In the past year, job losses in the hundreds resulted from cuts at large tech manufacturers with Florida operations, including Motorola in south Florida, Orlando's Agere Systems (formerly Cirent Semiconductor) and St. Petersburg's Jabil Circuit.
Is the worst over? Perhaps. At KSM Electronics in Fort Lauderdale, which does contract assembly of custom cable and wiring equipment, President Steve Benjamin expects that manufacturing of medical electronics, defense and communications products for municipalities will remain steady or grow.
In the wireless industry, which was hit hard, Link sees signs of an uptick. Inventories have been whittled down, new cell phone models are generating a buzz and first-time buyers have been drawn to cell phones as a post-Sept. 11 security measure. "We've called back some employees," says Link. "We've gotten past the trough."
What's in a Name?
As head of Agere Systems' Orlando operations, Thomas "Mike" Watson is sure to be a player in Florida's tech community. His first hurdle, however, will likely be explaining that Agere is the new name for a familiar company, Cirent Semiconductor. Watson, until recently managing director of Agere's manufacturing facility in Madrid, Spain, has spent his career in the semiconductor industry including stints at Texas Instruments and a joint venture between TI and Hitachi.
Trends
Security Concerns: Technology manufacturers have a history of using sophisticated electronic security systems to restrict access to their facilities. But at manufacturers that work on defense-related projects, there's a renewed scrutiny of the workers themselves.
Company to Watch: St. Petersburg-based contract electronics manufacturer Jabil Circuit had a challenging 2001 as companies in the communications, personal computer, computer peripheral and automotive markets reduced orders. But this year, Jabil, which has factories worldwide, will likely benefit as more original equipment manufacturers (OEMs) outsource circuit board assembly operations.
Well-positioned: Schwartz Electro-Optics. With the federal government focused on fighting terrorism, this Orlando laser systems design and manufacturing company is poised to benefit. Last year, Schwartz Electro-Optics (SEO) and Lockheed Martin signed a multimillion-dollar deal to provide laser-based battlefield training systems to the Army over the next five years. SEO's share of the contract is valued at more than $70 million, and there is potential for additional sales to foreign governments. "It's going to give us the base we so desperately need to move to the next level," says Jeffrey Saunders, Orlando operations president. SEO, which employs about 170 in Orlando, plans to add 70 to 100 jobs this year.
Vital Statistics: Florida's base of electronic and electrical equipment manufacturing workers is projected to decline by 2.4% by 2008, making the sector one of the few in Florida expected to show negative growth, according to the Florida Agency for Workforce Innovation.