Education | Strategic Forum | Economic Outlook | Relocations and Expansions
A Quarterly Economic Development Publication
Life
Sciences
A Growing Sector
Spring 2014
Life Sciences A Growing R&D, Manufacturing and Services Business Cluster
Palm Beach Strategic Forum Scripps and Beyond The Diversification of Palm Beach County’s Economy
News & Events Exporting to Canada Touring the Glades BDB Hosts 2014 National Engineers Week Smallridge Speaks on Women’s Empowerment Relocations & Expansions
Education BDB Kicks off Collaborative Educational Initiative
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ON THE COVER: Image by Barry Kinsella
Economic Outlook What Lies Ahead for Nation’s Economy?
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CONTENTS
Finding Tomorrow’s Growth Opportunities
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Welcome from the President TO OUR MEMBERS AND PARTNERS: Upon reading this issue of Palm Beach County Business you’ll learn about a wide range of life sciences companies in Palm Beach County that are on the leading edge of commercial research and development and about the many medical education programs available in the county that serve to complement the work taking place in the life sciences sector. Additionally, this issue features noteworthy news regarding relocation and expansion projects and information about upcoming community events. I hope you enjoy reading Palm Beach County Business which is made possible with the support of the Palm Beach County Board of Commissioners, CareerSource, NextEra Energy, Inc., Florida Crystals, and Suffolk Construction. As we continue to further the growth of Palm Beach County’s wide-ranging economy, please continue to follow us on Facebook and Twitter and watch for our e-newsletters to stay well-informed on economic development and business news and events in Palm Beach County.
Kelly Smallridge President and CEO
Business Development Board of Palm Beach County, Inc. 310 Evernia Street | West Palm Beach, FL 33401 561.835.1008 | www.bdb.org Palm Beach County’s Economic Development Resource
Published by » Passport
Publications & Media Corporation
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Ocean Ridge
Biosciences is on the leading edge of research into biomarkers for early diagnosis of pancreatic cancer. The Palm Beach Gardens-based contract research laboratory helped researchers identify three key differences in small pieces of RNA (microRNA) found in the blood of pancreatic cancer patients, and in healthy patients. The results of the study, “Novel blood-based microRNA biomarker panel for early diagnosis of pancreatic cancer,“ were published in the January 15 issue of the World Journal of Gastrointestinal Oncology. Researchers were able to show that the biomarker panel could detect pancreatic cancer with 91 percent accuracy. “Our mission is to provide fast, reliable, and innovative services to accelerate our customers’ goals in biomarker identification, drug discovery, and basic research,” said David Willoughby, senior scientist.
scientific research at Scripps Florida and Max Planck Florida Institute on Florida Atlantic University’s Jupiter campus. To support the growth of this sector, the Business Development Board formed a Life Sciences and Healthcare Industries Cluster Task Force, which serves as a voice and advisory group for the community. Co-chaired by John Couris, CEO, Jupiter Medical Center, and Gina Melby, CEO, JFK Medical Center, the task force recommends specific strategies to help Palm Beach County grow its current life sciences and healthcare cluster into a globally recognized hub for biotechnology, medical device, and clinical development enterprises. In the northern county, CHS Pharma is an emerging biotechnology company developing an innovative treatment for a precancerous skin condition known as actinic keratosis. Another growing company is BioTools, whose cofounder and chief scientific
Life Sciences:
A Growing R&D, Manufacturing and Services Business Cluster “Many of our clients are located in major metropolitan areas easily reachable by direct flights. We also benefit from a lower cost of operations here, as well as our proximity to major research institutes and universities. From the perspective of collaboration with academic clients, Palm Beach County is a great location.“ Ocean Ridge Biosciences is one of the growing number of life sciences companies finding business success in Palm Beach County. In the decade since Scripps Florida came to Jupiter, the region has become a magnet for business investment. Today, a wide range of life sciences companies are on the leading edge of commercial research and development, supported by a growing number of academic medicine programs (see related article) and the
officer Professor Laurence Nafie was recently honored by the New York Society for Applied Spectroscopy for outstanding contributions to the field of applied spectroscopy. “BioTools has developed and manufactured advanced instruments based on these techniques,” said Dr. Rina Dukor, president. BioTools relocated to Palm Beach County in 2005 and has grown to 15 employees in a 6,000-square-foot manufacturing facility. “We have really enjoyed the business and lifestyle climate here, and are glad to contribute to the growth of the life sciences cluster,” she added. Since moving to Jupiter in 2012, Somahlution, Inc. has grown to 29 employees and is now preparing to launch DuraGraft, its first clinical product for cardiac patients. Catherine Pachuk, scientific Continued on page 12
Dr. Rina Dukor, president, BioTools, in the laboratory
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Palm Beach Strategic Forum Finding Tomorrow’s Growth Opportunities
Gov. Rick Scott speaks at Strategic Forum
With stronger economies throughout the Americas, now is an excellent time to take advantage of international business opportunities. That was a key theme of the Palm Beach Strategic Forum, held April 7-8 at the Palm Beach County Convention Center. Andrew Duffell, president and CEO of Research Park at Florida Atlantic University, served as moderator for the two-day conference, “Shaping the Global Agenda: Tomorrow’s Growth Opportunities,” which brought together policymakers, analysts and business leaders from around the world. West Palm Beach Mayor Jerry Muoio welcomed attendees to the fourth edition of the forum, which is organized by the International Economic Forum of the Americas. “This is a city where residents can come together and enjoy life,” she said. Governor Rick Scott emphasized the state’s economic progress, noting that 540,000 jobs have been added in three years. “We’ve almost invested $640 million in Florida’s ports, supporting international trade, and we’re seeing manufacturing coming back to our state,” he said. “It’s an exciting time to be governor.” One of the state’s growth sectors is life sciences, according to Gray Swoope, Florida Secretary of Commerce and president and CEO, Enterprise Florida. “We have a great ecosystem from R&D to manufacturing and distribution, with excellent research universities and a diverse population base for clinical trials,” he said. Sherri Meadows, 2014 Florida Realtors president, noted that international buyers invested $6.4 billion in the state’s real estate market last year, and added that understanding economic and business trends is important for all real estate professionals. In his talk, Robert Wolf, founder and CEO, 32 Advisors, and a member of President Obama’s Export Council, cited the need to invest in
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Gray Swoope, Florida Secretary of Commerce, and President and CEO, Enterprise Florida
the nation’s infrastructure. “It’s not just roads and bridges, but airports, ports and broadband services,” he said. “Around the world, nations have improved their economic competitiveness through infrastructure projects, which create new jobs, and support exports and long-term productivity.” Robert Reynolds, president and CEO of Putnam Investments, and incoming CEO of Great-West Financial, pointed to the importance of saving and investing in spurring economic growth. He said, “Savings is a key to long-term prosperity and rising living standards.”
Scripps and Beyond the Diversification of Palm Beach County’s Economy It’s hard to believe that more than ten years have passed since the County brought the Scripps Florida Research Institute to this community. During that time, I had the distinct privilege to work with County Administration on the Scripps program and the construction of the institute’s state-of-theart facilities in Jupiter. Nothing could truly prepare us for what this economic development investment would mean in raising the profile of Palm Beach County in the realm of scientific discovery and in growing an industry cluster that would shape the curriculum for science programs in our educational institutions. Scripps reports advances in diverse areas of research from cancer therapies, to addiction treatment, to discoveries in Parkinson’s Disease, Alzheimer’s and diabetes just to name a few. They have formed collaborative relationships with no less than eight major universities and research institutes around the state, and have recruited Florida graduate students for their bi-coastal Ph.D. program at the Scripps Kellogg School. More than 500 jobs have been created at the Scripps campus in Jupiter. While biotech spin-off companies were anticipated, subsequently landing the internationallyrenowned Max Planck was beyond anyone’s wildest dreams. Their new 100,000 square foot facility located next to Scripps and Florida Atlantic University (FAU) currently houses more than 100 employees and is the institute’s only location outside of Europe. Max Planck Florida Institute is collaborating with universities, hospitals and other research institutes throughout the state, as well as with Scripps, and teamed up with FAU to create a program in Integrative Biology and Neuroscience, offering a broad range of training. Additionally, Max Planck offers summer internships for area high school students. Scripps and Max Planck combined have been awarded more than $285 million in research grants. What experts in the field will tell you is that scientists want to be where the research is happening, so the expansion of bioscience start-ups in the county is not surprising. For example, Somahlution, a biotech start-up company that moved to Jupiter from North Dakota in 2012 and is engaged in research and development to improve organ transplant procedures, saw the advantages of locating near industry giants, Scripps and Max Planck. They have already hired dozens of employees and have plans for more. Somahlution’s chief executive, Satish Chandran, recently told the South Florida Business Journal, “We wanted to be in this area…to be able to be involved in scientific and entrepreneurial changes that will happen.” The BDB is currently tracking more than 70 biotechnology and related businesses. The growth of this industry, which is considered one of the most important economic drivers in the U.S., has made a significant impact on how the county is viewed as a place to do business. Palm Beach County will always enjoy a stellar reputation for our beaches, cultural venues, natural areas, world-class golf, and winter vegetables; however, we are no longer strictly identified with tourism and agriculture. Our economy is truly diversifying and that translates into more jobs and a better quality of life for our residents. For more information about the county’s business assistance programs, contact Sherry Howard at DES, (561) 233-3653.
By Sherry Howard, Deputy Director Palm Beach County Department of Economic Sustainability
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News Events Exporting to Canada As Florida’s number one trading partner, Canada offers an inviting market for Palm Beach County companies. On April 3, the BDB hosted a special event for members to learn about “Export Opportunities in Canada.” The program focused on how local businesses can begin taking advantage of the consumer and business markets in the nation’s northern neighbor.
Touring the Glades
BDB Hosts 2014 National Engineers Week
The Feb 28 Fam Tour of the Glades
On February 28, the BDB hosted a tour and panel discussion with site selection consultants on Palm Beach County’s “Business Climate in the Glades.” The event covered agricultural, logistics, manufacturing and other investment opportunities in the county’s western region. The site selectors met with public and private sector representatives, took an air tour of the area and toured business parks and business districts.
Sandra Magnus, NASA astronaut – keynote speaker
Sandy Magnus, astronaut and executive director, American Institute of Aeronautics and Astronautics, spoke on “Perspectives from Space” as the keynote speaker for an awards banquet for 2014 National Engineers Week. The BDB hosted the February 21 event at the Palm Beach County Convention Center. Aerojet Rocketdyne was the primary sponsor for the event, which recognized outstanding contributions in the fields of engineering, education, and public service.
Smallridge Speaks on Women’s Empowerment Kelly Smallridge, president and CEO of the Business Development Board of Palm Beach County, was the keynote speaker for the second Palm Beach State College Women’s Empowerment Forum on March
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21. In 2004, Smallridge became the first female president of a South Florida economic development board, and is now one of the longest tenured economic development presidents in Florida.
Relocations & Expansions
Richard J Stephenson, founder of Cancer Treatment Centers of America (CTCA)
In partnership with Palm Beach County, Enterprise Florida and many cities, the BDB facilitated the following corporate expansions and relocation plans: Cancer Treatment Centers of America® (CTCA), a national network of five hospitals that treat patients fighting complex and advanced-stage cancer, selected Boca Raton as the site for its corporate headquarters. The company eventually expects to employ 225 full-time staff, including executives who relocate from its current headquarters in suburban Chicago, and new hires. Florida’s favorable business climate, coupled with the quality of life offered to residents of Boca Raton, and its proximity to three international airports, factored heavily in the company’s decision to relocate. “Selecting Boca Raton as our new corporate headquarters represents a major step in positioning Cancer Treatment Centers of America to serve even more patients in the future, while simultaneously providing our dedicated and valued employees with exciting opportunities for further personal and professional development,” said President and CEO Gerard van Grinsven. “We deeply appreciate the support we received from the State of Florida, the City of Boca Raton, Palm Beach County and its Business Development Board.” CTCA offers a comprehensive, fully integrated approach to cancer treatment and serves patients from all 50 states at facilities located in Atlanta, Chicago, Philadelphia, Phoenix and Tulsa. Automatic Finance, a non-prime auto finance company serving independent and franchise automobile dealerships, will relocate its corporate headquarters from Maryland to downtown West Palm Beach. The company has leased space at 307 Evernia Street and plans to hire 40 employees. The BDB assisted Automatic Finance with community introductions, incentive package coordination,
and workforce and training needs. “Automatic Finance is excited to relocate its headquarters to West Palm Beach,” said Justin Rafael, president. “The city’s Flagler Financial District is an ideal location for our business to engage with other local financial companies, and places us within walking distance to many of the terrific amenities of downtown West Palm Beach.” TouchSuite, a leading technology company ranked 105 on Inc. 500’s list of fastest growing private companies, will create 50 new jobs in Boca Raton. “TouchSuite’s expansion is great news for Florida families,” said Governor Rick Scott in announcing the expansion. “As Florida’s economy continues to grow, it’s important that we continue to create an environment where information technology companies can expand and create jobs in the Sunshine State.” TouchSuite plans to add 50 new positions to its current workforce of 47, more than doubling its head count. The technology company’s award-winning point of sale system has revolutionized the industry by providing owners in restaurants, salons, spas and retail establishments with user-friendly, fully integrated single-unit solutions, with payment processing services, that allows them to stay competitive even with the limited resources of a small business. “TouchSuite was founded in 2004 as a financial technology company,” said said CEO Sam Zietz. “We are proud to have grown to a company that will soon employ more than 100 Palm Beach and Broward County residents and is contributing to the local economy with revenue over $19.2 million in 2013.”
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Education BDB Kicks off Collaborative Educational Initiative With support from public and private schools, colleges and universities throughout Palm Beach County, the Business Development Board has launched a new collaborative program to showcase the region’s dynamic educational system. “A strong educational system is critical to economic development, and our new initiative brings public, private, charter and faith-based schools together with our colleges and universities to provide a comprehensive picture of our region,” said Kelly Smallridge, BDB president and CEO at an April 9 Education Breakfast at the West Palm Beach Marriott.
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The event featured a panel of distinguished education leaders, including: Wayne Gent, superintendent, Palm Beach County School District Bill Fleming, president, Palm Beach Atlantic University Dr. Dennis Gallon, president, Palm Beach State College Dr. Jennifer Anderson, vice president, Nova Southeastern University Dr. Tom Duncan, president, Northwood University Kimberly Lea, president, Kaiser University Dr. Gary Perry, interim provost and chief academic officer, Florida Atlantic University More than 300 community leaders listened to the panelists discus changes to the ways they align their curriculum with jobs in the industry sectors that are currently in Palm Beach County, and those the Business Development Board actively recruits. They also reviewed new tools either recently launched or in development to help showcase their institutions’ points of pride to potential new employers. A highlight of the breakfast was the official unveiling of an innovative new website – www.pbcedu.org - that provides a comprehensive overview of K-20 education in Palm Beach County for use by civic, business and government organizations. Thought to be the first of its kind in the nation, the new site was praised by Governor Rick Scott as a model for every county in Florida. The site was developed over 16 months by a task force consisting of representatives from approximately 60 schools, co-chaired by the session moderator, Carey O’Donnell, president and creative director of O'Donnell Agency, and Ken Kahn, president of LRP Publications. Smallridge said the website is just the beginning of the task force’s effort to market and advocate the quality educational opportunities that exist in the county. “We want to highlight these opportunities in the county because quality education is such an important factor for site selection and economic growth and development,” she said.
State Awards $8.4 Million to Palm Beach County Schools More than $8.4 million has been awarded to 80 Palm Beach County Schools as part of Florida’s School Recognition Program. “Our students and teachers in Palm Beach County deserve to be rewarded for their hard work,” said Governor Rick Scott, who announced the awards at the Palm Beach Strategic Forum on April 7. “ We know that a good job starts with a great education and Florida continues to be a leader in education.” Present for the award were Palm Beach County School Superintendent E. Wayne Gent, school board Vice Chairman Frank Barbieri and a group of stellar principals, teachers and students including Maria Aparicio, “Palm Beach County Teacher of the Year.”
Three Palm Beach County schools are among the top 100 on this year’s America’s Most Challenging High Schools list, prepared annually by The Washington Post.
The state’s School Recognition Program acknowledges the quality of public schools by giving financial rewards based on sustained or significantly improved student achievement in reading, mathematics, science and writing. Schools eligible for recognition awards include those receiving an ‘A’ school grade, improving at least one letter grade from the previous year, or improving more than one letter grade and sustaining the improvement the following school year. Schools can use the money for faculty or staff bonuses, to purchase educational equipment or materials, or hire temporary staff to help maintain or improve student performance.
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Suncoast High School
Boca Raton High School A.W. Dreyfoos School of the Arts
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Life Sciences Continued from page 5
Ocean Ridge Biosciences team: From left are Casey Nagel, project manager; David Willoughby, senior scientist and manager; Priscylla Guimaraes, assistant process scientist; Rhianne Brie Kamuchey, sales intern; Joseph Benito, process scientist; and Yonggan Wu, senior bioinformatic scientist.
director, said DuraGraft is designed to protect vascular grafts (veins or arteries from the patient used in bypass surgery) from damage. “It has been shown that proper preservation of grafts may affect long-term patient outcomes,” she said. “Our product will be the first product cleared by a regulatory agency for this purpose.” Pachuk said the Business Development Board (BDB) has helped the company get off to an excellent start. “We have been able to recruit locally from a pool of highly qualified individuals,” she added. “We’ve
also taken advantage of being so close to leading research centers, other key players in the life sciences sector are located in central and southern Palm Beach County. For instance, Biotest Pharmaceuticals Corporation in Boca Raton researches and manufactures biotherapeutic products with a specialization in immunology and hematology. “Palm Beach County offers an excellent business climate, serves as a gateway to our partners throughout Latin America and counts on a growing number of biotechnology firms and research institutes,” said Claudia Zylberberg, PhD, CEO of Akron Biotech in Boca Raton. “We are a specialized service provider and supplier to global leaders in the stem cell, cell therapy and regenerative medicine industries,” said Zylberberg. “Akron manufactures a range of products for cell therapy discovery, development and commercialization.“ The 12-employee company was recently awarded an SBIR (Small Business Innovation and Research ) grant from the National Institutes of Health (NIH) for the further development of a platform technology for adipose-derived stem cell processing. “We have grown significantly in recent years and look to expand our operations in Palm Beach County in the near future,” Zylberberg said. “Our plan is to meet the strong domestic demand from the cell therapy and regenerative medicine industries.”
Galaxy E3 Elementary a Showplace for Science Learning Continued from page 10 When Galaxy E3 Elementary reopened last August, the Boynton Beach school became an immediate showplace for 21st century learning with numerous “green” features and a Wonderment Center with interpretive, interactive, multi-age exhibits. “Students can interact and collaborate in benchmark driven science activities throughout the school,” said Edmund Capitano, principal of the Galaxy Elementary E3 (Energy, Environment & Engineering) Choice School. “This is an advancement in education where students will literally be able to talk to the school and the school will talk back.” A special fundraising effort, coordinated by the school district architects and the Education Foundation of Palm Beach, raised more than $1.2 million to fund the Wonderment Center. Quantum Foundation made a $750,000 donation to the center. The funding also supported a host of LEED Platinum features that were not included in the original budget. Platinum is the highest level of LEED certification (Leadership in Energy and Environmental Design), which recognizes buildings’ compliance to design, construction and operations according to environmentally friendly practices and standards. Galaxy E3 Elementary School is also equipped with a learning tool
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called “Science On A Sphere”. A suspended animated globe system that uses computers and video projectors to display multi-image projections of planetary data onto a six-foot diameter sphere. Information about the globe is fed into the system by researchers, and students can learn almost in real-time about tsunamis, tidal waves, earthquakes, phases of the moon, and complex environmental processes. “Our mission is not only to educate young minds through a rigorous STEAM curriculum, but also to teach children the principles of sustainability and how to protect, preserve, and be productive environmental stewards of this world,” said Capitano.
Medical Education Programs in Palm Beach County Undergraduate Medical Education
Nova Southeastern University
Allopathic Schools: University of Miami Miller School of Medicine: MD/MPH program, clinical clerkships at multiple facilities (48 students per class) Florida Atlantic University Schmidt College of Medicine: Clinical clerkships at multiple facilities (64 students per class) University of Vermont: Clinical clerkships at St. Mary’s Medical Center (12 students per year)
Osteopathic Schools Nova Southeastern College of Osteopathy: Clinical clerkships at multiple hospitals in the county Lake Erie College of Medicine: Clinical clerkships at Wellington Hospital Philadelphia College of Osteopathic Medicine: Clinical clerkships at multiple hospitals Kansas City University of Medicine: Clinical clerkships at Palms West Hospital and West Palm Hospital
Graduate Medical Education (GME) Programs and Accreditation Council for Graduate Medical Education (ACGME) University of Miami Miller School - Palm Beach County Regional Programs: JFK Medical Center and West Palm Beach VA Medical Center – Internal Medicine Program (72 residents)
– Surgery Program (10 residents) – Hospice and Palliative Medicine Fellowship (2 fellows) – Planned: Psychiatry Florida Atlantic University Consortium: Boca Regional Hospital, Delray Medical Center, St. Mary’s Medical Center, Bethesda Health, West Boca Medical Center. – Internal Medicine (96 residents) American Osteopathic Association Accredited (AOA) – Palm Beach County Centre for Graduate Medical Education: Palms West Hospital and Palm Beach Hospital Internal Medicine (18 residents) Pediatrics (21 residents) Dermatology (9 residents) – Lake Erie College of Medicine: Wellington Regional Medical Center Internal Medicine (18 residents) – Health Care District: Lakeside Medical Center Family Medicine (5 residents)
Podiatry JFK Medical Center Bethesda Health
Dual Accreditation – ACGME and AOA Palm Beach County Health Department – Preventative Medicine/Public Health Residency Program (6 residents)
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Economic Outlook What Lies Ahead for Nation’s Economy? In contrast to the last few years, the U.S. economy is on track to outpace Brazil, China and other emerging markets in 2014, according to Beata Caranci, vice president and deputy chief economist, TD Bank Financial Group. “We expect the U.S. and Europe to lead global growth, which will reach about 3.5 percent this year compared with 3 percent in 2013,” said Caranci at the BDB’s “2014 Economic Outlook” brunch on March 27 at the Four Seasons Palm Beach. “In the U.S., our gross domestic product (GDP) will jump from about 2 to 3 percent, and Europe will also swing over to the growth phase. That will help the emerging markets, because the U.S. and Europe are the largest consumer markets in the world.” From a national perspective, Caranci said U.S. and European sanctions of Russia in the wake of the Crimea takeover are unlikely to derail growth. Exports and investment in Russia constitute a very small part of the U.S. economy, she added. Drilling down to the state and region, Caranci said Florida will outperform the national average for the rest of 2014 and 2015 as well. Strong drivers for the state include a strong flow of exports to Latin America, as well as “pass-through” tourism related to Brazil’s hosting the FIFA world cup soccer championship this summer. “Palm Beach County will see stronger job growth than the rest of Florida, due to its diversified economy and strength of the housing market,” she said. “In times of economic recovery, metropolitan areas like Palm Beach County attract greater population growth, which leads to new jobs and a better economy.” With new hiring underway in housing, professional services and education, Palm Beach County is well positioned for steady growth this year. Summing up her outlook, Caranci said, “I’m really bullish on Florida and on Palm Beach County.”
TD Bank forecast keynote speaker Beata Caranci, Vice President and Deputy Chief Economist TD Bank, with Frank Frank Compiani, BDB Chairman
Unemployment Rate Falls In Palm Beach County Palm Beach County began 2014 with a sharp drop in the region’s unemployment rate, which fell from 8.3 percent in January 2013 to 6.3 percent this January. The metro area had an increase 14,100 jobs over the year. Nine of the ten major industry sectors in this metro area gained jobs in the past 12 months, according to the announcement from Governor Rick Scott. The industries with the largest job gains were professional and business services with 5,700 new jobs and education and health with 2,700 new jobs. Housing starts were up 5.9 percent over the year.
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