Manufacturing in the New Florida Economy
Manufacturers will be the beneficiaries if the recommendations presented in the most recent TaxWatch study on Capital Investment are approved by the legislature. The main conclusion of the study states that Florida is not competitive in having capital intensive companies expand or even think of relocating to the state. This study builds on a 2009 study by TaxWatch that concluded that manufacturing with its high Capital Investment, high wages, and highest economic multiplier was good for the state and that Florida needed to promote manufacturing.
My observations of Florida’s economy and its need for manufacturers are outlined below:
- The New Economy – Florida’s new economy will no longer be driven by rapid population growth that fueled the real estate development and construction sectors for several decades. The major new driver will be manufacturing and its impact on trade both internationally and within the United States. Florida is currently the 13th largest manufacturing state, employing well over 300,000 highly skilled workers. Its large multiplier effect resonates across all economic sectors and its growth will compound the growth in total state employment. Little noticed but increasingly significant is the trend toward a return of offshore manufacturing back to the U.S. This provides another opportunity for Florida.
- Capital Investment Incentives – Florida is not on the radar screen of national site selectors because there are no incentives to encourage Capital Investment. While we have a number of state and local programs aimed at creating direct employment, we failed to recognize that incentivizing Capital Investment increasing the employment pool, as well as, imparting economic stability and generating greater Real Estate and Tangible Personal Property taxes (TPP). FCMA, working through the Manufacturers Association of Florida, is introducing legislation to offer incentives through forgiveness of TPP. We are also introducing legislation to eliminate any productivity increase to be eligible for forgiveness of sales tax on equipment purchases. Currently, you must show at least a 10 percent productivity gain to be eligible.
- Manufacturers Tax Burden - Business, especially manufacturers, subsidizes home owners to a much greater extent than realized. In Duval County, 40 percent of the total assessed property value does not pay taxes. This 40 percent includes taxes lost because of two homestead exemptions, the 3 percent cap on increases in value, and the nonprofits and government. In contrast, 100 percent of Duval businesses pay both Real Estate and TPP. To illustrate manufacturing’s burden consider this: Duval County collects $450 million each year in Real Estate and TPP. Manufacturing, which is a handful of total Duval businesses, pays 5 percent of the Real Estate taxes collected and 24 percent of the TPP. Our long-term goal is to eliminate TPP paid by manufacturers.
- Energy Costs – Florida is losing manufacturing business because of high utility costs as compared to 10 Southeastern states. FCMA, working with JEA, the mayor, and city council, reached agreement on a more favorable rate for incremental production by manufacturers that will encourage greater utilization by our high energy users. FCMA’s goal is to have the Governor and Legislature encourage Florida’s utilities to emulate other Southeastern states by becoming true economic development partners with government and manufacturing to ensure that the playing field is level on energy costs between states. See last month’s Voice editorial.
The Governor and Legislature want to expand manufacturing in Florida. Congratulate yourself for the work you have done through FCMA over the years that has now resulted in this new attitude toward manufacturing. We will continue to work to reduce all taxes, such as TPP, on manufacturing inputs and to make certain that utility companies are economic development partners in encouraging manufacturing expansion. The success of Florida’s new economy will depend upon an aggressive program to reduce taxes and energy costs.
Welcome to…
Comcast Enterprise Business Services
Contact: Joy Budner, Enterprise Account Executive
Phone: (904) 343-4468
4801 Executive Park Ct., Suite 109, Jacksonville, FL 32216
…provides carrier grade data and internet services for business critical applications.
Sponsor: Scott Arant, Cascade Water
Rulon Company
Contact: Wayne Robinson, President/CEO
Phone: (904) 584-1400
2000 Ring Way, St. Augustine, FL 32092
…has been manufacturing wood ceilings and acoustical wood walls for over 25 years.
Sponsor: Daniel Bean, Holland & Knight and Ron Avery, The Ronco Group
Southeast Rigging
Contact: Dan Giannattasio, President
Phone: (904) 355-3423
1645 Jessie Street, Jacksonville, FL 32206
…manufactures wire rope, chain, and synthetic assemblies in any capacity for your unique lifting applications.
Sponsor: Julie Radigan, Waste Management
Workforce Development Workshop
Save the Date - Wednesday, September 28, 7:30-9:30AM
Location: TBA
Stay tuned to the FCMA website for more details.
Announcing the Crane Awards
Outstanding Employee Award Banquet
UNF University Center, Jacksonville, Florida
September 16, 2011 6:30 PM - 9:00 PM
Click here for more information about the Crane Awards and how you can get involved.
Please contact Maria for more information.
Sponsorship Opportunities
FCMA is looking for sponsors for the 2011 Crane Awards. Click here to find out about sponsorships opportunities. If you are interested please contact Maria.
MAF Events
The 8th Annual Manufacturers Summit & Global Marketplace for Florida manufacturers is scheduled for November 30-December 1, 2011 at the Hyatt Regency Airport Hotel, Orlando, FL. Click here to register or for more information. If you are interested in being an exhibitor click here.
September 26 at Alternate Energy Technologies
Join us from 4:00-6:00 PM at Alternate Energy Technologies, located at 851 Energy Cove Court in Green Cove Springs. AET has supplied solar water heating systems for both residential and commercial applications since 1975.
Directions: Take I-95 to CR 210; west to FL-16; left on FL-13 south; right on FL-16 west, south on US-17, right on Energy Cove Court (follow FCMA signs for parking and entrance; across 17 from Vac-Con).
Wage & Benefit Survey
Hot off the press! Reserve your copy of FCMA’s 2011 Wage & Benefit Survey by contacting Sherri Mitchell. This survey is available only to FCMA members for $75. Participating members receive a complimentary copy.
A Special Thank You to Our Sponsors
Akerman, Alexander DeGance Barnett P.A., Ford & Harrison LLP,
Fowler White Boggs, Holland & Knight, McGuireWoods, Rogers Towers,
Smith Gambrell & Russell LLP
A special thanks to Glass Distributors for hosting our August 29 meeting. Glass Distributors is a division of Lee & Cates Glass Company, which consists of the fabrication of glass and mirror.
We appreciate the hospitality of Aflac and their willingness to provide refreshments.
M.O.N.E.Y.
| FCMA’s second Members Only Networking Event for You (M.O.N.E.Y.) of 2011, held at the Mudville Grille, was a major success. Admission was only $5 and all of that money went to awarding cash prizes to those attending. Our final M.O.N.E.Y. event will be in October. |  |
Congratulations to our winners Keith Zipper of Energy Reduction Solutions and Liz Foraker of Paramount Performance Marketing!
Thank you to our sponsors!
| Aegis Fire Protection Allen Andone (904) 215-9669 |
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| Auld & White Constructors, Inc. Maurice “Mo” Rudolph (904) 296-2555 |
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| Pal-King Pallets Dan Quasnick (904) 358-7135 |
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| TD Bank Stephen Madden (904) 265-0421 |
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North Jacksonville Community Advisory Panel
A total of 400 4th and 5th graders at Brentwood, Pickett, and Ramona Elementary are the recipients of this year’s back to school project. Special thanks to CAP members IFF, CSX, and Reichhold who provided bags full of pencils, pens (contributed by Pilot Pen), comp books, folders, filler paper and much more.
More CAP news: A cast bronze statue of a cougar (school mascot) was donated to SP Livingston Elementary. The statue is the focal point of the school’s new landscaped front entry. IFF (Roger Chubin) chose its neighborhood school for this beautification project. We hear the kids are very proud of their new mascot! Special thanks to volunteers Leane Merriweather (CSX) and FCMA staff for providing sweat equity.
NLRB Workshop
Ford & Harrison attorneys Peter Corbin and Amy Harrison Turci presented a workshop on the National Labor Relations Board’s latest shenanigans. For instance… NLRB filed a complaint against Boeing for “transferring” its second 787 Dream liner production line to its new “non-union” site in SC. NLRB wants Boeing to move the 787 line back to Washington state. So let’s get this straight… we now have a government agency that has the authority to tell a company where they can produce its product? Like the Daily Herald quoted: “the sooner a judge throws this case out, the better.”
Aegis Environmental… is offering Hazardous Material Transportation Training on October 4-6, 2011 (8 am – 5 pm).
Ameritape… was featured in an article in the Jacksonville Daily Record.
BAE Systems Southeast Shipyards… new director of business operations Aaron Bowman was featured in an article in the Jacksonville Daily Record.
Colliers International… hired Erika Bjork as office specialist.
CSX Transportation… Chairman, CEO and president Michael Ward was featured in an article in the Jacksonville Business Journal about his teamwork approach and giving back. CSX was also featured in an article about its new Downtown space.
Dixon Hughes Goodman… was featured in an article in the Jacksonville Business Journal.
Golder Associates… was named one of the top 25 firms in the 2011 International Design Firms list and was also listed as #17 in the Top 200 Environmental Firms rankings.
Holland & Knight… awarded $60,000 in grants to 11 community organizations assisting at-risk children. Lawyers and staff of the Jax office contributed the funds during the past year.
The Jacksonville Bank… was featured in an article in the Jacksonville Business Journal about their expected growth.
Medtronic… was featured in an article in the JBJ about an expansion with incentives.
Smith Hulsey and Busey… hired Raymond O’Steen Jr. as a real estate attorney.
Stellar… vice president for energy systems Kurt Peninger was featured in an article in the Jacksonville Business Journal.
United States Gypsum Company… HR Manager Victoria Morris celebrated 25 years with the company in August. Congratulations, Victoria!
University of North Florida… was named one of America’s top colleges by Forbes magazine.
Jacksonville Business Journal lists… Congratulations to our members recognized in recent JBJ lists…
- Top Private-Sector Employers
- (9) CSX, (18) Vistakon, (19) Swisher International
- Top Public Companies/li>
- (1) CSX, (8) Rayonier
- Temporary Staffing Agencies
- (1) Kelly Services, (2) Remedy Intelligent Staffing, (3) Aerotek Inc., (11) Talagy
- Manufacturers want help creating jobs - “Florida manufacturers want to increase their competitiveness and are asking the state for help.”
- Make HR a part of strategic planning - “Businesses that don’t include a human resources component in long-term business planning are probably not going to reach their full potential…”
- Factories Slow Pace as Orders Contract - “The U.S. manufacturing sector barely expanded in July, a sign that a onetime driver of the economy is waning along with the recovery.”
- Experts: Jaxport could be top 5 port — if river is deepened - “As the Port of Jacksonville continues to grow, industrial property owners, brokers and managers are hopeful demand for their real estate will grow as well.”
- Factories Retrench Amid Downturn Worries - “Regional surveys of manufacturers are pointing to a downshift in activity, as a key driver of the recovery retreats amid worries about an economic downturn.”
- Why Software Is Eating The World - “…the recent popularity of tech companies does not constitute a bubble.”
- The Labor Board Wants You - “The NLRB will now require union posters.”
- Business Irked as Labor Board Backs Unions - “The National Labor Relations Board sided with unions in several cases involving rules for organizing and representing workers…”
- Does America Need Manufacturing? - “You can drive almost anywhere in the state of Michigan — pick a point at random and start moving — and you will soon come upon the wreckage of American industry.”
Fleet Readiness Center Southeast Change of Command
Capt. Robert B. Caldwell, Jr. who served as the executive officer at FRCSE since July 2009, assumed command of the overhaul, maintenance and repair facility, during a ceremony at Hangar 1000 on NAS Jacksonville, July 8.
Caldwell took the reins from Capt. Paul A. SOhl who will be heading to Point Mugu, CA to take the helm as Commander, Naval Test Wing Pacific.
