Florida’s Economy to Gain from Relationships with Top Foreign Investors
Every great business deal begins with a good relationship. As potential business partners discover each other’s strong suits and assets, they begin to consider new possibilities for mutually beneficial ventures. In the same way, during the past 10 days I have been building relationships with some of Florida’s most important international trade partners.
As I led the Team Florida Trade and Business Development Mission to the United Kingdom, France, Russia and Spain, I focused on developing and strengthening international trade in aerospace and aviation, renewable and alternative energy and economic opportunities from addressing the effects of climate change. These four nations are among Florida's top foreign investors. Together, they have more than 700 companies in our state, providing jobs for more than 60,000 Floridians and pumping more than $7 billion into our state’s economy. These nations are strategic trading partners, with bilateral trade of $7.8 billion and more than $1.7 billion in exports.
International trade is growing in our state. In fact, Florida exports increased more than 12 percent in 2007 to $58.9 billion, and by almost 22 percent in the first quarter of this year. The goal and purpose of this trade mission was to make immediate and long-term sales, create investment leads, promote Florida goods and services in foreign markets and to learn from international leaders how we can increase opportunities to benefit our economy here at home.
I anticipate tangible returns on the time and dollars spent on this trade mission, similar to what we achieved last November during our trade mission to Brazil. The largest single-state delegation in United States history to Brazil yielded more than $340 million in actual and anticipated sales generated by our presence there. We have seen a $182 million funding agreement between Renewable Fuels of Tallahassee and Controlsud International Group, as well as an announcement by Brazilian aircraft manufacturer Embraer of plans to invest approximately $41 million to establish new manufacturing facilities in Melbourne. While in Brazil, I had the opportunity to meet with Frederico Curado, president and chief executive officer of Embraer.
Other aviation companies are also recognizing Florida’s attraction. In January, AirTran Airways announced plans to keep its corporate headquarters in Orlando, the base of its operations since 1998. Future plans include an expansion of its workforce, with the salaries for new positions averaging $45,000 annually. In May, Piper announced plans to keep its headquarters in Florida and to expand manufacturing operations in Vero Beach.
The Farnborough International Air Show, the world’s premier aerospace show, provided a perfect opportunity to forge similar kinds of partnerships. Florida has the third largest commercial aviation industry in America and is home to 1,400 aviation companies, with 53,000 employees and a payroll of $2.4 billion. Our purpose at the air show was to ensure our continued success as an aviation and aerospace leader, and our attendance is expected to result in nearly $75 million in confirmed sales with more expected to come.
During the trade mission, we also focused on green technologies that can address climate change and boost Florida’s economy. Last year in Miami at the Serve to Preserve Summit, I signed a Memorandum of Understanding with the United Kingdom. That partnership led to a group of climate change delegates spending three days exchanging expertise and information related to the economic opportunities of addressing climate change.
Also, the presence of Florida in Spain at a Renovalia photovoltaic solar energy facility led to an announcement by Renovalia USA and Seminole Electric to begin negotiations for a new solar plant in Florida. According to Jaime Galabart, CEO of Renovalia, our presence in Spain solidified their decision to explore opportunities in Florida.
In Russia, I was honored to be among the first in a growing number of U.S. public sector leaders who are recognizing the size and strengths of the Russian markets. While there, we discussed real estate investments in Florida. John Sebree, vice president of public policy for the Florida Realtors Association, explained that Florida’s commercial and residential real estate market is clearly being seen as one of value to Russian investors. One purpose of our trade mission was to bring much needed visibility for Florida’s market throughout Europe.
Additionally, we promoted tourism to Florida, our number-one industry. The United Kingdom has a long history of being one of Florida’s largest overseas tourism markets, with UK 1.34 million arrivals in 2006. Each British visitor to Florida spends over $3,000 per trip, so it is important that they keep coming. To help us continue to attract this important market, we announced a new marketing campaign that will focus on encouraging residents of the United Kingdom to vacation in Florida. Also, one the top five U.S. exports to France is tourism, and several Spanish trade organizations have created a private fund to promote tourism and cultural events that benefit both Florida and Spain.
While many people know Florida for its mild climate and premier tourism destination, Florida is also proud to be a leader in agricultural produce within the United States and throughout the world. While in Russia, I encouraged and promoted the expanded importation of Florida citrus and other agricultural products. Florida was the top U.S. producer of citrus in 2006, and Florida exported $112,938 in citrus produce to Russia in 2007. I met with importers who are interested in expanding their markets so that Florida growers benefit.
International trade is integral to Florida’s economy. About one million jobs in our state depend on international business, and about 39,000 Florida companies export products, giving the Sunshine State the second largest concentration of exporters in the United States. Jobs in international trade offer high wages and bring increased value to our economy.
It is short sighted to think we can sit idly by in Tallahassee during these challenging economic times. Floridians are counting on leadership and, now more than ever, we must aggressively seek the opportunities and build the relationships that will strengthen our economy and better the lives of our people.
This trade and economic development mission is just the beginning. In the coming weeks, my administration will lay out an aggressive strategy for strengthening Florida’s economy through a thorough examination of and comprehensive planning in the areas of transportation, aerospace technology, higher education, small business innovation and workforce development.
When I took the oath of office as Governor of the greatest state in the nation 18 months ago, I declared that this would be Florida’s greatest century. I still believe that because I believe in the nearly 20 million people who call the Sunshine State home. Together we will continue moving Florida forward.
