Accessing the Globe

Janet Ware | 9/24/2009

? FOREIGN DIRECT INVESTMENT

Florida ranks 5th in the nation in terms of foreign direct investment (FDI) employment, and 1st in the Southeast U.S. with a total of 273,100 jobs supported by the estimated 2,500 foreign-affiliated companies that operate across the state and across industries. Companies from the European Union account for 67% of all FDI employment in Florida, followed by companies from Asian/Pacific countries (12%) and Canada and Latin American/Caribbean countries (9% each).

The total value of holdings by all foreign-affiliated companies in Florida grew by 5.3% to a total of $39.3 billion in 2006 (most recent data), putting Florida 1st in the Southeast and 9th in the nation.

More than 80 foreign and domestic banks active in international trade and finance have offices in Florida, including six of the 10 largest banks in the world. New York is the only state with a larger international banking presence.

Florida’s Leading Foreign Investors
By Investment (in billions)		?	By Employment (in jobs)
Germany	$3.8		United Kingdom	45,200
Japan	$3.79		Netherlands	24,000
United Kingdom	$3.69		Canada	23,100
Canada	$2.99		Germany	22,400
Australia	$2.77		Japan	21,200

? TRADE

Embraer expects to roll out the first Phenom 100 jet from its new Melbourne, Florida, factory in 2011. [Photo: Embraer]

Florida’s total merchandise trade — exports plus imports — reached $130.5 billion in 2008, up 14% over 2007, compared to total U.S. trade that grew by just 9%. Merchandise exports — all goods leaving the U.S. through Florida — came to $73 billion, an increase of 24%; conversely, overall U.S. exports grew by only 12%. Florida imports gained 3% over the same period to reach a total of $57.5 billion. Brazil remains the state’s top trading partner, accounting for $15.5 billion of that total, followed by Japan at $7.7 billion in 2008.

Florida remains the nation’s 3rd largest exporter of high-tech products in the U.S.; sales in 2008 equaled more than $14.6 billion, an increase of nearly $1.3 billion over 2007. From 2003 to 2008, the value of Florida’s high-tech exports increased by an astonishing 83%, while the U.S. growth rate for similar exports was only 28% over the same period. Industrial machinery, computers, television and sound equipment and medical or surgical instruments are among the state’s top exports. Leading destinations for Florida high-tech exports were Latin American countries: Brazil ($2.2 billion), Venezuela ($1.7 billion), Paraguay ($1.0 billion), Colombia ($832 million) and Argentina ($680 million).

FLORIDA’S TOP 5 Trading Partners (in billions)
1	Brazil	$15.5
2	Japan	7.7
3	Venezuela	7.1
4	China	6.5
5	Colombia	6.4

Florida is also a significant exporter of knowledge-based services — accounting, communications, consulting, design, engineering, financial, legal, medical and others. In 2008, these exports reached an all-time record of $30.3 billion and supported 425,000 jobs for Floridians.

Another way to examine exports is to look at those that originate in Florida, such as goods grown, mined, manufactured, assembled or otherwise had value added in the state (regardless of where they exited the United States). In all, Florida-origin exports reached a record $54.3 billion in 2008 (up 21% over the previous year) and supported an estimated 597,000 jobs. The state’s origin-export growth significantly outperformed the U.S. rate of 12% and was higher than all of the top 25 major exporting states in the nation except oil-exporter Louisiana.

Japan and China are the top importers into the state, accounting for a combined total of nearly $13 billion of imports coming into Florida in 2008. Motor vehicles are the No. 1 import to Florida from the East.

Tags: Business Florida