Appreciating the Present

301 E. Pine Street, Suite 900 // Orlando, FL 32801 // P/ 407.422.7159 // orlandoedc.com

Appreciating the Present

Few regions have earned as many accolades over the last few years as Orlando. Our state-leading job growth is well-documented. We have been featured in more ‘Top Cities’ rankings than are possible to list. Our regional branding campaign has caught the attention of national media.

Sometimes lost in the rush to measure recent gains is an appreciation for what the area has already become – a regional economy whose companies, global linkages and integrated workforce has created an economic footprint greater than that of sixteen U.S. states.

Domestic & Global Reach

The extent of trade corridors now connecting Orlando to different

regions of the country and world is little known. The most recent analysis estimates $102.1 billion in commodities flow in and out of Orlando each year – $92.3 billion exchanged with domestic partners and $9.8 billion with international partners. Intuitively, we trade the most with our statewide partners – approximately $44.9 billion, with Tampa our single largest partner at $10.0 billion. Orlando is the third largest commodity market in Florida after Miami and Tampa.

Commission (EDC). Comprised of local industry leaders, the Forum meets quarterly to discuss both current economic conditions and issues of regional significance in the four-county Orlando Metropolitan Statistical Area (MSA). Orlando

Insight reflects those discussions and draws from the most recent data available at time of preparation.

“Central Florida’s economy has grown considerably over the past few years, fueled by the completion of the Dr. Phillips Center and the Citrus Bowl, the beginning of the I-4 expansion and the upcoming soccer stadium. These projects have not only had an impact on job creation, but are also stimulating new business development.”

- David Fuller Chairman, President & CEO SunTrust Bank, Central Florida

Division

“Global reach is a critical enabler for Lockheed Martin in Orlando. With a vast network of customers spanning the globe, the region’s advocacy for global commerce has been instrumental to our success._” - Jon Rambeau Vice President & General Manager Lockheed Martin Training and

Logistics Solutions (TLS)

*excluding Florida; regions as defined by U.S. Census Bureau Source: Brookings Institution, 2014

Yet more than half of all goods leave Florida borders and approximately 10 percent are traded globally. In excess of $3.0 billion of Orlando-origin products – goods grown, manufactured, assembled, or that otherwise have value added in Orlando – are sent overseas in return for $6.7 billion of global imports. The region’s top international partners are China, Canada and Mexico.

Modern-day Orlando’s economic profile has evolved. In a nod to our specialty pharma sector, pharmaceuticals are our single most traded commodity at $18.3 billion – trumping the $11.3 billion we trade in agriculture. Orlando in 2015 is a global and diverse economy.

A Network of Human Capital

Today’s economy in Orlando is supported and enabled by a labor force that is both large and mobile.

Rooted in the center of the state, nearly one in eight Floridian workers live within the region’s borders. Yet we have also become a workplace destination, offering diverse economic opportunity to residents and non-residents alike. Almost 275,000 non-residents leave their homes elsewhere to commute into the region for work each day, passing 187,000 Orlando-area residents headed in opposite directions; 238,000 additional workers cross county

lines within the MSA. Such regional workforce integration is attractive to employers and conducive to a scalable economy.

A New Frontier

Orlando’s arrival as a top-tier regional economy necessitates a responsibility to self-evaluate against locations within that same tier. The Orlando Economic Forum has initiated a new benchmarking process by which we will compare our economic performance to that of ‘like’ communities with whom we share common attributes, with whom we compete for economic development projects or with traits we hope to emulate. Metrics are being developed that will establish an analytical framework to help guide local discussion by businesses, government, civic and workforce leaders. Only by understanding why other regions may be under- or outperforming us can we identify opportunities to improve our economy.

Present-day Orlando is already economically significant, connected and admired. With an informed perspective and strategic planning, the Orlando of the future can reach even greater heights.

“It is important to have a full understanding of the commute patterns of the region’s workforce and the importance of these commute patterns on economic development within the region. Our workforce is unquestionably regional and our recruitment strategies should reflect that.”

- Robert Chandler, CEcD Director, Economic Growth

Department Lake County Board of County

Commissioners Chair, Regional Economic

Developers (RED) Team

“If our aspiration is to be a nationally-respected center of commerce and innovation, understanding how we measure up in simple, yet high-impact benchmarks will allow the region to make informed and high return on investment resource commitments for growing our economy in a purposeful manner.”

- Scott Faris CEO AeroSonix, Inc. “International trade is alive and well in Central Florida. We’re seeing significant participation in educational seminars, and a growing list of Central Florida importers and exporters.”

- Jerry Ross Executive Director National Entrepreneur Center & Central Florida International Trade Office

Around the Region

Osceola County:The final section of the $4.7 million Martin Luther King Jr. Blvd. extension opened in February. The extension improves access to the Kissimmee Gateway Airport and is poised to attract commercial and industrial development in the aviation industry.

Orange County: Lockheed Martin opened its remodeled Innovation Demonstration Center in February. The 20,000-square-foot center features immersive simulation demonstrations highlighting air, ground and next-generation training and logistics capabilities.

City of Orlando: The U.S. Tennis Association broke ground on the “new home for American tennis” in Lake Nona in April. The complex will include divisional headquarters and will be divided into

dedicated areas focusing on the complete tennis pathway. The project will create 154 new jobs over the next three years. Seminole County: Hernon Manufacturing, a global manufacturer of adhesive sealants and dispensing equipment, held a groundbreaking ceremony in March for its expansion project at the company’s headquarters in Sanford. The expansion will add 27,000 square feet to their current building and up to 20 jobs to their existing 40 jobs to support expected growth in the coming years. Lake County: In February, the

City of Leesburg approved a land sale and development agreement with concrete products company Coreslab for the development of 75 acres located in the 470 Commerce Center. Build-out will include an 80,000-square-foot manufacturing center with a capital investment of over $8 million.

Labor Market

Labor Force

1,207,461 Unemployment Rate5.1 % Initial Claims3,561 New Job Postings29,116

Arrows indicate change from previous year. Data for March 2015 unless otherwise specified.

“Orlando’s labor market recovery continues to lead the state of Florida. Jobs are being created across all sectors of the region’s economy. 2015 is off to a fine start.”

• In March, unemployment was 5.1 percent, a decrease of 1.1 percentage points from one year earlier and lower than the national rate of 5.6 percent.

• Unemployment remains lower in Orlando than in all major Florida regions.

• All four counties within the region saw similar declines in March. Lake, Orange, Osceola and Seminole Counties each fell 0.2 percentage points to 5.5, 5.0, 5.8 and 4.9 percent, respectively. Seminole’s rate dropped below 5.0 percent for only the second time in almost 7 years. • New monthly claims for unemployment insurance are

normalizing at a 12-month moving average of 4,000; new claimants through March were down 12.4 percent from 2014.

• New online job postings increased 13.9 percent year-over-year in March, offsetting monthly declines in both January and February to register a 1.9 percent increase year-to-date. Florida Hospital remains the most active employer in the region.

Source: Florida Department of Economic Opportunity, Labor

Market Statistics Center Source: WantedAnalytics

- Sean Snaith, Ph.D.

Director, Institute for Economic Competitiveness University of Central Florida

Payroll Employment / Consumer Spending

than 50,200 jobs have been added in the last year, more than any other Florida region and equal to the combined total of Tampa and Jacksonville.

• Recent hiring by area newcomers Deloitte and Verizon is increasingly showing up in employment gains. The business services and financial sectors contributed 30 percent of the net employment gain in March.

• Large infrastructure projects are maintaining construction’s status as the area’s largest mover, while expansion of the region’s visitor industry continues, growing 2.2 percent in March and 6.2 percent year-over-year.

• Current year-over-year employment growth of 4.6 percent is second only to San Jose among the 27 MSAs in the United States with an employment base of over 1 million jobs. Entering the second quarter of 2015, Orlando continues to outperform all Florida regions on both short and long-term momentum.

Arrows indicate change from previous year. Data for March 2015 unless otherwise specified.

Source: U.S. Department of Labor, Bureau of Labor Statistics

Source: U.S. Department of Labor, Bureau of Labor Statistics Source: U.S. Department of Labor, Bureau of Labor Statistics

Commercial / Residential Real Estate

tangible gains; net absorption of 193,000 square feet in the first quarter of 2015 represented the market’s highest in seven quarters. Overall vacancy fell 50 basis points from the prior quarter to 18.5 percent.

• Reports of a construction bubble appear premature. Although multi-family is on the rise, total activity remains below historic norms. Single-family permitting is tracking at an annualized rate of 10,000 units – less than half the levels recorded in the mid-2000s.

• Sales of existing homes increased 19.5 percent in the first quarter of 2015 from the corresponding period in 2014. Aided by an increase in available inventory and still-low interest rates, March sales of 3,067 represented the highest monthly total since June 2005. Year-over-year price appreciation of 10.9 percent was fueled in part by an increasing share of traditional sales.

Arrows indicate change from previous year. Data for March 2015 unless otherwise specified.

Source: CBRE

Source: U.S. Census Bureau

Source: Cushman & Wakefield

• The delivery and occupancy of a 1 million-square-foot Publix Distribution Center in Southeast Orange County propelled the industrial market to first quarter net absorption of 1.7 million square feet. Overall vacancy declined 50 basis points from the fourth quarter of 2014 to 9.4 percent.

Transportation / Visitor Industry

first two months of 2015 increased 8.1 percent from the same period in 2014. International traffic jumped 21.7 percent year-over-year in February, driven in part by new service from Azul, Silver and Sunwing Airlines.

“The start of the $2.3 billion, 21-mile I-4 Ultimate construction project in February is the beginning of the largest public-private partnership in the history of the United States. The results will greatly enhance our transportation infrastructure and favorably affect both residents and visitors.”

- Jacob Stuart

President Central Florida Partnership

• In early April, Visit Orlando announced that Central Florida had retained its title as the most visited destination in the country with a record 62 million travelers in 2014. Year-over-year gains in both hotel occupancy and average daily rate continue.

Arrows indicate change from previous year. Data for March 2015 unless otherwise specified.

• March 2015 marked the sixth consecutive monthly year-over-year increase in passengers through Orlando Sanford, increasing 10.3% from March 2014.

Source: Greater Orlando Aviation Authority Source: Sanford Airport Authority

301 E. Pine Street, Suite 900 // Orlando, FL 32801 // P/ 407.422.7159 // orlandoedc.com

ABOUT THE EDC

The Orlando Economic Development Commission (EDC) is a not-for-profit, public-private partnership that attracts, retains and grows jobs for the region. The EDC serves Orange, Seminole, Lake and Osceola counties and the City of Orlando in Florida.

For more information, contact:

NEIL HAMILTON

Director, Business Intelligence

[email protected]

ELIZABETH RAMIREZ

Associate Director, Business Intelligence

[email protected]

Kimberly Maki

Bright House Networks

Bill Moss

CBRE

Pamela Nabors

CareerSource Central Florida

Bob Provitola

Mitsubishi Hitachi Power Systems Americas, Inc.

Chair, Manufacturers Association of Central Florida Jon Rambeau

Lockheed Martin Training and Logistics Solutions (TLS)

Jerry Ross

National Entrepreneur Center

Thomas K. Sittema

CNL Financial Group

Chair, Orlando EDC Jacob Stuart

Central Florida Partnership

Rasesh Thakkar

Tavistock Group

Rick Weddle

Orlando EDC

Vickie White

Florida Hospital – Nicholson Center

CHAIR

Sean Snaith, Ph.D.

University of Central Florida

MEMBERS

Thomas Baptiste, Lt. Gen., USAF (Ret.)

National Center for Simulation

Cecelia Bonifay

Akerman, LLP

Co-Chair, EDC Business Development Committee Phillip Brown

Greater Orlando Aviation Authority

Robert Chandler, CEcD

Lake County

Chair, Regional Economic Developers (RED) Team Orlando Evora

Greenberg Traurig, LLP

Co-Chair, EDC Business Development Committee Scott Faris

AeroSonix, Inc.

David Fuller

SunTrust Bank, Central Florida Division

Vice Chair, Orlando EDC Larry Henrichs

Visit Orlando

Philip Holt

Canvs

Steven Jamieson

The Mall at Millenia

Tony Jenkins