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Florida Sees Sunshine in Business Expansions

Aerospace, high-tech companies help keep state above water in job creation.

  [ 11/1/2002 ]  By: Karen E. Thuermer   Related Link...  Print This Article  Reprint/License This Article  

Florida has a juicy proposition. Seeing demand for more non-carbonated beverages, The Minute Maid Co. announced in June that it will build a $130 million, 620,000 square foot non-carbonated beverage production plant in Auburndale. The plant is expected to be operational in March 2003, and will eventually employ about 300 people.

"It's ideally located to support our growing juice and juice drinks business in the Southeast, and also will provide additional capacity for non-carbonated beverages sold through the Coca-Cola bottler system," said Don Knauss, president and CEO of Minute Maid North America.

Minute Maid currently operates a facility in Apopka, Fla., and has production plants in Hightstown, N.J., Northampton, Mass., Paw Paw, Mich., and Waco, Texas, as well as two facilities in Canada.

This type of project is helping Florida navigate economic rough waters. The state is one of 16 in the country that saw an increase in the number of new jobs created in 2001 (more than 25,000 non-agricultural jobs). However, that number is down 89 percent from 2000.

More To The Sunshine State

Florida is not all about oranges, though. The Sunshine State has also carved out a niche in high technology. Among the most recent entrants is Computer Associates International Inc., one of the largest independent computer software companies in the world.

In October, Computer Associates announced plans to create a national client interaction center in Hillsborough County, creating about 400 new high-tech jobs. The center will provide customers with high-level technical support through an advanced information technology infrastructure, best practices and a staff of software engineers.

"This is a win for Florida because of the jobs we are bringing to the area, a win for Computer Associates because of the talent pool we are going to be able to tap into, and a win for our employees who will enjoy the excellent quality of life offered by Hillsborough County," said Gary Quinn, executive vice president of sales and field operations for Computer Associates. "It's also a big win for Computer Associates' customers, who will experience an even higher level of technical support services thanks to the state-of-the-art facility we are creating for them."

Computer Associates is investing about $2.5 million in the design and construction of a 55,000 square foot building, with an additional $3.5 million investment in computers, office equipment and IT infrastructure. The building is scheduled for full occupancy in April 2003.

The Long Island-based company already manages the computing infrastructure of businesses around the world, including 95 percent of Fortune 500 companies.

Also in high-tech, Zicon, a major Israeli subcontractor of printed circuit board assemblies and electronics equipment, is locating its U.S. headquarters in Boca Raton, creating 250 jobs during a three-year operations phase-in. Florida began courting the company during a state trade mission to Israel in November 1999.

Although California, Massachusetts and Virginia were also up for consideration by Zicon site selectors, corporate officials ultimately selected Florida because of the low cost of doing business, excellent infrastructure, work force, local Israeli bank relationships and access to capital. Thirteen other Israeli companies have found homes in Florida, giving the state one of the heaviest concentrations of Israeli companies anywhere in the United States.

Aerospace Grows In State

Aerospace companies are experiencing growth in Florida. Crestview Aerospace Corp., a firm involved in aircraft modification, is making a $7 million capital investment to its facility in Okaloosa County. Karman Aerospace Corp. in Duval County is investing $20 million in capital improvements. That firm is a supplier of components for commercial and military aircraft.

Turning to fun-in-the-sun, Chris-Craft Corp., the country's oldest boat manufacturer, recently decided to expand its Florida operations in Manatee County. The expansion focuses on introducing a new product line of yachts ranging from 40 to 60 feet that will be distributed worldwide.

The manufacturer researched sites in Alabama, Georgia and South Carolina, but ultimately decided to remain in Florida because of attractive and substantial incentives.

"It meant a lot to us to know that the local and state governments supported our efforts," said Steve Heese, president of Chris-Craft.

Wal-Mart is adding a Florida distribution center to its portfolio. Wal-Mart's decision to construct a food distribution center in DeSoto County will result in about 600 new jobs for the rural south Florida area. Construction will begin in spring 2003, with completion slated for fall 2004.

The deal includes a $1 million Rural Infrastructure Grant to construct a 300,000 gallon elevated water tower, and a $2 million grant for road improvements in and around the site location."

The center will provide Wal-Mart the opportunity to better serve the growing number of customers who shop for groceries at its stores in Florida, said Rollin Ford, senior vice president of logistics for Wal-Mart.

Karen A. Thuermer is a freelance business writer based in Alexandria, Va.

Facts & Contacts / Florida

Demography and Economy

Population: 16 million

Capital: Tallahassee

Three Largest Cities: Jacksonville, 735,617; Miami, 362,470; Tampa, 303,447

GSP: $443 billion

Per Capita Income: $27,781

Percentage of Private Manufacturing Labor Force Organized:

4.3%

Right to Work State: Yes

Unemployment Rate: 5.3% (August 2002)

Average Hourly Manufacturing Wage: $12.24

Population Age 25 and Over With Bachelor's Degree or More: Jacksonville, 18.4%; Miami, 12.8%; Tampa, 18.7%

Corporate Income Tax Rate: 5.5%

Primary Industries: Agriculture, high technology, international trade and distribution, tourism

Targeted Industries: Aviation/aerospace, health technology, information technology, optoelectronics, plastics and simulation

Business Assistance

Worker Training Programs: Quick Response Training Program - Jayne Burgess, Incumbent Worker Training Program - Lucia Fishburn, both can be reached at (850) 922-8645

Enterprise Zones: 32

Foreign Trade Zones: 17

For more information contact

James Darrell Kelley, president and CEO,

Enterprise Florida Inc., 390 N. Orange Ave., Suite 1300, Orlando, FL 32801, (407) 316-4600, Web: www.floridabusiness.com

 



 
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