Developers even have plans to send a satellite to the moon to search for water.

JR: How is the BEAM Partnership helping drive business growth in the Lexington-Louisville Corridor?

LAMBERT: Kentucky’s two largest cities are significant drivers of the state’s economy. Louisville and Lexington account for $92 billion a year in GDP—more than half the state’s total—and nearly 50 percent of the Commonwealth’s population.

In many cases, large cities find themselves in competition for new industries, businesses and jobs. Instead, area leaders are working together to elevate central Kentucky’s advanced manufacturing industries to world-class heights. Through BEAM (Bluegrass Economic Advancements Movement), we’re working together on workforce development, export expansion and creating a better economy for the whole region.

By building up the areas and creating an advanced manufacturing hub, central Kentucky will be a place where more businesses will want to invest and bring jobs. As a result, Louisville, Lexington and everywhere in between will reap the benefits.

JR: What are the most significant transportation infrastructure improvements that are either under way or planned in Kentucky?

LAMBERT: The $2.3-billion Louisville-Southern Indiana Ohio River Bridges project is the largest single construction project in Kentucky history. The project consists of building two bridges—one in downtown Louisville and one in east Louisville—and reworking the traffic-snarled interchange of Interstates 65, 71 and 64, known as “Spaghetti Junction.” The project will be completed in 2016, and will help modernize Kentucky’s largest city. These improvements should attract industry and other development to the area.

We’re also making other major improvements to our interstates and highways. Construction to build I-69 through western Kentucky is well underway. In the past decade, Kentucky transportation has expanded most of I-65 from Louisville to the Tennessee line and the majority of I-64 from Louisville to Lexington from four lanes to six. Road improvements in eastern Kentucky are also opening up that region to new economic development opportunities.

JR: Since winning the Lexus ES sedan production at your Toyota plant in Kentucky, how has that landmark project affected the perception of your state as an advanced manufacturing hub?

LAMBERT: Kentucky has been very proactive in the auto industry. We have great relationships with our OEMs—Ford, GM and Toyota— as well as our strong supplier base, and are constantly looking at ways to help them grow. Toyota’s announcement to build the Lexus ES 350 in Georgetown shows just how important Kentucky is to the industry. It also shows the company’s confidence in the quality of Kentucky-made products. Our businesses and workforce are known for quality and reliability, and now the manufacturing world is taking notice.

These investments have had a significant ripple effect that can be seen in the expansion and location of suppliers all across the Commonwealth. Kentucky is now home to more the 460 auto suppliers and manufacturers that employ more than 82,000 people. We’re the third-largest producer of light vehicles in the nation and number in vehicle production per capita.

With Toyota’s addition—coupled with major expansions by our Ford plants in Louisville and General Motors facility in Bowling Green—Kentucky is becoming the place to build the vehicles of today and tomorrow.

JR: What is your state doing to address the workforce training and development challenges of the 21st century?

LAMBERT: A qualified workforce is the single most important factor in economic development. It’s at the top of every site selector’s checklist. We are making great strides to prepare and train our workers through more integrated efforts by our workforce training partners across the state.

Earlier this year, Governor Beshear announced the Kentucky Skills Network. In the past, Kentucky employers sought workforce assistance from various agencies and resources throughout the state, making the process of finding and training qualified workers confusing and disjointed. The Kentucky Skills Network has created a statewide team of professionals to assist companies in identifying specific workforce needs, customizing flexible recruitment and training solutions and implementing quality services in a timely fashion.

Last year, the Kentucky workforce partners provided training for nearly 83,000 Kentuckians from a variety of industry sectors. In addition, pre-employment services were provided to more than 92,000 individuals and 2,600 companies in the Commonwealth. With the Kentucky Skills Network, we expect to increase our customer service reach by providing efficient services and client specific resources to companies throughout Kentucky.

While customized and effective training programs are essential to growing and maintaining a qualified workforce, we also realize that creating a pipeline of qualified workers is essential for Kentucky’s long-term economic success. In March 2014, Kentucky teamed up with the German Embassy to launch the Skills Initiative, a partnership focused on developing high school and college apprenticeship-type training programs to introduce students to highly technical career pathways.

Our current model for the Skills Initiative is the Advanced Manufacturing Technician (AMT) program. Through the partnership with Bluegrass Community and Technical College, Toyota leads an industry partnership of several area employers to implement a work-study program aimed to develop the skilled workforce of the future. The program offers students the opportunity to learn in a real work environment while also providing the chance for students to immediately apply what they learn to their job. Upon successful completion of the AMT program, students are provided the opportunity to move into full time employment with their sponsoring company.

Wild Turkey Distillery opened its new visitor center in Lawrenceburg, Ky., on April 15. The newly christened facility is part of a $100-million plant investment by Gruppo Campari at the site.
Photo courtesy of Wild Turkey Distillery