Growth Factor

With business booming locally, industries from agribusiness to high-tech (and everything in between) are making their mark and exploding exponentially. We take a look at the convergence of conditions that make Palm Beach County ripe for growth.

Take one part industry diversity, add a talentfilled workforce, sprinkle in some business and tax incentives, and you’ve got a recipe for why Palm Beach County sets the standard for business development. In fact, Chief Executive magazine rated Florida as the No. 2 best state for business for the eleventh consecutive year in 2022, due to the diversity of major industries and a dozen attractive business and tax incentives offered by the state and its counties.

WORKFORCE WOW-FACTOR

Palm Beach County is Florida’s third most populous county, with about 1.5 million people and a projected population growth of 4 percent by 2026. Although the perception outside the state is that Florida’s residents are primarily retired and elderly, the median age in the Palm Beaches is 44.

Workers in Palm Beach County have an above-average high school graduation rate of 88.8 percent, and 37.1 percent have a bachelor’s degree or higher. Those holding college degrees remain in high demand across the county, especially for those in STEM fields, making it an attractive option for both young graduates and more experienced mid-career and executive personnel. Furthermore, Palm Beach County has a significant Hispanic population of 23.9 percent, presenting a tremendous advantage for businesses in international trade with Latin and Central America.

IMPRESSIVE INDUSTRIES

Tech-sector growth in Palm Beach County supports a high-tech/ green energy/biosciences startup corridor between West Palm Beach and Deerfield Beach. As a result of the activity in this sector, salaries are on the rise in a region where the IBM personal computer was created. More than 1,700 information technology (IT), telecommunications, and support companies employ more than 20,000 professionals with an average wage of $78,928 to bolster a state ranked in the top five nationally in high-tech establishments, export of high-tech products, and high-tech employment. While Silicon Valley is still best-known as a tech sector, the extravagant cost of living, crowded urban centers, high state sales taxes, and a personal income tax in California are driving software engineers and developers to other states.

Here’s a look at 10 of our county’s most prominent industries.

Agribusiness: The historical core of Palm Beach County’s economy is agribusiness, extending from just outside of our coastal cities west to Lake Okeechobee. Approximately 36 percent of the county’s acres are devoted to agriculture and ranching, comprising more than a third of the county. All of the nearly 900,000 tons of raw sugar produced in the Glades area of the county ship through the Port of Palm Beach (which, unlike many ports, is cleared to handle exports as well as imports).

Aviation, Aerospace, and Engi-

neering: The few small airstrips that became Florida’s World War II military installations have grown into a major industry, including commercial aviation, air cargo, air defense projects, and rocket engines. Some of the major firms located in the county

include: Lockheed Martin Corporation; Sikorsky, a Lockheed Martin Company; Aerojet Rocketdyne; Pratt & Whitney; Collins Aerospace; and Northrop Grumman.

Clean Tech: Florida is No. 1 nationally in annual biomass production, No. 1 in net energy generation from biomass, and seventh in energy generation from renewable sources, including hydroelectric and solar. The state supports research and development in the industry through renewable tax incentives and support of research centers. Palm Beach County hosts more than 715 cleantech businesses such as Blue Biofuels, Inc., SolarTech Universal, 4Ocean, and Enerfuel.

Distribution and Logistics: Palm Beach County is centrally located near Florida’s largest population centers and has convenient access to world markets via the port. The county is home to more than 15 distribution centers totaling more than 5 million square feet. These distribution centers take advantage of Intermodal Systems Highways, railroads, airports, and the Port of Palm Beach. Among the firms operating distribution centers here are Aldi, Amazon, American Tire, Cheney Bros., FedEx Corporation, Nestlé, Publix, Sysco, U.S. Food Service, and Walgreens.

Equestrian Sports: With an estimated $600 million impact on the county, equestrian sports is a signature economic sector for Palm Beach County. The National Polo Center – Wellington, owned and managed by the U.S. Polo Association (USPA), is one of the largest polo facilities in the United States. There is also Wellington International (formerly the Palm Beach International Equestrian Center), which is the site of the annual Winter Equestrian Festival. Held January through April, it hosts competitions for hunters, jumpers, and equitation and attracts more than 250,000 people and 6,500 horses. With the National Polo Center – Wellington, Wellington International, more than 10 USPA member clubs, and several private stables and horse farm communities, Wellington is often considered the epicenter of polo in the United States.

Financial Services: The presence of 2,897 hedge funds and private equity firms that employ more than 35,000 people and help serve 71,000 millionaire households in Palm Beach County help earn it the moniker of “Wall Street South.” With no individual state income tax, corporate gains tax, or top marginal taxes for individuals and estates, Florida is a highly attractive location for the affluent and the financial companies that serve them.

Health Care and Life Sciences: Palm Beach County’s health care industry is vital to the economy, providing more than 79,000 jobs at nearly 5,500 health care–related businesses. There are more than 700 life sciences companies in Palm Beach County, primarily engaged in research and development or the manufacture of biotechnologies, medical devices, pharmaceuticals, or environmental and biological sciences. Two world-renowned research institutes—Scripps Research and Max Planck Florida Institute for Neuroscience—anchor what is dubbed the Palm

Beach Life Sciences Cluster. LifeHelix. org, a county initiative, helps define and focus growth efforts in the area.

IT and Telecommunications: Palm Beach County is a national leader for IT and telecommunications. With more than $8 billion annually in IT research and development activities, Florida ranks fourth nationally in high-tech establishments, third

in high-tech product exports, and fifth in high-tech employment. Palm Beach County is home to nearly 2,200 IT, telecommunications, and support companies employing nearly 20,000 professionals with an average wage of $94,354, according to the Business Development Board. The area is recognized as a prime place to locate technology firms and startups, a reputation that encompasses Deerfield Beach, just across the Hillsboro River from Boca Raton.

Manufacturing: Florida offers a sales tax exemption to manufacturers that purchase new equipment and machinery. Palm Beach County also provides targeted industry incentives including sales and use tax exemptions, and tax credits and refunds for capital investment, R&D, and job creation. Currently, there are more than 23,670 manufacturing jobs in the county boasting an average salary of $88,101. The local workforce offers particular expertise in advanced materials, aerospace, biomedical, IT, defense, marine, and green technologies.

Marine Industry: With 40,000 registered boaters in the county, the marine industry has an economic impact of $2.1 billion, ranging from boat and equipment sales to the nearly 20,000 jobs within the sector to the revenue generated by marinas, boatyards, and more. Downtown West Palm Beach is home to the annual, four-day Palm Beach International Boat Show, which attracts 460 exhibitors and more than 50,000 attendees from around the world.

ENTICING INCENTIVES

Palm Beach County offers relocating and expanding companies competitive incentives on par with other major metropolitan areas. The incentives are flexible and apply to many different industry sectors and activities. The level of assistance depends on the number of jobs created and the wage/benefits provided.

On the state level, Florida offers incentives for all types of businesses, from corporate headquarters to manufacturing plants and service firms. Investment credits encourage capital-invested industries to set up here in the Sunshine State, while training incentives provide the possibility to expand the knowledge and skills of future and current employees. Florida encourages growth throughout the state by offering increased incentive awards and lower wage qualification thresholds in its rural counties. Florida’s tax advantages—including its capital investment tax credit—are front and center when creating incentives to move business to Florida. «

By the Numbers

Palm Beach County is a national leader in economic growth in a post-pandemic world—and that momentum is projected to continue well into the future.

30,000

The increase in the number of jobs added to the private sector in Palm Beach County over a 12-month period ending in July 2022.

92,000

The number of jobs the Florida Department of Economic Opportunity projects will be added by 2029 (that’s a whopping growth rate of 13.9 percent).

31The number of companies that relocated or expanded operations in Palm Beach County during a 12-month period in 2020 and 2021.

$152.3 million

Amount of capital investment brought into our area as a result of those 31 relocations and expansions.

$777 million

Capital investment made during a five-year period through 2022, with an economic impact exceeding $6.87 billion.