SOUTHWEST FLORIDA KEY INDUSTRY CLUSTERS

Prepared in partnership with:

Regional Economic Research Institute • Florida Gulf Coast University Project Staff

Christopher Westley, Director Veronica Kalich, Economist John Shannon, Economic Analyst Steven Scheff, Project Assistant Monique Carlone, Student Researcher Emily Reynolds, Student Researcher Alesa Whitehead, Student Researcher

Report Information

Florida Gulf Coast University’s Regional Economic Research Institute produced this report at the request of the Southwest Florida Economic Development Alliance. This work would not be possible without considerable cooperation from of Robert C. Beatty, Dean of the Lutgert College of Business, the Department of Economics and Finance, the RERI’s student researchers, and financial support from the Southwest Florida Community Foundation.

The Regional Economic Research Institute studies, analyzes are reports on the Southwest Florida regional economy encompassing Collier, Lee, Charlotte, Hendry, and Glades counties. Established in 2005, it serves as a public service and economic development unit of the Dean’s Office of the Lutgert College of Business.

Besides collecting and disseminating regional economic data, the RERI specializes in sampling design and analysis, including program evaluation, policy research, economic impacts, and workforce needs assessment. It also houses FGCU’s Industry Diversification Project and publishes the Southwest Florida Economic Almanac. The RERI involves FGCU students in every stage of its projects’ development, allowing them to develop professional skills and networks that add value to their degrees and, by extension, to their future employers.

Regional Economic Research Institute Lutgert College of Business Florida Gulf Coast University 10501 FGCU Blvd, S. Fort Myers, FL 33965-6565 (239) 590-1000 http://www.fgcu.edu/cob/reri/

Photo Credits: Shutterstock, Lee County Economic Development, Southwest Economic Development Alliance

2 Southwest Florida Key Industry Clusters

Table of Contents

INTRODUCTION AND EXECUTIVE SUMMARY ...... 4

BUSINESS SERVICES ...... 10

CONSTRUCTION PRODUCTS AND SERVICES ...... 20

DISTRIBUTION AND ELECTRONIC COMMERCE ...... 32

EDUCATION AND KNOWLEDGE CREATION ...... 45

FINANCIAL SERVICES ...... 55

HEALTH AND WELLNESS ...... 66

HOSPITALITY AND TOURISM ...... 78

MARKETING, DESIGN, AND PUBLISHING ...... 90

MEDICAL DEVICES ...... 100

PERFORMING ARTS ...... 108

TRANSPORTATION AND LOGISTICS ...... 116

Southwest Florida Economic Development Alliance 3 Introduction and Executive Summary Introduction and Executive Summary

The first step in any attempt at any positive economic analysis is to apply empirical methods to draw out the data and see what they actually say. Ideally, once that function is completed, the results should then inform any normative or subjective opinions or policy proscriptions that follow. In the study of regional economies, ascertaining their composition, strengths, and weaknesses especially requires thoroughgoing empirical study that often takes the form of economics tools such as econometric modeling, economic impact studies, and cluster analyses.

This last tool is employed in this first-of-its-kind study of the Southwest Florida economy. Cluster analysis groups similar entities based on characteristics that make them different from other groups. By identifying the various clusters that comprise a given universe—with universe defined as any closed system as defined for theoretical purposes—researchers can obtain a better understanding of it.

When used for the purpose of regional economic analysis and economic development, cluster analysis often defines the universe in terms of an acknowledged geographic boundary. Within this boundary, clusters of industries, firms, and skills are identified and differentiated from other industries, firms, and skills. The more thorough the cluster analysis is, the more complete the understanding of the region’s economy. Ongoing cluster analysis provides a better understanding of changes in a regional economy over time, in which some clusters may grow or shrink in terms of dominance, while others enter or exit the regional economy as a whole.

The present study analyses 11 industry clusters that characterize Southwest Florida, the geographic boundary comprised of Collier, Lee, Charlotte, Hendry, and Glades counties. The more concentrated industries (defined as industries with local concentrations that exceed that of the state) are assumed to provide output sufficient to satisfy the regional demand with excess that is “exported” outside of the region. Less concentrated regions, in contrast, are assumed to provide output in quantities less than the regional demand, thus resulting in a deficit that requires “imports” to the region.

Some of the clusters considered here are disaggregated into two divisions, traded and local, to provide a more complete picture of these clusters’ presence and influence in Southwest Florida. Traded clusters refer to those portions of industries that serve other markets or regions. In Southwest Florida, this would refer to firms whose primary products or services cater to visitors and other non- full-time residents, as well as to firms that export products or services outside of the region outside the region. Local clusters refer to portions of industries that are found in every market and that primarily serve the local population. The clusters in this study that are disaggregated between traded and local are construction products and services, education and knowledge creation, financial services, and hospitality and tourism.

Identifying these clusters serve to promote interconnections between the national and global economy with the regional economy by making opportunities to exploit and expand the specialization and division of labor clearer, for both the region’s exporting industries as well as to other regions that would import goods and services demanded in Southwest Florida—to recruiters, marketers, entrepreneurs, and policymakers. By expanding such interconnections, competition, output, and consumer choice grows, leading to lower prices and increased purchasing power of money. In other words, they make us richer, which in itself provides the basis for expanded investment for future growth.

This report summarizes key points about each industry cluster, including a brief description and employment concentration ranking compared to the 21 other workforce regions in the state of Florida. In addition, location quotients are identified along with a brief assessment of the region’s competitive position and an assessment of the cluster’s educational and training support existing in the region and state.

4 Southwest Florida Key Industry Clusters 11 Major Industry Clusters Drive the Regional Economy

 BUSINESS SERVICES – Business services grew tremendously in Southwest Florida after Hertz Global Holdings relocated its world headquarters to Estero, in South Lee County. Employing some 15,423 people, business services provide professional employment opportunities to educated workers as well as careers for low-skilled workers. Jobs in this cluster vary, ranging from careers in finance and computer services to engineering and architecture. While overall employment in business services steadily declined between 2009 and 2015, its consulting services subcluster grew by 34 percent.

 CONSTRUCTION PRODUCTS AND SERVICES – The second-largest cluster in the region, Construction Products and Services employed 48,812 people in the region with significantly better short-term growth than the state of Florida as a whole. What is more, the annual wage growth rate between 2009 and 2015 for construction products and services has steadily increased, with an average growth rate of 3.9 percent in the Southwest Region. Both Lee and Collier counties have extremely high levels of employment specialization and employment share compared to the rest of the country.

 DISTRIBUTION AND ELECTRONIC COMMERCE – Employing some 9,218 people in the region, the distribution and electronic commerce cluster includes a diverse number of predominantly small companies engaged in wholesale activities such as farming, home furnishings, fruit and vegetable distribution, plants and garden equipment, and sports and recreational goods. These companies typically employ less than 100 workers (only three firms employ over 250 workers). These companies are the backbone of many retailers such as home, garden, and grocery stores and many others that use or sell electronic products, household goods and office equipment.

 EDUCATION AND KNOWLEDGE CREATION – A key business recruiting advantage includes access to quality, flexible, and dynamic educational institutions. The education and knowledge creation cluster in this section includes private educational institutions and organizations that provide tutoring and training programs. Specifically, these private institutions include business and secretarial schools, professional training programs, junior colleges and four-year universities. It also includes research organizations in biotechnology, physical, engineering and life sciences.

Southwest Florida Economic Development Alliance 5  FINANCIAL SERVICES – A key industry in Southwest Florida that employed 11,208 workers in 2016, financial services include predominantly financial investment firms, securities brokers and dealers, and credit intermediaries. Virtually all of them are small establishments, employing 20 workers or less, although many are branches of larger investment companies and banks, whose headquarters are in other parts of the state or the country. A key characteristic of the financial services cluster is that it provides services such as wealth management to the growing retiree sector of the population with significant wealth to manage.

 HEALTH AND WELLNESS – The health and wellness cluster in Southwest Florida reflects the national growth rate in health care services. Ranking as the 8th largest cluster in the state, it accounts for 5.7 percent of the state’s total employment. The growth of this sector soared at nearly 17 percent over the six-year period (2009 to 2015). The cluster includes a long list of small establishments, and a few large ones, that provide services across the country (as measured by employment). Jobs in this cluster are expected to pay better than average wages and salaries commensurate with education, skills and experience.

 HOSPITALITY AND TOURISM – Representing what is perhaps the comparative advantage of Southwest Florida, hospitality and tourism employs over 75,000 workers in the region. A key characteristic is its seasonality, although as the native population grows and as the region attracts summer tourist traffic from South America, somewhat of a more year-round industry has taken root in recent years.

 MARKETING, DESIGN, AND PUBLISHING – Comprised of 678 firms and employing almost 2,400 workers, the marketing, design, and publishing cluster includes advertising agencies and related services, design services, publishing, and other marketing-related services. Although this cluster has experienced long-run employment declines in recent years, it experienced a small improvement in employment from 2014 to 2015.

6 Southwest Florida Key Industry Clusters  MEDICAL DEVICES – A cluster comprised of a dominant firm surrounded by a small, competitive fringe, the medical devices cluster consists of just five six-digit North American Industry Classification System (NAICS) codes with two subclusters. These include optical instruments, surgical and medical instruments, surgical appliances and supplies manufacturing, and dental equipment. The cluster ranks third in employment ranking in 2015 in Florida. One employer accounts for over 1,000 employees, with the 15 other establishments account for less than 100 employees altogether across all five counties.

 PERFORMING ARTS – Comprised of theater companies, operatic organizations, musicians, dancers, actors and artists, the Performing Arts cluster represents people engaged in producing, promoting, supporting and participating in live artistic performance. Its economic impact affects incomes and employment in the region as visitors come from other areas and spend their dollars on performances.

 TRANSPORTATION AND LOGISTICS – Encompassing air, rail, bus, and freight transportation services, transportation and logistics also includes related operation services and support activities such as inspections, maintenance, repairs, security, and loading/unloading. With an employment level of 2,438 in 2015, the number of jobs in this cluster group increased by 59.1 percent from 2009 to 2015, compared to only 21.8 percent for the entire state. The number of establishments in the cluster accounted for almost 4 percent of the total number of such establishments in the state.

Southwest Florida Economic Development Alliance 7 Factors Driving Economic Growth

Several factors drive economic growth while serving to attract capital investment and labor. In Southwest Florida, these provide significant returns to relocation compared to other regions in the state and nation. They include:

 Access to state, national and global markets – Southwest Florida International Airport provides direct flights to over 35 major American cities, including Atlanta, Boston, Nashville, Minneapolis, Detroit, Cincinnati, Cleveland, Columbus (Ohio), Dallas, Denver, Houston, Milwaukee, Newark, New York, and Washington, DC. It also has several direct international flights to cities in Canada, Germany, and Puerto Rico. Over 8.6 million passengers went through its gates in 2016. Besides easy access to Punta Gorda Airport in Charlotte County (which serves many markets in the northeast and Midwest) Southwest Florida is a short drive from International airports in Palm Beach, Fort Lauderdale, Miami, and Tampa. In recent years, it has become an important hub for supply chain commerce.

 A state with business-friendly tax and regulation policies – Florida is one of few states with no state income tax, a policy that attracts many productive people and firms to base their operations and residences within the state. The Mercatus Center at George Mason University ranked Florida the number one state in terms of fiscal health in 2017, well ahead of Texas (23), Colorado (30), New York (39), and California (43). Meanwhile, the Tax Foundation in Washington, D.C., ranked Florida 4th in terms of business tax climate.

 Future growth means stable growth – In 2015, the state of Florida’s Office of Economic and Demographic Research predicted growth rates of 60 percent, 40 percent, and 25 percent, in Lee, Collier, and Charlotte counties, respectively, by the year 2040. While much of this growth is expected to be in the form of higher income retirees relocating to the area, much also is expected in the form of business growth as the area diversifies along the same lines as Tampa Bay or Orlando. This increases the area’s appeal for business expansion and entrepreneurial activity.

 Southwest Florida and entrepreneurism go together – Home to many successful business men and women with resources and time to mentor startups and ventures, Southwest Florida has evolved into an entrepreneurial hub unique in the state and nation. Business accelerators, entrepreneurship networking groups, shark tank competitions, and angel investors dominate the area to bring winning product ideas to market. Support for entrepreneurs includes FGCU’s Emerging Technologies Institute (through which its Entrepreneurship Institute operates), Veterans Florida’s outreach activities to military veteran entrepreneurs, and co-working operations such as Fort Myers’ Endeavor Workspaces dot the region.

 Quality of life is the final draw – An area often ignored by recruiters, quality of life issues often “seal the deal” when firms are making location decisions. Gulf beaches, cultural and educational activities, and world-class golf, tennis, spas, hotels, and resorts, an abundance of professional, service, and religious activities, combined with a uniquely competitive and diverse restaurant market, all operate in a year-round warm climate. Such amenities are often the deciding factor on deciding for a move.

8 Southwest Florida Key Industry Clusters

Southwest Florida Cluster Employment Snapshot

Distribution Marketing, Construction Education and Health Business and Hospitality and Design, Medical Performing Transportation Products and Knowledge Financial Services and Services Electronic Tourism and Devices Arts and Logistics Southwest Florida Clusters Services Creation Wellness Commerce Publishing Local Traded Local Traded Local Traded Local Traded Direct employment, 2015 15,423 47,181 1,631 9,218 3,509 2,622 8,391 2,817 56,628 60,767 15,767 2,393 1,522 1,432 2,438 Companies, 2015 1,940 7,278 140 1,064 126 170 1,214 696 3,105 2,611 671 678 16 150 222 Long-run employment growth, -29.5% 15.3% 28.9% 22.2% 34.2% 0.4% -3.1% -11.5% 16.6% 32.2% 22.1% -38.9% 140.4% 21.8% 59.1% 2009 to 2015 (19.6%) (18.7%) (29.5%) (10.3%) (16.5%) (19.7%) (5.1%) (-10.9%) (9.8%) (24.1%) (18.9%) (11.0%) (-8.6%) (1.9%) (21.8%) Short-run employment 8.0% 12.9% 4.8% -25.0% 2.9% -1.9% 0.1% -0.5% 1.0% 4.5% 0.6% 6.7% -19.9% 13.7% 3.8% growth, 2014 to 2015 (5.5%) (-31.9%) (-37.2%) (0.4%) (1.8%) (11.3%) (-0.9%) (-0.5%) (2.1%) (5.3%) (-0.1%) (6.7%) (-11.1%) (4.3%) (16.7%) Location Quotient, Relative to 0.23 1.72 1.14 0.66 0.93 0.50 1.00 0.62 1.20 1.56 1.07 0.78 2.27 1.46 0.48 Florida, 2015 Employment ranking (Among 9th 4th 6th 9th 9th 11th 7th 8th 8th 6th 6th 9th 3rd 6th 8th Florida workforce regions) Note: Florida data in (). Note: Some clusters are divided into local and traded subclusters. Local subclusters refer to businesses that can be found in any region and that serve the local market primarily. In contrast, traded clusters tend to be unique and provide examples of a region’s comparative advantage. These clusters serve consumers from outside the local area.

Business Services Business Services

9th 15,423 1,940 Largest business services Employed in the business Establishments in the business cluster in Florida. services cluster. services cluster.

-5.7% 1,100 Average annual employment Job seekers from top 20 growth in the business services occupations in the business cluster. services cluster.

Industry Overview

The business services cluster is the third-largest cluster in the five-county region in Southwest Florida, based on employment. Employing some 15,423 people, business services provide professional employment opportunities to educated workers as well as careers for low-skilled workers. Jobs in this cluster vary, ranging from careers in finance and computer services to engineering and architecture. While overall employment in business services steadily declined between 2009 and 2015, its consulting services subcluster grew by 34 percent. This increase is no doubt due to increased demand for financial advisors (resulting from the influx of people relocating to the region mainly to retire) coupled with the increased supply of experienced and educated workers providing consulting services (resulting from people relocating to the region mainly for work). Another growing subcluster is architectural and drafting services, which reflects the resumption of the next housing boom and the growth in nonresidential structures needed to accommodate the growth in small firms.

A key characteristic of the business services cluster is its diversity of subclusters that will fulfill the demands of any business seeking to relocate or expand their operations in this region. They will find a supply of workforce talent ranging from consulting and advisory resources, computer and technological support, employment placement experts, designers available to draft new buildings and landscapes, and ground transportation services available for exploring new sites or locations.

Firms included in this cluster represent small businesses and entrepreneurs, with the majority of the establishments employing less than 50 people. With individual establishments being so small, large capital outlays are unnecessary for many of the companies that are part of this cluster. This makes it is easy for new start-ups to develop and less costly if shut-downs become necessary.

The eclectic group of occupations that are part of this cluster stand to benefit from the continued interest in this region by major firms deciding to relocate or expand in Southwest Florida. Recent announcements by firms such as Arthrex and ACI Worldwide will provide employment opportunities in the various subclusters comprising this group, such as business, consulting and computer services. Additionally, the region continues to be of interest to global firms seeking new markets and locations for their products and services. These firms will come to rely on having access to many of the types of employees who comprise this cluster.

Economic Profile

The business services cluster consists of 33, six-digit North American Industry Classification System (NAICS) codes including bank holding company headquarters, consulting services, architectural services, computer systems design services, and employment placement agencies. It is the second-largest cluster in Southwest Florida as measured by employment.

The five-county region ranked ninth in the state of Florida out of 24 workforce regions in employment for the business services cluster, with an employment level of 15,423 in 2015. This cluster of 1,940 establishments accounted for about 3 percent of total employment in the state. However, over the six-year period (2009-2015), the number of jobs in this cluster group experienced a significant decline of 30 percent. This declined compared to an overall growth rate of almost 20 percent for the entire state. The number of establishments in the cluster was about 5 percent of the total number of such establishments in the state. The location quotients for this cluster’s employment relative to the state and the country were extremely low, implying that the concentration of employment in this region relative to the state and the country is significantly lower. Business Services Economic Profile Southwest Florida Florida Employment, 2015 15,423 503,826 Number of Establishments, 2015 1,940 38,607 Short-run employment growth, 2014 to 2015 8.0% 5.5% Long-run employment growth, 2009 to 2015 -29.5% 19.6% Average annual employment growth, 2009 to 2015 -5.7% 3.6% Workforce Region Employment Ranking, 2015 9th -- Location Quotient, Relative to Florida, 2015 0.23 -- Location Quotient, Relative to United States, 2015 0.43 1.91 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 11 Employment by County

Business Services Business Services Employment Long-Run Employment Growth 12,000 11,175 2009 2015 Charlotte 10,000 9,111 5% 8,256 8,000 Lee 6,000 Collier 3,917 19% 4,000 2,857 72%

2,000 736 211 440 395215 Glades 0 Hendry 1% Lee Collier Charlotte Hendry Glades 3%

Out of Southwest Florida’s business services cluster, Lee County accounted for the largest proportion of jobs (72.5 percent), with 11,175 workers. Collier County had the next largest number in this cluster, amounting to about 18.5 percent (2,857). Charlotte County (736 employees, or 4.8 percent of the total), Hendry County (440 employees, or 2.9 percent of the total), and Glades County (215 employees, or 1.4 percent of the total) accounted for a total of less than 10 percent of the cluster. Business Services Employment By County County Employment Percent of Total Employment Charlotte 736 4.8% Collier 2,857 18.5% Glades 215 1.4% Hendry 440 2.9% Lee 11,175 72.5% Southwest Florida 15,423 100.0% Source: County Business Patterns: 2015

Southwest Florida’s business services cluster had a total of 1,940 establishments in 2015. Of these, 98 percent employed less than 50 employees. Lee County had the most business services establishments in Southwest Florida, with 1,013 establishments, and of these, 78 percent were comprised of one to four workers. Collier County’s 731 establishments included 83 percent that were comprised of one to four employees. Similar employment patterns are observed in the remaining counties (Charlotte, Hendry and Glades), where most of the establishments employ fewer workers. Business Services Establishments By County Number of Employees in Establishment County 1 to 4 5 to 9 10 to 19 20 to 49 50 to 99 100 to 249 250 to 499 500 to 999 1000+ Total Charlotte 142 14 10 4 1 0 0 0 0 171 Collier 610 66 30 19 3 2 1 0 0 731 Glades 4 0 0 0 0 1 0 0 0 5 Hendry 12 3 1 3 0 1 0 0 0 20 Lee 798 96 52 38 9 14 3 1 2 1,013 Southwest Florida 1,566 179 93 64 13 18 4 1 2 1,940 Source: County Business Patterns: 2015

Employment growth in the business services cluster varied widely by county over the six-year period of 2009-2015. Of the five counties, Lee County had the largest number of employees in this cluster in 2009 (9,111) and grew by about 3.5 percent on average

12 Southwest Florida Key Industry Clusters per year through 2015, showing an overall gain of 22.7 percent. In contrast, Charlotte County had the second-largest number of employees in 2009 but experienced a significant loss of jobs, losing just over 90 percent of the jobs by 2015. Collier County lost over 25 percent of all jobs in this cluster during the same time period. And while Glades County employed far fewer in this cluster, it also experienced sharp losses over five years, amounting to almost half of all employment in this cluster. Besides Lee, Hendry County was the only other county showing gains in employment in this cluster, although its overall employment level accounts for less than 3 percent of total employment in this cluster. Business Services Long-Run Employment Growth By County Employment Average Annual County 2009 2015 Percent Change Percent Change Charlotte 8,256 736 -91.1% -33.2% Collier 3,917 2,857 -27.1% -5.1% Glades 395 215 -45.6% -9.6% Hendry 211 440 108.5% 13.0% Lee 9,111 11,175 22.7% 3.5% Southwest Florida 21,890 15,423 -29.5% -5.7% Source: County Business Patterns: 2015

Employment by Subcluster

The business services cluster is comprised of eight subclusters: corporate headquarters, consulting services, business support services, computer services, employment placement services, engineering services, architectural and drafting services, and ground passenger transportation. Information regarding employment by subcluster can be found below.

Corporate headquarters was the largest subcluster in terms of employment in 2015, with 4,347 employees accounting for 28.2 percent of the employment in the entire cluster. Business support services was the second-largest subcluster, with 3,649 workers, followed by computer services, with just about half the employment as in the corporate headquarters subcluster. These three subclusters account for over 70 percent of all employment in the business services cluster, but employment in all three has declined since 2009. The employment placement services subcluster represents less than 1 percent of the employment in this cluster, having experienced a 62-percent loss in jobs between 2009 and 2015. Business Services Employment By Subcluster Subcluster Employment Percent of Total Employment Corporate Headquarters 4,347 28.2% Business Support Services 3,649 23.7% Computer Services 2,845 18.4% Consulting Services 2,200 14.3% Engineering Services 1,508 9.8% Architectural and Drafting Services 548 3.6% Ground Passenger Transportation 185 1.2% Employment Placement Services 141 0.9% Total 15,423 100.0% Source: County Business Patterns: 2015

Southwest Florida’s business services subcluster’s totaled 1,940 establishments in 2015. Of these establishments, 98 percent employed less than 50 employees and 81 percent employed less than five employees. The consulting services subcluster had the most establishments in 2015, with 743 establishments. A majority of these establishments were small, as measured by number of employees. Only five establishments employing more than 50 employees. As indicated in the table, most of the establishments in these subclusters primarily employed less than 100 employees.

Southwest Florida Economic Development Alliance 13 Business Services Establishments By Subcluster Number of Employees in Establishment 1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to 1000+ Subcluster 4 9 19 49 99 249 499 999 Total Consulting Services 684 35 11 8 0 5 0 0 0 743 Computer Services 289 35 21 12 0 3 0 0 1 361 Business Support Services 186 19 12 18 1 5 2 1 0 244 Engineering Services 134 40 27 13 5 0 0 0 0 219 Architectural and Drafting Services 135 27 5 2 0 0 0 0 0 169 Corporate Headquarters 58 17 13 8 7 5 2 0 1 111 Ground Passenger Transportation 51 5 2 1 0 0 0 0 0 59 Employment Placement Services 29 1 2 2 0 0 0 0 0 34 Total 1,566 179 93 64 13 18 4 1 2 1,940 Source: County Business Patterns: 2015

Employment in the ground passenger transportation subcluster grew strongly from 2009 to 2015, at an average annual rate of 4.8 percent. Growth in employment in the remaining seven subclusters was relatively week overall. Five of the subclusters experienced declines in employment, with the most significant declines occurring in employment placement services (16.2 percent average annual decrease) and in corporate headquarters (14.3 percent average annual decrease). These substantial declines resulted in a loss of almost 30 percent in this subcluster between 2009 and 2015. Business Services Long-Run Employment Growth By Subcluster Employment Average Annual Subcluster 2009 2015 Percent Change Percent Change Consulting Services 1,635 2,200 34.6% 5.1% Ground Passenger Transportation 140 185 32.1% 4.8% Computer Services 2,567 2,845 10.8% 1.7% Architectural and Drafting Services 499 548 9.8% 1.6% Business Support Services 3,695 3,649 -1.2% -0.2% Engineering Services 1,976 1,508 -23.7% -4.4% Corporate Headquarters 10,970 4,347 -60.4% -14.3% Employment Placement Services 408 141 -65.4% -16.2% Total 21,890 15,423 -29.5% -5.7% Source: County Business Patterns: 2015

14 Southwest Florida Key Industry Clusters Workforce Ranking

Of all the workforce regions in the state of Florida, the Southwest Florida region ranked 9th with most employees in the business services cluster in 2015. Southwest Florida ranked just below the Brevard County workforce region with 15,423 employees in this cluster, and was less than half the number of employees as compared with the higher populated counties that ranked in the top five. However, the region ranked higher than the remaining 15 workforce regions in the state for employment in this cluster. A complete list of the workforce rankings by number of employees in the business services cluster can be found below. Business Services Workforce Rankings Rank Workforce Region Employment Level 1 Central Florida 91,494 2 Tampa Bay 62,737 3 South Florida 58,727 4 Broward 51,133 5 Northeast Florida 43,510 6 Palm Beach County 36,847 7 Pinellas 30,502 8 Brevard 16,793 9 Southwest Florida 15,423 10 Suncoast 11,984 11 Polk 11,941 12 Capital Region 7,744 13 Escarosa 7,446 14 Gulf Coast 7,318 15 Okaloosa Walton 6,252 16 Citrus Levy Marion 6,237 17 Research Coast 6,095 18 Pasco Hernando 5,172 19 Flagler Volusia 4,314 20 North Central Florida 3,540 21 Florida Crown 1,561 22 Heartland 1,160 23 Chipola 833 24 North Florida 574 Source: County Business Patterns: 2015

Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

Southwest Florida Economic Development Alliance 15 Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Business Services Occupations By Total Employed Total Working Number of Number Across All Available of Entry Median Experienced Occupation Industries Applicants Graduates Wage Wage Wage Education Level Landscaping and Groundskeeping Less than High 11,858 43 0 $9.03 $11.10 $13.35 Workers School Secretaries and Administrative Post-Secondary Adult Assistants, Except Legal, Medical, and 11,579 98 0 $10.49 $14.75 $17.64 Vocational Executive Office Clerks, General 8,666 176 0 $9.24 $12.43 $15.85 High School/GED Post-Secondary Adult Carpenters 6,188 53 6 $12.09 $17.68 $22.21 Vocational Janitors and Cleaners, Except Maids Less than High 5,449 71 0 $9.75 $11.34 $13.29 and Housekeeping Cleaners School Bookkeeping, Accounting, and 5,279 111 38 $11.88 $16.47 $19.84 Some College Auditing Clerks Receptionists and Information Clerks 4,978 134 52 $10.09 $13.12 $15.20 High School/GED General and Operations Managers 3,755 85 167 $28.69 $45.91 $68.75 Some College Accountants and Auditors 3,668 83 19 $19.99 $29.03 $40.43 Bachelor's Degree Painters, Construction and Post-Secondary Adult 3,234 19 0 $11.12 $14.44 $17.39 Maintenance Vocational First-Line Supervisors of Landscaping, Post-Secondary Adult Lawn Service, and Groundskeeping 2,836 6 0 $13.76 $20.47 $26.50 Vocational Workers Business Operations Specialists, All 2,703 22 0 $17.48 $28.41 $35.46 Some College Other Post-Secondary Adult Electricians 2,432 26 12 $14.19 $17.86 $21.17 Vocational Executive Secretaries and Executive Post-Secondary Adult 2,320 110 16 $15.70 $20.72 $24.92 Administrative Vocational Post-Secondary Adult Roofers 2,062 7 0 $11.03 $15.22 $16.79 Vocational Plumbers, Pipefitters, and Post-Secondary Adult 1,848 24 6 $14.82 $18.89 $21.46 Steamfitters Vocational Master's Degree or Lawyers 1,809 7 88 $24.00 $39.83 $63.86 Higher Management Analysts 1,710 8 98 $20.81 $34.04 $61.80 Bachelor's Degree Cost Estimators 1,031 5 3 $15.41 $25.17 $31.04 Some College First-Line Supervisors of Post-Secondary Adult 1,009 12 0 $13.30 $18.32 $22.81 Housekeeping and Janitorial Workers Vocational Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

16 Southwest Florida Key Industry Clusters Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 In December 2016, Arthrex, a global manufacturer of medical devices and supplies, announced an expansion of its operations in Collier County, adding 560 new jobs. In addition to manufacturing products, the company trains surgeons on the use of its medical devices. New jobs as well as spillover effects from this move will have positive impacts on jobs in this cluster, such as employment placement agencies, human resources consulting, and business support services.  In November 2016, Maven Group LLC, a Naples-based elevator industry advisory firm, hired Dominik Sachsenheimer as its president. Maven advises independent elevator companies to prepare themselves for a sale, and assists owners and executives to manage their daily operations.  Investor Carl Icahn more than doubled his stake in Hertz Global Holdings Inc. on November 1, 2016, the same day the rental- car firm’s stock plunged in the wake of disappointing financial results and a lowered annual outlook.  Collier County Commissioners approved incentives, in September 2016, for expansion of ACI Worldwide headquarters. The company provides electronic payment solutions to financial institutions and merchants. A positive impact is expected in the business support services subcluster.  In 2016, Rib City moved into its new corporate headquarters in Fort Myers. Its new office space encompasses 2,500 square feet and includes meeting and training space for Rib City employees. The national barbecue chain currently has 13 corporate restaurants in Florida with 10 locations in Southwest Florida and 14 franchise restaurants across the country, including Colorado, Illinois, Missouri, Ohio, Virginia, and Washington State.  Florida SouthWestern State College is the largest conduit of Quick Response Training grants in the state, according to CareerSource Florida. These grants fund customized training for new hires in both expanding and new businesses throughout Florida. In 2016, the training grants awarded through FSW totaled $2.7 million, over 23 percent of the total statewide program.  A group of French entrepreneurs visited Collier County in 2016 to seek investors and pitch their companies. The products and services of these companies ranged from technology and computer innovators, multimedia communication services, and medical technologies. The group utilized the Naples Accelerator for training in marketing their companies in Collier County.  Active Asset Allocation is relocating to Collier County. The company offers investment solutions, providing opportunities in the business support services subcluster.  In January 2017, Lee County commissioners voted unanimously to give technology consultant Gartner Inc., $1.48 million to bring 400 jobs to Lee County by 2019 and construct a $20 million office building. Gartner currently employs over 1,000 people in Lee County.  Global media and technology company Comcast is expanding its customer service “Center of Excellence” in Fort Myers, with plans to add 200 new customer service agents and 20 leadership positions to an existing Lee County-based staff of 400.  Florida SouthWestern State College, the Lee County Economic Development Office, SCORE, CareerSource of Southwest Florida, and the Small Business Development Center at Florida Gulf Coast University recently partnered to create the Lee Entrepreneurs’ Assistance Resource Network (LEARN). LEARN provides outreach activities and services to entrepreneurs and businesses in Lee County. Working collaboratively, LEARN’s mission is to promote the establishment, retention and expansion of businesses in Lee County.  The Omaha, Neb.-based architectural, engineering, and consulting firm HDR Incorporated helped Lee County with two key projects in recent years, including a 636-ton per-day waste-to-energy plant expansion and an expanded Recovered Material Processing Facility that allows single stream recycling and more than 300 tons per day of sorting capability. These elements were added to the Lee County solid waste system while keeping solid waste fees below rates in the early 1990s, as well as a mass burn unit with the lowest nitrogen oxide limits of any U.S.-based unit.

EVENTS, AWARDS AND RECOGNITIONS

 Billy's Rentals, the largest bicycle rental business on Sanibel and Captiva, won the 2016 Southwest Florida Blue Chip Community Business Award. Sponsored by BB&T-Oswald Trippe and Company and BB&T Bank, the award targets for-profit

Southwest Florida Economic Development Alliance 17 companies located in Lee, Collier, or Charlotte County, in business at least three years, employ five to 400 people, and had to have overcome adversity to achieve success.  Florida SBDC Network provides entrepreneurs with assistance by offering periodic workshops for small businesses in a number of locations, including Fort Myers, on topics such as start-up assistance and procuring government contracts.  Annual awards presented to the Distinguished Entrepreneur of the Year for innovation, employee programs and integration of new technology. Winners include entrepreneurs from small firms involved in medical services, financial assistance and other business support areas located in the five county region of Southwest Florida.

Companies

 ASG Software Solutions  21st Century Oncology www.asg.com www.21co.com  Chico’s FAS Inc.  Hertz www.chicosfas.com www.hertz.com  Data2Logistics  Boylan Environmental Consultants, Inc. www.data2logistics.com www.boylanenv.com  Alliant Association Management  MBA Airport Transportation www.alliantproperty.com www.mbaairporttransportation.com  Safe Guard Shredding Services  Dolphin Transportation Specialists www.safeguardds.com www.dolphinnaples.com  Progressive Waste Solutions  HelloTech Technology Support Services www.progressivewaste.com www.hellotech.com  Spikowski Planning Associates  Genesis Global Technologies www.spikowski.com www.genesisgt.com

Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the business services cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  Hodges University  Keiser University www.hodges.edu www.keiseruniversity.edu  University of Miami  Florida Atlantic University www.miami.edu www.fau.edu  Florida State University  Florida International University www.fsu.edu www.fiu.edu  University of Central Florida  University of Florida www.ucf.edu www.ufl.edu  University of South Florida www.usf.edu

18 Southwest Florida Key Industry Clusters Cluster Definition

The business services cluster is comprised of 33 six-digit NAICS codes that form eight subclusters. A list of each subcluster and NAICS category, along with the appropriate six-digit NAICS codes, can be found in the table below.

Business Services Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Corporate Headquarters Offices of Bank Holding Companies 551111 Offices of Other Holding Companies 551112 Corporate, Subsidiary, and Regional Managing Offices 551114 Consulting Services Administrative Management and General Management Consulting Services 541611 Human Resources Consulting Services 541612 Process, Physical Distribution, and Logistics Consulting Services 541614 Other Management Consulting Services 541618 Other Scientific and Technical Consulting Services 541690 Business Support Services Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) 533110 All Other Legal Services 541199 Payroll Services 541214 Translation and Interpretation Services 541930 All Other Professional, Scientific, and Technical Services 541990 Facilities Support Services 561210 Professional Employer Organizations 561330 Telephone Answering Services 561421 Telemarketing Bureaus and Other Contact Centers 561422 Convention and Trade Show Organizers 561920 Computer Services Data Processing, Hosting, and Related Services 518210 Custom Computer Programming Services 541511 Computer Systems Design Services 541512 Computer Facilities Management Services 541513 Other Computer Related Services 541519 Employment Placement Services Employment Placement Agencies 561311 Executive Search Services 561312 Engineering Services Engineering Services 541330 Architectural and Drafting Services Architectural Services 541310 Landscape Architectural Services 541320 Drafting Services 541340 Ground Passenger Transportation Taxi Service 485310 Limousine Service 485320 All Other Transit and Ground Passenger Transportation 485999 Passenger Car Leasing 532112 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Southwest Florida Economic Development Alliance 19 Construction Products and Services Construction Products and Services

5th 48,812 7,418 Largest construction products Employed in the construction Establishments in the and services cluster in Florida. products and services cluster. construction products and services cluster.

5.8% 292 Average annual employment Job seekers from top 20 growth in the construction occupations in the products and services cluster. construction products and services cluster.

20 Southwest Florida Key Industry Clusters Industry Overview

The construction products and services cluster is the second largest cluster in the five-county region in Southwest Florida, based on employment. The cluster employs 48,812 people in the region with significantly better short-term growth than the state of Florida as a whole. What is more, the annual wage growth rate between 2009 and 2015 for construction products and services has steadily increased, with an average growth rate of 3.9 percent in the Southwest Region. Both Lee and Collier counties have extremely high levels of employment specialization and employment share compared to the rest of the country.

We define the construction products and services cluster as a combination of two different clusters: the traded construction cluster and the local construction cluster. The traded construction cluster consists of industries tailored to serve markets in other regions and nations. Firms included in the traded construction cluster supply construction materials, components, products, and services.

The local construction cluster dominates the Southwest Florida construction market with 97 percent of total employment between the traded and local clusters in 2015. Establishments in this cluster primarily provide local real estate services, general contracting, and specialty contracting for the building, purchasing, and renting of homes and related local infrastructure. This cluster also contains firms that support land development, concrete manufacturing, highway and street construction, as well as building equipment distribution. These are all firms that provide specific services to firms and individuals in the local area.

According to a 2016 survey conducted by the Associated General Contractors of America, 71 percent of construction firms in the Southwest Florida area plan to hire more employees. Contractors expect a mix of private and public sector projects to drive demand, and were most optimistic about retail, warehouse and lodging. A key characteristic of the traded construction cluster is its seasonality, as winter residents have specialty construction work done when they are visiting the area. Economic Profile

The traded construction products and services cluster consists of 20, six-digit North American Industry Classification System (NAICS) codes including industrial building construction, steam and air conditioning supply, cement manufacturing, and asphalt paving mixture and block manufacturing. Meanwhile, the local construction cluster consists of 52, six-digit NAICS codes including commercial and institutional building construction, specialty trade contractors, lumber, plywood, millwork, and wood panel merchant wholesalers, and home centers.

The five-county region ranked sixth in the state of Florida out of 24 workforce regions in employment for the traded construction cluster (1,631 employed in 2015), while the local construction cluster ranked fourth in the state of Florida (47,181 employed in 2015). The region had a total of 7,418 establishments for the construction products and services cluster in 2015, with 140 establishments in the traded construction cluster and 7,278 establishments in the local construction cluster. Southwest Florida saw a 4.8 percent increase in the traded construction cluster employment level over the past year, along with a 12.9 percent increase in the local construction cluster. Both were greater than the state of Florida average, which saw an overall decrease. Southwest Florida also had a 28.9 percent increase in the traded construction cluster employment level over the past six years, while the local construction cluster had a 15.3-percent increase over the same time span. The location quotient for both traded and local clusters for construction products and services in Southwest Florida exceeded 1 relative to the state. Although the traded cluster’s location quotient was less than 1 when compared to the U.S., the location quotient of the local cluster exceeded one significantly (at 1.83).

Southwest Florida Economic Development Alliance 21 Construction Products and Services Economic Profile Southwest Florida Florida Traded Local Total Traded Local Total Employment, 2015 1,631 47,181 48,812 30,076 579,442 609,518 Number of Establishments, 2015 140 7,278 7,418 1,652 83,775 85,427 Short-run employment growth, 2014 to 2015 4.8% 12.9% 12.6% -37.2% -31.9% -32.2% Long-run employment growth, 2009 to 2015 28.9% 15.3% 28.9% 29.5% 18.7% 19.1% Average annual employment growth, 2009 to 2015 4.3% 2.4% 5.8% 5.3% 3.5% 3.6% Workforce Region Employment Ranking, 2015 6th 4th 5th ------Location Quotient, Relative to Florida, 2015 1.14 1.72 ------Location Quotient, Relative to United States, 2015 0.66 1.83 -- 0.57 1.07 -- Source: County Business Patterns: 2015

Employment by County

Construction Products and Services Construction Products and Services Long-Run Employment Growth Employment 2009 2015 30,000 27,002 25,000 23,159 Hendry 1% 20,000 Lee 16,314 13,914 15,000 55% Collier 10,000 4,454 4,686 34% 5,000 521 642 130 168 0 Lee Collier Charlotte Hendry Glades Charlotte 10%

Southwest Florida’s construction products and services cluster was comprised of 48,812 employees in 2015, with Lee County contributing the most to the cluster with 27,002 employees. This accounted for 55 percent of the total cluster employment in Southwest Florida for 2015. Collier County followed with 16,314 employees (34 percent), Charlotte County (4,686 employees, 10 percent), Hendry County (642 employees, 1 percent) and Glades County (168 employees, less than 1 percent). Construction Products and Services Employment By County County Traded Local Total Percent of Total Employment Charlotte 250 4,436 4,686 9.6% Collier 269 16,045 16,314 33.4% Glades 20 148 168 0.3% Hendry 140 502 642 1.3% Lee 952 26,050 27,002 55.3% Southwest Florida 1,631 47,181 48,812 100.0% Source: County Business Patterns: 2015

Southwest Florida’s construction products and services cluster had 7,418 establishments in 2015, with about 98 percent of them employing less than 50 employees. Lee County had the most establishments in Southwest Florida, with 3,887 establishments (about 52 percent of the total for the region). This was followed by Collier County’s 2,581 establishments (38 percent), Charlotte County’s 845 establishments (11), Hendry County’s 79 establishments (1 percent), and Glades County’s 26 establishments (less than 1 percent).

22 Southwest Florida Key Industry Clusters Construction Products and Services Establishments By County Number of Employees in Establishment 10 to 20 to 50 to 100 to 250 to 500 to County 1 to 4 5 to 9 19 49 99 249 499 999 1000+ Total Charlotte 612 131 60 35 3 4 0 0 0 845 Collier 1,874 351 192 111 34 16 3 0 0 2,581 Glades 21 2 3 0 0 0 0 0 0 26 Hendry 52 19 1 6 1 0 0 0 0 79 Lee 2,759 504 315 216 61 27 5 0 0 3,887 Southwest Florida 5,318 1,007 571 368 99 47 8 0 0 7,418 Source: County Business Patterns: 2015

The construction products and services cluster saw a 15.7 percent increase in employment from 2009 to 2015. This resulted in a 3.1 percent average annual increase during the same time period. Glades County had the largest increase (29.2 percent increase from 2009 to 2015, 5.84 percent average annual growth), followed by Hendry County’s 23.2 percent increase (4.6 percent), Collier County’s 17.2 percent increase (3.4 percent), Lee County’s 16.6 percent decrease (3.3 percent average annual decline) and Charlotte County’s 5.2 percent decrease (1 percent average annual decline). Construction Products and Services Long-Run Employment Growth By County Traded Local Total Percent Percent Percent County 2009 2015 2009 2015 2009 2015 Change Change Change Charlotte 168 250 48.8% 4,286 4,436 3.5% 4,454 4,686 5.2% Collier 268 269 0.4% 13,646 16,045 17.6% 13,914 16,314 17.2% Glades 30 20 -33.3% 100 148 48.0% 130 168 29.2% Hendry 100 140 40.0% 421 502 19.2% 521 642 23.2% Lee 699 952 36.2% 22,460 26,050 16.0% 23,159 27,002 16.6% Southwest Florida 1,265 1,631 28.9% 40,913 47,181 15.3% 42,178 48,812 15.7% Source: County Business Patterns: 2015

Employment by Subcluster

The construction products and services traded and local clusters are comprised of 15 subclusters: construction, water, sewage, and other systems, construction products, construction components, construction materials, real estate services, general contractors, developers, specialty contractors, highway and street construction, water and sewer line construction, concrete products, construction materials wholesaling, construction and materials retailing, and building equipment distribution. Information regarding employment by subcluster can be found below.

Specialty contractors was the largest subcluster in Southwest Florida in 2015, with 24,248 employees and accounting for 49.7 percent of the total cluster. Real estate services was the second-largest subcluster (7,900 employees, 16.2 percent), followed by general contractors (7,900 employees, 13.9 percent). The smallest subcluster was construction products with 40 employees and 1.7 percent of total cluster employment.

Southwest Florida Economic Development Alliance 23 Construction Products and Services Employment By Subcluster Subcluster Employment Percent of Total Employment Traded Construction Construction 838 1.7% Construction Components 480 1.0% Water, Sewage, and Other Systems 210 0.4% Construction Materials 63 0.1% Construction Products 40 0.1% Local Construction Specialty Contractors 24,248 49.7% Real Estate Services 7,900 16.2% General Contractors 6,803 13.9% Construction Materials Retailing 4,405 9.0% Water and Sewer Line Construction 1,146 2.3% Construction Materials Wholesaling 873 1.8% Highway and Street Construction 650 1.3% Concrete Products 471 1.0% Building Equipment Distribution 406 0.8% Developers 279 0.6% Total 48,812 100.0% Source: County Business Patterns: 2015

Some 7,418 establishments comprised the construction products and services traded and local clusters in 2015, with the specialty contractors subcluster being the largest portion. It had 2,994 establishments, or 40 percent of the total cluster. The real estate services subcluster had the second most establishments (2,583 establishments, 34 percent), followed by general contractors (1,205 establishments, 16 percent). These top three subclusters employ 91 percent of the total employees in the cluster. Construction Products and Services Establishments By Subcluster Number of Employees in Establishment 1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to Subcluster 1000+ Total 4 9 19 49 99 249 499 999 Traded Construction Construction 47 12 13 14 1 0 0 0 0 87 Water, Sewage, and Other Systems 17 4 3 1 1 0 0 0 0 26 Construction Components 5 1 7 3 3 0 0 0 0 19 Construction Materials 0 3 0 1 0 0 0 0 0 4 Construction Products 2 1 1 0 0 0 0 0 0 4 Local Construction Specialty Contractors 1,935 460 303 212 60 20 4 0 0 2,994 Real Estate Services 2,188 245 95 42 9 4 0 0 0 2,583 General Contractors 881 176 84 45 14 3 2 0 0 1,205 Construction Materials Retailing 106 46 14 15 0 16 2 0 0 199 Construction Materials Wholesaling 44 17 19 6 2 0 0 0 0 88 Building Equipment Distribution 25 17 15 2 0 0 0 0 0 59 Water and Sewer Line Construction 22 8 7 9 2 4 0 0 0 52 Developers 27 8 2 5 0 0 0 0 0 42 Highway and Street Construction 9 6 1 6 6 0 0 0 0 28 Concrete Products 10 3 7 7 1 0 0 0 0 28

Total 5,318 1,007 571 368 99 47 8 0 0 7,418 Source: County Business Patterns: 2015

24 Southwest Florida Key Industry Clusters Employment in construction products and services, as shown broken down by subclusters, grew significantly in three of the fifteen subclusters. The construction products subcluster had the largest increase in employment within the cluster, with a 300 percent increase from 2009 to 2015. This accounted for a 60 percent average annual percent increase during this time period. Construction materials had the second-largest increase during the time period (110 percent increase, 22 percent), followed by construction components (93.5 percent increase, 18.7 percent) and general contractors (44.5 percent increase, 8.9 percent). Construction Products and Services Long-Run Employment Growth By Subcluster Employment Average Annual Subcluster Percent Change 2009 2015 Percent Change Traded Construction Construction Products 10 40 300.0% 26.0% Construction Materials 30 63 110.0% 13.2% Construction Components 248 480 93.5% 11.6% Construction 762 838 10.0% 1.6% Water, Sewage, and Other Systems 215 210 -2.3% -0.4% Local Construction General Contractors 4,707 6,803 44.5% 6.3% Specialty Contractors 20,463 24,248 18.5% 2.9% Construction Materials Wholesaling 749 873 16.6% 2.6% Real Estate Services 6,822 7,900 15.8% 2.5% Water and Sewer Line Construction 1,141 1,146 0.4% 0.1% Construction Materials Retailing 4,669 4,405 -5.7% -1.0% Building Equipment Distribution 494 406 -17.8% -3.2% Concrete Products 584 471 -19.3% -3.5% Highway and Street Construction 860 650 -24.4% -4.6% Developers 424 279 -34.2% -6.7%

Total 42,178 48,812 15.7% 2.5% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 25 Workforce Ranking

The Southwest Florida workforce region had the fifth most employees in the construction products and services cluster in 2015, with 48,812 employees. Southwest Florida was ranked below the Northeast workforce region (48,844 employees) and above the Tampa Bay workforce region (47,560 employees). There are 24 total workforce regions in the state. A complete list of the workforce rankings by number of employees in the construction products and services cluster can be found below. Construction Products and Services Workforce Rankings Rank Workforce Region Employment Level 1 Central Florida 98,901 2 South Florida 70,125 3 Broward 59,321 4 Northeast Florida 48,844 5 Southwest Florida 48,812 6 Tampa Bay 47,560 7 Palm Beach County 43,668 8 Pinellas 26,639 9 Suncoast 26,195 10 Research Coast 17,622 11 Polk 16,015 12 Flagler Volusia 15,870 13 Brevard 14,178 14 Pasco Hernando 13,881 15 Escarosa 13,099 16 Citrus Levy Marion 11,526 17 Capital Region 9,609 18 Okaloosa Walton 8,912 19 North Central Florida 7,751 20 Gulf Coast 6,949 21 Florida Crown 4,230 22 Heartland 2,607 23 North Florida 2,510 24 Chipola 2,048 Source: County Business Patterns: 2015

Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

26 Southwest Florida Key Industry Clusters Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Construction Products and Services Occupations By Total Employed Total Number of Number Working Entry Median Experienced Occupation Available of Education Level Across All Wage Wage Wage Applicants Graduates Industries Less than High Construction Laborers 5,593 98 0 $9.87 $13.18 $15.87 School Construction Managers 3,661 41 261 $22.58 $34.86 $49.29 Some College First-Line Supervisors of Construction 3,486 15 0 $17.70 $26.08 $32.04 Some College Trades and Extraction Workers Painters, Construction and Maintenance 3,234 19 0 $11.12 $14.44 $17.39 PSAV Roofers 2,062 7 0 $11.03 $15.22 $16.79 PSAV Plumbers, Pipefitters, and Steamfitters 1,848 24 0 $14.82 $18.89 $21.46 PSAV Cement Masons and Concrete Finishers 1,246 2 0 $12.42 $14.50 $16.44 PSAV Operating Engineers and Other 869 24 0 $12.92 $17.15 $19.93 PSAV Construction Equipment Operators Tile and Marble Setters 722 2 0 $12.73 $17.81 $20.61 PSAV Sheet Metal Workers 679 2 0 $11.62 $15.17 $17.39 PSAV Construction and Related Workers, All Less than High 605 32 0 $12.18 $17.98 $20.94 Other School Drywall and Ceiling Tile Installers 535 3 0 $10.07 $14.27 $16.68 PSAV Brickmasons and Blockmasons 469 6 0 $13.15 $16.48 $18.01 PSAV Construction and Building Inspectors 452 5 0 $22.04 $27.69 $31.32 PSAV Structural Iron and Steel Workers 429 0 0 $13.56 $18.40 $21.88 PSAV Glaziers 379 3 0 $14.44 $17.67 $20.33 PSAV Pipelayers 323 2 0 $13.29 $15.97 $18.29 PSAV Helpers--Pipelayers, Plumbers, Pipefitters, Less than High 283 2 0 $8.85 $9.46 $12.07 and Steamfitters School Highway Maintenance Workers 187 4 0 $12.92 $14.86 $17.66 PSAV Paving, Surfacing, and Tamping Equipment 82 1 0 N/R N/R N/R High School/GED Operators Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

Southwest Florida Economic Development Alliance 27 Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 Bonita Springs Utilities, Inc. (BSU) opened its new corporate office in 2016. The new 19,000-square-foot building houses its administration, finance, engineering and IT departments. Founded in 1971, BSU is a not-for-profit water and wastewater utility serving Bonita Springs, Estero and unincorporated Southern Lee County.  Western Michigan University has approved an economic development investment agreement with Charlotte County, paving the way for improvements at Punta Gorda Airport designed to enhance the ability to deliver aviation flight training at the facility. Western Michigan’s program will commence no later than January 2018.

EVENTS, AWARDS AND RECOGNITIONS

 Jan-Erik Hustrulid, the business development coordinator for Owen-Ames-Kimball Co. (OAK), won the Fort Myers News-Press Young Professional of the Year Award for 2016. OAK is an employee-owned company based out of Michigan and Southwest Florida and offers commercial construction management and general contracting services.  Florida SouthWestern State College hosted the Construction Specifications Institute’s Florida Southwest Chapter Lecture Series in February 2016. The CSI is a national association comprised of 13,000 volunteers across more than 140 local chapters. Companies

 APAC-Florida Inc  Forsberg Construction Inc www.forsbergconstruction.com  Bonita Springs Utilities Inc  Guymann Construction Inc www.bsu.us  CABCO Corporation  Haleakala Construction Inc

 Clarke Construction Group Inc  Preferred Materials Inc www.clarkconstruction.com www.preferredmaterials.com  Denco Construction Inc  Southwest Utility Systems Inc www.denco-inc.com  Eagle Engineering & Land Development Inc  Stevens & Layton Inc www.eaglesitedev.com dolphn38.tripod.com

28 Southwest Florida Key Industry Clusters Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the construction products and services cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  University of Miami  Florida Atlantic University www.miami.edu www.fau.edu  Florida State University  Florida International University www.fsu.edu www.fiu.edu  University of Central Florida  Miami-Dade College www.ucf.edu www.mdc.edu  University of Florida www.ufl.edu

Cluster Definition

The construction products and services cluster is comprised of 72 six-digit NAICS codes that form 15 subclusters. A list of each subcluster and NAICS category, along with the appropriate six-digit NAICS codes, can be found in the table below.

Construction Products and Services Breakdown of Subclusters 6-Digit NAICS Subcluster/NAICS Description Code Construction Industrial Building Construction 236210 Oil and Gas Pipeline and Related Structures Construction 237120 Power and Communication Line and Related Structures Construction 237130 Other Heavy and Civil Engineering Construction 237990 Water, Sewage, and Other Systems Water Supply and Irrigation Systems 221310 Steam and Air-Conditioning Supply 221330 Construction Products Power Boiler and Heat Exchanger Manufacturing 332410 Metal Tank (Heavy Gauge) Manufacturing 332420

Plumbing Fixture Fitting and Trim Manufacturing 332913 Fabricated Pipe and Pipe Fitting Manufacturing 332996 Construction Components Cement Manufacturing 327310 Concrete Block and Brick Manufacturing 327331 Concrete Pipe Manufacturing 327332 Lime Manufacturing 327410 Gypsum Product Manufacturing 327420 Cut Stone and Stone Product Manufacturing 327991 Mineral Wool Manufacturing 327993 All Other Miscellaneous Nonmetallic Mineral Product Manufacturing 327999

Southwest Florida Economic Development Alliance 29 Construction Materials Asphalt Paving Mixture and Block Manufacturing 324121 Asphalt Shingle and Coating Materials Manufacturing 324122 Real Estate Services Lessors of Residential Buildings and Dwellings 531110 Lessors of Nonresidential Buildings (except Miniwarehouses) 531120 Lessors of Other Real Estate Property 531190 Offices of Real Estate Agents and Brokers 531210 Residential Property Managers 531311 Nonresidential Property Managers 531312 Offices of Real Estate Appraisers 531320 Other Activities Related to Real Estate 531390 Title Abstract and Settlement Offices 541191 Surveying and Mapping (except Geophysical) Services 541370 General Contractors New Single-Family Housing Construction (except Operative Builders) 236115 New Multifamily Housing Construction (except Operative Builders) 236116 New Housing Operative Builders 236117 Residential Remodelers 236118 Commercial and Institutional Building Construction 236220 Developers Land Subdivision 237210 Specialty Contractors Poured Concrete Foundation and Structure Contractors 238110 Structural Steel and Precast Concrete Contractors 238120 Framing Contractors 238130 Masonry Contractors 238140 Glass and Glazing Contractors 238150 Roofing Contractors 238160 Siding Contractors 238170 Other Foundation, Structure, and Building Exterior Contractors 238190 Electrical Contractors 238210 Plumbing, Heating, and Air-Conditioning Contractors 238220 Other Building Equipment Contractors 238290 Drywall and Insulation Contractors 238310 Painting and Wall Covering Contractors 238320 Flooring Contractors 238330 Tile and Terrazzo Contractors 238340 Finish Carpentry Contractors 238350 Other Building Finishing Contractors 238390 Site Preparation Contractors 238910 All Other Specialty Trade Contractors 238990 Sheet Metal Work Manufacturing 332322 Custom Architectural Woodwork and Millwork Manufacturing 337212 Septic Tank and Related Services 562991 Highway and Street Construction Highway, Street, and Bridge Construction 237310 Water and Sewer Line Construction Water and Sewer Line and Related Structures Construction 237110 Concrete Products Ready-Mix Concrete Manufacturing 327320 Other Concrete Product Manufacturing 327390 Construction Materials Wholesaling Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers 423310 Brick, Stone, and Related Construction Material Merchant Wholesalers 423320

30 Southwest Florida Key Industry Clusters Roofing, Siding, and Insulation Material Merchant Wholesalers 423330 Other Construction Material Merchant Wholesalers 423390 Construction Materials Retailing Home Centers 444110 Paint and Wallpaper Stores 444120 Other Building Material Dealers 444190 Building Equipment Distribution Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers 423720 Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers 423730 Refrigeration Equipment and Supplies Merchant Wholesalers 423740 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Southwest Florida Economic Development Alliance 31 Distribution and Electronic Commerce Distribution and Electronic Commerce

9th 9,218 1,064 Largest distribution and Employed in the distribution Establishments in the electronic commerce cluster in and electronic commerce distribution and electronic Florida. cluster. commerce cluster.

3.4% 1,453 Average annual employment Job seekers from top 20 growth in the distribution and occupations in the distribution electronic commerce cluster. and electronic commerce cluster.

32 Southwest Florida Key Industry Clusters Industry Overview

Southwest Florida is home to the ninth largest distribution and electronic commerce cluster in the state of Florida, based on employment. Employing some 9,218 people in the region, the distribution and electronic commerce cluster includes a diverse number of predominantly small companies engaged in wholesale activities such as farming, home furnishings, fruit and vegetable distribution, and the sale of both plants and garden equipment and sports and recreational goods. These companies typically employ less than 100 workers with only a three firms that employ over 250 workers are the backbone of many retailers, such as home and garden stores, groceries and many others that use or sell electronic products, household goods and office equipment. In all, there are 26 subclusters, categorized by NAICS codes.

Firms included in this cluster provide jobs for skilled technicians, builders, farm workers and gardeners active in agriculture, truck drivers, painters, machinists, and office support. Clearly, the type of necessary skills in this group is extremely varied, with wages and salaries starting at the minimum and higher. As this region continues to grow, the need for the services provided by these companies has been and will remain strong. This is evident in the employment growth numbers since 2009. Growth in this region was higher than that of the state (3.4 percent compared to 2 percent respectively) over the past six years. To be sure, many of these establishments individually employee small numbers of workers. However, the services they provide to support other larger companies are essential to the continued growth of a wide array of businesses. Some of the larger firms provide fire protection, landscaping and produce. As the population of this region continues to grow, each of these types of companies will be the beneficiaries of growing demand for their products and services.

Economic Profile

The distribution and electronic commerce cluster consists of 62 six-digit North American Industry Classification System (NAICS) codes, and 26 subclusters. This cluster includes a diverse group of wholesalers that buy, sell and distribute a wide range of products, such as apparel, books, drugs, metals and minerals, petroleum products, furniture, and toys. The cluster also includes firms that support e- commerce, and the rental and leasing of equipment. It is the third largest cluster in the five-county region of Southwest Florida, as measured by employment.

The five-county region ranked ninth in the state of Florida as the largest distribution and electronic commerce cluster in Florida, with an employment level of 9,218 in 2015. This cluster of 1,064 establishments in the five-county region accounted for about 3 percent of total employment in the state. In one year (2014-2015) employment decreased by a whopping 25 percent, compared to a 0.4- percent increase for the state. During the six-year period (2009-2015), the number of jobs in this cluster group grew at a robust pace of 22.2 percent, compared to only 10.3 percent for the entire state. The number of establishments in the cluster accounted for almost 4 percent of the total number of such establishments in the state. The location quotient for this cluster’s employment relative to the state and the country were both less than one, implying that the concentration of employment in this region relative to the state and the country is lower. Distribution and Electronic Commerce Economic Profile Southwest Florida Florida Employment, 2015 9,218 293,355 Number of Establishments, 2015 1,064 28,317 Short-run employment growth, 2014 to 2015 -25.0% 0.4% Long run employment growth, 2009 to 2015 22.2% 10.3% Average annual employment growth, 2009 to 2015 3.4% 2.0% Workforce Region Employment Ranking, 2015 9th -- Location Quotient, Relative to Florida, 2015 0.66 -- Location Quotient, Relative to United States, 2015 0.54 0.81 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 33 Employment by County

Distribution and Electronic Commerce Distribution and Electronic Commerce Employment Long-Run Employment Growth 6,000 2009 2015 Charlotte 4,663 4,334 Lee 6% 4,000 3,492 51%

2,112 2,000 Collier 38% 787 545 478 280 30 40 0 Hendry Lee Collier Charlotte Hendry Glades 5%

Southwest Florida had a total of 9,218 employees in the distribution and electronic commerce cluster in 2015. Of the five counties, Lee County had the largest number of employees in this cluster in 2015 (4,663), accounting for over half of the total employment for the five-county region. Collier County had the second most employees in the cluster, with 3,492 employees (37.9 percent of total employment in the cluster). Charlotte County (545 employees, 5.9 percent of total employment), Hendry County (478 employees, 5.2 percent of total employment), and Glades County (40 employees, 0.4 percent of total employment) accounted for less than 12 percent of total employment in Southwest Florida. Distribution and Electronic Commerce Employment By County County Employment Percent of Total Employment Charlotte 545 5.9% Collier 3,492 37.9% Glades 40 0.4% Hendry 478 5.2% Lee 4,663 50.6% Southwest Florida 9,218 100.0% Source: County Business Patterns: 2015

Southwest Florida had a total of 1,064 establishments in the distribution and electronic commerce cluster in 2015. Lee County accounted for the largest number of establishments (603), of which about two-thirds employed less than five employees. The majority of the establishments in this cluster employed less than 50 employees as a whole. In Collier County, there were a total of 331 establishments, with 75.8 percent of these establishments having less than five employees. Most establishments in Collier County employed less than 50 employees, with one establishment employing between 500 to 999 employees. Charlotte County (99 total establishments, 74 employing less than five employees), Hendry County (27 total establishments, 12 employing less than five employees), and Glades County (four total establishments, two employing less than five employees) all followed similar trends, with majority of establishments having less than 50 employees.

34 Southwest Florida Key Industry Clusters Distribution and Electronic Commerce Establishments By County Number of Employees in Establishment 1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to County 4 9 19 49 99 249 499 999 1000+ Total Charlotte 74 16 7 2 0 0 0 0 0 99 Collier 251 47 20 7 4 1 0 1 0 331 Glades 2 2 0 0 0 0 0 0 0 4 Hendry 12 9 2 3 0 1 0 0 0 27 Lee 402 94 60 34 9 2 2 0 0 603 Southwest Florida 741 168 89 46 13 4 2 1 0 1,064 Source: County Business Patterns: 2015

Southwest Florida had an overall increase in employment from 2009 to 2015 in the distribution and electronic commerce cluster, with a 3.4 percent average annual increase over the time span. Employment growth in the distribution and electronic commerce cluster grew for all but Charlotte County between 2009 and 2015. Hendry County, which had a total of 478 employees in the cluster, had the fastest growth rate (9.3 annual percent increase) in the region. Collier County had the second fastest annual growth rate, at 8.7 percent increase annually. Glades County, which only had 40 employees in the cluster, had a growth rate of 4.9 percent annually over the six- year period. Lee County had a small average annual growth rate over the six-year period, at 1.2 percent. Charlotte County was the only county with a decline from 2009 to 2015, with a 5.9 percent decrease annually. Distribution and Electronic Commerce Long-Run Employment Growth By County Employment Average Annual County 2009 2015 Percent Change Percent Change Charlotte 787 545 -30.7% -5.9% Collier 2,112 3,492 65.3% 8.7% Glades 30 40 33.3% 4.9% Hendry 280 478 70.7% 9.3% Lee 4,334 4,663 7.6% 1.2% Southwest Florida 7,543 9,218 22.2% 3.4% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 35 Employment by Subcluster

The table below shows employment in the 26 subclusters of the distribution and electronic commerce cluster. The wholesale of professional and commercial equipment and supplies was the largest subcluster in the region, employing 2,636 in 2015. This subcluster accounted for 28.6 percent of total employment in the cluster. The whole sale of food products was the next largest subcluster (888 employees, 9.6 percent of total employment), followed by electronic and catalog shopping (711 employees, 7.7 percent of total employment), wholesale of drugs and druggists’ sundries (587 employees, 6.4 percent of total employment), and wholesale trade agents and brokers (434 employees, 4.7 percent of total employment). Distribution and Electronic Commerce Employment By Subcluster Percent of Total Subcluster Employment Employment Wholesale of Professional and Commercial Equipment and Supplies 2,636 28.6% Wholesale of Food Products 888 9.6% Electronic and Catalog Shopping 711 7.7% Wholesale of Drugs and Druggists' Sundries 587 6.4% Wholesale Trade Agents and Brokers 434 4.7% Wholesale of Electrical and Electronic Goods 405 4.4% Rental and Leasing 357 3.9% Wholesale of Industrial Machinery, Equipment, and Supplies 354 3.8% Wholesale of Metals and Minerals (except Petroleum) 343 3.7% Wholesale of Farm Products and Supplies 324 3.5% Warehousing and Storage 309 3.4% Wholesale of Other Merchandise 292 3.2% Wholesale of Construction and Mining Machinery and Equipment 259 2.8% Wholesale of Sporting and Recreational Goods and Supplies 160 1.7% Wholesale of Furniture and Home Furnishing 158 1.7% Wholesale of Apparel and Accessories 148 1.6% Wholesale of Chemical and Allied Products 133 1.4% Wholesale of Paper and Paper Products 129 1.4% Support Services 125 1.4% Wholesale of Farm and Garden Machinery and Equipment 122 1.3% Wholesale of Petroleum and Petroleum Products 101 1.1% Wholesale of Transportation Equipment and Supplies (except Motor Vehicles) 82 0.9% Wholesale of Service Establishment Equipment, and Supplies 69 0.7% Wholesale of Jewelry, Watches, Precious Stones, and Precious Metals 42 0.5% Wholesale of Books, Periodicals, and Newspapers 40 0.4% Wholesale of Toy and Hobby Goods and Supplies 10 0.1% Total 9,218 100.0% Source: County Business Patterns: 2015

36 Southwest Florida Key Industry Clusters The table below shows a more detailed view of the number of employees in the 26 sub-clusters, disaggregated by type of establishment. The establishments are grouped by size in terms of number of employees. Of the 1,064 establishment, almost 70 percent employ under five employees. The subcluster with the most establishments of this small number of employees is wholesale trade agents and brokers, totaling 124. Close behind is the electronic and catalog shopping subcluster, with 112 establishments employing less than five workers. Only one establishment in this list employees between 500 to 999 workers, which falls under the wholesale of professional and commercial equipment and supplies subcluster. Distribution and Electronic Commerce Establishments By Subcluster Number of Employees in Establishment 10 20 50 100 250 500 1 to 5 to to to to to to to Subcluster 4 9 19 49 99 249 499 999 1000+ Total Electronic and Catalog Shopping 112 15 11 3 1 1 0 0 0 143 Wholesale Trade Agents and Brokers 124 11 4 4 0 0 0 0 0 143 Wholesale of Professional and Commercial Equipment and Supplies 73 13 10 6 1 0 1 1 0 105 Wholesale of Industrial Machinery, Equipment, and Supplies 47 10 7 3 0 0 0 0 0 67 Wholesale of Electrical and Electronic Goods 41 16 5 1 2 0 0 0 0 65 Wholesale of Other Merchandise 34 13 9 1 0 0 0 0 0 57 Wholesale of Food Products 33 8 3 2 4 2 0 0 0 52 Rental and Leasing 31 9 8 4 0 0 0 0 0 52 Wholesale of Farm Products and Supplies 27 8 2 4 0 0 0 0 0 41 Wholesale of Chemical and Allied Products 28 6 1 0 0 0 0 0 0 35 Wholesale of Drugs and Druggists' Sundries 18 7 1 5 0 0 1 0 0 32 Wholesale of Sporting and Recreational Goods and Supplies 15 12 4 0 0 0 0 0 0 31 Support Services 26 2 1 0 1 0 0 0 0 30 Wholesale of Furniture and Home Furnishing 19 3 4 1 0 0 0 0 0 27 Wholesale of Apparel and Accessories 20 2 1 3 0 0 0 0 0 26 Wholesale of Jewelry, Watches, Precious Stones, and Precious Metals 20 1 0 0 0 0 0 0 0 21 Wholesale of Metals and Minerals (except Petroleum) 10 2 5 1 2 1 0 0 0 21 Warehousing and Storage 11 4 2 2 1 0 0 0 0 20 Wholesale of Farm and Garden Machinery and Equipment 7 8 3 0 0 0 0 0 0 18 Wholesale of Construction and Mining Machinery and Equipment 7 5 2 3 1 0 0 0 0 18 Wholesale of Paper and Paper Products 11 1 2 0 0 0 0 0 0 14 Wholesale of Transportation Equipment and Supplies (except Motor Vehicles) 7 4 3 0 0 0 0 0 0 14 Wholesale of Petroleum and Petroleum Products 6 4 1 1 0 0 0 0 0 12 Wholesale of Service Establishment Equipment, and Supplies 7 3 0 1 0 0 0 0 0 11 Wholesale of Books, Periodicals, and Newspapers 6 1 0 1 0 0 0 0 0 8 Wholesale of Toy and Hobby Goods and Supplies 1 0 0 0 0 0 0 0 0 1 Total 741 168 89 46 13 4 2 1 0 1,064 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 37 The table below shows the growth rate of employment over a six-year period in the 26 subclusters of distribution and electronic commerce. Overall, employment grew at 22.2 percent, or about 3.4 percent per year. The fastest growing subcluster was wholesale of drugs and druggists' sundries, which annually grew at well over 213.9 percent, or 21 percent annually. Some subclusters experienced declines, such as warehousing and storage, wholesale farm products and supplies, wholesale farm and garden machinery and equipment, and the rental and leasing subcluster. Other subclusters had faster rates of growth but smaller numbers of employees overall. Distribution and Electronic Commerce Long-Run Employment Growth By Subcluster Employment Percent Average Annual Subcluster 2009 2015 Change Percent Change Wholesale of Drugs and Druggists' Sundries 187 587 213.9% 21.0% Wholesale of Professional and Commercial Equipment and Supplies 936 2,636 181.6% 18.8% Wholesale of Jewelry, Watches, Precious Stones, and Precious Metals 30 42 40.0% 5.8% Wholesale of Food Products 645 888 37.7% 5.5% Electronic and Catalog Shopping 547 711 30.0% 4.5% Wholesale of Sporting and Recreational Goods and Supplies 127 160 26.0% 3.9% Support Services 100 125 25.0% 3.8% Wholesale of Other Merchandise 249 292 17.3% 2.7% Wholesale of Furniture and Home Furnishing 140 158 12.9% 2.0% Wholesale of Apparel and Accessories 134 148 10.4% 1.7% Wholesale of Industrial Machinery, Equipment, and Supplies 324 354 9.3% 1.5% Wholesale of Chemical and Allied Products 135 133 -1.5% -0.2% Wholesale of Metals and Minerals (except Petroleum) 375 343 -8.5% -1.5% Wholesale of Service Establishment Equipment, and Supplies 76 69 -9.2% -1.6% Warehousing and Storage 344 309 -10.2% -1.8% Wholesale of Paper and Paper Products 145 129 -11.0% -1.9% Wholesale of Construction and Mining Machinery and Equipment 292 259 -11.3% -2.0% Wholesale of Farm and Garden Machinery and Equipment 140 122 -12.9% -2.3% Wholesale Trade Agents and Brokers 555 434 -21.8% -4.0% Rental and Leasing 480 357 -25.6% -4.8% Wholesale of Farm Products and Supplies 436 324 -25.7% -4.8% Wholesale of Transportation Equipment and Supplies (except Motor 129 82 -36.4% -7.3% Vehicles) Wholesale of Books, Periodicals, and Newspapers 70 40 -42.9% -8.9% Wholesale of Electrical and Electronic Goods 727 405 -44.3% -9.3% Wholesale of Petroleum and Petroleum Products 200 101 -49.5% -10.8% Wholesale of Toy and Hobby Goods and Supplies 20 10 -50.0% -10.9% Total 7,543 9,218 22.2% 3.4% Source: County Business Patterns: 2015

38 Southwest Florida Key Industry Clusters Workforce Ranking

The five counties representing the Southwest Florida region ranked ninth among all other regions in the state for employment in the distribution and electronic commerce cluster. This represent a little over 9,000 workers or 3.1 percent of the state’s total employment of 293,555 in 2015 in this cluster. Distribution and Electronic Commerce Workforce Rankings Rank Workforce Region Employment Level 1 South Florida 62,700 2 Broward 40,887 3 Central Florida 35,349 4 Tampa Bay 28,087 5 Northeast Florida 22,774 6 Palm Beach County 19,777 7 Pinellas 16,702 8 Polk 12,637 9 Southwest Florida 9,218 10 Research Coast 8,988 11 Suncoast 6,050 12 Brevard 4,283 13 Flagler Volusia 4,076 14 Capital Region 3,490 15 North Central Florida 3,302 16 Citrus Levy Marion 3,149 17 Pasco Hernando 3,069 18 Escarosa 2,869 19 Heartland 1,810 20 Okaloosa Walton 1,403 21 Gulf Coast 1,200 22 Florida Crown 1,026 23 North Florida 927 24 Chipola 568 Source: County Business Patterns: 2015

Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

Southwest Florida Economic Development Alliance 39 Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Distribution and Electronic Commerce Occupations By Total Employed Total Working Number of Number Across All Available of Entry Median Experienced Occupation Industries Applicants Graduates Wage Wage Wage Education Level Office Clerks, General 8,666 176 0 $9.24 $12.43 $15.85 High School/GED Post Secondary Customer Service Representatives 7,443 463 0 $10.90 $14.67 $17.28 Adult Vocational Stock Clerks and Order Fillers 7,147 150 0 $9.28 $11.39 $13.33 High School/GED Bookkeeping, Accounting, and Auditing 5,279 111 38 $11.88 $16.47 $19.84 Some College Clerks Receptionists and Information Clerks 4,978 134 52 $10.09 $13.12 $15.20 High School/GED Sales Representatives, Services, All Other 4,473 41 0 $14.06 $25.08 $39.93 High School/GED Sales Representatives, Wholesale and Post Secondary Manufacturing, Except Technical and 4,395 22 0 $12.27 $20.79 $38.58 Adult Vocational Scientific Products First-Line Supervisors of Office and 4,285 35 77 $15.45 $22.32 $26.81 Some College Administrative Support Workers Business Operations Specialists, All Other 2,703 22 0 $17.48 $28.41 $35.46 Some College Billing and Posting Clerks 1,793 24 0 $13.02 $16.68 $19.06 High School/GED

Counter and Rental Clerks 1,789 15 0 $9.69 $11.77 $15.59 High School/GED Post Secondary Shipping, Receiving, and Traffic Clerks 1,251 24 0 $9.81 $12.55 $15.00 Adult Vocational Managers, All Other 1,184 99 29 $22.49 $36.00 $47.04 Some College File Clerks 734 4 0 $10.11 $13.39 $15.47 High School/GED Sales Representatives, Wholesale and Post Secondary Manufacturing, Technical and Scientific 549 19 0 $18.83 $32.57 $50.33 Adult Vocational Products Sales Managers 545 79 98 $35.45 $61.68 $79.49 Bachelor's Degree Order Clerks 438 2 0 $10.24 $13.78 $15.80 High School/GED Wholesale and Retail Buyers, Except Farm 109 16 0 $15.95 $23.36 $30.68 Some College Products Transportation, Storage, and Distribution 95 7 23 $31.14 $43.40 $52.88 Some College Managers Purchasing Managers 68 10 26 $37.92 $57.67 $80.71 Some College Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

40 Southwest Florida Key Industry Clusters Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 Pacific Tomato Growers, which was the first grower to sign a Fair Food agreement in tomatoes with the Coalition of Immokalee Workers in 2010, became the first grower to sign a Fair Food agreement in strawberries in 2016. The partnership brings together workers, consumers, growers, and retailers in support of humane labor standards in U.S. agriculture.  I Heart Media, a leader in multiplatform connections that was organized into four regions in Florida, is now be comprised of two regions – Central/North Florida and South Florida. The South Florida Region includes West Palm Beach, Fort Pierce, Miami/Fort Lauderdale, Fort Myers/Naples and Punta Gorda. Iheartradio Includes a number of iconic brands and franchises such as Y100, Big 105.9, MEGA 94.9, 103.5 The Beat, 93.9 MIA, 940 WINZ and News Radio 610 WIOD. It produces popular events during the year, including the Y100 Jingle Ball.  Immokalee-based Lipman Produce, the largest open field tomato grower in North America, announced that it will continue to support small farmers across the country through an initiative called “Lipman Local.” This is part of its ongoing commitment to assist growers, smaller seasonal farms and sub-suppliers in the country by sharing best practices to help them improve yields and efficiencies. Lipman will also offer assistance with crop quality and will help growers achieve necessary food safety certifications and education.  The pool of workers in farms, with more than half of them represented by undocumented immigrants, is shrinking. As such, farm owners say costs are rising. Many are leaving unpicked fruit to rot in the fields. Some producers have opted to leave the U.S. for countries with lower costs and fewer regulations. The SWFL region will be affected by any new changes in the rules and regulations dealing with immigrant workers.  In 2016, Herc Holdings Inc. was established in Bonita Springs as a spinoff from Hertz Rental Car Holding Company. Herc Holdings Inc. will operate the equipment rental business, while Hertz Global Holdings, Inc. will maintain the car rental operations. Herc began trading on the New York Stock Exchange under the symbol HRI. Its equipment rental revenues exceeded $1.35 billion in 2016.

EVENTS, AWARDS AND RECOGNITIONS

 Immokalee-based Lipman Produce received the 2016 Virginia Clean Water Farm Award. Lipman operates in Florida, South Carolina, Virginia, Maryland, California, and Mexico.  The Southwest Florida Research and Education Center completed a 7,000 square-foot expansion to its research facility in Immokalee in 2015, in order to provide more office and lab space for its researchers. In 2017, it added four new greenhouses to its facilities as well. The SWFREC was dedicated in 1986 as a UF/Institute of Food and Agricultural Sciences (IFAS) station and conducts nationally and internationally recognized research, extension, and teaching programs.

Southwest Florida Economic Development Alliance 41 Companies

 Pacific Tomato Growers, Ltd  Farm-Op Citrus Division www.sunripeproduce.com www.farm-op-citrus-division.com  American Farms, LLC  American Farms LLC www.american-farms.com www.american-farms.com  Herc Holding Inc.  J & J AG Products of Clewiston ir.hercrentals.com www.jjagproducts.com  Master Protection LP  Kelly Tractor of Clewiston www.masterprotection.com www.kellytractor.com  I Heart Media  Cardinal Health of Punta Gorda www.iheartmedia.com www.cardinalhealth.com  Lipman Produce  Charlotte County Water, Port Charlotte www.lipmanfamilyfarms.com www.charlottecountyfl.gov

Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the distribution and electronic commerce cluster would include the following:

 Florida Gulf Coast University  Florida Atlantic University www.fgcu.edu www.fau.edu  Rasmussen College  Florida International University www.rasmussen.edu www.fiu.edu  University of Miami  Miami-Dade College www.miami.edu www.mdc.edu  University of Central Florida  University of Florida www.ucf.edu www.ufl.edu

42 Southwest Florida Key Industry Clusters Cluster Definition

The distribution and electronic commerce cluster is comprised of 62 six-digit NAICS codes that form twenty-six subclusters. A list of each subcluster and NAICS category, along with the appropriate six-digit NAICS code, can be found in the table below.

Distribution and Electronic Commerce Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Warehousing and Storage General Warehousing and Storage 493110 Refrigerated Warehousing and Storage 493120 Other Warehousing and Storage 493190 Electronic and Catalog Shopping Business to Business Electronic Markets 425110 Electronic Shopping 454111 Electronic Auctions 454112 Mail-Order Houses 454113 Wholesale Trade Agents and Brokers Wholesale Trade Agents and Brokers 425120 Support Services All Other Business Support Services 561499 Packaging and Labeling Services 561910 Wholesale of Apparel and Accessories Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers 424310 Men's and Boys' Clothing and Furnishings Merchant Wholesalers 424320 Women's, Children's, and Infants' Clothing and Accessories Merchant Wholesalers 424330 Footwear Merchant Wholesalers 424340 Wholesale of Books, Periodicals, and Newspapers Book, Periodical, and Newspaper Merchant Wholesalers 424920 Wholesale of Chemical and Allied Products Plastics Materials and Basic Forms and Shapes Merchant Wholesalers 424610 Other Chemical and Allied Products Merchant Wholesalers 424690 Wholesale of Drugs and Druggists' Sundries Drugs and Druggists' Sundries Merchant Wholesalers 424210 Wholesale of Farm Products and Supplies Other Farm Product Raw Material Merchant Wholesalers 424590 Farm Supplies Merchant Wholesalers 424910 Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers 424930 Tobacco and Tobacco Product Merchant Wholesalers 424940 Farm Product Warehousing and Storage 493130 Wholesale of Food Products Poultry and Poultry Product Merchant Wholesalers 424440 Fish and Seafood Merchant Wholesalers 424460 Meat and Meat Product Merchant Wholesalers 424470 Fresh Fruit and Vegetable Merchant Wholesalers 424480 Wine and Distilled Alcoholic Beverage Merchant Wholesalers 424820 Wholesale of Furniture and Home Furnishing Furniture Merchant Wholesalers 423210 Home Furnishing Merchant Wholesalers 423220 Wholesale of Jewelry, Watches, Precious Stones, and Precious Metals Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers 423940

Southwest Florida Economic Development Alliance 43 Wholesale of Paper and Paper Products Printing and Writing Paper Merchant Wholesalers 424110 Stationery and Office Supplies Merchant Wholesalers 424120 Industrial and Personal Service Paper Merchant Wholesalers 424130 Wholesale of Sporting and Recreational Goods and Supplies Sporting and Recreational Goods and Supplies Merchant Wholesalers 423910 Wholesale of Toy and Hobby Goods and Supplies Toy and Hobby Goods and Supplies Merchant Wholesalers 423920 Wholesale of Other Merchandise Paint, Varnish, and Supplies Merchant Wholesalers 424950 Other Miscellaneous Nondurable Goods Merchant Wholesalers 424990 Wholesale of Farm and Garden Machinery and Equipment Farm and Garden Machinery and Equipment Merchant Wholesalers 423820 Wholesale of Construction and Mining Machinery and Equipment Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers 423810 Wholesale of Industrial Machinery, Equipment, and Supplies Industrial Machinery and Equipment Merchant Wholesalers 423830 Industrial Supplies Merchant Wholesalers 423840 Wholesale of Service Establishment Equipment, and Supplies Service Establishment Equipment and Supplies Merchant Wholesalers 423850 Wholesale of Transportation Equipment and Supplies (except Motor Vehicles) Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers 423860 Wholesale of Professional and Commercial Equipment and Supplies Photographic Equipment and Supplies Merchant Wholesalers 423410 Office Equipment Merchant Wholesalers 423420 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers 423430 Other Commercial Equipment Merchant Wholesalers 423440 Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers 423450 Ophthalmic Goods Merchant Wholesalers 423460 Other Professional Equipment and Supplies Merchant Wholesalers 423490 Wholesale of Electrical and Electronic Goods Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers 423610 Household Appliances, Electric Housewares, and Consumer Electronics Merchant Wholesalers 423620 Other Electronic Parts and Equipment Merchant Wholesalers 423690 Wholesale of Metals and Minerals (except Petroleum) Metal Service Centers and Other Metal Merchant Wholesalers 423510 Coal and Other Mineral and Ore Merchant Wholesalers 423520 Wholesale of Petroleum and Petroleum Products Petroleum Bulk Stations and Terminals 424710 Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) 424720 Rental and Leasing Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing 532411 Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing 532412 Office Machinery and Equipment Rental and Leasing 532420 Other Commercial and Industrial Machinery and Equipment Rental and Leasing 532490 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

44 Southwest Florida Key Industry Clusters Education and Knowledge Creation Education and Knowledge Creation

11th 6,131 296 Largest education and Employed in the education and Establishments in the knowledge creation cluster in knowledge creation cluster. education and knowledge Florida. creation cluster.

0.8% 187 Average annual employment Job seekers from top 20 growth in the education and occupations in the education knowledge creation cluster. and knowledge creation cluster.

Southwest Florida Economic Development Alliance 45 Industry Overview

The education and knowledge creation cluster in this section includes private educational institutions and organizations that provide tutoring and training programs. Specifically, these private institutions include business and secretarial schools, professional training programs, junior colleges and four-year universities. It also includes research organizations in biotechnology, physical, engineering and life sciences. This cluster does not include public sector educational institutions, which includes charter schools.

The region has a total of 90 private schools (grades K through 12) across the five counties, serving almost 12,000 students. The average tuition in the region is slightly higher than the national average and as well as for the state.

This sector provides significant employment opportunities, ranking 11th in the state for employment in education and knowledge creation. This cluster includes both traded and local cluster data. Traded industries are those institutions that are concentrated in the region, such as universities and colleges, which provide services that span the country. The data shows that employment has been stable over a long-term period (2009-2015). In contrast, the local industry data represents institutions, such as private schools (grades K through 12), that are dispersed across the region and serve the local market. In this case, the service being provided is education and knowledge creation, both of which contain positive spillovers for both the region and the nation. Economic Profile

The education and knowledge creation cluster consists of 20 six-digit North American Industry Classification System (NAICS) codes including business and secretarial schools, professional training programs, junior colleges, and four-year universities. It also includes research organizations in biotechnology, physical, engineering, and life sciences. Average annual employment in this cluster grew 0.8 percent from 2009 to 2015. The location quotients (LQ) for this cluster’s employment relative to the state and the country were less than 1, implying that the concentration of employment in this region relative to the state and the country is lower. However, the Southwest region’s LQ for the local cluster relative to the state was close to 1 (.93).

The five-county region ranked 11th out of 24 state workforce regions in employment for the traded cluster and ninth for the local cluster, with a total employment level of 6,131 in 2015. The region had 296 total establishments for the education and knowledge creation cluster in 2015. Southwest Florida saw a 1.9 percent decrease in the traded component of the employment in this cluster, and a 2.9 percent increase in the local component of education and knowledge creation employment over the past year. This compared to increases in both components at the state level, with the state gain equaling 7.1 percent. The five-county region had a 17.3 percent increase in employment from 2009 to 2015. The employment gains during this time period were below the gains by the state of Florida, which had 18.4 percent growth over the six-year period. Education and Knowledge Creation Economic Profile Southwest Florida Florida Traded Local Total Traded Local Total Employment, 2015 2,622 3,509 6,131 110,444 79,655 190,099 Number of Establishments, 2015 170 126 296 4,146 2,873 7,019 Short-run employment growth, 2014 to 2015 -1.9% 2.9% 0.8% 11.3% 1.8% 7.1% Long-run employment growth, 2009 to 2015 0.4% 34.2% 17.3% 19.7% 16.5% 18.4% Average annual employment growth, 2009 to 2015 0.1% 5.0% 0.8% 3.7% 3.1% 3.4% Workforce Region Employment Ranking, 2015 11th 9th 11th ------Location Quotient, Relative to Florida, 2015 0.50 0.93 ------Location Quotient, Relative to United States, 2015 0.28 0.78 -- 0.56 0.84 -- Source: County Business Patterns: 2015

46 Southwest Florida Key Industry Clusters Employment by County

Education and Knowledge Creation Education and Knowledge Creation Long-Run Employment Growth Employment 4,000 2009 2015 3,396 3,500 Hendry 3,000 2,670 3% Lee 2,500 2,218 2,319 2,000 55% 1,500 Collier 1,000 38% 500 247 256 150 81 10 10 0 Charlotte Lee Collier Charlotte Hendry Glades 4%

Southwest Florida’s employment in both traded and local clusters for education and knowledge creation totaled 6,131 employees in 2015. Lee County was the largest contributor to the cluster with 3,396 employees, or 55.4 percent of the total employment among the five counties. This was followed by Collier County, with a total of 2,319 employees, or nearly 38 percent of total employment in the education and knowledge creation cluster. Employment in the remaining three counties was significantly smaller. Adding up the employees from Charlotte, Hendry and Glades amounted to just under 7 percent of the total. Education and Knowledge Creation Employment By County County Traded Local Total Percent of Total Employment Charlotte 110 146 256 4.2% Collier 1,226 1,093 2,319 37.8% Glades 0 10 10 0.2% Hendry 80 70 150 2.4% Lee 1,206 2,190 3,396 55.4% Southwest Florida 2,622 3,509 6,131 100.0% Source: County Business Patterns: 2015

The number of employees by establishment in the education and knowledge creation cluster congregated primarily in establishments that had fewer than 50 employees. Combining Collier and Lee County, just two establishments employed between 250 and 999 workers. About half of the establishments in Southwest Florida employed less than five workers, while 90 percent employed up to 49 workers. Both Hendry and Glades counties had a total of seven establishments, largely employing less than five workers. Education and Knowledge Creation Establishments By County Number of Employees in Establishment 10 to 20 to 50 to 100 to 250 to 500 to County 1 to 4 5 to 9 19 49 99 249 499 999 1000+ Total Charlotte 16 7 1 5 0 0 0 0 0 29 Collier 43 17 13 15 5 4 0 1 0 98 Glades 2 0 0 0 0 0 0 0 0 2 Hendry 3 0 0 2 0 0 0 0 0 5 Lee 82 25 13 22 10 9 1 0 0 162 Southwest Florida 146 49 27 44 15 13 1 1 0 296 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 47

Southwest Florida’s education and knowledge creation cluster was a source of major employment growth for Southwest Florida from 2009 to 2015, with a 17.3 percent increase in employment. The fastest growth was in the local cluster component, which grew 34.2 percent over the six-year period, while the traded cluster grew only 0.4 percent over the same time span. Growth rates ranged widely among the five counties. Hendry County had the largest overall growth in the education and knowledge created cluster, growing 85.2 percent overall. Most of the growth came from the traded cluster (300 percent increase from 2009 to 2015), as well as some growth from the local cluster (14.8 percent increase). Lee County had the second-largest growth in the region, growing 27.2 percent over six years. Local cluster growth was substantially higher than growth from the traded cluster (37.8 percent versus 11.6 percent). Collier County had a 4.6 percent increase in the education and knowledge creation cluster. Despite the fact that the county had a decrease from the traded portion of the cluster (12.5 percent decrease), the county had a 33.8 percent increase from the local portion. Finally, Charlotte County had a 3.6 percent increase in this cluster, with all the growth coming from the local portion of the subcluster. Glades County had no change over the six-year span. Education and Knowledge Creation Five Year Employment Growth By County Traded Local Total County Percent Percent Percent 2009 2015 2009 2015 2009 2015 Change Change Change Charlotte 110 110 0.0% 137 146 6.6% 247 256 3.6% Collier 1,401 1,226 -12.5% 817 1,093 33.8% 2,218 2,319 4.6% Glades 0 0 N/A 10 10 0.0% 10 10 0.0% Hendry 20 80 300.0% 61 70 14.8% 81 150 85.2% Lee 1,081 1,206 11.6% 1,589 2,190 37.8% 2,670 3,396 27.2% Southwest Florida 2,612 2,622 0.4% 2,614 3,509 34.2% 5,226 6,131 17.3% Source: County Business Patterns: 2015

Employment by Subcluster

The table below shows the types of education and knowledge creation programs and schools that comprise the traded and local education cluster. The highest employment occurs in the colleges, universities and professional schools under the traded education cluster, representing about 40.7 percent of the traded portion of the cluster and 21 percent of the total cluster. In the local education cluster alone, elementary and secondary schools account for the largest proportion of employment, for both the local cluster alone as well as for the combination of the two education clusters (nearly 47 percent). Education and Knowledge Creation Employment By Subcluster Subcluster Employment Percent of Total Employment Traded Education Colleges, Universities, and Professional Schools 1,068 17.4% Training Programs 796 13.0% Research Organizations 649 10.6% Professional Organizations 61 1.0% Educational Support Services 48 0.8% Local Education Elementary and Secondary Schools 2,902 47.3% Job Training Services 474 7.7% Recreational and Other Services 133 2.2% Total 6,131 100.0% Source: County Business Patterns: 2015

48 Southwest Florida Key Industry Clusters The table below depicts disaggregated data by number of employees. From a total of 296 establishments for both traded and local education, it can be seen that most of the establishments employ 50 or less. Furthermore, about half of the 296 establishments employ less than five workers. As expected, the types of establishments with more than 50 employees are colleges, universities, professional schools, along with the elementary and secondary schools. Education and Knowledge Creation Establishments By Subcluster Number of Employees in Establishment

1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to Subcluster 1000+ Total 4 9 19 49 99 249 499 999 Traded Education Training Programs 45 16 12 6 0 1 0 0 0 80 Research Organizations 27 5 5 4 0 2 0 0 0 43 Educational Support Services 17 3 0 1 0 0 0 0 0 21 Professional Organizations 13 1 0 1 0 0 0 0 0 15 Colleges, Universities, and Professional 1 0 0 2 4 3 0 1 0 11 Schools Local Education Elementary and Secondary Schools 6 10 8 25 8 7 1 0 0 65 Recreational and Other Services 23 7 2 0 0 0 0 0 0 32 Job Training Services 14 7 0 5 3 0 0 0 0 29 Total 146 49 27 44 15 13 1 1 0 296 Source: County Business Patterns: 2015

The table below shows the pattern over the six-year period of 2009-2015 in traded and local education clusters. Largest increases occurred in research organizations (239.8 percent increase), job training services (183.8 percent increase), and universities and colleges (62.1 percent increase). Major declines occurred in training programs (51.1 percent decrease), educational support services (34.2 percent decrease), and recreational and other services (17.9 percent decrease). Education and Knowledge Creation Long-Run Employment Growth By Subcluster Employment Average Annual Subcluster Percent Change 2009 2015 Percent Change Traded Education Research Organizations 191 649 239.8% 22.6% Colleges, Universities, and Professional Schools 659 1,068 62.1% 8.4% Professional Organizations 62 61 -1.6% -0.3% Educational Support Services 73 48 -34.2% -6.7% Training Programs 1,627 796 -51.1% -11.2% Local Education Job Training Services 167 474 183.8% 19.0% Elementary and Secondary Schools 2,285 2,902 27.0% 4.1% Recreational and Other Services 162 133 -17.9% -3.2%

Total 5,226 6,131 17.3% 2.7% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 49 Workforce Ranking

The five counties representing the Southwest Florida region ranked 11th among all other regions in the state for employment in the education and knowledge creation cluster. This represent a little over 6 percent of the state’s total employment of 95,129 in 2015 for this cluster. Education and Knowledge Creation Workforce Rankings Rank Workforce Region Employment Level 1 South Florida 35,262 2 Broward 24,116 3 Central Florida 23,442 4 Tampa Bay 15,322 5 Palm Beach County 12,926 6 Northeast Florida 12,586 7 Pinellas 8,566 8 Brevard 7,694 9 Flagler Volusia 7,639 10 Escarosa 6,632 11 Southwest Florida 6,131 12 Polk 4,563 13 Pasco Hernando 4,071 14 Suncoast 3,668 15 Research Coast 3,031 16 Capital Region 2,497 17 North Central Florida 2,405 18 Citrus Levy Marion 1,867 19 Okaloosa Walton 985 20 Gulf Coast 940 21 Florida Crown 613 22 Heartland 475 23 Chipola 305 24 North Florida 256 Source: County Business Patterns: 2015

Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

50 Southwest Florida Key Industry Clusters Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Education and Knowledge Creation Occupations By Total Employed Total Number of Number Working Entry Median Experienced Occupation Available of Education Level Across All Wage Wage Wage Applicants Graduates Industries Elementary School Teachers, Except 3,960 7 44 $25.59 $29.54 $33.69 Bachelor's Degree Special Education Childcare Workers 2,641 52 2 $8.82 $10.31 $11.94 PSAV Teacher Assistants 2,273 23 0 $12.94 $16.72 $18.63 PSAV Secondary School Teachers, Except 2,240 4 7 $25.56 $30.86 $35.06 Bachelor's Degree Special and Career/Technical Education Middle School Teachers, Except Special 1,973 4 7 $25.23 $29.73 $33.89 Bachelor's Degree and Career/Technical Education Teachers and Instructors, All Other 952 18 0 N/R N/R N/R Bachelor's Degree Preschool Teachers, Except Special 943 6 17 $9.02 $11.04 $14.20 Some College Education Self-Enrichment Education Teachers 575 3 0 $9.17 $13.82 $19.96 PSAV Master's Degree or Child, Family, and School Social Workers 511 20 0 $13.93 $18.29 $23.01 Higher Career/Technical Education Teachers, 430 6 0 $25.68 $34.20 $38.75 Bachelor's Degree Secondary School Education, Training, and Library 417 9 0 $20.48 $37.48 $39.84 Bachelor's Degree Workers, All Other Educational, Guidance, School, and Master's Degree or 392 10 0 $20.44 $31.60 $35.23 Vocational Counselors Higher Master's Degree or Librarians 267 3 0 $21.14 $28.71 $33.51 Higher Education Administrators, Elementary 263 1 0 $38.38 $49.83 $56.66 Bachelor's Degree and Secondary Business Teachers, Postsecondary 242 1 0 $23.96 $41.23 $58.28 Bachelor's Degree Health Educators 163 3 0 $14.71 $26.85 $33.06 Bachelor's Degree Vocational Education Teachers, 149 1 0 $12.88 $19.97 $28.98 Some College Postsecondary Computer Science Teachers, 137 0 1 $17.57 $31.65 $44.70 Bachelor's Degree Postsecondary Mathematical Science Teachers, Master's Degree or 136 1 0 $20.30 $30.36 $36.88 Postsecondary Higher Master's Degree or Education Teachers, Postsecondary 134 15 0 $24.86 $35.98 $42.07 Higher Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

Southwest Florida Economic Development Alliance 51 Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 In 2015, Florida Gulf Coast University broke ground at the university’s Emerging Technologies Institute site. The six-acre plot houses the institute, as well as the Innovation Hub Park. Florida’s Governor Rick Scott approved a $7 million grant to complete the project last June, bringing the total cost to about $12 million.  In 2016, Hodges University announced the establishment of a new, one-year Licensed Practicing Nurse program. The Florida Center for Nursing in Orlando, a statewide workforce center on the industry, reports that Lee and Collier counties have nine LPN training programs out of 14 educational institutions that offer nursing programs, including four-year degree programs.  In response to regional industry need, Florida SouthWestern State College’s Supervision and Management bachelor degree program adopted four new areas of focus: Accounting, Retail Management and Marketing, Entrepreneurship, and Health Services Administration.  Florida Southwestern State College now customizes student plans based on career goals that can combine studies in its School of Business and Technology and its School of Health Professions. The four focus areas result from a regional research initiative by Workforce Now to identify current and future talent requirements for the five counties of Southwest Florida and to highlight workforce gaps including skills and characteristics desired by regional employers.  Collier County boasts 29 private schools serving 5000 students and a teacher ratio of 10:1. Tuition ranges from about $8,500 for elementary education to $14,500 for high school. Of the private schools in Collier County, 62 percent are religiously affiliated and accept 83 percent of all applicants.  Lee County has 46 private schools that serve 6,800 students. Tuition ranges from about $8,900 for elementary education to about $13,500 for high school. Of the private schools in Lee County, 76 percent are religiously affiliated with a student teacher ratio of 13:1.  Charlotte, Glades and Hendry counties have a total of 11 private schools serving about 1,300 students in total.  Florida’s State Board of Education approved a new performance funding model for Florida’s 28 public state colleges in 2015. Florida SouthWestern State College (FSW) ranks 7th overall, earning the institution a “Gold Tier” rank, signifying success in a broad range of performance with great emphasis on student outcomes.  In July 2017, two 16-year old students that participated in the Immokalee Foundation’s ENGAGE Summer Academy each won $500 college scholarships for creating the Energos app. This app informs students and parents about activities in the area that engage students in the summer, such as clubs, sports and volunteer opportunities.

52 Southwest Florida Key Industry Clusters Educational Organizations

SELECTED SCHOOLS AND TRAINING CENTERS

 Bishop Verot High School  Community School of Naples www.bvhs.org www.communityschoolnaples.org  Fort Myers Christian School  St. Francis Xavier www.fmcs-fl.org www.francisfortmyers.org  Naples Christian Academy  Seacrest Country Day School www.napleschristian.net www.seacrest.org  Agape Christian Academy  Ave Maria University www.agapechristian.us www.avemaria.edu  Florida Gulf Coast University  Huntington Learning Center www.fgcu.edu huntingtonhelps.com  Hodges University  Lorenzo Walker Technical Center www.hodges.edu www.lwtc.edu

Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the education and knowledge creation cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  Hodges University  Keiser University www.hodges.edu www.keiseruniversity.edu  Rasmussen College  Florida Atlantic University www.rasmussen.edu www.fau.edu  Broward College  Florida International University www.broward.edu www.fiu.edu  University of Miami  Miami-Dade College www.miami.edu www.mdc.edu  Florida State University  University of Florida www.fsu.edu www.ufl.edu  University of Central Florida  University of South Florida www.ucf.edu www.usf.edu

Southwest Florida Economic Development Alliance 53 Cluster Definition

The education and knowledge creation cluster consists of 20 six-digit North American Industry Classification System (NAICS) codes with eight subclusters including professional training programs, junior colleges and four year universities, research organizations, professional organizations and educational support services. This cluster does not include public sector educational institutions.

Education and Knowledge Creation Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Training Programs Business and Secretarial Schools 611410 Computer Training 611420 Professional and Management Development Training 611430 Flight Training 611512 Apprenticeship Training 611513 Language Schools 611630 Exam Preparation and Tutoring 611691 All Other Miscellaneous Schools and Instruction 611699 Colleges, Universities, and Professional Schools Junior Colleges 611210 Colleges, Universities, and Professional Schools 611310 Educational Support Services Educational Support Services 611710 Research Organizations Research and Development in Biotechnology 541711 Research and Development in the Physical, Engineering, and Life Sciences (except 541712 Biotechnology) Research and Development in the Social Sciences and Humanities 541720 Professional Organizations Professional Organizations 813920 Elementary and Secondary Schools Elementary and Secondary Schools 611110 Job Training Services Other Technical and Trade Schools 611519 Vocational Rehabilitation Services 624310 Recreational and Other Services Fine Arts Schools 611610 Automobile Driving Schools 611692 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

54 Southwest Florida Key Industry Clusters Financial Services Financial Services

8th 11,208 1,910 Largest financial services Employed in the financial Establishments in the financial cluster in Florida. services cluster. services cluster.

-1.5% 928 Average annual employment Job seekers from top 20 growth in the financial services occupations in the financial cluster. services cluster.

Southwest Florida Economic Development Alliance 55 Industry Overview

The financial services cluster in Southwest Florida was the eighth largest financial services cluster in the state of Florida, based on employment. Employing some 11,000 people in the region (2,800 in the traded subcluster), it is an industry that provides wealth management services to a region that includes one of the wealthiest counties in the nation (Collier County). According to an article in Forbes, “America’s wealthy like warm weather and low taxes.” This group of residents and transplants has caused the population of this area to swell. Along with their needs for housing and recreation comes the need for wealth management and advice.

Firms in this cluster include predominantly financial investment firms, securities brokers and dealers, and credit intermediaries. Virtually all of them are small establishments, employing 20 workers or less. Many are branches of larger investment companies and banks, whose headquarters are in other parts of the state or the country. The largest two counties of the region account for the largest number of establishments of these types of firms.

A key characteristic of the financial services cluster is that it provides services such as wealth management to the growing retiree sector of the population that have relocated to the region and come with significant wealth to manage. Major financial institutions have moved away from providing wealth management services due to flat or declining revenues from this service. Changes in regulations affecting financial institutions could reverse this trend. Regardless of the provider, there is still and always will be the need to have establishments that have the expertise to provide advisory services in the area of wealth transfer and investment advice in the wealthier regions.

The data shows that this cluster had undergone some significant changes over the 2009-2015 period. Initial declines in number of employees and establishments in the early part of that period have turned around for two of the counties in this region. Those working in this cluster tend to be higher paid relative to the other clusters in this study. It is expected to continue as baby boomers continue to retire and transfer equity to the region.

Economic Profile

The financial services cluster consists of 32 six-digit North American Industry Classification System (NAICS) codes that define the 10 subclusters. The cluster consists of establishments that are involved with transactions that aid in the growth of financial assets, both for businesses and individuals. Firms that are part of this cluster include brokers, dealers, credit institutions and financial advisors. It also includes Federal Reserve employees, representing the monetary authority that oversees the activities of these firms and exchanges. In the five counties that represent the Southwest region of Florida, this cluster accounted for 3 percent of total employment in the state in 2015.

The five-county region ranked eighth in the state of Florida in employment in financial services. From 2009 to 2015, total employment in the traded segment of this cluster tracked that of the state, declining 11.5 percent. This reflected the continued adjustments made in this cluster following the financial crisis that began in 2007. However, combined with the local cluster, employment fell by a greater amount than the total decline in the state (-5.3 percent vs. -1.1 percent, respectively). A slowdown in the decline became evident in the more recent year to year change (2014-2015), with total jobs declining just .1 percent compared to 1.6 percent for the state. The total number of establishments in this cluster in the five-county region represented 6.3 percent of the state’s total financial services establishments in 2015. The ratio of local to traded financial services establishments in Southwest Florida was almost two to one. The location quotient for this cluster’s traded employment was just 0.5. Recalling that traded clusters refer to firms that tend to be unique and indicate the degree of a region’s comparative advantage, the low LQ implies that the region does not enjoy a comparative advantage in financial services.

56 Southwest Florida Key Industry Clusters Financial Services Economic Profile Southwest Florida Florida Traded Local Total Traded Local Total Employment, 2015 2,817 8,391 11,208 95,129 176,426 271,555 Number of Establishments, 2015 696 1,214 1,910 11,882 18,301 30,183 Short-run employment growth, 2014 to 2015 -0.5% 0.1% -0.1% -2.8% -0.9% -1.6% Long-run employment growth, 2009 to 2015 -11.5% -3.1% -5.3% -10.9% 5.1% -1.1% Average annual employment growth, 2009 to 2015 -2.0% -0.5% -1.5% -2.3% 1.0% -0.2% Workforce Region Employment Ranking, 2015 8th 7th 8th ------Location Quotient, Relative to Florida, 2015 0.62 1.00 ------Location Quotient, Relative to United States, 2015 0.49 0.94 -- 0.79 0.94 -- Source: County Business Patterns: 2015

Employment by County

Financial Services Financial Services Long-Run Employment Growth Employment 7,000 2009 2015 Hendry 6,082 2% 6,000 5,685 5,000 3,999 4,055 Lee 4,000 51% 3,000 Collier 2,000 1,323 1,191 36% 1,000 415 237 20 40 0 Charlotte Lee Collier Charlotte Hendry Glades 11% Southwest Florida’s financial services cluster totaled 11,208 employees in 2015. Employment in the local portion of the cluster was almost three times more than that of the traded portion. Lee County accounted for the largest proportion of jobs (50.7 percent) in this cluster, with 5,685 employees. Collier County followed closely behind with the next highest number of employees, in both the traded and local financial services clusters, with 4,055 employees, representing 36.2 percent of the total for the region. With Charlotte County’s 1,191 employees, the three counties accounted for about 97 percent of the total employment in financial services. Financial Services Employment By County County Traded Local Total Percent of Total Employment Charlotte 241 950 1,191 10.6% Collier 1,245 2,810 4,055 36.2% Glades 20 20 40 0.4% Hendry 40 197 237 2.1% Lee 1,271 4,414 5,685 50.7% Southwest Florida 2,817 8,391 11,208 100.0% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 57 Southwest Florida had a total of 1,910 establishments in the financial services cluster in 2015, with the majority of the firms in this cluster (over 85 percent) employing less than 10 workers. Lee County accounted for the largest number of establishments (1,024), with only three employing more than 100 employees. Collier County had the second-largest number of establishments in this cluster, with all but one firm employing less than 100 workers. Charlotte County had 211 establishments, with just 29 employing more than 10 workers but no firms with over 100. Hendry and Glades counties had 34 and five establishments, respectively, all with less than 100 employees. This cluster consists of predominantly small-sized firms. Financial Services Establishments By County Number of Employees in Establishment 10 to 20 to 50 to 100 to 250 to 500 to County 1 to 4 5 to 9 19 49 99 249 499 999 1000+ Total Charlotte 126 56 23 5 1 0 0 0 0 211 Collier 383 159 60 22 11 1 0 0 0 636 Glades 3 2 0 0 0 0 0 0 0 5 Hendry 21 7 5 0 1 0 0 0 0 34 Lee 657 236 93 30 5 2 1 0 0 1,024 Southwest Florida 1,190 460 181 57 18 3 1 0 0 1,910 Source: County Business Patterns: 2015

The five-county region experienced a 5.3 percentage point decline in jobs in the financial services cluster from 2009 to 2015. While financial service jobs doubled in Glades County, all but Collier County experienced losses between 2009 and 2015. Employment in the traded portion of this cluster was hardest hit, with an 11.5 percent decline during this period. Hardest hit relative to their 2009 numbers, were Charlotte and Hendry counties. Declines in employment in the local portion of this cluster overall were milder (3.1 percent for the region) but mixed depending on the county. While Lee County lost almost 300 local jobs during this period, Collier County gained about 150 jobs in the local cluster. Hendry County lost a substantial number of jobs relative to its size, in both the traded and the local clusters. The local cluster jobs in Charlotte and Glades County remained virtually unchanged from 2009 to 2015. Financial Services Long-Run Employment Growth By County Traded Local Total County 2009 2015 Percent Change 2009 2015 Percent Change 2009 2015 Percent Change

Charlotte 372 241 -35.2% 951 950 -0.1% 1,323 1,191 -10.0%

Collier 1,341 1,245 -7.2% 2,658 2,810 5.7% 3,999 4,055 1.4%

Glades 0 20 N/A 20 20 0.0% 20 40 100.0%

Hendry 100 40 -60.0% 315 197 -37.5% 415 237 -42.9%

Lee 1,370 1,271 -7.2% 4,712 4,414 -6.3% 6,082 5,685 -6.5%

Southwest Florida 3,183 2,817 -11.5% 8,656 8,391 -3.1% 11,839 11,208 -5.3% Source: County Business Patterns: 2015

As shown on the table below, Southwest Florida had an overall decline in the number of financial service establishments over the six- year period. The loss of firms was concentrated in Charlotte County, which was the only county in the region that experienced a decline in financial service establishments from 2009 to 2015. Although all the counties in the region experienced losses of traded firms, all but Charlotte saw gains in local firms. (Glades County lost just one of its four firms). This data affirms that the region does not have a comparative advantage in the financial services market, as evident by the loss of firms in the traded portion of the cluster.

58 Southwest Florida Key Industry Clusters Financial Services Long-Run Establishment Growth By County Traded Local Total County 2009 2015 Percent Change 2009 2015 Percent Change 2009 2015 Percent Change

Charlotte 121 74 -38.8% 248 137 -44.8% 369 211 -42.8%

Collier 262 258 -1.5% 358 378 5.6% 620 636 2.6%

Glades 0 2 N/A 4 3 -25.0% 4 5 25.0%

Hendry 9 7 -22.2% 20 27 35.0% 29 34 17.2%

Lee 364 355 -2.5% 639 669 4.7% 1,003 1,024 2.1%

Southwest Florida 756 696 -7.9% 1,269 1,214 -4.3% 2,025 1,910 -5.7% Source: County Business Patterns: 2015

Employment by Subcluster

The table below shows employment in the five subclusters of the financial services cluster, split between the traded and local clusters. The largest proportion of employment is in the securities brokers, dealers and exchanges traded subcluster, with 1,153 workers, closely followed by workers in financial investment activities and credit intermediation. The local cluster jobs are predominantly in deposit- taking institutions, followed by insurance agents and brokers. While monetary authorities (e.g., Federal Reserve Bank regulators) are part of the financial services employment cluster, the region has no central bank or branch, resulting in no official employment number for this subcluster. Financial Services Employment By Subcluster Subcluster Employment Percent of Total Employment Traded Financial Services Financial Investment Activities 848 7.6% Credit Intermediation 796 7.1% Credit Bureaus 20 0.2% Monetary Authorities - Central Bank 0 0.0% Securities Brokers, Dealers, and Exchanges 1,153 10.3% Local Financial Services Deposit-taking Institutions 4,340 38.7% Pension, Health, and Welfare Funds 436 3.9% Insurance Agents and Brokers 2,859 25.5% Tax Return Preparation Services 650 5.8% Collection Agencies 106 0.9% Total 11,208 100.0% Source: County Business Patterns: 2015

The table below shows the number of employees per establishment disaggregated by the five subclusters for the traded and local financial services cluster. Virtually all of the firms in the traded subcluster employ less than 50 employees. The largest subcluster in this group is that of securities brokers, dealers and exchanges. The providers of the types of services shown by the subclusters are typically nonbank wealth management firms rather than large banks. Although there are no headquarters of these firms in this region, many of their services are provided in smaller branch offices, employing smaller staffs. The employees in the other two groups— financial investment activities and credit intermediation—represent the remaining two-thirds of jobs in the traded subcluster. The firms that make up the local financial services subcluster are also small (employing less than 50 employees for the most part). The largest group in this subcluster are insurance agents and brokers, followed by deposit taking institutions.

Southwest Florida Economic Development Alliance 59 Financial Services Establishments By Subcluster Number of Employees in Establishment 1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to Subcluster 1000+ Total 4 9 19 49 99 249 499 999 Traded Financial Services Financial Investment Activities 217 19 4 9 0 0 0 0 0 249 Credit Intermediation 138 39 6 2 1 0 0 0 0 186 Credit Bureaus 2 0 0 0 0 0 0 0 0 2 Monetary Authorities - Central Bank 0 0 0 0 0 0 0 0 0 0 Securities Brokers, Dealers, and Exchanges 208 27 12 9 3 0 0 0 0 259 Local Financial Services Deposit-taking Institutions 126 231 106 25 6 1 0 0 0 495 Pension, Health, and Welfare Funds 9 3 0 0 0 0 1 0 0 13 Insurance Agents and Brokers 403 102 42 10 6 2 0 0 0 565 Tax Return Preparation Services 84 37 9 2 1 0 0 0 0 133 Collection Agencies 3 2 2 0 1 0 0 0 0 8 Total 1,190 460 181 57 18 3 1 0 0 1,910 Source: County Business Patterns: 2015

Employment in financial services cluster shrank during the six-year period from 2009 to 2015, reflecting continued adjustments made in this cluster following the aftermath of the financial crisis that began in 2007. The table below shows the decline in employment by subcluster for traded and local financial service firms. The only traded subcluster that showed gains in employment was the financial investment activities, which grew almost 26 percent over the six-year period. That increase was offset by an almost identical decline in employment for securities brokers, dealers and exchanges. Credit intermediaries also declined by over 14 percent for the same time span. Employment in the local subcluster firms over the six-year period was mixed. Jobs increased for collection agencies and insurance agents (both close to about 27 percent each) while declining for tax return preparers and deposit taking institutions. Financial Services Long-Run Employment Growth By Subcluster Employment Subcluster Percent Change 2009 2015 Traded Financial Services Financial Investment Activities 673 848 26.0% Credit Intermediation 926 796 -14.0% Credit Bureaus 20 20 0.0% Monetary Authorities - Central Bank 0 0 N/A Securities Brokers, Dealers, and Exchanges 1,564 1,153 -26.3% Local Financial Services Deposit-taking Institutions 5,059 4,340 -14.2% Pension, Health, and Welfare Funds 445 436 -2.0% Insurance Agents and Brokers 2,244 2,859 27.4% Tax Return Preparation Services 824 650 -21.1% Collection Agencies 84 106 26.2% Total 11,839 11,208 -5.3% Source: County Business Patterns: 2015

60 Southwest Florida Key Industry Clusters The changes in employment by subcluster reflects the pattern of change in the number of establishments. The financial investment activities subcluster was the only traded subcluster to grow from 2009 to 2015, increasing 7.3 percent. The credit intermediation subcluster experienced the largest decline in number of establishments from 2009 to 2015, with a 25.6 percent decrease over the time span. The number of establishments in the securities brokers, dealers, and exchanges subcluster also declined over the six-year period. The number of credit bureaus in Southwest Florida was the same from 2009 to 2015. There was also a reduction in four of the local financial services establishments between 2009 and 2015. Only establishments engaged in tax preparation services grew close to 30 percent, despite the decline in employment as shown in the previous table. Financial Services Long-Run Establishment Growth By Subcluster Employment Subcluster Percent Change 2009 2015 Traded Financial Services Financial Investment Activities 232 249 7.3% Credit Intermediation 250 186 -25.6% Credit Bureaus 2 2 0.0% Monetary Authorities - Central Bank 0 0 N/A Securities Brokers, Dealers, and Exchanges 272 259 -4.8% Local Financial Services Deposit-taking Institutions 573 495 -13.6% Pension, Health, and Welfare Funds 18 13 -27.8% Insurance Agents and Brokers 561 565 0.7% Tax Return Preparation Services 104 133 27.9% Collection Agencies 13 8 -38.5% Total 2,025 1,910 -5.7% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 61 Workforce Ranking

The five counties representing the Southwest Florida region ranked eighth among all other regions in the state for employment in the financial services cluster. This represent almost 3 percent of the state’s total employment of 95,129 in 2015 for this cluster. Financial Services Workforce Rankings Rank Workforce Region Employment Level 1 Northeast Florida 39,905 2 South Florida 39,257 3 Tampa Bay 32,486 4 Central Florida 32,164 5 Broward 24,121 6 Palm Beach County 19,732 7 Pinellas 18,265 8 Southwest Florida 11,208 9 Escarosa 8,030 10 Suncoast 7,216 11 Polk 6,184 12 Research Coast 5,028 13 Brevard 4,932 14 Flagler Volusia 4,074 15 Capital Region 3,990 16 Pasco Hernando 3,424 17 Citrus Levy Marion 3,068 18 North Central Florida 2,821 19 Okaloosa Walton 2,422 20 Gulf Coast 1,972 21 Heartland 1,089 22 Chipola 771 23 Florida Crown 754 24 North Florida 730 Source: County Business Patterns: 2015

Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

62 Southwest Florida Key Industry Clusters Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Financial Services Occupations By Total Employed Total Working Number of Number Across All Available of Entry Median Experienced Occupation Industries Applicants Graduates Wage Wage Wage Education Level Secretaries and Administrative Post Secondary Adult Assistants, Except Legal, Medical, and 11,579 98 0 $10.49 $14.75 $17.64 Vocational Executive Office Clerks, General 8,666 176 0 $9.24 $12.43 $15.85 High School/GED Bookkeeping, Accounting, and Auditing 5,279 111 38 $11.88 $16.47 $19.84 Some College Clerks Receptionists and Information Clerks 4,978 134 52 $10.09 $13.12 $15.20 High School/GED First-Line Supervisors of Office and 4,285 35 77 $15.45 $22.32 $26.81 Some College Administrative Support Workers General and Operations Managers 3,755 85 167 $28.69 $45.91 $68.75 Some College Accountants and Auditors 3,668 83 19 $19.99 $29.03 $40.43 Bachelor's Degree Executive Secretaries and Executive Post Secondary Adult 2,320 110 16 $15.70 $20.72 $24.92 Administrative Vocational Bill and Account Collectors 929 20 0 $11.69 $15.03 $16.68 High School/GED Personal Financial Advisors 895 6 0 $21.62 $39.36 $71.46 Bachelor's Degree

Financial Managers 796 27 0 $35.55 $50.41 $68.37 Bachelor's Degree Securities, Commodities, and Financial 724 7 0 $17.05 $34.64 $56.06 Bachelor's Degree Services Sales Agents Loan Officers 632 6 0 $20.68 $37.94 $50.45 Some College Post Secondary Adult Real Estate Brokers 513 1 0 $10.95 $19.08 $30.94 Vocational Post Secondary Adult Loan Interviewers and Clerks 368 2 0 $12.16 $16.99 $19.52 Vocational Financial Analysts 342 19 0 $23.70 $33.98 $48.75 Bachelor's Degree Post Secondary Adult Financial Specialists, All Other 263 6 0 $17.36 $26.63 $32.74 Vocational Credit Counselors 196 1 0 $13.62 $15.18 $18.65 Some College Brokerage Clerks 113 1 0 $13.05 $20.99 $26.24 High School/GED Post Secondary Adult Credit Analysts 57 0 19 $28.62 $35.30 $39.35 Vocational Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

Southwest Florida Economic Development Alliance 63 Cluster Highlights

EVENTS, AWARDS AND RECOGNITIONS

 Financial Times ranked a managing director of Investments at Moran Edwards Asset Management Group of Wells Fargo Advisors in Naples (Collier County) as one of the “Top 400 Financial Advisors” in the country. Such advisors are ranked by assets under their management. The list of advisors is considered “elite” and drawn from national, independent and regional brokers-dealers of whom there are more than 1,500.  In response to local banking and financial services employer needs, Florida Southwestern State College’s School of Business and Technology created a course concentration and certificate in Financial Services Management with in the bachelor degree in Supervision and Management.  Forbes continues to indicate that Collier County is one of the wealthiest counties in the nation with a steady flow of inbound migration of wealthy residents. The growth of this segment of the population has created and will continue to create a growing demand for providers of wealth management services.

Companies

 Wells Fargo Advisors  Northern Trust Wealth Management Services www.wellsfargoadvisors.com www.northerntrust.com  Colony Group  Everbank www.thecolonygroup.com www.everbank.com  Merrill Lynch Wealth Management  UBS Financial Services www.ml.com www.ubs.com  Raymond James Wealth Management  CJA and Associates www.raymondjames.com www.cjamarketing.com  TD Ameritrade Inc.  Strickland Financial Group, Inc. www.td.com www.thestricklandfinancialgroup.com

Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the financial services cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  University of Miami  Keiser University www.miami.edu www.keiseruniversity.edu  Florida State University  Florida Atlantic University www.fsu.edu www.fau.edu  University of Central Florida  Florida International University www.ucf.edu www.fiu.edu  University of Florida  Miami-Dade College www.ufl.edu www.mdc.edu  University of South Florida www.usf.edu

64 Southwest Florida Key Industry Clusters Cluster Definition

The financial services cluster consists of 32 six-digit North American Industry Classification System (NAICS) codes that define the 10 subclusters. A list of each subcluster and NAICS category, along with the appropriate six-digit NAICS code can be found in the table below.

Financial Services Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Financial Investment Activities Miscellaneous Intermediation 523910 Portfolio Management 523920 Investment Advice 523930 Trust, Fiduciary, and Custody Activities 523991 Miscellaneous Financial Investment Activities 523999 Open-End Investment Funds 525910 Other Financial Vehicles 525990 Credit Intermediation Savings Institutions 522120 Other Depository Credit Intermediation 522190 Credit Card Issuing 522210 Sales Financing 522220 Consumer Lending 522291 Real Estate Credit 522292 International Trade Financing 522293 Secondary Market Financing 522294 All Other Nondepository Credit Intermediation 522298 Financial Transactions Processing, Reserve, and Clearinghouse Activities 522320 Other Activities Related to Credit Intermediation 522390 Credit Bureaus Credit Bureaus 561450 Monetary Authorities - Central Bank Monetary Authorities-Central Bank 521110 Securities Brokers, Dealers, and Exchanges Mortgage and Nonmortgage Loan Brokers 522310 Investment Banking and Securities Dealing 523110 Securities Brokerage 523120 Commodity Contracts Dealing 523130 Commodity Contracts Brokerage 523140 Securities and Commodity Exchanges 523210 Deposit-taking Institutions Commercial Banking 522110 Credit Unions 522130 Pension, Health, and Welfare Funds Third Party Administration of Insurance and Pension Funds 524292 Insurance Agents and Brokers Insurance Agencies and Brokerages 524120 Tax Return Preparation Services Tax Preparation Services 541213 Collection Agencies Collection Agencies 561440 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Southwest Florida Economic Development Alliance 65 Health and Wellness Health and Wellness

8th 56,628 3,105 Largest health and wellness Employed in the health and Establishments in the health cluster in Florida. wellness cluster. and wellness cluster.

2.6% 576 Average annual employment Job seekers from top 20 growth in the health and occupations in the health and wellness cluster. wellness cluster.

66 Southwest Florida Key Industry Clusters Industry Overview

The Health and Wellness cluster in Southwest Florida reflects the national growth rate in health care services. Although it ranks as the 8th largest cluster in the state, it accounts for 5.7 percent of total employment in the state. The growth of this sector soared at nearly 17 percent over the six-year period (2009 to 2015). The cluster includes a long list of small establishments, and a few large ones, that provide services across the country (as measured by employment). These would include medical services such as oncology, orthopedics, radiology, physical therapy, cosmetic surgery, dental and eye care. This cluster also includes hospitals, urgent care centers, providers of assisted living, and hospice. Pharmacies, home care and funeral homes are also part of this cluster. Of the five counties that make up the SWFL region, Lee, Collier and Charlotte counties have the largest number of smaller establishments (fewer than 5 workers). Similarly, those three counties contain some of the largest establishments that employ 500 or more workers. A large percentage of jobs in this cluster will require an educated workforce, with post high school training, certificates or degrees. The jobs in this cluster are growing due to a growing sector of the population that is aging. The state of Florida ranks number one as having the largest percentage of its population over the age of 65 years. According to the Bureau of Labor statistics, the highest growth in jobs by occupations is for health care aides, nursing and medical assistants. The BLS also shows that jobs in health and wellness are expected to pay better than average wages and salaries commensurate with education, skills and experience. This bodes well for retention of and opportunities for graduates of Florida’s schools and universities. Economic Profile

The Health and Wellness cluster consists of 35 six-digit North American Industry Classification System (NAICS) codes that form eight subclusters. These include the offices of healthcare providers, hospitals, medical labs, homes for the elderly, drug stores and funeral homes. It is the eighth largest cluster in Southwest Florida as measured by employment.

The five-county region ranked eighth in the state of Florida out of 24 workforce regions, with an employment level of 56,628 in 2015. This cluster of 3,105 establishments accounted for about 2 percent of total employment in the state. However, over the six-year period (2009-2015), the number of jobs in this cluster group grew by over 16 percent in the region as compared to a growth rate of about 10 percent for the state. The number of establishments in the cluster represented 5.5 percent of the total number of such establishments in the state. The location quotients for this cluster’s employment relative to the state and the country were just over 1, implying that the concentration of employment in this region relative to the state and the country is slightly higher. This contrasts to the LQ of the entire state of Florida that is below 1 (.93) as compared to the country.

Health and Wellness Economic Profile Southwest Florida Florida Employment, 2015 56,628 994,746 Number of Establishments, 2015 3,105 56,311 Short-run employment growth, 2014 to 2015 1.0% 2.1% Long-run employment growth, 2009 to 2015 16.6% 9.8% Average annual employment growth, 2009 to 2015 2.6% 1.9% Workforce Region Employment Ranking, 2015 8th -- Location Quotient, Relative to Florida, 2015 1.20 -- Location Quotient, Relative to United States, 2015 1.12 0.93 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 67 Employment by County

Health and Wellness Health and Wellness Long-Run Employment Growth Employment

35,000 31,571 2009 2015 Charlotte 30,000 26,281 14% 25,000 Lee 20,000 16,327 15,000 14,049 56% Collier 10,000 7,385 7,812 29% 5,000 776788 70 130 0 Lee Collier Charlotte Hendry Glades Hendry 1% As shown in the graphs above and the table below, the majority of the employment distribution of Southwest Florida’s health and wellness cluster is in Lee County, which accounts for over 31,000 private-sector jobs or 56 percent of the total employment of this cluster in the five county region. (This figure does not include the more than 13,000 jobs accounted for by the publicly funded Lee Health system, which is one of the largest employers in all of Lee County.) Employment in Collier County is almost half that amount, representing 29 percent of jobs. Together these two counties account for about 85 percent of total employment. Charlotte County employs about half the number as in Collier, followed by significantly smaller numbers in Hendry and Glades counties. Over the six- year period (2009-2015), employment in Lee County increased by 19 percent while increasing by 14 percent in Collier. These convert to annual rates of approximately 3.2 percent and 2.3 percent, respectively. Charlotte and Hendry counties showed annual growth rates over the six-year period of less than 1 percent. In contrast to these smaller counties, employment in Glades County, although relatively low, jumped by 86 percent over the six-year period. Health and Wellness Employment By County County Employment Percent of Total Employment Charlotte 7,812 13.8% Collier 16,327 28.8% Glades 130 0.2% Hendry 788 1.4% Lee 31,571 55.8% Southwest Florida 56,628 100.0% Source: County Business Patterns: 2015

Southwest Florida’s health and wellness cluster had a total of 3,105 establishments in 2015. Of these, 2,939 or 95 percent employed less than 50 employees. Lee County had the most health and wellness establishments in Southwest Florida, close to 50 percent of the total. Close to 70 percent of these establishments employ less than 10 workers in the county, but about 2 percent of the establishments employ between 100 and 249 workers, reflecting the larger establishments that reside in this county. Collier County closely matched this pattern, with about 75 percent of all establishments employing less than 10 workers, and 2 percent employing between 100 and 249 workers. With lower numbers, Charlotte and Hendry counties followed this pattern in that most of their establishments employed less than 10 employees, with fewer than 10 establishments employing between 100 and 249 employees. Glades County had just a few total establishments in this cluster, but not one that employed more than 50 employees.

68 Southwest Florida Key Industry Clusters Health and Wellness Establishments By County Number of Employees in Establishment County 1 to 4 5 to 9 10 to 19 20 to 49 50 to 99 100 to 249 250 to 499 500 to 999 1000+ Total Charlotte 234 122 53 49 13 9 1 2 0 483 Collier 546 250 129 89 21 21 3 1 1 1,061 Glades 2 0 1 2 0 0 0 0 0 5 Hendry 18 9 9 4 2 2 0 0 0 44 Lee 696 354 231 141 43 32 9 1 5 1,512 Southwest Florida 1,496 735 423 285 79 64 13 4 6 3,105 Source: County Business Patterns: 2015

Employment growth in the health and wellness cluster varied widely by county over the six-year period of 2009-2015. None of the counties experienced a loss of jobs in this cluster. Of the five counties, Lee County had the largest number of employees in this cluster in 2009 (26,281) and grew by about 3.1 percent on average per year through 2015, showing an overall gain of 20.1 percent. In contrast, Glades County had the lowest number of employees in 2009 but experienced an 86 percent gain in jobs over the six-year period, or about an 11 percent annual rate. The second largest county in this region for employment, Collier County, showed employment gains at an annual rate of 2.5 percent over the same six-year period. Job gains were also strong in Charlotte County (5.8 percent). Hendry County had a smaller six-year gain (1.5 percent). Overall, growth in employment in the health and wellness cluster grew close to 17 percent during the 2009-2015 period, or at an annual rate of 2.6 percent. Health and Wellness Long-Run Employment Growth By County Employment Average Annual County 2009 2015 Percent Change Percent Change Charlotte 7,385 7,812 5.8% 0.9% Collier 14,049 16,327 16.2% 2.5% Glades 70 130 85.7% 10.9% Hendry 776 788 1.5% 0.3% Lee 26,281 31,571 20.1% 3.1% Southwest Florida 48,561 56,628 16.6% 2.6% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 69 Employment by Subcluster

The table below disaggregates the health and wellness sector into eight sub-clusters. This helps to illustrate where the jobs are concentrated. The majority of all jobs in this cluster are in healthcare provider offices. Employment accounts for over 38 percent of total jobs, followed closely by employment in home and residential care at 29 percent. The third largest employers by subcluster are hospitals. These three subclusters account for over 90 percent of all employment in the total health and wellness cluster.

Health and Wellness Employment By Subcluster Subcluster Employment Percent of Total Employment Healthcare Provider Offices 21,751 38.4% Home and Residential Care 16,464 29.1% Hospitals 13,585 24.0% Drug Stores 2,600 4.6% Medical Laboratories 1,229 2.2% Optical Goods Retailing 456 0.8% Funeral Service and Crematories 395 0.7% Medical Equipment Distribution and Rental 148 0.3% Total 56,628 100.0% Source: County Business Patterns: 2015

As shown in the table above, the top three subclusters in the total health and wellness cluster account for over 90 percent of all employment. The table below shows that the majority of the establishments within these three subclusters employ fewer than 50 workers. A total of only 10 establishments hire between 250 and 499 employees. These are home and residential care, where eight establishments have up to 250 employees, followed by only one establishment in the healthcare provider offices subcluster and one in medical laboratories that employee this many workers. The total number of jobs in the health care provider offices subcluster account for 76 percent of all jobs in Southwest Florida’s health and wellness cluster.

Health and Wellness Establishments By Subcluster Number of Employees in Establishment 1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to Subcluster 4 9 19 49 99 249 499 999 1000+ Total Healthcare Provider Offices 1,228 611 308 157 29 13 1 0 1 2,348 Home and Residential Care 98 29 29 54 46 47 8 1 0 312 Drug Stores 27 16 53 57 2 0 0 0 0 155 Medical Laboratories 78 26 15 9 2 1 1 0 0 132 Optical Goods Retailing 40 25 10 1 0 0 0 0 0 76 Funeral Service and Crematories 20 18 6 4 0 0 0 0 0 48 Medical Equipment Distribution and Rental 5 10 2 2 0 0 0 0 0 19 Hospitals 0 0 0 1 0 3 3 3 5 15 Total 1,496 735 423 285 79 64 13 4 6 3,105 Source: County Business Patterns: 2015

70 Southwest Florida Key Industry Clusters Long-run growth in employment by subcluster is shown in the table below. It would appear that the fastest growth rate during the six- year period occurred in funeral service and crematories (79.5 percent). However, the actual number of employees increased by just 175. During the six-year period (2009-2015), the largest number of workers were in the healthcare provider offices. Jobs in this subcluster increased by about 4,600 over the six year period, followed by a gain of over 2,000 workers in home and residential care. These gains amounted to annual growth rates of 4.1 percent and 2.6 percent, respectively. For the entire health and wellness cluster, job growth over the six-year period in Southwest Florida was a robust 16.6 percent with a gain in 8,067 new jobs.

Health and Wellness Long-Run Employment Growth By Subcluster Employment Average Annual Subcluster 2009 2015 Percent Change Percent Change Funeral Service and Crematories 220 395 79.5% 10.2% Optical Goods Retailing 303 456 50.5% 7.1% Healthcare Provider Offices 17,059 21,751 27.5% 4.1% Home and Residential Care 14,130 16,464 16.5% 2.6% Drug Stores 2,304 2,600 12.8% 2.0% Medical Laboratories 1,128 1,229 9.0% 1.4% Hospitals 13,185 13,585 3.0% 0.5% Medical Equipment Distribution and Rental 232 148 -36.2% -7.2% Total 48,561 56,628 16.6% 2.6% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 71 Workforce Ranking

Of all the workforce regions in the state of Florida, the Southwest Florida region ranked 8th with most employees in the health and wellness cluster in 2015. The number of workers in this cluster of Southwest Florida amounted to 56,628 out of a total of 994,746 in the state. This amounts to 5.7 percent of total jobs in this cluster as of 2015. Health and Wellness Workforce Rankings Rank Workforce Region Employment Level 1 South Florida 131,754 2 Central Florida 116,081 3 Broward 86,776 4 Palm Beach County 77,516 5 Tampa Bay 73,981 6 Northeast Florida 73,659 7 Pinellas 66,656 8 Southwest Florida 56,628 9 Suncoast 42,384 10 Research Coast 29,771 11 Flagler Volusia 28,732 12 Brevard 27,648 13 Pasco Hernando 26,766 14 Polk 26,494 15 Citrus Levy Marion 25,219 16 North Central Florida 23,495 17 Escarosa 22,097 18 Capital Region 17,947 19 Okaloosa Walton 10,460 20 Gulf Coast 9,401 21 Heartland 7,930 22 Florida Crown 6,255 23 Chipola 4,331 24 North Florida 3,970 Source: County Business Patterns: 2015

Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

72 Southwest Florida Key Industry Clusters Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Health and Wellness Occupations By Total Employed Total Working Number of Number Across All Available of Entry Median Experienced Occupation Industries Applicants Graduates Wage Wage Wage Education Level Registered Nurses 9,364 115 498 $24.20 $29.49 $33.75 Some College Licensed Practical and Licensed Vocational 2,900 73 14 $16.40 $20.89 $22.96 PSAV Nurses Medical Assistants 2,528 110 113 $12.60 $15.18 $16.83 PSAV Pharmacy Technicians 1,390 18 51 $11.09 $13.96 $15.78 PSAV Personal Care Aides 1,043 29 0 $8.94 $10.42 $11.47 PSAV Master's Degree or Pharmacists 962 2 0 $51.20 $59.12 $61.94 Higher Medical Secretaries 959 60 19 $12.25 $14.56 $16.66 PSAV Dental Assistants 903 50 121 $14.51 $17.75 $19.97 PSAV Master's Degree or Physical Therapists 838 2 0 $29.85 $40.68 $52.36 Higher Radiologic Technologists 778 3 149 $22.04 $27.94 $32.99 PSAV Dental Hygienists 693 9 18 $25.86 $33.26 $37.23 Some College Master's Degree or Dentists, General 672 1 0 $25.81 $61.03 $90.18 Higher Emergency Medical Technicians and 665 10 302 $13.88 $17.81 $20.99 Some College Paramedics Medical and Health Services Managers 665 28 16 $36.22 $47.99 $66.46 Bachelor's Degree Health Technologists and Technicians, All 456 7 0 $13.42 $18.22 $26.11 PSAV Other Medical Records and Health Information 439 37 35 $12.88 $17.62 $21.36 Some College Technicians Medical and Clinical Laboratory 433 3 0 $22.97 $27.73 $30.60 Some College Technologists Master's Degree or Healthcare Social Workers 431 12 0 $18.60 $23.25 $27.46 Higher Respiratory Therapists 386 6 33 $23.26 $26.66 $28.00 Some College Physician Assistants 386 1 0 $37.47 $48.77 $56.04 Bachelor's Degree Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

Southwest Florida Economic Development Alliance 73 Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 The field of oncoplastic surgery has been used in Europe for years. It combines oncology care and plastic surgery for optimal aesthetic results. Recently this started gaining traction with the American Society of Breast Surgeons. The society formed a work group this year to promote oncoplastic surgery. At 21st Century Oncology in SWFL four surgeons, out of a total of 17 for the entire state, are trained and certified in this type of surgery, using this technique since early 2017.  Healthcare Network of Southwest Florida and Senior Friendship Health Center opened a 6,000-square foot complex in January 2016 servicing about 1,500 patients. The shared site is for patients 50 and older only and offers 12 medical exam and three dental rooms. The network provides both primary care and specialty services with large discounts on prescriptions. An additional benefit of this network for Southwest Florida is that is offers training and jobs for Florida State University students attending its College of Medicine geriatric division.  Over $340 million is being invested into the expansion of the Gulf Coast Medical Center. The expansion will add 367,500 square feet to the existing 531,000 square foot facility, and is expected to be completed by 2021.  Radiology Regional Center's offers one of the comprehensive women's imaging services, which includes the Mobile Mammo coach. The provision of such coaches offers convenient access for health service at various locations, such as businesses and shopping plazas for on-site mammograms. Maintaining wellness helps curb healthcare costs and with such state of the art technology, women have little excuse for avoiding such life-saving screening.  Accu-care nursing service continues to offer the elderly companion services around the clock, which includes cooking, cleaning and transportation. With Southwest Florida’s large senior population, such services are increasing in demand, providing many varied employment opportunities. One of the services provided is an elderly help line, covering the counties of Charlotte, Collier, Glades, Hendry and Lee.  Shellpoint Retirement Community is one of the largest, upscale, lifecare facilities in the state of Florida, employing over two thousand workers just in the Fort Myers area of SWFL. A unique offering at the facility is their concert series, a performing arts series, the Southwest Florida symphony series and lecture series.  NCH healthcare system has applied the theories of behavioral economics by spreading the “mantra” that healthy people spend less on healthcare which in turn reduces healthcare costs. As an example, NCH stopped hiring smokers in 2011, resulting in a drop in the smoking rate of its employees. NCH has not raised its healthcare premiums for four years in Naples and five years in Collier County. Additionally, NCH has been offering educational seminars on well-being and healthy habits, as well as subjects such as stress reduction, child rearing and financial planning with noticeable positive results in the health and wellness of their employees. Their cafeterias have also begun to offer healthy food choices and in 2016 they removed sugar sweetened beverages from all cafeterias and vending machines.  Physicians Regional Healthcare System opened a new clinic in East Naples that will feature extended access to their walk-in clinic, staffed by primary care and specialty physicians.

EVENTS, AWARDS AND RECOGNITIONS

 Shell Point Retirement Community was awarded the National Five-Star Rating from The Centers for Medicare and Medicaid Services (CMS); U.S. News & World Report: Best Nursing Homes in Florida 2015 and by the Gulfshore Business Best of Business: Best Retirement Community.  Lee Memorial Hospital and HealthPark Medical Center earned the recognition as a 2017 Best Regional Hospital, ranking 14th out of over 250 hospitals in Florida by U.S. News & World Report.  Lee Health ranked 29th out of 500 companies recognized in Forbe’s magazine “America’s Best Employers 2017” list, while also ranking as the second highest organization in Florida.  Physicians Regional Healthcare System received the American Heart Association/American Stroke Association’s 2017 Get With The Guidelines - Stroke Gold Plus Quality Achievement Award. The award recognizes the hospital’s commitment to providing the most appropriate stroke treatment according to nationally recognized, research-based guidelines based on the latest scientific evidence.  Physicians Regional Healthcare System received accreditation for its Chest Pain Center in Naples.

74 Southwest Florida Key Industry Clusters  The Lee Health Foundation was recognized as a High Performer by the Association for Healthcare Philanthropy for the third consecutive year. The foundation was one of 51 organizations to receive the award.

Companies

 21st Century Oncology  Family Health Centers of SW FL Inc www.21co.com www.fhcswf.org  Adventist Health System Home Care  Radiology Regional Center www.adventisthealthsys www.radiologyregional.com  Accu-Care Nursing Service Inc.  Signature Healthcare of College Park www.accu-care.net www.shcatcollegepark.com  Arbor Trace  Shell Point Retirement Community www.arbortrace.com www.shellpoint.org  Physcians Regional Medical Centers  NCH Healthcare System www.physiciansregional.com www.nchmd.org

Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the health and wellness cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  Hodges University  Keiser University www.hodges.edu www.keiseruniversity.edu  Rasmussen College  Florida Atlantic University www.rasmussen.edu www.fau.edu  Broward College  Florida International University www.broward.edu www.fiu.edu  University of Miami  Miami-Dade College www.miami.edu www.mdc.edu  Florida State University  University of Florida www.fsu.edu www.ufl.edu  University of Central Florida  University of South Florida www.ucf.edu www.usf.edu

Southwest Florida Economic Development Alliance 75 Cluster Definition

The health and wellness cluster is comprised of 35 six-digit NAICS codes that form eight subclusters. A list of each subcluster and NAICS category, along with the appropriate six-digit NAICS codes, can be found in the table below.

Health and Wellness Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Healthcare Provider Offices Offices of Physicians (except Mental Health Specialists) 621111 Offices of Physicians, Mental Health Specialists 621112 Offices of Dentists 621210 Offices of Chiropractors 621310 Offices of Optometrists 621320 Offices of Mental Health Practitioners (except Physicians) 621330 Offices of Physical, Occupational and Speech Therapists, and Audiologists 621340 Offices of Podiatrists 621391 Offices of All Other Miscellaneous Health Practitioners 621399 Family Planning Centers 621410 Outpatient Mental Health and Substance Abuse Centers 621420 HMO Medical Centers 621491 Kidney Dialysis Centers 621492 Freestanding Ambulatory Surgical and Emergency Centers 621493 All Other Outpatient Care Centers 621498 Blood and Organ Banks 621991 All Other Miscellaneous Ambulatory Health Care Services 621999 Hospitals General Medical and Surgical Hospitals 622110 Psychiatric and Substance Abuse Hospitals 622210 Specialty (except Psychiatric and Substance Abuse) Hospitals 622310 Medical Laboratories Dental Laboratories 339116 Medical Laboratories 621511 Diagnostic Imaging Centers 621512 Home and Residential Care Home Health Care Services 621610 Nursing Care Facilities 623110 Residential Mental Retardation Facilities 623210 Residential Mental Health and Substance Abuse Facilities 623220 Continuing Care Retirement Communities 623311 Homes for the Elderly 623312 Other Residential Care Facilities 623990 Funeral Service and Crematories Funeral Homes and Funeral Services 812210 Cemeteries and Crematories 812220 Medical Equipment Distribution and Rental Home Health Equipment Rental 532291 Drug Stores Pharmacies and Drug Stores 446110 Optical Goods Retailing Optical Goods Stores 446130

76 Southwest Florida Key Industry Clusters Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Southwest Florida Economic Development Alliance 77 Hospitality and Tourism Hospitality and Tourism

6th 76,534 3,282 Largest hospitality and tourism Employed in the hospitality Establishments in the cluster in Florida. and tourism cluster. hospitality and tourism cluster.

5.0% 2,341 Average annual employment Job seekers from top 20 growth in the hospitality and occupations in the hospitality tourism cluster. and tourism cluster.

78 Southwest Florida Key Industry Clusters Industry Overview

The hospitality and tourism cluster is the largest cluster in the five-county region in Southwest Florida based on employment. Employing some 76,534 people in the region, hospitality and tourism provides entry-level employment opportunities to young and first-time workers as well as careers to low-skilled and high-skilled workers interested in careers in the region. What is more, hospitality and tourism is a dynamic industry characterized by continual capital investment to the region in an effort to capitalize on the comparative advantages for which it is best known, namely, warm winters and beautiful gulf beaches.

We define the hospitality and tourism cluster as a combination of two different clusters: the traded hospitality cluster and the local hospitality cluster. The traded hospitality cluster consists of industries tailored to serve markets in other regions and nations. Firms included in the traded hospitality cluster include resorts, hotels, spectator sports, museums, theatres, and amusements, among others. Cultural and artistic activities are especially well represented. In between the newly-renovated JW Marriott resort on Marco Island to the south and Fisherman’s Village in Punta Gorda to the north is a myriad of thriving businesses from this cluster. These include large- chain hotels as well as smaller operations, theatres that attract off-Broadway plays and musicals, operas and orchestras, and even a large-scale casino in eastern Collier County.

Although there exists some overlap, the traded hospitality cluster is geared toward two different market segments.

 Retirees, many of whom live in Florida for half the year from fall to spring; and  Tourists, who visit year round but especially bring higher traffic in December and March.

A key characteristic of the traded hospitality cluster is its seasonality, although as the native population grows and as the region attracts summer tourist traffic from South America, somewhat of a more year-round industry has taken root in recent years.

Spectator sports in particular are popular, with Southwest Florida serving as the spring training home for two Major League Baseball teams, the Boston Red Sox and the Minnesota Twins, both in Lee County. The Red Sox spring training facility, located at JetBlue Park, hosted 15 games in 2016 and had approximately 150,000 visitors during the spring training season. JetBlue Park also serves as a venue for local festivals, conferences and other events. The Minnesota Twins spring training facility, located at Hammond Stadium, hosted 15 games in 2016 and had approximately 121,000 visitors. Hammond Stadium is also home to Fort Myers Miracle, a Minnesota Twins minor league affiliate in the Florida State League, which plays games from April to September. Lee County is also home to the Fort Myers Everblades, a professional hockey team that plays in the 5,090 seat Germain Arena. Charlotte Sports Park in Port Charlotte serves as the spring training facility for the Tampa Bay Rays. Over 68,000 people attended spring training games in 2015, in addition to attendance at Charlotte Stone Crabs games during the Florida State League season.

The local hospitality cluster consists of industries that primarily serve the local market and can be found in every region. Firms included in the local hospitality cluster include full-service restaurants, limited-service restaurants, caterers, golf courses and country clubs, bowling centers, fitness and recreational sports centers, and gift, novelty and souvenir stores.

Hospitality and Tourism Economic Profile

The traded hospitality cluster consists of 31, six-digit North American Industry Classification System (NAICS) codes including sports teams and clubs, amusement and theme parks, museums, bed-and-breakfast inns, and tour operators. Meanwhile, the local hospitality cluster consists of 12, six-digit NAICS codes including hospitality establishments, recreational facilities and instruction, and gifts and souvenir retailing.

The five-county region ranked sixth in the state of Florida out of 24 workforce regions in employment for both the traded hospitality cluster (15,767 employed in 2015) and for the local hospitality cluster (60,767 employed in 2015). The region had 3,282 establishments for the hospitality and tourism cluster in 2015, with 671 establishments in the traded hospitality cluster and 2,611 establishments in the local hospitality cluster. Southwest Florida saw a 0.6-percent increase in the traded hospitality cluster employment level over the past year, along with a 5.5-percent increase in the local hospitality cluster. Both were greater than the state of Florida average. Southwest Florida also had a 22.1 percent increase in the traded hospitality cluster employment level over the past six years, while the local hospitality cluster had a 32.2 percent increase over the same time span.

Southwest Florida Economic Development Alliance 79 Hospitality and Tourism Economic Profile Southwest Florida Florida Traded Local Total Traded Local Total Employment, 2015 15,767 60,767 76,534 309,856 821,356 1,131,212 Number of Establishments, 2015 671 2,611 3,282 10,232 40,671 50,903 Short-run employment growth, 2014 to 2015 0.6% 5.5% 4.5% -0.1% 5.3% 3.8% Long-run employment growth, 2009 to 2015 22.1% 32.2% 22.1% 18.9% 24.1% 22.6% Average annual employment growth, 2009 to 2015 3.4% 4.8% 5.0% 3.5% 4.4% 4.2% Workforce Region Employment Ranking, 2015 6th 6th 6th ------Location Quotient, Relative to Florida, 2015 1.07 1.56 ------Location Quotient, Relative to United States, 2015 1.67 1.64 -- 1.56 1.05 -- Source: County Business Patterns: 2015

Employment by County

Hospitality and Tourism Hospitality and Tourism Long-Run Employment Growth Employment 37,459 2009 2015 40,000 Hendry 29,802 1% 28,801 30,000 23,823 Lee 20,000 Collier 49% 10,000 8,166 5,262 39%

820 924 186 183 0 Lee Collier Charlotte Hendry Glades Charlotte 11%

Southwest Florida’s hospitality and tourism cluster comprised of 76,534 employees in 2015. The local hospitality cluster contained most of the employment for the cluster (60,767 employed), while the traded hospitality cluster had 15,767 employed. Lee County was the largest contributor to the cluster, with 37,459 employees. This accounted for 48.9 percent of the total hospitality and tourism employment in Southwest Florida for 2015. This was followed by Collier County (29,802 employees, 38.9 percent of total hospitality and tourism cluster), Charlotte County (8,166 employees, 10.7 percent of total hospitality and tourism cluster), Hendry County (924 employees, 1.2 percent of total hospitality and tourism cluster) and Glades County (183 employees, less than 1 percent of total hospitality and tourism cluster). Hospitality and Tourism Employment By County County Traded Local Total Percent of Total Employment Charlotte 2,041 6,125 8,166 10.7% Collier 7,098 22,704 29,802 38.9% Glades 53 130 183 0.2% Hendry 152 772 924 1.2% Lee 6,423 31,036 37,459 48.9% Southwest Florida 15,767 60,767 76,534 100.0% Source: County Business Patterns: 2015

Southwest Florida’s hospitality and tourism cluster had 3,282 establishments in 2015, of which 87.3 percent employed less than 50 employees. Lee County had the most establishments in Southwest Florida followed by Collier County. As shown in the table,

80 Southwest Florida Key Industry Clusters approximately 85 to 90 percent of these establishments had less than 50 employees working for them. In Glades County, 100 percent of the establishments had less than 50 employees. Hospitality and Tourism Establishments By County Number of Employees in Establishment 10 to 20 to 50 to 100 to 250 to 500 to County 1 to 4 5 to 9 19 49 99 249 499 999 1000+ Total Charlotte 130 53 47 88 33 5 0 0 1 357 Collier 394 161 184 247 113 42 5 2 1 1,149 Glades 6 2 3 1 0 0 0 0 0 12 Hendry 26 14 14 12 3 0 0 0 0 69 Lee 612 217 269 385 159 46 6 1 0 1,695 Southwest Florida 1,168 447 517 733 308 93 11 3 2 3,282 Source: County Business Patterns: 2015

Southwest Florida’s hospitality and tourism cluster saw a 30-percent increase in employment from 2009 to 2015. This is equivalent to a 4.5 percent average annual growth rate. This growth rate, however, was not evenly distributed among the five counties. Charlotte County had the highest growth rate over the six-year period, measured at 55.2 percent. This increase was accompanied by a large increase in the traded hospitality cluster in Charlotte County, which experienced a 189.5 percent increase over the same time span. Lee County had a growth rate measured at 30.1 percent from 2009 to 2015, with growth coming from both the traded hospitality cluster (24.5 percent increase) and the local hospitality cluster (31.3 percent increase). Collier County had a 25.1 percent increase in employment from 2009 to 2015, with majority of the county’s growth coming from the local hospitality cluster (33.1 percent increase). Hendry County had a 12.7 percent increase in employment over the six-year period, with a 29.7 percent increase in the local hospitality cluster and a 32.4 percent decrease in the traded hospitality cluster. Finally, Glades County had a 1.6 percent decrease in employment over the six-year period, with a small increase in the local hospitality cluster (3.2 percent increase) and a larger decrease in the traded hospitality cluster (11.7 percent decrease). Hospitality and Tourism Long-Run Employment Growth By County Traded Local Total Percent Percent Percent County 2009 2015 2009 2015 2009 2015 Change Change Change Charlotte 705 2,041 189.5% 4,557 6,125 34.4% 5,262 8,166 55.2% Collier 6,767 7,098 4.9% 17,056 22,704 33.1% 23,823 29,802 25.1% Glades 60 53 -11.7% 126 130 3.2% 186 183 -1.6% Hendry 225 152 -32.4% 595 772 29.7% 820 924 12.7% Lee 5,158 6,423 24.5% 23,643 31,036 31.3% 28,801 37,459 30.1% Southwest Florida 12,915 15,767 22.1% 45,977 60,767 32.2% 58,892 76,534 30.0% Source: County Business Patterns: 2015

Employment by Subcluster

The hospitality and tourism cluster is comprised of seven traded subclusters (spectator sports, amusement parks and arcades, cultural and educational entertainment, gambling facilities, other tourism attractions, accommodations and related services, and tourism related services) and three local subclusters (hospitality establishments, recreational facilities and instruction, and gifts and souvenirs retailing). Information regarding employment by subcluster can be found below.

Hospitality establishments was the largest subcluster in Southwest Florida in 2015, accounting for 63.8 percent of the employment in the total cluster. Accommodation and Related Services was the next largest subcluster (14.9 percent of total employment in the

Southwest Florida Economic Development Alliance 81 cluster), followed by Recreational Facilities and Instruction (14.8 percent of total employment). The remaining seven subclusters accounted for 2 percent or less, the smallest employment occurring in gambling facilities. Hospitality and Tourism Employment By Subcluster Percent of Total Subcluster Employment Employment Traded Hospitality Accommodations and Related Services 11,439 14.9% Other Tourism Attractions 1,389 1.8% Tourism Related Services 1,276 1.7% Spectator Sports 965 1.3% Cultural and Educational Entertainment 427 0.6% Amusement Parks and Arcades 165 0.2% Gambling Facilities 106 0.1% Local Hospitality Hospitality Establishments 48,796 63.8% Recreational Facilities and Instruction 11,356 14.8% Gifts and Souvenirs Retailing 615 0.8%

Total 76,534 100.0% Source: County Business Patterns: 2015

The total number of establishments in the hospitality and tourism cluster was 3,282 in 2015. The table of the 10 subclusters in this cluster indicates that the largest number of establishments is in the Hospitality Establishments subcluster (2,215) and the smallest number is in gambling facilities and spectator sports (11). The number of employees per establishment in all the subclusters is predominantly less than 50. Additionally, a little over a third (36 percent) of the establishments in all the subclusters employed just 1-4 employees. Employment in four of the subclusters never exceeded 100 per establishment (Amusement Parks and Arcades, Cultural and Educational Entertainment, Gambling Facilities, and Tourism Related Services). Hospitality and Tourism Establishments By Subcluster

1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to Subcluster 1000+ Total 4 9 19 49 99 249 499 999 Traded Hospitality Accommodations and Related Services 70 25 36 49 19 11 6 3 2 221 Tourism Related Services 150 24 11 12 4 0 0 0 0 201 Other Tourism Attractions 73 26 14 11 6 1 0 0 0 131 Cultural and Educational Entertainment 54 12 7 0 2 0 0 0 0 75 Amusement Parks and Arcades 14 5 1 0 1 0 0 0 0 21 Spectator Sports 7 0 1 0 1 0 2 0 0 11 Gambling Facilities 5 3 2 0 1 0 0 0 0 11 Local Hospitality Hospitality Establishments 623 301 406 616 223 45 1 0 0 2,215 Recreational Facilities and Instruction 111 31 27 41 51 35 2 0 0 298 Gifts and Souvenirs Retailing 61 20 12 4 0 1 0 0 0 98 Total 1,168 447 517 733 308 93 11 3 2 3,282 Source: County Business Patterns: 2015

82 Southwest Florida Key Industry Clusters Employment in hospitality and tourism, as shown broken down by subclusters, grew significantly in six of the 10 subclusters. The tourism related services subcluster had the largest rate of increase in employment within the cluster. Over the six-year period, employment in this subcluster grew 53.9 percent, or about 7.5 percent annually. This was closely followed by the 33 percent rate of growth in the hospitality establishments’ subcluster, during the same six-year period. Two other subclusters experienced decreases in employment over the six-year period, with the gambling facilities subcluster showing the largest decline in employment. Employment in this subcluster fell by about 89.5 percent, as 899 jobs were lost between 2009 and 2015. Hospitality and Tourism Long-Run Employment Growth By Subcluster Employment Percent Average Annual Subcluster 2009 2015 Change Percent Change Traded Hospitality Tourism Related Services 829 1,276 53.9% 7.5% Accommodations and Related Services 8,679 11,439 31.8% 4.7% Other Tourism Attractions 1,082 1,389 28.4% 4.3% Spectator Sports 752 965 28.3% 4.2% Cultural and Educational Entertainment 408 427 4.7% 0.8% Amusement Parks and Arcades 160 165 3.1% 0.5% Gambling Facilities 1,005 106 -89.5% -31.3% Local Hospitality Hospitality Establishments 36,689 48,796 33.0% 4.9% Recreational Facilities and Instruction 8,569 11,356 32.5% 4.8% Gifts and Souvenirs Retailing 719 615 -14.5% -2.6% Total 58,892 76,534 30.0% 4.5% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 83 Workforce Ranking

Of all the workforce regions in the state of Florida, the Southwest Florida region ranked sixth with most employees in the hospitality and tourism cluster in 2015. Southwest Florida ranked just below the Northeast Florida workforce region (ranked fifth, 78,282 employees) and above the Tampa Bay workforce region (ranked seventh, 76,534 employees). A complete list of the workforce rankings by number of employees in the hospitality and tourism cluster can be found below. Hospitality and Tourism Workforce Rankings Rank Workforce Region Employment Level 1 Central Florida 237,323 2 South Florida 158,301 3 Broward 97,694 4 Palm Beach County 87,672 5 Northeast Florida 78,282 6 Southwest Florida 76,534 7 Tampa Bay 74,224 8 Pinellas 55,581 9 Suncoast 38,881 10 Flagler Volusia 30,384 11 Research Coast 26,811 12 Brevard 25,461 13 Polk 21,543 14 Pasco Hernando 18,898 15 Escarosa 18,845 16 Capital Region 18,748 17 Okaloosa Walton 18,717 18 North Central Florida 15,123 19 Gulf Coast 14,915 20 Citrus Levy Marion 14,650 21 Heartland 3,742 22 Florida Crown 3,130 23 Chipola 2,405 24 North Florida 2,302 Source: County Business Patterns: 2015

Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

84 Southwest Florida Key Industry Clusters Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Hospitality and Tourism Occupations By Total Employed Total Working Number of Number Across All Available of Entry Median Experienced Occupation Industries Applicants Graduates Wage Wage Wage Education Level Retail Salespersons 23,266 264 0 $8.52 $10.81 $14.52 High School/GED Waiters and Waitresses 14,685 186 0 $8.38 $9.10 $11.49 Less than High School Cashiers 12,132 397 0 $8.50 $9.43 $10.66 High School/GED Combined Food Preparation and Serving 11,644 70 0 $8.35 $9.02 $9.73 Less than High School Workers, Including Fast Food First-Line Supervisors of Retail Sales Post Secondary Adult 8,481 93 0 $13.99 $18.73 $25.04 Workers Vocational Post Secondary Adult Customer Service Representatives 6,670 650 0 $10.21 $13.31 $16.04 Vocational Post Secondary Adult Cooks, Restaurant 6,107 68 63 $8.83 $11.21 $13.11 Vocational Janitors and Cleaners, Except Maids and 5,463 69 0 $9.13 $10.98 $13.08 Less than High School Housekeeping Cleaners Maids and Housekeeping Cleaners 5,410 95 0 $8.36 $10.07 $11.32 Less than High School Sales Representatives, Services, All 4,089 80 0 $14.89 $28.52 $42.21 High School/GED Other Post Secondary Adult Security Guards 4,185 71 0 $9.03 $10.97 $12.60 Vocational Food Preparation Workers 3,753 33 0 $8.42 $10.42 $11.68 Less than High School First-Line Supervisors of Food Post Secondary Adult 3,670 30 0 $11.04 $16.69 $19.88 Preparation and Serving Workers Vocational Dishwashers 2,804 21 0 $8.37 $9.07 $9.56 Less than High School Dining Room and Cafeteria Attendants 2,754 20 0 $8.31 $9.13 $10.81 Less than High School and Bartender Bartenders 2,581 74 78 $8.38 $9.07 $11.42 Less than High School Post Secondary Adult Tellers 2,250 31 0 $10.88 $13.39 $15.28 Vocational Hosts and Hostesses, Restaurant, 2,022 28 0 $8.43 $10.09 $11.56 Less than High School Lounge, and Coffee Shop Amusement and Recreation Attendants 1,504 15 0 $8.37 $9.22 $10.50 Less than High School Hotel, Motel, and Resort Desk Clerks 1,449 34 0 $8.62 $11.77 $13.13 High School/GED

Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

Southwest Florida Economic Development Alliance 85 Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

Hotels typically invest in renovations and upgrades when the economic outlook is positive. A number of major hotels, recreational facilities, and golf courses have engaged in renovating their existing locations between 2015 and 2016.

 The Marco Beach Hotel, which opened in 1965 as a 50 room, two story motel and restaurant, became the Marriott Resort in 1979, with 735 guest rooms. It added a golf club in 1991. In 2015, the hotel closed for renovations amounting to almost $300 million and reopened in 2016 as the JW Marriott Marco Island. Once completed (planned for 2017), this resort will hold 810 guestrooms and two renovated golf courses. The new hotel is expected to bring 85 new jobs to the local area.  Naples Grande Beach Resort and Naples Grande Golf Resort recently completed their $50 million renovation of 474 guestrooms and three restaurants. The championship golf course was a $9 million renovation project, in collaboration with course architect John Sanford and golf legend Jack Nicklaus. Nicklaus has had a history with this hotel since he was age 11 and shot a 37 on the first nine holes. The expectation is that Nicklaus will bring the property up to the level of AAA-Four Diamond. Additionally, a new pool complex and meeting rooms were completely renovated.  In late 2015, the Century Link Sports Complex completed renovations totaling $48.5 million--$42.5 billion contributed from Lee County and the remaining $6 million from the Twins. Some of the renovations include upgraded and expanded concourses, improved concessions, and renovations to the restrooms.  The Hilton Marco Island renovated its 10,000 square feet of beach property on Marco Island, for $40 million, adding rooms from 298 to 310 and a new restaurant.  In January, construction of a Westin Hotel conference center began in Cape Coral. The 34,000 square foot facility sold for $185.5 million in 2014. Its new owners renovated the La Playa Golf Club.  In mid-2015, Fishermen’s Village, one of Punta Gorda’s major tourist magnets, maritime port, and dining and retail center overlooking Charlotte Harbor, began a two-phased, $40-million renovation and redevelopment. In June of 2015, Fishermen’s Village Mall and Resort received a TripAdvisor® Certificate of Excellence award.  Restaurants classified as “casual dining operators and quick service restaurants” are in the process of transforming themselves through “fast casualization” processes. During the evolutionary phase, restaurants are looking for the best markets to grow their concepts. QSR magazine identified and ranked the top 40 markets across the country best “poised for restaurant growth and unit expansion.” Ranking was based on three categories—large, medium, or small—based on population. Fort Myers and Naples ranked 13 of 15 in the Top Medium market (markets with one to three million residents). Planned expansions or new locations in Lee and Collier County include Doc Ford’s Rum Bar, Duffy’s Sports Grill, and Jimmy P’s Butcher Shop and Deli.

EVENTS, AWARDS AND RECOGNITIONS

 In 2015, the Naples-Immokalee-Marco Island area was rated the top community for American Well-Being by the Gallup poll. The poll surveyed residents on their feelings about physical health, social ties, financial security, community and sense of purpose.  In 2016, June 20th marked National Seashell Day. ABC’s Good Morning America and Dancing with the Stars Ginger Zee traveled to Sanibel’s Sundial Beach Resort & Spa to live-broadcast the kickoff of National Seashell Day.  The Travel Channel designated Naples beach as one of the top 10 beaches in the world. Popular areas stretched from the Naples Pier near Old Naples in the south to Delnor-Wiggins Pass State Park in the north.  In May 2016, the Culligan City of Palms Basketball Classic received the Fort Myers Chamber of Commerce and Lee County Visitor Convention Bureau-sponsored Chrysalis Award. The 44-year old tournament is moving from Bishop Verot High School to the new 3,300-seat Suncoast Credit Union Arena on the campus of Florida Southwestern State College in Fort Myers. The classic, which will runs in mid-December, is responsible for 2,000 room nights a year in local hotels and $200,000 in direct spending.  In 2016, the Gasparilla Inn at Boca Grande ranked the 14th best hotel in the world by Travel and Leisure  Daily Telegraph, U.K., described Norman Love Confections (based in Fort Myers) as one of the “10 most amazing shops in the world for chocolate.”  In 2016, U.S. News & World Report chose Sanibel Island as one of its best (no. 2 rank) family beach vacations in the USA.

86 Southwest Florida Key Industry Clusters  Fodors.com featured Sanibel Island’s Bowman’s Beach in a roundup of Florida’s 7 Best Beaches; Bowman’s Beach is featured as the “Best for Seashells”  Lovers Key State Park in Fort Myers won Best Florida Beach in 10 Best and USA Today's Readers' Choice contest.  FamilyFun magazine rated Sanibel, Fla., top overall family attraction.  Martha Stewart Living featured an eight-page print feature on Pine Island in the June, 2016 edition.  The New York Times featured Fort Myers and Sanibel in an article about 20 Family-Friendly Travel Ideas to Get You Going. The round-up identified family-friendly locales and nature showcases. Companies

 JW Marriott Marco Island  Fort Myers Miracle Baseball www.jwmarco.com www.milb.com  Naples Grande Beach Resort and Naples Grande  Boston Red Sox Spring Training Jet Blue Park Golf Resort www.boston.redsox.mlb.com www.naplesgrande.com  Sanibel Island Sundial Beach Resort and Spa  Fishermen’s Village Punta Gorda www.sundialresort.com www.fishville.com  The Gasparilla Inn and Club at Boca Grande  Culligan City of Palms Classic www.the-gasparilla-inn.com www.cityofpalmsclassic.com  Legacy Harbour Hotel and Suites Fort Myers  Norman Love Confections www.legacyharbourhotel.com www.normanloveconfections.com  Hilton Marco Island  Duffy’s Sports Grill www.hiltonmarcoisland.com www.duffysmvp.com  The Ritz-Carlton of Naples  Jimmy P’s Butcher Shop www.ritzcarlton.com www.jimmypsbutchershop.com  Hyatt House Naples/ Fifth Avenue  The Artis Center www.naples.house.hyatt.com www.artisnaples.org  Hilton Garden Inn Fort Myers Airport/FGCU  Barbara B Mann Performing Arts Hall www.hiltongardeninn3.hilton.com www.bbmannpah.com  Westin Cape Coral Resort at Marina Village  Billie Swamp Safari www.westincapecoral.com www.billieswamp.com  The Seminole Casino Hotel Immokalee  Ah-Tah-Thi-Ki Seminole Museum www.seminoleimmokaleecasino.com www.ahtahthiki.com  The Inn on Fifth and Club Level Suites  Sun Splash Family Waterpark www.innonfifth.com www.sunsplashwaterpark.com  The Hilton Naples  Edison and Fort Winter Estates www.hilton.com www.edisonfordwinterestates.org  The LaPlaya Beach Resort and Club  Sanibel Outlets www.laplayaresort.com www.sanibeloutlets.com  Genova Coconut Point  Miromar Outlets www.genova-florida.com www.miromaroutlets.com  Doc Ford’s Rum Bar www.docfords.com

Southwest Florida Economic Development Alliance 87 Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the hospitality and tourism cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  Hodges University  Keiser University www.hodges.edu www.keiseruniversity.edu  Rasmussen College  Florida Atlantic University www.rasmussen.edu www.fau.edu  Broward College  Florida International University www.broward.edu www.fiu.edu  University of Miami  Miami-Dade College www.miami.edu www.mdc.edu  Florida State University  University of Florida www.fsu.edu www.ufl.edu  University of Central Florida  University of South Florida www.ucf.edu www.usf.edu

88 Southwest Florida Key Industry Clusters Cluster Definition

The hospitality and tourism cluster is comprised of 31 six-digit NAICS codes that form seven subclusters. A list of each subcluster and NAICS category, along with the appropriate six-digit NAICS codes, can be found in the table below.

Hospitality and Tourism Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Spectator Sports Sports Teams and Clubs 711211 Racetracks 711212 Other Spectator Sports 7112l19 Amusement Parks and Arcades Amusement and Theme Parks 713110 Amusement Arcades 713120 Cultural and Educational Entertainment Art Dealers 453920 Museums 712110 Historical Sites 712120 Zoos and Botanical Gardens 712130 Nature Parks and Other Similar Institutions 712190 Gambling Facilities Casinos (except Casino Hotels) 713210 Other Gambling Industries 713290 Other Tourism Attractions Hunting and Trapping 114210 Skiing Facilities 713920 Marinas 713930 All Other Amusement and Recreation Industries 713990 Recreational and Vacation Camps (except Campgrounds) 721214 Accommodations and Related Services Convention and Visitors Bureaus 561591 Hotels (except Casino Hotels) and Motels 721110 Casino Hotels 721120 Bed-and-Breakfast Inns 721191 All Other Traveler Accommodation 721199 RV (Recreational Vehicle) Parks and Campgrounds 721211 Rooming and Boarding Houses 721310 Tourism Related Services Scenic and Sightseeing Transportation, Land 487110 Scenic and Sightseeing Transportation, Water 487210 Scenic and Sightseeing Transportation, Other 487990 Recreational Goods Rental 532292 Travel Agencies 561510 Tour Operators 561520 All Other Travel Arrangement and Reservation Services 561599 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Southwest Florida Economic Development Alliance 89 Marketing, Design, and Publishing Marketing, Design, and Publishing

9th 2,393 678 Largest marketing, design, and Employed in the marketing, Establishments in the publishing cluster in Florida. design, and publishing cluster. marketing, design, and publishing cluster.

-7.9% 226 Average annual employment Job seekers from top 20 growth in the marketing, occupations in the marketing, design, and publishing cluster. design, and publishing cluster.

90 Southwest Florida Key Industry Clusters Industry Overview

Southwest Florida is home to the ninth largest marketing, design, and publishing cluster in Florida. The cluster, which includes 22 different types of industries, is made up of just four subclusters. These subclusters include marketing-related services, design services, publishing, and advertising. With 678 companies, this cluster employs over 2000 workers with either high school or college degrees. Individually, these companies are small and employ less than 10 workers each (83 percent employ fewer than five workers). The majority of these companies are located in Lee and Collier counties where marketing, advertising and design services are in great demand, given the growth of commercial and residential real estate in these two counties.

Firms included in this cluster provide jobs for workers skilled in both physical and graphical design. Jobs range from the mundane to the creative as the cluster includes jobs in public relations, advertising, publishing, interior and industrial design, as well as specialized design services. Depending on the type of skills required by the specific company part of this cluster, salaries start at the minimum wage and rise higher, depending on the training, education and creativity of the worker. Specific occupations in this cluster range widely and include clerks, photographers, librarians, directors and film editors, multimedia artists, and animators.

As this region continues to grow, the need for the services provided by these companies has been and will remain strong, with the exception of the publishing subcluster. The 21 percent annual rate of decline in this subcluster (between 2009 and 2015) reflects the national pattern of downsizing due to conglomeration and growth in electronic substitutes. However, employment in the other three subclusters (advertising, marketing and design services) have managed to remain stable and positive over the same time period. The largest employment growth occurred in design services, which accounts for about 30 percent of employment in this cluster. This growth is a reflection of the demand for the unique and creative skills that define the types of jobs in this subcluster. Economic Profile

The marketing, design, and publishing cluster consists of 22, six-digit North American Industry Classification System (NAICS) codes including advertising agencies, marketing consulting services, design services, publishers, and libraries and archives. The five-county region ranked ninth in the state of Florida out of 24 workforce regions in employment for the marketing, design, and publishing cluster, with an employment level of 2,393 in 2015. The region had 678 establishments for the marketing, design, and publishing cluster in 2015. Southwest Florida saw a 6.7-percent increase in its short-run employment growth in this cluster over the past year, well above the state of Florida’s employment growth rate of 0.6 percent. The location quotient for this cluster’s employment relative to the state and the country were both less than one, implying that the concentration of employment in this region relative to the state and the country is low.

Marketing, Design, and Publishing Economic Profile Southwest Florida Florida Employment, 2015 2,393 64,866 Number of Establishments, 2015 678 12,022 Short-run employment growth, 2014 to 2015 6.7% 0.6% Long-run employment growth, 2009 to 2015 -38.9% 11.0% Average annual employment growth, 2009 to 2015 -7.9% 2.1% Workforce Region Employment Ranking, 2015 9th -- Location Quotient, Relative to Florida, 2015 0.78 -- Location Quotient, Relative to United States, 2015 0.60 0.78 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 91 Employment by County

Marketing, Design, and Publishing Marketing, Design, and Publishing Long-Run Employment Growth Employment 3,600 2009 2015 Charlotte 3,200 3,065 6% 2,800 2,400 Lee 2,000 1,600 1,364 57% Collier 1,200 845 35% 800 689 400 120 144 30 40 10 0 0 Lee Collier Charlotte Hendry Glades Hendry 2% Lee County accounts for 57 percent of the 2,393 people employed in this cluster, followed by Collier County at 35 percent, and Charlotte County at 6 percent. Marketing, design, and publishing employment in Hendry County amounted to just 2 percent of the total. There were no employees in this cluster in Glades County.

Marketing, Design, and Publishing Employment By County County Employment Percent of Total Employment Charlotte 144 6.0% Collier 845 35.3% Glades 0 0.0% Hendry 40 1.7% Lee 1,364 57.0% Southwest Florida 2,393 100.0% Source: County Business Patterns: 2015

The table below shows the number of employees per establishment for the marketing, design, and publishing cluster. Less than 10 percent of the firms in this cluster have more than 20 employees, while the majority (83 percent) have fewer than five employees. There are no firms with 100 or more employees in this cluster. Predominantly the jobs are in Lee and Collier counties. Marketing, Design, and Publishing Establishments By County Number of Employees in Establishment 10 to 20 to 50 to 100 to 250 to 500 to County 1 to 4 5 to 9 19 49 99 249 499 999 1000+ Total Charlotte 46 5 1 0 0 0 0 0 0 52 Collier 240 20 14 3 1 0 0 0 0 278 Glades 0 0 0 0 0 0 0 0 0 0 Hendry 4 0 0 0 0 0 0 0 0 4 Lee 279 31 21 10 3 0 0 0 0 344 Southwest Florida 569 56 36 13 4 0 0 0 0 678 Source: County Business Patterns: 2015

92 Southwest Florida Key Industry Clusters Employment in the marketing, design, and publishing cluster declined by 38.9 percent in Southwest Florida from 2009 to 2015. Lee County lost 1,701 jobs, or 55.5 percent of its 2009 total. The trend to digital publishing has had an effect on employment. For example, over 200 jobs were directly lost due to the restructuring of Source Interlink. This was partially offset by gains of 156 jobs in Collier County (up 22.6 percent), and 24 in Charlotte County (20 percent). Glades County, with only 10 jobs in this area in 2009, lost all of them by 2015. Marketing, Design, and Publishing Long-Run Employment Growth By County Employment Average Annual County 2009 2015 Percent Change Percent Change Charlotte 120 144 20.0% 3.1% Collier 689 845 22.6% 3.5% Glades 10 0 -100.0% -100.0% Hendry 30 40 33.3% 4.9% Lee 3,065 1,364 -55.5% -12.6% Southwest Florida 3,914 2,393 -38.9% -7.9% Source: County Business Patterns: 2015

Employment by Subcluster

The marketing, design, and publishing cluster is comprised of four subclusters: advertising related services, other marketing services, design services, and publishing. Information regarding employment by subcluster can be found below. Employment is somewhat evenly distributed among the four, with the largest percentage in the design services subcluster (30 percent) and the lowest (20.5 percent) in advertising related services. Despite the loss in publishing jobs between 2009 and 2015, this subcluster still accounted for about a quarter of all the jobs in this cluster. Marketing, Design, and Publishing Employment By Subcluster Subcluster Employment Percent of Total Employment Design Services 721 30.1% Other Marketing Related Services 600 25.1% Publishing 582 24.3% Advertising Related Services 490 20.5% Total 2,393 100.0% Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 93 The total number of establishments in the marketing, design, and publishing cluster, by establishment, was 678 in 2015. The table of the four subclusters of this cluster indicates that the largest number of establishments are in the design services subcluster (253) and the smallest number is in publishing (92). The number of employees per establishment in all the subclusters is predominantly less than 50, with many establishments employing 1 to 4 employees (84 percent). Marketing, Design, and Publishing Establishments By Subcluster Number of Employees in Establishment Subcluster 1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to Total 1000+ 4 9 19 49 99 249 499 999 Design Services 213 23 15 2 0 0 0 0 0 253 Other Marketing Related Services 203 13 6 4 1 0 0 0 0 227 Advertising Related Services 80 14 8 3 1 0 0 0 0 106 Publishing 73 6 7 4 2 0 0 0 0 92 Total 569 56 36 13 4 0 0 0 0 678 Source: County Business Patterns: 2015

The growth rate of employment over a six-year period in the four subclusters of advertising, other marketing related services, design services, and publishing, is shown in the table below. As noted previously, employment in this cluster declined by 38.9 percent, or at an average annual rate of about 8 percent. Three of the four subclusters experienced employment growth over the six-year period (2009-2015). However, the serious decline of about three quarters of all the jobs in the publishing sector weighed down total employment growth in this cluster. The job decline in this subcluster mirrors the pattern of job losses in this sector nationally. The fastest growing subcluster was design services, where employment increased by 35.5 percent over the 6-year period or at a 5 percent annual rate of growth. The other two subclusters (marketing and advertising) showed sustainable growth rates during this time period. Marketing, Design, and Publishing Long-Run Employment Growth By Subcluster Employment Average Annual Subcluster Percent Change 2009 2015 Percent Change Design Services 532 721 35.5% 5.2% Other Marketing Related Services 539 600 11.3% 1.8% Advertising Related Services 459 490 6.8% 1.1% Publishing 2,384 582 -75.6% -20.9% Total 3,914 2,393 -38.9% -7.9% Source: County Business Patterns: 2015

94 Southwest Florida Key Industry Clusters Workforce Ranking

Of all the workforce regions in the state of Florida, the Southwest Florida region ranked ninth in terms of number of employees in the marketing, design, and publishing cluster in 2015. Southwest Florida was ranked just below the Suncoast workforce region (ranked eighth, 2,562 employees) and above the Capital workforce region (ranked 10th, 2,201 employees). A complete list of the workforce rankings by number of employees can be found below. Marketing, Design, and Publishing Workforce Rankings Rank Workforce Region Employment Level 1 South Florida 9,807 2 Central Florida 9,266 3 Pinellas 8,696 4 Tampa Bay 7,813 5 Broward 7,256 6 Palm Beach County 6,501 7 Northeast Florida 3,095 8 Suncoast 2,562 9 Southwest Florida 2,393 10 Capital Region 2,201 11 Flagler Volusia 1,535 12 Research Coast 1,087 13 North Central Florida 997 14 Brevard 824 15 Escarosa 700 16 Pasco Hernando 672 17 Polk 651 18 Citrus Levy Marion 524 19 Okaloosa Walton 369 20 Gulf Coast 214 21 Heartland 103 22 North Florida 90 23 Chipola 60 24 Florida Crown 54 Source: County Business Patterns: 2015

Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

Southwest Florida Economic Development Alliance 95 Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Marketing, Design, and Publishing Occupations By Total Employed Total Number of Number Working Entry Median Experienced Occupation Available of Education Level Across All Wage Wage Wage Applicants Graduates Industries Shipping, Receiving, and Traffic Clerks 1,251 24 0 $9.81 $12.55 $15.00 PSAV Advertising Sales Agents 852 13 0 $14.98 $21.18 $29.83 PSAV Graphic Designers 713 22 9 $15.30 $19.45 $24.93 Some College Order Clerks 438 2 0 $10.24 $13.78 $15.80 High School/GED Interior Designers 435 21 17 $15.33 $20.13 $28.20 Some College Photographers 365 8 0 $8.87 $15.50 $18.09 PSAV Producers and Directors 297 8 0 $19.51 $32.74 $35.84 Bachelor's Degree Master's Degree or Librarians 267 3 0 $21.14 $28.71 $33.51 Higher Less than High Couriers and Messengers 249 18 0 $9.63 $13.12 $14.36 School Library Assistants, Clerical 244 7 0 $10.15 $12.68 $14.01 PSAV

Library Technicians 230 1 0 $11.24 $14.92 $18.27 Some College

Cargo and Freight Agents 184 20 0 $11.25 $18.67 $24.46 PSAV Marketing Managers 155 36 95 $26.50 $40.15 $56.05 Bachelor's Degree Mail Clerks and Mail Machine Operators, 100 7 0 $9.88 $13.48 $15.70 High School/GED Except Postal Service Media and Communication Workers, All 87 5 0 $17.28 $24.78 $29.50 Some College Other Multimedia Artists and Animators 65 6 20 $17.06 $19.30 $22.00 Some College Cartographers and Photogrammetrists 31 2 0 $27.35 $49.23 $50.69 Bachelor's Degree Film and Video Editors 30 3 0 $13.81 $17.57 $19.47 Some College Advertising and Promotions Managers 21 10 0 $50.77 $60.87 $62.83 Bachelor's Degree Designers, All Other 17 10 0 $19.80 $23.53 $38.85 Some College Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

96 Southwest Florida Key Industry Clusters Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 ACI Worldwide, a global, publicly-traded company headquartered in Naples, received nine various award and rankings in 2016. Among their recent acquisitions include Retail Decisions (ReD) and PAY.ON.

EVENTS, AWARDS AND RECOGNITIONS

 In 2017, the Above Board Chamber of Florida held an event called What’s In Your Marketing Toolbox! first in Collier County on April 10th and then again in Lee County on April 13th. The event had a total of 65 attendees, and featured members of the community in the marketing industry as panelists. The Above Board Chamber of Florida is an organization dedicated to “bringing people of all faiths together within the community, in the workplace and amongst one another.”  Every year, the Florida Public Relations Chapter Southwest Florida Chapter hosts its annual Media Breakfast event, which features a panel of media professionals and networking opportunities. In 2017, the event was on June 6th with the theme “The 2017 Playbook: Media Relations in an Evolving Market.”  Florida SouthWestern State College earned six awards at the Association of Florida College’s Fall 2016 convention. These were First Place for Best College Magazine and for Best Bang for the Buck; Second Place for Article in a College-Produced Publication, Display/Presentation Board and Exemplary Practice; and Third Place for Direct Mail Piece/Campaign.  4What Interactive provides website and video products and online solutions for many global and FORTUNE 500 companies. It is based in Naples has added satellite offices in North Carolina and London, England.  The Collier County Public library has, through an existing partnership, made the Naples Jail Center and Immokalee Jail Center outreach branches of the library system. This allows inmates to check out books digitally, giving them access to more resources and allowing them to use the library services when they reintegrate into the community.  Chris Spiro, owner of the Fort Myers-based marketing firm Spiro and Associates, was named 2016 Distinguished Entrepreneur of Southwest Florida, by Florida Gulf Coast University’s Small Business Development Center.

Companies

 4 What Interactive  Gulfshore Life Magazine www.4what.com www.gulfshorelife.com  AccuData Integrated  Home Mag Inc. www.accudata.com www.thehomemag.com  ACI Worldwide, Inc.  Lamar Media Corp. www.aciworldwide.com www.lamar.com  Alesco Data Solutions, LLC  Mediabrains www.alescodata.com www.mediabrains.com  Ambius Ft. Myers  Netexpress Inc. www.ambius.com www.shipwithnet.com  Breeze Corp.  News Bank Inc. www.breezenewspapers.com www.newsbank.com  Cone Communications Co.  Nielsen Co. www.conecomm.com www.nielsen.com  Curtis Allen Designs  Open Sky Media www.curtisallendesigns.com www.hadleycapital.com  Data Partners Inc.  Priority Marketing of SW FL www.datapartners.com www.prioritymarketing.com  Dex Media  Romanza Architectural Interior Design www.dexmedia.com www.romanza.com  Entech Computer Services  Southwest Direct Inc. www.entechus.com www.swdirect.com

Southwest Florida Economic Development Alliance 97 Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the marketing, design, and publishing cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  Hodges University  Keiser University www.hodges.edu www.keiseruniversity.edu  Rasmussen College  Florida Atlantic University www.rasmussen.edu www.fau.edu  Broward College  Florida International University www.broward.edu www.fiu.edu  University of Miami  Miami-Dade College www.miami.edu www.mdc.edu  Florida State University  University of Florida www.fsu.edu www.ufl.edu  University of Central Florida  University of South Florida www.ucf.edu www.usf.edu

98 Southwest Florida Key Industry Clusters Cluster Definition

The marketing, design, and publishing cluster is comprised of 22 six-digit NAICS codes that form four subclusters. A list of each subcluster and NAICS category, along with the appropriate six-digit NAICS codes, can be found in the table below.

Marketing, Design, and Publishing Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Advertising Related Services Advertising Agencies 541810 Outdoor Advertising 541850 Direct Mail Advertising 541860 Advertising Material Distribution Services 541870 Other Services Related to Advertising 541890 Other Marketing Related Services Marketing Consulting Services 541613 Public Relations Agencies 541820 Media Buying Agencies 541830 Media Representatives 541840 Marketing Research and Public Opinion Polling 541910 Design Services Interior Design Services 541410 Industrial Design Services 541420 Graphic Design Services 541430 Other Specialized Design Services 541490 Publishing Periodical Publishers 511120 Book Publishers 511130 Directory and Mailing List Publishers 511140 All Other Publishers 511199 News Syndicates 519110 Libraries and Archives 519120 Internet Publishing and Broadcasting and Web Search Portals 519130 All Other Information Services 519190 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Southwest Florida Economic Development Alliance 99 Medical Devices Medical Devices

3rd 1,522 16 Largest medical devices cluster Employed in the medical Establishments in the medical in Florida. devices cluster. devices cluster.

15.7% 182 Average annual employment Job seekers from top 5 growth in the medical devices occupations in the medical cluster. devices cluster.

100 Southwest Florida Key Industry Clusters Industry Overview

The medical devices cluster consists of just five six-digit North American Industry Classification System (NAICS) codes with two subclusters. These include optical instruments, surgical and medical instruments, surgical appliances and supplies manufacturing, and dental equipment. The cluster ranks third in employment ranking in 2015 in the Southwest Florida region.

One major establishment accounts for over 1,000 employees, accounting for virtually all of the employment by this single firm. The 15 other establishments account for less than 100 employees altogether across all five counties. Growth in this cluster has been concentrated in primarily one of the five counties in the Southwest Florida region. After experiencing growth at an exceptionally strong pace between 2009 and 2014, employment decreased by almost 20 percent between 2014 and 2015.

Encouraging news were announced in late 2016 that Arthrex, the North Naples-based manufacturer of medical devices and surgical supplies, would be expanding its operations in Collier County, with a capital investment of over $63 million and creating 560 jobs at its corporate campus. These jobs would average $54,000 in salaries and be corporate in nature. Tax incentives were offered to maintain the company’s presence in Collier County. Expectations are that the economic impact of this firm will be substantial and will promote the development of a more industrially diverse regional economy.

Economic Profile

The medical devices cluster consists of five six-digit North American Industry Classification System (NAICS) codes with two subclusters: optical instruments and ophthalmic goods, and surgical and dental instruments and supplies. This cluster has very high location quotients, relative to both the state of Florida and the U.S. With a value that exceeds 1, the implication is that employment concentration in this cluster is quite high relative to the state and the country in like industries. The number of employees in the Southwest Florida region in this cluster represents 11 percent of employment in the state for this cluster. Growth in employment was quite high from 2009 to 2013 but it declined by about 20 percent between 2014 and 2015. As is typical, employment in areas of high concentration will experience sharper declines during downturns than areas with less concentration. The 20-percent decrease in employment in Southwest Florida was almost double the rate of decrease in the similar time period (-11.1 percent) for the state. The location quotients for this cluster in the Southwest Florida region were above 2, relative to the state and the U.S., implying that the concentration of employment in this region is extremely high. Employment in the entire state had a location quotient below 1 when compared to the U.S. Medical Devices Economic Profile Southwest Florida Florida Employment, 2015 1,522 14,141 Number of Establishments, 2015 16 291 Short-run employment growth, 2014 to 2015 -19.9% -11.1% Long-run employment growth, 2009 to 2015 140.4% -8.6% Average annual employment growth, 2009 to 2015 15.7% -1.8% Workforce Region Employment Ranking, 2015 3rd -- Location Quotient, Relative to Florida, 2015 2.27 -- Location Quotient, Relative to United States, 2015 2.03 0.90 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 101 Employment by County

Medical Devices Medical Devices Long-Run Employment Growth Employment Charlotte 1,600 2009 2015 1,390 Lee 1% 8% 1,200

800 581 Collier 400 122 91% 42 10 10 0 0 0 0 0 Collier Lee Charlotte Hendry Glades

Southwest Florida’s medical devices cluster employed a total 1,522 in 2015. As can be seen in the graphs and the table nearby, employment for this cluster is highly concentrated in Collier County, which represents about 91 percent of total employment for this cluster in this region. As indicated on the bar graph, employment more than doubled between 2009 and 2015 in Collier County. Lee County employment, not as high as Collier, just about tripled over the six-year period. Employment in the remaining three counties was extremely small and insignificant as to the overall employment in those counties. Medical Devices Employment By County County Employment Percent of Total Employment Charlotte 10 0.7% Collier 1,390 91.3% Glades 0 0.0% Hendry 0 0.0% Lee 122 8.0% Southwest Florida 1,522 100.0% Source: County Business Patterns: 2015

There are 16 establishments comprising this cluster in Southwest Florida, with about half employing less than 10 workers. Collier County’s concentration of this cluster’s workers is evident in the table below, notwithstanding Lee County’s majority in terms of establishment count. Medical Devices Establishments By County Number of Employees in Establishment 10 to 20 to 50 to 100 to 250 to 500 to County 1 to 4 5 to 9 19 49 99 249 499 999 1000+ Total Charlotte 1 0 0 0 0 0 0 0 0 1 Collier 1 2 0 0 1 1 0 0 1 6 Glades 0 0 0 0 0 0 0 0 0 0 Hendry 0 0 0 0 0 0 0 0 0 0 Lee 3 2 2 2 0 0 0 0 0 9 Southwest Florida 5 4 2 2 1 1 0 0 1 16 Source: County Business Patterns: 2015

102 Southwest Florida Key Industry Clusters Collier County accounted for the largest share of changes in employment in the medical devices cluster between 2009 and 2015 and consequently, the largest increase over that time period. Lee County was next in having the largest increase in jobs for this cluster. Medical Devices Long-Run Employment Growth By County Employment Average Annual County 2009 2015 Percent Change Percent Change Charlotte 10 10 0.0% 0.0% Collier 581 1,390 139.2% 15.6% Glades 0 0 N/A N/A Hendry 0 0 N/A N/A Lee 42 122 190.5% 19.4% Southwest Florida 633 1,522 140.4% 15.7% Source: County Business Patterns: 2015

Employment by Subcluster

The major subcluster of the medical devices cluster is that of surgical and dental instruments and supplies. This subcluster accounts for 99 percent of all employment. Medical Devices Employment By Subcluster Subcluster Employment Percent of Total Employment Surgical and Dental Instruments and Supplies 1,512 99.3% Optical Instruments and Ophthalmic Goods 10 0.7% Total 1,522 100.0% Source: County Business Patterns: 2015

The major subcluster of the medical devices cluster is that of surgical and dental instruments and supplies. It is represented by 15 of the 16 establishments that provide employment in the Southwest Florida region. Given that one major establishment accounts for over 1,000 employees, and as shown in the previous table, this accounts for virtually all of the employment by this single firm. The 15 other establishments account for less than 100 employees altogether across all five counties. Medical Devices Establishments By Subcluster Number of Employees in Establishment Subcluster 1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to Total 1000+ 4 9 19 49 99 249 499 999 Surgical and Dental Instruments and Supplies 4 4 2 2 1 1 0 0 1 15 Optical Instruments and Ophthalmic Goods 1 0 0 0 0 0 0 0 0 1 Total 5 4 2 2 1 1 0 0 1 16 Source: County Business Patterns: 2015

The growth rate in employment by subcluster over the six-year period (2009-2015) is shown below. The number of employees in the subcluster of surgical and dental instruments and supplies more than doubled during this time, while employment in optical instruments remained unchained.

Southwest Florida Economic Development Alliance 103 Medical Devices Long-Run Employment Growth By Subcluster Employment Average Annual Subcluster Percent Change 2009 2015 Percent Change Surgical and Dental Instruments and Supplies 623 1,512 142.7% 15.9% Optical Instruments and Ophthalmic Goods 10 10 0.0% 0.0% Total 633 1,522 140.4% 15.7% Source: County Business Patterns: 2015

Workforce Ranking

Employment in medical devices in Southwest Florida ranked third when compared to the entire Florida workforce region, with 1,522 workers. Southwest Florida was well below Pinellas 2,692 during this period, but slightly above Broward’s 1,367. Medical Devices Workforce Rankings Rank Workforce Region Employment Level 1 Northeast Florida 3,260 2 Pinellas 2,692 3 Southwest Florida 1,522 4 Broward 1,367 5 South Florida 1,030 6 North Central Florida 908 7 Central Florida 700 8 Flagler Volusia 661 9 Palm Beach County 659 10 Brevard 409 11 Suncoast 333 12 Tampa Bay 320 13 Citrus Levy Marion 255 14 Pasco Hernando 150 15 Research Coast 90 16 Heartland 70 17 Polk 70 18 Capital Region 20 19 Escarosa 20 20 North Florida 10 21 Gulf Coast 10 22 Okaloosa Walton 10 23 Florida Crown 0 24 Chipola 0 Source: County Business Patterns: 2015

104 Southwest Florida Key Industry Clusters Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Medical Devices Occupations By Total Employed Total Number of Number Working Entry Median Experienced Occupation Available of Education Level Across All Wage Wage Wage Applicants Graduates Industries Stock Clerks and Order Fillers 7,147 150 0 $9.28 $11.39 $13.33 High School/GED Sales Representatives, Wholesale and Manufacturing, Technical and Scientific 549 19 0 $18.83 $32.57 $50.33 PSAV Products Medical and Clinical Laboratory 433 3 0 $22.97 $27.73 $30.60 Some College Technologists Medical and Clinical Laboratory Technicians 191 10 0 $12.37 $17.43 $21.39 Some College Master's Degree or Medical Scientists, Except Epidemiologists 55 0 0 $25.19 $31.19 $42.55 Higher Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

Southwest Florida Economic Development Alliance 105 Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 In December 2016, Arthrex, a global manufacturer of medical devices and supplies, announced it would expand its operations in Collier County, adding 560 new jobs. In addition to manufacturing products, the company trains surgeons on the medical devices. New jobs as well as spillover effects from this move will have positive impacts on jobs in this cluster. The new jobs are expected to pay – on average - $54,000 a year, with annual benefits of $17,000 and will be more corporate in nature.  Also in December 2016, Arthrex announced plans to expand its capital investment more than $63 million in Southwest Florida. Arthrex could receive more than $5.9 million in incentives from the state and the county for its expansion.

EVENTS, AWARDS AND RECOGNITIONS

 In 2016, FORTUNE magazine ranked Arthrex as the 62nd in its list of “100 Best Companies to Work For” and the 33rd out of the top 50 companies for giving back to communities. The magazine also ranked Arthrex 3rd out of a list of 15 best workplaces in the nation for manufacturing and production.

Companies

 Arthrex  Dawning Technologies www.arthrex.com www.dawning.com  D& D Machine and Hydraulics www.ddpumps.com

Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the medical devices cluster would include the following:

 Florida Gulf Coast University  Florida Atlantic University www.fgcu.edu www.fau.edu  University of Miami  Florida International University www.miami.edu www.fiu.edu  Florida State University  Miami-Dade College www.fsu.edu www.mdc.edu  University of Central Florida  University of Florida www.ucf.edu www.ufl.edu  University of South Florida www.usf.edu

106 Southwest Florida Key Industry Clusters Cluster Definition

Medical devices is the cluster made up of surgical manufacturers, dental, optical, and ophthalmic goods manufacturing. It also includes veterinary instruments and supplies. The cluster is made up of five NAICS industries that are part of two subcluster categories, as shown on the table below.

Medical Devices Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Optical Instruments and Ophthalmic Goods Optical Instrument and Lens Manufacturing 333314 Ophthalmic Goods Manufacturing 339115 Surgical and Dental Instruments and Supplies Surgical and Medical Instrument Manufacturing 339112 Surgical Appliance and Supplies Manufacturing 339113 Dental Equipment and Supplies Manufacturing 339114 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Southwest Florida Economic Development Alliance 107 Performing Arts Performing Arts

6th 1,432 150 Largest performing arts cluster Employed in the performing Establishments in the in Florida. arts cluster. performing arts cluster.

3.3% 178 Average annual employment Job seekers from top 10 growth in the performing arts occupations in the performing cluster. arts cluster.

108 Southwest Florida Key Industry Clusters Industry Overview

Pablo Picasso once said, “The purpose of art is washing the dust of daily life off our souls”. The performing arts cluster represents people engaged in producing, promoting, supporting and participating in live artistic performance. The cluster consists of eight NAICS industries, including theater companies, musicians, dancers, actors and artists. The value of this cluster is that performing arts create local economic benefits that extend or are “exported” beyond the region. A strong and vibrant performing arts cluster provides a region with a comparative advantage. The economic impact is felt on incomes and employment in the region as visitors come from other areas and spend their dollars on performances. These “new dollars” generate positive economic impacts beyond just the performing arts cluster, such as money spent on lodging, dining and entertainment.

This cluster also includes sports promoters as well as managers for athletes, public figures, entertainers and artists. Lee County has houses an entertainment bureau as well as the JetBlue Park, home to the Boston Red Sox spring training facility. There are many small groups and organizations that have come together to work on promoting the arts to audiences large and small. These organizations provide opportunities to young artists, in the form of auditions and professional performances. Larger venues in the areas have succeeded in attracting nationally recognized productions to the Southwest Florida region. These include classical orchestral performances, Broadway plays, and international dance and ballet troupes. People involved in this cluster recognize the importance of supporting the arts and providing cultural experiences to the local population, seasonal residents and tourists.

Economic Profile

Southwest Florida’s performing arts cluster is the sixth largest in the state. With 150 establishments as of 2015, this represents 5 percent of the total number of performing arts establishments in the state. Employment growth was strong between 2014 and 2015 (almost 14 percent), reflecting the strong type of growth that prevailed over the 6-year period (2009-2015). Location Quotients measure the degree to which an occupation is over or underrepresented in an area. Employment in this cluster has a location quotient that is greater than one relative to both the state of Florida and the U.S. With a value that exceeds 1, the implication is that employment concentration in this cluster is higher relative to the state and the country in like industries. The implication is that this region has a comparative advantage in this employment cluster. The location quotient for performing arts in Southwest Florida was 1.46 relative to the state and 1.35 relative to the country. This compares with just .93 for the entire state of Florida relative to the U.S. Performing Arts Economic Profile Southwest Florida Florida Employment, 2015 1,432 20,607 Number of Establishments, 2015 150 2,773 Short-run employment growth, 2014 to 2015 13.7% 4.3% Long-run employment growth, 2009 to 2015 21.8% 1.9% Average annual employment growth, 2009 to 2015 3.3% 0.4% Workforce Region Employment Ranking, 2015 6th -- Location Quotient, Relative to Florida, 2015 1.46 -- Location Quotient, Relative to United States, 2015 1.35 0.93 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 109 Employment by County

Performing Arts Performing Arts Long-Run Employment Growth Employment 1,200 2009 2015 Charlotte 4% 870 800

570 549 Lee 487 Collier 400 61% 34%

47 65 10 10 0 0 0 Glades Lee Collier Charlotte Glades Hendry 1%

Lee and Collier county together account for about 95 percent of total employment in performing arts, reflecting greater demand for these services in areas populated by seasonal residents, tourists and year-round residents. Charlotte and Glades counties employ fewer people in this cluster, reflecting both their smaller population on the demand side and fewer venues on the supply side. Performing Arts Employment By County County Employment Percent of Total Employment Charlotte 65 4.5% Collier 487 34.0% Glades 10 0.7% Hendry 0 0.0% Lee 870 60.8% Southwest Florida 1,432 100.0% Source: County Business Patterns: 2015

Collier County is the only one of the five counties in the region that has one establishment that employs between 250 and 499 people in the performing arts cluster. Lee County has four establishments employing between 100 and 250 employees. There are many smaller establishments in the performing arts cluster that employ typically employ 10 or fewer workers. From a total 150 establishments, 83 percent employ fewer than five percent employees. (Hendry County has no employees in this cluster.) Performing Arts Establishments By County Number of Employees in Establishment 10 to 20 to 50 to 100 to 250 to 500 to County 1 to 4 5 to 9 19 49 99 249 499 999 1000+ Total Charlotte 12 1 0 1 0 0 0 0 0 14 Collier 53 4 2 3 0 0 1 0 0 63 Glades 1 0 0 0 0 0 0 0 0 1 Hendry 0 0 0 0 0 0 0 0 0 0 Lee 59 5 1 2 1 4 0 0 0 72 Southwest Florida 125 10 3 6 1 4 1 0 0 150 Source: County Business Patterns: 2015

110 Southwest Florida Key Industry Clusters Employment in the performing arts continued to grow in the five-county region over the most recent six-year period, as shown on the table below. However, the location of the growth varied among the counties. Collier County employment fell about 11 percent between 2009 and 2015 while Lee County increased by a substantial 53 percent during the same time period. Charlotte County also showed an increase in employment, although total employment in this county accounted for less than five percent during this time. Of the total 1,432 employees in 2015 in the performing arts, about 61 percent were employed in Lee County. Performing Arts Long-Run Employment Growth By County Employment Average Annual County 2009 2015 Percent Change Percent Change Charlotte 47 65 38.3% 5.6% Collier 549 487 -11.3% -2.0% Glades 10 10 0.0% 0.0% Hendry 0 0 N/A N/A Lee 570 870 52.6% 7.3% Southwest Florida 1,176 1,432 21.8% 3.3% Source: County Business Patterns: 2015

Employment by Subcluster

The eight industries (as indicated by NAICS codes) in the performing arts cluster are part of two subclusters, shown on the table below. As can be seen, the promoters and managers subcluster accounts for a larger percentage of employment. This subcluster provides for the attainment, support, exposure and ultimate employment of the artists. Of the total 1,432 employed in this cluster, 57 percent are the promoters and managers while about 43 percent are the performers themselves. Performing Arts Employment By Subcluster Subcluster Employment Percent of Total Employment Promoters and Managers 818 57.1% Performing Artists 614 42.9% Total 1,432 100.0% Source: County Business Patterns: 2015

Employees classified by the subcluster are typically found in establishments that employee less than five people. The number of establishments employing performing artists relative to promoters and managers are about three to one. Again, the number of establishments with more than 100 artists, promoters and managers is sparse and are located in the larger two counties of Southwest Florida, as shown in a previous table. Overall, there are 150 establishments in the region with the greatest employment opportunities for artists, managers, and promoters concentrated in the larger venues of Collier and Lee counties. Performing Arts Establishments By Subcluster Number of Employees in Establishment Subcluster 10 to 20 to 50 to 100 to 250 to 500 to Total 1 to 4 5 to 9 1000+ 19 49 99 249 499 999 Performing Artists 96 7 2 1 1 2 0 0 0 109 Promoters and Managers 29 3 1 5 0 2 1 0 0 41 Total 125 10 3 6 1 4 1 0 0 150 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 111 The performing arts cluster in the five-county region is growing, as measured by the number of performing artists. Between 2009 and 2015, growth in employment averaged almost 10 percent annually. The number of promoters and managers decreased by less than 1 percent. Looking at both subclusters combined shows a very positive growth rate annually for this region as of 2015. Performing Arts Long-Run Employment Growth By Subcluster Employment Average Annual Percent Change Subcluster 2009 2015 Percent Change Performing Artists 353 614 73.9% 9.7% Promoters and Managers 823 818 -0.6% -0.1% Total 1,176 1,432 21.8% 3.3% Source: County Business Patterns: 2015

Workforce Ranking

This table indicates how employment in the performing arts cluster of Southwest Florida ranked when compared to the other regions in the state. Of the total employed in the state, Southwest Florida ranked sixth for jobs in the performing arts, behind the Palm Beach workforce region but ahead of Broward. Performing Arts Workforce Rankings Rank Workforce Region Employment Level 1 South Florida 4,465 2 Central Florida 2,815 3 Northeast Florida 2,497 4 Tampa Bay 2,456 5 Palm Beach County 2,139 6 Southwest Florida 1,432 7 Broward 1,360 8 Escarosa 845 9 Suncoast 773 10 Polk 596 11 Research Coast 566 12 Pasco Hernando 531 13 Pinellas 527 14 Capital Region 218 15 Brevard 177 16 Flagler Volusia 166 17 Citrus Levy Marion 157 18 North Central Florida 137 19 Okaloosa Walton 124 20 Gulf Coast 54 21 Heartland 50 22 Florida Crown 20 23 North Florida 20 24 Chipola 0 Source: County Business Patterns: 2015

112 Southwest Florida Key Industry Clusters Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Performing Arts Occupations By Total Employed Total Number of Number Working Entry Median Experienced Occupation Available of Education Level Across All Wage Wage Wage Applicants Graduates Industries Security Guards 4,145 60 0 $9.53 $11.19 $12.74 PSAV Less than High Amusement and Recreation Attendants 1,728 12 0 $8.79 $9.38 $11.10 School Counter Attendants, Cafeteria, Food Less than High 1,681 13 0 $8.74 $9.04 $9.96 Concession, and Coffee Shop School Sales Managers 545 79 98 $35.45 $61.68 $79.49 Bachelor's Degree Music Directors and Composers 388 2 0 $13.70 $21.33 $27.37 Bachelor's Degree Locker Room, Coatroom, and Dressing Less than High 270 3 0 $8.86 $10.08 $12.11 Room Attendant School Ushers, Lobby Attendants, and Ticket Less than High 147 4 0 $8.84 $9.00 $9.51 Takers School Art Directors 79 3 0 $21.52 $32.33 $35.30 Bachelor's Degree Umpires, Referees, and Other Sports 40 1 0 $15.83 $18.70 $20.00 PSAV Officials Gaming Change Persons and Booth 34 1 0 $9.28 $10.94 $12.31 High School/GED Cashiers Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

Southwest Florida Economic Development Alliance 113 Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 The performing arts center Artis—Naples received its largest donation in 27 years in 2016 in the amount of $15 million.  Artis—Naples named its five building campus the Kimberly K. Querrey and Louis A. Simpson Cultural Campus, after the generous donation by the couple.  Artis—Naples received a $10 million donation from Sharon and Timothy Ubben in late 2015 to begin an orchestra endowment.  Southwest Florida Symphony Society serves as a fundraiser for the Southwest Florida Symphony Orchestra and manages scholarships to help support young music students  Artis—Naples received a $1 million donation from Kimbery Querrey and Louis Simpson in early 2016 to develop audiences and programming.  Alliance for the Arts runs programs to promote, create and educate the public in the arts culture in Southwest Florida. Its operations include hosting the annual “Fall for Arts” for young performers and artists, providing free exhibition space for student exhibits in Lee County, and furnishing rental space for area artists and businesses  The Barbara B. Mann performing arts halls runs the Broadway Series with plays and musicals off the Broadway stage. In 2016- 2017, it featured separate performances by Bob Dylan and Jay Leno. In fall of 2017, it will host the Moscow Ballet’s version of the Nutcracker.

EVENTS, AWARDS AND RECOGNITIONS

 Florida SouthWestern State College hosted the 2017 Spring Student Music Concert Series at its Barbara B. Mann Performing Arts Hall. Concerts are free to the public.  Collier County celebrates Arts Month every November with free concerts and other festivities.  Naples offers the Naples International Film Festival in November to celebrate independent films.  The Baker Museum on the campus of the Artis Naples performing arts center runs special exhibits monthly.  Alliance for the Arts provides space for the annual Young Artists Awards.  Alliance for the Arts was named by the Lee County Port Authority to be the organization responsible for permanent art exhibits at the SWFL International Airport Companies

 Artis–Naples  Barbara B. Mann Performing Arts Hall www.artisnaples.org www.bbmannpah.com  Naples Performing Arts Center  Center for Performing Arts www.naplesperformingartscenter.com www.thecpac.net  Gulfshore Playhouse  Cultural Center of Charlotte County www.gulfshoreplayhouse.org www.theculturalcenter.com  Naples Players  Southwest Florida Performing Arts www.naplesplayers.org www.swflpac.com  Alliance for the Arts www.artinlee.org

114 Southwest Florida Key Industry Clusters

Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the performing arts cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  Broward College  Florida Atlantic University www.broward.edu www.fau.edu  University of Miami  Florida International University www.miami.edu www.fiu.edu  Florida State University  Miami-Dade College www.fsu.edu www.mdc.edu  University of Central Florida  University of Florida www.ucf.edu www.ufl.edu  University of South Florida www.usf.edu

Cluster Definition

The performing arts cluster includes services that produce, promote and support live artistic performances. These performances are offered in a variety of venues and include professional and semi-professional artists. Southwest Florida has eight “industries” as defined by their NAICS codes and fall within two subclusters – performing artists and promoters and managers.

Performing Arts Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Performing Artists Theater companies and dinner theaters 711110 Musical groups and artists 711130 Independent artists, writers, and performers 711510 Dance companies 711120 Other performing arts companies 711190 Promoters and Managers Promoters of performing arts, sports, and similar events with facilities 711310 Promoters of performing arts, sports, and similar events without facilities 711320 Agents and managers for artists, athletes, entertainers, and other public figures 711410 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Southwest Florida Economic Development Alliance 115 Transportation and Logistics Transportation and Logistics

8th 2,438 222 Largest transportation and Employed in the Establishments in the logistics cluster in Florida. transportation and logistics transportation and logistics cluster. cluster.

8.1% 70 Job seekers from top 10 Average annual employment occupations in the growth in the transportation transportation and logistics and logistics cluster. cluster.

116 Southwest Florida Key Industry Clusters Industry Overview

The transportation and logistics cluster ranks seventh in the five-county region in Southwest Florida and eighth in the state, based on employment. Since 2009, growth in jobs in this cluster has exceeded 50 percent. The cluster is comprised of five subclusters and 17 different industries. This cluster includes jobs in air, rail, truck and bus transportation, as well as support activities such as maintenance, repairs and security. Typical occupations within this cluster include dispatchers, mechanics, logisticians, and technicians, providing opportunities for workers with high school degrees, technical and vocational school certificates, or bachelor degrees, and salaries ranging from minimum wages to higher salaries depending on education, skills, and experience. Job growth has been rapid in this region relative to the state and given the demand for transportation services of all kinds, it is not expected to abate. Logistics centers provide an advantage for transporters of products given the key location available in Southwest Florida. Currently much of the employment exists in Lee and Collier counties. However, transportation firms are realizing the benefits of locating in smaller, less congested locations of this region such as in Glades and Hendry counties.

Firms included in this cluster typically hire fewer than 50 employees. A large majority of the firms (86 percent) have fewer than 10 workers. Lee County has just six firms that employ more than 100 but fewer than 250 workers. Nevertheless, growth in employment over the 2009-2015 period has been robust in the region as compared to the state. The growing trend of in-migration into the region has and will continue to put upward pressure on demand for transportation services. This cluster is likely to benefit from this regional growth, especially as the America’s Gateway and AirGlades projects develop in Glades and Hendry counties, respectively. There is already evidence of this as the smaller airports in surrounding counties are putting growth plans into place. As one of the tables below indicates, growth in employment for the air transportation subcluster has dwarfed growth in the other four subclusters. Occupations in this cluster offer higher than minimum wages for entry-level positions to employees without college degrees as well as diverse opportunities.

Economic Profile

The transportation and logistics cluster consists of five subclusters and 17 six-digit North American Industry Classification System (NAICS) codes. These include companies engaged in both freight and passenger transportation by air and by land, as well as support activities such as packaging and crating. It is the seventh largest cluster in the five-county region of Southwest Florida, as measured by employment.

The five-county region ranked eighth in the state of Florida for transportation and logistics, with an employment level of 2,438 in 2015. During the six-year period from 2009 to 2015, the number of jobs in this cluster group increased by 59.1 percent, compared to only 21.8 percent for the entire state. The number of establishments in the cluster accounted for almost 4 percent of the total number of such establishments in the state. The location quotient for this cluster’s employment relative to the state and the country were both less than one, indicating that the regional concentration of employment in the transportation industry is lower than the region and the state of Florida. Transportation and Logistics Economic Profile Southwest Florida Florida Employment, 2015 2,438 106,737 Number of Establishments, 2015 222 6,203 Short-run employment growth, 2014 to 2015 3.8% 16.7% Long-run employment growth, 2009 to 2015 59.1% 21.8% Average annual employment growth, 2009 to 2015 8.1% 4.0% Workforce Region Employment Ranking, 2015 8th -- Location Quotient, Relative to Florida, 2015 0.48 -- Location Quotient, Relative to United States, 2015 0.48 1.01 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 117 Employment by County

Transportation and Logistics Transportation and Logistics Long-Run Employment Growth Employment 1,952 2,000 2009 2015 Charlotte 1,600 7%

1,199 1,200 Collier Lee 12% 800 Hendry 1% 302 80% 400 243 80 160 10 14 0 10 0 Lee Collier Charlotte Hendry Glades

Of the 2,438 people employed in this cluster, Lee County accounted for 80 percent, followed by Collier County at 12 percent, and Charlotte County at 7 percent. Transportation and logistics employment in Glades and Hendry counties amounted to just 1 percent of the total. Transportation and Logistics Employment By County County Employment Percent of Total Employment Charlotte 160 6.6% Collier 302 12.4% Glades 10 0.4% Hendry 14 0.6% Lee 1,952 80.1% Southwest Florida 2,438 100.0% Source: County Business Patterns: 2015

The table below shows the number of employees per establishment for the transportation and logistics cluster. Ninety-three percent of the firms in this cluster have less than 50 employees, and 86 percent of the firms have fewer than 10 employees. Only six firms employ more than 100 persons, all located in Lee County. Transportation and Logistics Establishments By County Number of Employees in Establishment 10 to 20 to 50 to 100 to 250 to 500 to County 1 to 4 5 to 9 19 49 99 249 499 999 1000+ Total Charlotte 17 5 1 0 1 0 0 0 0 24 Collier 54 8 3 2 1 0 0 0 0 68 Glades 1 0 0 0 0 0 0 0 0 1 Hendry 5 0 0 0 0 0 0 0 0 5 Lee 88 12 2 9 7 6 0 0 0 124 Southwest Florida 165 25 6 11 9 6 0 0 0 222 Source: County Business Patterns: 2015

Transportation and logistics grew by 59.1 percent in Southwest Florida from 2009 to 2015. All five counties participated in this cluster’s growth, with Charlotte County posting the fastest growth rate, growing by 80 employees, or 100 percent, over the six-year period. Lee County’s addition of 753 marked an increase of 62.8 percent over six years. Hendry County’s four employees marked a 40 percent

118 Southwest Florida Key Industry Clusters increase, while Collier’s 59 employees marked a 24.3 percent increase. Glades saw an increase from zero to 10 employees during this time period. Transportation and Logistics Long-Run Employment Growth By County Employment Average Annual County 2009 2015 Percent Change Percent Change Charlotte 80 160 100.0% 12.2% Collier 243 302 24.3% 3.7% Glades 0 10 N/A N/A Hendry 10 14 40.0% 5.8% Lee 1,199 1,952 62.8% 8.5% Southwest Florida 1,532 2,438 59.1% 8.1% Source: County Business Patterns: 2015

Employment by Subcluster

The table below shows the composition of the transportation and logistics cluster. The highest employment occurs in the air transportation subclusters, representing nearly 58 percent of the cluster. Ground transportation, consisting of trucking, bus service, and ground support activities represents just over 42 percent. Transportation and Logistics Employment By Subcluster Subcluster Employment Percent of Total Employment Air Transportation 1,344 55.1% Ground Transportation Support Activities 589 24.2% Trucking 352 14.4% Bus Transportation 88 3.6% Specialty Air Transportation 65 2.7% Total 2,438 100.0% Source: County Business Patterns: 2015

Of the 222 establishments that comprise this cluster, 85 percent employ fewer than 10 employees. The trucking subcluster’s contribution of 79 employees makes up 36 percent of the total cluster. It is followed by ground transportation support activities (74 employees, 33 percent), air transportation (45 employees, 20 percent), and specialty air transportation (18 employees, 8 percent). Only six firms in this list employ 100 or more workers, four of which are in the air transportation subcluster. Transportation and Logistics Establishments By Subcluster Number of Employees in Establishment 1 to 5 to 10 to 20 to 50 to 100 to 250 to 500 to Subcluster 1000+ Total 4 9 19 49 99 249 499 999 Trucking 70 5 0 2 1 1 0 0 0 79 Ground Transportation Support Activities 59 7 3 3 1 1 0 0 0 74 Air Transportation 17 10 2 6 6 4 0 0 0 45 Specialty Air Transportation 14 3 1 0 0 0 0 0 0 18 Bus Transportation 5 0 0 0 1 0 0 0 0 6 Total 165 25 6 11 9 6 0 0 0 222 Source: County Business Patterns: 2015

Southwest Florida Economic Development Alliance 119 The transportation and logistics cluster experienced tremendous growth over the six-year period ending in 2015, growing some 59.1 percent during that period, or 8.1 percent on an annualized basis. All of the subclusters experienced employee growth over the six- year period. The fastest growing subcluster was bus transportation, where employment increased by 193.3 percent over the six year period. The largest employee increases occurred in air transportation (377 new jobs) and ground transportation support activities (324 additional jobs). Transportation and Logistics Long-Run Employment Growth By Subcluster Employment Average Annual Subcluster Percent Change 2009 2015 Percent Change Bus Transportation 30 88 193.3% 19.6% Ground Transportation Support Activities 265 589 122.3% 14.2% Trucking 220 352 60.0% 8.1% Air Transportation 967 1,344 39.0% 5.6% Specialty Air Transportation 50 65 30.0% 4.5% Total 1,532 2,438 59.1% 8.1% Source: County Business Patterns: 2015

Workforce Ranking

In 2015, the five counties of the Southwest Florida region ranked eighth among all other regions in the state for employment in the transportation and logistics cluster. The employment in the cluster represented a little over 2 percent of the state’s total employment of 109,495 for this cluster. Transportation and Logistics Workforce Rankings Rank Workforce Region Employment Level 1 South Florida 36,538 2 Central Florida 17,375 3 Broward 11,826 4 Northeast Florida 11,613 5 Tampa Bay 6,606 6 Palm Beach County 5,066 7 Polk 3,178 8 Southwest Florida 2,438 9 Research Coast 1,862 10 Pinellas 1,664 11 Brevard 1,535 12 Citrus Levy Marion 1,510 13 Florida Crown 1,191 Escarosa 1,130 15 Okaloosa Walton 989 16 Suncoast 971 17 North Central Florida 826 18 Flagler Volusia 643 19 Pasco Hernando 627 20 Gulf Coast 486 21 Capital Region 481 22 North Florida 394 23 Chipola 304 24 Heartland 242 Source: County Business Patterns: 2015

120 Southwest Florida Key Industry Clusters Workforce Profile

Many companies choose to operate in Southwest Florida due to its workforce. Of the region’s adult population, 26 percent have a Bachelor’s Degree or higher, while 86 percent have at least a high school diploma. Florida Gulf Coast University conferred 2,331 Bachelor’s Degrees to students during the 2015-2016 academic year, while Florida Southwestern State College, with its four campuses throughout the region, conferred 1,942 Associate’s Degrees and 341 Bachelor’s Degrees during the 2014-2015 academic year. Other educational institutions serving the area include Hodges University in Naples and Kaiser University in Fort Myers. Meanwhile, regional training programs, such as CareerSource Florida, provide training programs and certificates in numerous areas. Furthermore, the composition of the workforce is expected to change as the population grows over the next 25 years. Southwest Florida’s population is expected to grow 50 percent by 2045, expanding the region’s customer base while increasing its labor force by 54 percent.

Educational Attainment Projected Labor Force 16-19 20-24 25-44 45-64 65+ 800 Less than High School Diploma 600 14% High School Diploma, 26% GED or equivalent Some College, No 400

Degree Thousands 8% 31% Associate's Degree 200

21% Bachelor's Degree or Higher 0 2015 2020 2025 2030 2035 2040 2045

Transportation and Logistics Occupations By Total Employed Total Number of Number Working Entry Median Experienced Occupation Available of Education Level Across All Wage Wage Wage Applicants Graduates Industries Dispatchers, Except Police, Fire, and 555 9 0 $11.34 $15.49 $18.21 High School/GED Ambulance Bus and Truck Mechanics and Diesel 498 8 0 $14.98 $19.66 $22.62 PSAV Engine Specialists Mobile Heavy Equipment Mechanics, 234 4 0 $15.38 $18.94 $22.21 PSAV Except Engines Aircraft Mechanics and Service 193 9 0 $23.32 $32.84 $38.82 PSAV Technicians Logisticians 192 4 258 $16.99 $21.49 $28.45 Bachelor's Degree Cargo and Freight Agents 184 20 0 $11.25 $18.67 $24.46 PSAV Electrical and Electronics Engineering 184 7 12 $18.39 $23.97 $27.87 Some College Technicians Transportation, Storage, and Distribution 95 7 23 $31.14 $43.40 $52.88 Some College Managers Avionics Technicians 38 2 0 $15.67 $26.48 $28.71 PSAV Rail Car Repairers 5 0 0 N/R N/R N/R PSAV Source: Florida Department of Economic Opportunity, Occupational Supply/Demand Report

Southwest Florida Economic Development Alliance 121 Cluster Highlights

KEY COMPANY ANNOUNCEMENTS

 Dolphin Transportation announced the addition of nine top-of-the-line buses in May 2017.  Southwest Florida International Airport reached 8.6 million passengers in 2016, marking a 14.5 percent increase in traffic since 2010.  Airglades Airport in Clewiston plans to build a 1 million square foot handling facility that would bring 1000 jobs to this airport in Hendry County. The airport would be home to cargo flights containing perishable goods. No commercial airlines at this airport provide it with an efficiency advantage. Financing the project that is expected to cost $200 million dollars would come from tax exempt revenue bonds and federal dollars helping to fund some of the runway construction.  Punta Gorda airport in Charlotte county has begun expanding by diverting several Frontier airline flights from Fort Myers as growth is expected at this small airport.  Americas Gateway Logistics has opened a new logistics center in Moore Haven, Glades County, offering a multi-modal rail- serviced industrial park, providing fast access to highways, rail, seaports and airports for distribution, warehousing, storage and transportation markets. The area is planned for over 700 acres that would include transportation infrastructure servicing major rail, air and trucking routes.

EVENTS, AWARDS AND RECOGNITIONS

 AAA Cooper Transportation earned the Great West Safety Award in May 2017, and was honored by Wreaths Across America in 2016.  Florida SouthWestern State College graduated its first class of 14 graduates of the Transportation Security Administration Associates Program, in January 2017. FSW is the only entity in Southwest Florida to offer the program, designed to prepare transportation security officers, supervisors, and managers for future promotions.  Averitt Express received the Nasstrac Carrier of the Year Award in May 2016, and the National Customer.  Southeastern Freightlines received Lowe’s Top Carrier Award and its Platinum Service Award for 2016.

Companies

 A & S Transportation  Future Aviation Inc www.aandstransportation.com www.heico.com  AAA Cooper Transportation  Gator Freightways Inc www.aaacooper.com www.rlcarriers.com  ABC Transfer Inc  Island Express www.abctransferinc.com www.islandexpress.com  Accel Aviation  McGaughey Busses Inc www.accelaviation.com www.mbicharterbus.com  Airport Terminal Svc Inc  Merchant Transport www.atsstl.com www.huntermerchant.com  Angel Airport Transportation  Naples Jet Ctr www.naplesjetcenter.com  Apg Avionics  Page Field-FMY www.avionics.com www.flylcpa.com/fmy  Averitt Express  Party Bus Naples LLC www.averittexpress.com www.napleselitetransportation.com

122 Southwest Florida Key Industry Clusters  C & L Packing Corp  Privatesky Aviation Svc www.privatesky.net  Coral Aviation Group  Servisair www.coralaviationgroup.com  D & L Transport LLC  Southeastern Freightlines www.dandltrans.com www.sefl.com  Data2 Logistics LLC  Timo Brothers Inc www.data2logistics.com www.timobrothers.com  Dolphin Transportation  TJ & I Harvesting Inc www.dolphinnaples.com  First & 10 Charters Inc  UPS Freight www.upsfreight.com

Education & Training

Florida’s system of higher and post-secondary education provides hundreds of training programs generating advanced degrees and occupational certificates that prepare students for productive careers in our region. The state university system includes 13 institutions, while community colleges number 28. Furthermore, there are 84 private universities and occupational and technical schools in the state. A list of the top educational institutions producing graduates that work in the transportation and logistics cluster would include the following:

 Florida Gulf Coast University  Florida SouthWestern State College www.fgcu.edu www.fsw.edu  Rasmussen College  Keiser University www.rasmussen.edu www.keiseruniversity.edu  Broward College  Florida Atlantic University www.broward.edu www.fau.edu  University of Miami  Florida International University www.miami.edu www.fiu.edu  Florida State University  Miami-Dade College www.fsu.edu www.mdc.edu  University of Central Florida  University of Florida www.ucf.edu www.ufl.edu  University of South Florida www.usf.edu

Southwest Florida Economic Development Alliance 123 Cluster Definition

The transportation and logistics cluster consists of 17 six-digit North American Industry Classification System (NAICS) codes that define the five subclusters. A list of subclusters and 6-digit NAICS code is shown in the table below.

Transportation and Logistics Breakdown of Subclusters Subcluster/NAICS Description 6-Digit NAICS Code Air Transportation Scheduled Passenger Air Transportation 481111 Scheduled Freight Air Transportation 481112 Nonscheduled Chartered Freight Air Transportation 481212 Air Traffic Control 488111 Other Airport Operations 488119 Other Support Activities for Air Transportation 488190 Specialty Air Transportation Nonscheduled Chartered Passenger Air Transportation 481211 Other Nonscheduled Air Transportation 481219 Ground Transportation Support Activities Support Activities for Rail Transportation 488210 Other Support Activities for Road Transportation 488490 Freight Transportation Arrangement 488510 Packing and Crating 488991 All Other Support Activities for Transportation 488999 Trucking General Freight Trucking, Long-Distance, Truckload 484121 Specialized Freight (except Used Goods) Trucking, Long-Distance 484230 Bus Transportation Interurban and Rural Bus Transportation 485210 Charter Bus Industry 485510 Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

124 Southwest Florida Key Industry Clusters