Florida Logistics and Supply Chain Report

Teresa Barber | 2/1/2009

LO • GIS • TICS The overall management of the way resources are moved to the areas where they are required. Resources Employ Florida Banner Center for Logistics and Distribution 386-754-4492 Florida Trucking Association 850-222-9900 Jacksonville Economic Development Commission 904-630-1858 Supply Chain Management Institute, Polk County Community College 863-669-2326 Port of Tampa 813-905-7678 University of North Florida, Division of Continuing Education 904-620-4200

U.S. Representative John Mica from Winter Park, Republican leader of the House Committee on Transportation and Infrastructure, has noted that “every $1 billion in spending on highways and transportation projects results in 35,000 new jobs.” A Florida Chamber of Commerce report cites a higher jobs figure (47,000), but there’s no question that such investments pay off in a big way.

It is no surprise then that in December 2008, Florida Governor Charlie Crist presented a

$6.9 billion list of transportation projects for consideration in President Barack Obama’s economic stimulus package. The return could be exponential, generating close to $40 billion in increased economic activity in the state.

Beyond the potential for transportation investment to stimulate new job growth, building and maintaining a healthy supply chain is key to Florida’s economic competitiveness throughout the Sun Belt and across the globe. Businesses, government agencies and consumers demand timely, efficient movement of goods and services. Quality of life depends on it as well.

Millions of Floridians expect gasoline to be available at their local pump, orange juice to be on the shelf at the corner store and medication to arrive safely at the pharmacy. And millions of people all over the world want goods and services produced right here in Florida.

For Florida’s businesses, supply chain issues are compounded by the need for greater efficiencies. Congested roads mean missed opportunities, increased operational costs and lost time and productivity. A freight truck has to take approved routes to meet its destination, and a freight train can’t pop a U-turn to avoid a traffic jam.

With an estimated shortfall of $58 billion in funding over the next 25 years, Florida’s transportation system, which includes 120,000 centerline miles of public roads, 127 public aviation facilities, 2,800 miles of rail and 14 deepwater seaports, will be challenged to keep pace.

To complicate things further, the economy of tomorrow will be different from — and more diverse than — the economy we have today. Innovation will add high-tech demands to already pressing challenges.

“If you look at what has made Florida, it is transportation and connectors to people, space and agribusiness,” says Carolyn Fennell, spokesperson with the Greater Orlando Aviation Authority.

Orlando International Airport, along with other airports across the state, is looking at how to bring the future of transportation to Florida now. Fennell says that uncorking bottlenecks is the key to keeping Florida’s economy revving: “It’s going to be connectors that take us to the future.”

That observation cuts to the heart of any effort to move Florida forward as a viable competitor in the Sun Belt or across the globe. Yet, as Fennell will tell you, it’s not enough anymore to recognize the problem and discuss solutions. Execution is key if the business community wants to keep demand coming to — not leaving — Florida.

roads State Highways » 42,082 lane miles of state highways » 6,511 bridges Local Roads » 107,482 lane miles of local roads » 5,061 bridges