ABB 2006/7 | State Profiles | South East region | Florida | Profile

As the “Innovation Hub of the Americas”, Florida offers unique advantages for UK companies seeking to conduct business throughout the Western Hemisphere, whether to manufacture products in Florida for shipment globally, locate their regional or hemispheric headquarters, or simply to use Florida’s top logistics facilities to access key markets.

British firms specialising in information & communication technologies (ICT), life sciences, aviation and aerospace and other hi-tech industries will find particular advantages when locating in Florida because of the state’s competitive strengths in these sectors. The thriving industry clusters are fuelled by the state’s talented workforce, as well as by the fruitful partnerships between academic, industry and governmental organizations that support the continued growth of Florida’s key sectors.

Florida’s key industries ICT

Florida has remained at the forefront of the ICT industry ever since IBM introduced its first PC in Boca Raton, Florida, a quarter of a century ago. The pioneering spirit that sparked this innovation has contributed to the formation of a broad range of sub-clusters in the state, with specialised pockets of excellence in some of the most innovative segments of the ICT industry, including software and computer systems design and integration; computer products, microelectronics and precision device manufacturing; telecommunications; photonics/optics; modelling simulation and training; and digital media. Today, nearly 20,000 ICT companies with close to a quarter of a million workers are based in Florida, ranking it fourth in the U.S. in high-tech employment and third in the volume of ICT exports. Some of the British ICT firms located in Florida include Airspan Networks, Atlantic Scientific Corp (subsidiary of MTL Instruments Group), Pace Micro Technology PLC, and others.

Life Sciences

Life sciences entrepreneurs find a welcoming environment in Florida. The state has a robust life sciences cluster with over 560 companies, including Scripps Florida and soon Burnham Institute for Medical Research and Torrey Pines Institute for Molecular Studies. A state on the rise in the industry, Florida was recently named a Top 10 biotechnology state by Ernst & Young and is third in the US in the number of FDA-registered medical device establishments. With its productive tech transfer programmes, innovation infrastructure, and supportive business environment, companies find Florida to be a profitable place for both the science of discovery and the promise of business growth. UK-based life sciences companies that have discovered Florida’s advantages include Astra Zeneca, Corin Group, Glaxo SmithKline, and others.

Aviation and aerospace

The presence in Florida of some of the nation’s most advanced flight facilities, as well as the world’s premier launch complex for space exploration, provide a base for the state’s flourishing aviation and aerospace cluster. Additionally, over 148,000 Floridians work in the industry, in roles ranging from seasoned NASA scientists to recent engineering graduates and active duty US military personnel. From space exploration and satellite communications to aircraft manufacturing and flight training, companies in any segment of the industry can capitalise on Florida’s welcoming business climate. British aviation and aerospace firms that have done just that include BAE Systems, BBA Aviation Services Group, Smiths Aerospace, British Airways, Virgin Atlantic, and others.

Financial & Professional Services

Florida’s highly-diversified economic structure has enabled the state to be a global player in the provision of high value-added services, such as financial services (banking, insurance) and professional services (legal, accounting, consulting, engineering, etc.). In fact, more than 300 financial institutions, including 50 international banks, operate in Florida – second only to New York as a US centre for international banking. Florida is also home to over 70,000 firms specialising in a number of professional services, such as architecture, legal services, accounting, and R&D. Many of those companies are British-based, including Aberdeen Asset Management, Barclays Capital Bank, De La Rue Cash Systems, and others.

UK Investment in Florida

The UK is among the top sources of foreign direct investment (FDI) in terms of the total amount invested in Florida’s economy, and ranks first in the number of Floridians employed by foreign majority-owned firms. In addition, the UK is:

• Florida’s second largest source of FDI by value: With majority-owned holdings of about US$3.8bn in 2004, the UK is the second largest international investor in Florida. In fact, UK companies account for about a seventh of Florida’s total worldwide inward FDI stock.
• Present in key sectors of Florida’s economy: British firms account for almost a sixth of the total worldwide FDI in Florida’s manufacturing sector (some $1.3bn), and about a third of the total worldwide FDI in Florida’s professional, scientific, and technical services sector ($73m).
• First in FDI-related employment: In 2003, British majority-owned companies employed more Floridians than companies from any other foreign country – about 43,000 people. About one in five Floridians working for a foreign-affiliated company in 2004 was employed by a British firm.

Trade

Both the UK and Florida are major international trading entities. As the Western Hemisphere’s commercial hub, Florida is a major trans-shipment and distribution point for goods moving between Latin America and Caribbean countries and the rest of the world, including the UK.

British exports to Florida

The UK exported US$1.5bn worth of merchandise to Florida in 2005.

• In addition to finished goods, these exports increasingly include intermediary goods – inputs into the production of finished goods, often by British-affiliated companies in Florida. Further expansion is likely as British companies acquire a stronger presence in the Florida market.

UK imports from Florida

Florida’s airports and seaports act as gateways for goods – made in both Florida and other US states – destined for key European markets, including the UK:

• The UK Imports Florida-made high-tech products: Reflecting the global competitiveness of Florida suppliers of advanced technology, computers and electronic products account for about a third of the total. Other top British imports include transportation equipment, machinery, and chemicals.

UK – Florida cultural connections
Shared historical and cultural heritage

Britain’s cultural connections with Florida go back several centuries, and indeed in colonial days, the Union Jack for a time flew over the entire Florida Territory. Today, Florida acts as a magnet for British business executives, scholars, artists, and tourists alike. British heritage, culture and traditions are preserved in Florida through more than 20 active civic clubs, chambers of commerce, and other community-based organisations with a UK focus in Florida.

Many Britons have a first-hand familiarity with the Sunshine State, having holidayed here. In fact, the British comprise the largest group of international visitors to Florida, numbering almost two million annually and hundreds of thousands of British expatriates reside in Florida full- or part-time. Florida : Buildi ng t he Innovatio n Eco nomy Innovative, dynamic, and global, Florida is a state on the move. Florida continues to attract both established and entrepreneurial businesses from all over the world – including hundreds of British firms – with its bustling economy, large and diverse workforce and strong technology base.

Global hub

Florida’s geographic location, combined with economic and political stability, make it the strategic and economic centre of the Americas.

• More than 1,200 foreign-affiliated companies with total holdings of over US$34bn operate at over 2,000 locations around the state.
• Florida is a key entry point for British goods into the US, serving as a distribution base not only for the Florida market, but also for the Latin American, Caribbean and world markets.
• Florida’s state-wide multi-modal transportation infrastructure consists of international airports, deep-water shipping ports, and an extensive highway and rail network, enabling UK businesses to move products and materials efficiently.

Technology leadership

Florida has a robust base of technology-driven businesses with over 18,000 high-tech companies employing more than a quarter of a million high-tech/high-skill workers.

• Among US states, Florida is the fourth largest in high-tech employment. (AeA)
• Florida also ranks as the third largest exporter of high-tech goods and services. (AeA)
• Florida is recognized worldwide as a leader in technologies of the future such as Optics & Photonics, Modeling, Simulation & Training, and Digital Media.

Workforce talent

As the fourth most populous US state, Florida offers a talented and diverse workforce.

• Florida is the fourth largest employer for high-tech workers. (AeA)
• Florida’s 25 universities (11 state and 14 private), 40 private and community colleges and 160 technical and vocational schools produce talented, highlyskilled professionals.
• The state’s customised workforce training programmes, ranked in the Top 10 in the US, help companies recruit, train and retain employees with advanced skills and knowledge of new technologies.

Business climate

Recognising the need for global competitiveness, Florida’s invitation for investment includes:

• A pro-business agenda for policy-making.
• A low corporate income tax rate and no state personal income tax make Florida one of the most tax-friendly states in the US.
• Tax advantages and incentives for job creation, investment and training.

Entrepreneurial environment

Florida provides businesses with an environment conducive to entrepreneurship.

• The state hosts a variety of tech incubators, accelerators and university-based research hubs.
• Florida ranks high on the “Small Business Survival Index”, which rates the policy environment for entrepreneurship across the nation.
• Nineteen Florida cities and seven Florida counties made Entrepreneur magazine’s “Hot Cities for Entrepreneurs” lists, which compile the best places to start and grow a company by measuring business formation and business growth.

World-renowned quality of life

• British-born US residents picked Florida as the second most popular state in which to settle in the US.
• Florida has earned top rankings in Harris Poll’s “most desirable places to live” survey since the survey’s inception.
• Florida has over 1,000 golf courses, white sand beaches, unique shopping, and thousands of lakes and other recreation areas.

Whether a start-up or and established industry leader, your British-based company can find in Florida unsurpassed business advantages that enhance innovation and facilitate growth.

For more information, contact:
Tel: +44 (0) 20 7808 6910.
Website: www.eflorida.com/abb

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