The new Florida TaxWatch Report, “Diversifying Florida’s Economy Through Local Economic Development”, has an impact analysis of common economic development projects. It focuses on three ways that local communities are trying to grow their local economies: expanding manufacturing, creating logistics projects and attracting retirees. The report shows that targeting certain areas of economic growth produce higher return on investment.
The economic impact of growth was estimated using common local economic development projects: expanding manufacturing, creating a large logistics and transportation project, and recruiting retirees. The report quantifies the economic impact of the addition of 1,000 jobs per year over a ten year period in both manufacturing and logistics individually, and the addition of 1,000 retirees per year over a ten year period in Florida.
According to the multi-year modeling, an additional 1,000 jobs in the manufacturing sector will create an estimated 28,241 private non-farm jobs and increase the state’s GDP by $3.831 billion. Adding 1,000 jobs in logistics would create 21,228 jobs and increase the GDP by $1.834 billion, while increasing the number of retirees by 1,000 results in 5,303 jobs and a GDP increase of $383 million. Each of these scenarios also increases Floridians’ disposable income and contributes to population growth.
“The difference in return on investment within these sectors is also important. Not all retirees are equal. Some are wealthy, highly-skilled and make valuable contributions to the community and local business climate as well as the economy of the community, while others are more of a drain on state and local resources,” said Dominic M. Calabro, President and CEO of Florida TaxWatch, in a press release on the report. “As with the economic development strategy, local officials need to choose carefully in who or what they invest to generate growth.”
Read report.