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CEO Council looks to amplify region’s economic assets
An extensive group of statewide CEOs has created a new economic development roadmap to leverage regional strengths and advance high-performing industries.
The Florida Council of 100 recently released “Beyond Sunshine: Advancing Florida’s World Class Economy for the Next Generation.” The extensive report, compiled by global consulting firm McKinsey & Company, provides a data-driven framework to promote high-priority economic clusters in six regions.
Those include distribution, logistics, finance, health services and medical technology in Tampa Bay, the report’s Central West region. Michael Simas, the council’s Sarasota-based president and CEO, said the overarching goal was to identify high-wage, resilient job clusters “where we’re already competing and winning talent compared to jurisdictions around the country.”
“The interesting story is around some of the emerging clusters,” Simas said. “You start to look at biopharma, medtech and the innovation that lives alongside those foundational assets, and those are higher paying jobs.”
The Central West region spans from Citrus County south to Sarasota County. While the area’s annual gross domestic product tops $234 billion, the average per capita income is just $62,000.
Traditional health services account for $21.5 billion and 237,800 direct jobs. Simas said those foundational positions, while “critically important,” often offer lower wages than some emerging, related industries.
The report found that the region’s biopharma and medtech industries only accounted for 8,600 jobs but garnered more venture capital ($164.3 million) than traditional health services ($106.9 million) in 2022. “They drive a lot of economic activity,” Simas added. “They have a high multiplier – 2.6 jobs created for every one job they bring in.”
The council launched in 1961 to provide nonpartisan, fact-based business data for elected state officials. Simas said it helps Florida’s leadership “make smart decisions about the state’s future and policies.”
The organization now includes roughly 170 company CEOs or presidents, who Simas said “drive the development of our policy work.” However, the council is nonpartisan and does not lobby or engage in political activity.
Over 50 members call Tampa Bay home, and Simas stressed that maintaining the area’s hospitality, tourism, healthcare and other foundational industries is critical. “But again, our focus was on what industries will bounce back quicker from a recession and give us a more resilient economy,” he said.
“And what industries are going to generate higher-wage jobs, given that the cost of living is increasing so rapidly,” Simas added. “Our goal is to be that institutional knowledge that outlasts any political leadership and provides real, active and nimble private sector expertise.”
He noted that precipitous growth has caused housing, infrastructure and transportation issues. While the state continues to see a net population increase, he said about 500,000 Floridians who “just can’t afford to live here anymore” annually flee to less expensive areas.
Simas said aligning people with high-wage industries that are already flourishing is part of the solution. Those careers often provide an opportunity for rapid advancement without requiring additional post-secondary education.
“Part of this work was to do a better job informing our own members about the assets we’ve got throughout the state,” Simas said. “The other thing we’ve got to focus on is retaining the great employers and jobs we already have.”
Simas noted that coastal regions must also address environmental resiliency, an issue highlighted by recent storms. That could create new economic clusters, like marine technology in St. Petersburg’s Innovation District.
The district operates the Maritime and Defense Technology Hub and recently partnered with startup incubator Tampa Bay Wave and the University of South Florida’s College of Marine Science to establish a new blue economy ecosystem. The overarching goal is to help support and scale entrepreneurs who pioneer sustainability solutions.
“We’re innovating in real time to address these climate issues because we’re more exposed to them and seeing them more frequently than other places around the world,” Simas said. “We can commercialize a lot of this innovation. And not only inform other people around the world on how you respond to these disasters – but also sell the innovations we develop here and create new companies.”
City-specific economic clusters drive further economic growth throughout an area. Simas said local innovation also helps create a global brand, and the region is well-positioned to shine on a world stage due to Port Tampa Bay and Tampa International Airport.
“I think that’s one of best economic development strategies you can have – identify your assets and how you can bring capital, smart people and innovation to those assets to build sub-economies under them,” he said. “And then keep innovating as you go. If you stand still, you get stale.”
Marcos Parkeritti
November 1, 2024at1:09 am
“And then keep innovating as you go. If you stand still, you get stale.”
Kathleen Shanahan
October 31, 2024at12:13 pm
Very exciting and essential next step to competitive attract and retain new industries/businesses. Thank you Florida council 100 for leadership!