Targeted Industry Sectors (JCCI).1 by JCCI

Jacksonville & Northeast Florida Targeted Industries Recent Announcements & Case Studies

Targeted Industry Strategy  Industry Clusters (geographical concentration of interconnected companies)  Key to community’s overall economic development strategy  Based on research (Location Quotient SWOT analysis)

Targeted Industries (adopted October 2006) 

Headquarters

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Finance & Insurance

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Information Technology

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Advanced Manufacturing

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Aviation & Aerospace

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Distribution & Logistics

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Life Sciences

Recent Announcements Headquarters Company Name

Employees

 Adecco

100

 Fidelity National Financial

200

 I.B.A. (Ion Beam Applications)

 InEnTec Chemical

 Nemours Home Office

 Pilot Pen

 PSS World Medical

277

 RailAmerica

Headquarters Case Study Adecco (formerly MPS Group) HQ for professional staffing divisions; adding 100 high-wage jobs in Jacksonville (236 existing jobs)

Competitive Advantages  Established management for professional staffing brands; minimal disruption to grow in Jacksonville.  Competitive real estate and labor costs vs. Melville, NY

Competitive Disadvantages  Consolidation to corporate HQ would have been ideal for efficiency in operations  Florida incentives minimal for HQ expansion  Company’s downtown location no longer made sense; relocating to suburban office market in April, 2011.

Recent Announcements Finance & Insurance Services Company Name

Employees

 CIT

300

 Deutsche Bank

1,000

 Digital Risk

300

 Enhanced Recovery Corporation

274

 EverBank

120

 Fidelity Investments

1,200

 Lender Processing Services (LPS)

600

 Bank of America Merrill Lynch

800

 PNC Mortgage

200

 Tax Defense Network

150

Financial Services Case Study Fidelity Investments 1,200 new jobs Competitive Advantages  Labor market availability and cost were driving factors; Series 7 licensure pass rate highest in U.S.  Incentives were competitive for this deal with other locations under consideration.  Company was committed to a Florida market; final competition for this project was Tampa Competitive Disadvantages  Site consulting firm placed Jacksonville in last place at start of location analysis. Intensive 9-month process with at least 8 site visits.  Air service (offset by JetBlue service to Boston)

Recent Announcements Information Technology Company Name

Employees

 AT&T Florida

266

 BellSouth/AT&T

300

 Blue Cross Blue Shield of Florida

 Comcast

160

 Meridian Technologies

 Ultramatics

 Web.com

139

 WebEx

IT Case Study Web.com Added 139 high-wage jobs, retained 250 jobs Competitive Advantages  Website Pros was already located in Jacksonville with experienced workforce  CEO was not relocating from Ponte Vedra, but was willing to commute to Atlanta  IT work can be completed just about anywhere. Competitive Disadvantages  Website Pros had just completed acquisition of web.com, an Atlanta-based website design firm.  Board was concerned about depth of marketing talent in Jacksonville vs. Atlanta  Atlanta could offer incentives for almost 400 new jobs; Jacksonville could only 139 incent new Florida jobs

IT Case Study Deutsche Bank 319 IT positions (average wage $90K) lost to Raleigh, NC, $6.7 million investment Competitive Advantages  Jacksonville offered competitive IT salaries compared to the Northeast, where many of our companies have relocated jobs  Surprising amount of IT depth in Northeast Florida; but within companies that are not branded as IT.  Company did agree to place 50 IT network support positions in Jacksonville Competitive Disadvantages  Lack of Tier 1 Research University limits ability to collaborate  Area universities not producing enough IT graduates  NC offered $9.4 million in incentives for this project. Florida’s incentives for this type of project are not competitive.

Recent Announcements Advanced Manufacturing Company Name

Employees

 Florida Boilerplate

 Gerdau Ameristeel

 J.C. Renfroe & Sons

 Oshkosh Truck

100

 St. Johns Ship Building

 Saft America

279

Manufacturing Case Study SAFT America  Lithium ion storage batteries for alternative energy power production  Investing $200 million, adding 279 high-wage jobs  DOE grant for $95 million allowed project to move forward in U.S. Competitive Advantages  SAFT executive on the site location team was a longtime friend of Mayor Peyton, which got Jacksonville into consideration  City able to provide no cost site at Cecil Commerce Center; other state and city incentives made us competitive  Cornerstone had recently completed labor study proving depth of manufacturing workforce in Jacksonville Competitive Disadvantages  JEA electric rates were higher than other locations under consideration.  Cecil site was under water during a site visit.

Recent Announcements Aviation & Aerospace Company Name

Employees

 Airborne Tactical Advantage Company

 Aviation Systems Engineering Company (ASEC)

 AVMAX Montana Inc

100

 Boeing Company

125

 Embraer

 FlightStar Aircraft Services

250

 SSE, Inc.

Aviation Case Study Boeing Two recent expansions of its assembly plant at Cecil Commerce Center, total employment around 300 Competitive Advantages  Competitively priced, existing hangar space at Cecil Commerce Center  Labor force is strengthened by military presence Competitive Disadvantages  Company has numerous alternative location options

Aviation Case Study Spirit Aerosystems $1 Billion investment in manufacturing plant to build fuselages for Boeing 787 jets; 900 high-wage jobs Competitive Advantages  City able to offer free land at Cecil Field  Other state and city incentives were substantial  Jacksonville labor force was stronger than NC site under consideration. Stronger educational resources and better trained employees. Competitive Disadvantages  Project was delayed for a year and Kinston, NC was able to win deal with incentives that Florida did not match. Heavy involvement of NC Governor in deal.

Recent Announcements Distribution & Logistics Company Name

Employees

 Bridgestone Americas Tire Operations

250

 COACH

 Dr. Pepper-Cadbury Schweppes

 ICS Logistics

 Interline Brands

 Mercedes-Benz

 Michael’s

 Mitsui O.S.K. Lines

200

 Samsonite

 Unilever USA

150

 Volkswagen of America

 Volvo/Mack Trucks

Logistics Case Study Bridgestone Firestone One million sq. ft. tire distribution facility constructed at Cecil Commerce Center Competitive Advantages  City able to provide below market land deal at Cecil Commerce Center.  Heavy port user; Jacksonville’s location was the perfect fit. Competitive Disadvantages  Almost lost deal to Savannah because we did not have direct shipping to Asia at that time. Mayor Peyton and a team of business leaders went back to HQ and guaranteed Mitsui was initiating service at JAXPORT to win deal back.  Logistics projects don’t qualify for many state/local incentives due to high-wage requirements

Logistics Case Study Wal-Mart Jacksonville was a finalist for a four million sq. ft. mega distribution facility that would have served regional distribution facilities. Competitive Advantages  Competitive port location and operating cost  City offered below market land deal at Cecil Commerce Center  Florida’s 18 million consumer market provided strong demand for retail products Competitive Disadvantages  Global logistics models shifted and deal never happened. Only two similar facilities are currently sited in Houston and Chicago.

Recent Announcements Life Sciences Company Name

Employees

 Bodytel

 Eurofin Scientific

 PSS World Medical

 Ranbaxy Pharmaceuticals

 Specialty Disease Management Services

 W. Lorenz Surgical/Biomet Microfixation

Factors for Our Success 

Workforce Availability & Cost

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Building & Sites

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Quality of Life

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Business Environment/Tax or Permitting

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Cecil Commerce Center

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Regional Options

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Incentives

Key Competitors - Aviation

Northern VA Charlotte Charleston Mesa Savannah Dallas/ Ft. Worth

Melbourne

Key Competitors - Office

Nashville

Charlotte Atlanta

Dallas/ Ft. Worth Tampa

Key Competitors - Logistics

Norfolk Memphis Atlanta

Charleston Savannah

Key Issues That Will Influence Our Future    

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Mayport/Nuclear Carrier Retaining Jaguars Downtown Revitalization & Development Raising Educational Attainment Levels/K-12 Education Reform Regional Intermodal Plan and Investment 

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Port Infrastructure - River, Roads, Rail and Airports

Industries of the Future & Incentives to Attract Projects