Industry Trends: Lessons Learned from Florida Manufacturing Days

Florida: An industry leader in Manufacturing

When you think of Florida, you probably picture beaches, oranges, and sunshine. But did you know Florida is also a major manufacturing state?

In 2023, it ranked in the top 10 for manufacturing employment in the U.S. Here’s a few key statistics:

• Florida's manufacturing output (GDP) increased from $43 billion in 2014 to $73 billion in 2022, reflecting a 67.8% growth rate over seven years.
• Since 2019, Florida has added 6,495 new manufacturing facilities, representing a 30% growth rate.
• Average salaries in manufacturing surpassed $78,000 in 2023.
• The manufacturing industry in Florida has generated more than 3 million direct and indirect jobs.

Florida has become a leading manufacturing state through deliberate actions:

• Investments in research and development
• Emphasis on STEM education in schools and universities to prepare for workforce retirements
• Access to key transportation routes and ports, providing a strong supply chain
• Business-friendly policies and economic incentives attracting new manufacturing facilities.

These are significant achievements and initiatives. Florida understands to sustain its competitive edge and build the desired economy, continued effort is necessary.

Florida Manufacturing Days: Key takeaways

CLA’s manufacturing team had a productive two-day session in Tallahassee with Florida Makes and several manufacturers at the capital in early February to discuss critical topics for manufacturers. The discussions centered on two primary areas:

A Florida manufacturing bill

Key bill elements include:

• Institutionalizing a Chief Manufacturing Officer
• Creating a Made in Florida Designation
• Authorizing a “State of Florida Manufacturing Report”
• Establishing a grant or low-interest loan program to support manufacturers

Investments to encourage growth in Florida’s manufacturing sector

• Expanding the Capital Investment Tax Credit
• Reestablishing the Qualified Target Industry Tax Refund Program

We heard powerful testimonies from manufacturers at the Senate Committee on Commerce and Tourism, echoing the concerns of business owners. Here are a few key takeaways:

Digital transformation

In discussions regarding business with OEMs, one manufacturer quoted an OEM stating, "If you don’t get your digital game together as a business – not going to be a supplier.”

Embarking on your digital transformation journey is no longer a luxury. It could literally hold you back from partnering with key accounts in your supply chain. It can also hamper a company’s ability to be competitive and grow or address workforce issues.

What initial action will you prioritize? If you are unsure where to start, a digital readiness assessment can help.

Cybersecurity

It's a crucial topic. With digital transformation, companies face more cyber risks due to complex tech stacks and IT/OT convergence. Cyber breaches can cost $120,000 to $1.2B. Companies need cyber resilience without losing operational efficiency. The aerospace and defense sector, especially in Florida, faces new cybersecurity maturity model certification (CMMC) standards that are challenging and costly for smaller companies. Learn how to make CMMC more manageable.

Business succession planning

Imagine walking into your office and your boss says, “Buy this business or I’m putting a sign on the building tomorrow.” That’s how one owner in Tallahassee acquired his business.

As the workforce ages, succession planning becomes essential. For many business owners, their business is their most valuable asset, and lacking a plan can cause uncertainty for employees and management.

Early owner legacy planning can address these issues. If you are unsure where to start, CLA can help. 

Tax incentives

With demand for skills surpassing supply, proactive manufacturers are addressing workforce issues by investing in employee training, automation, and diverse talent pools. Many of these strategies could have incentives to support these investments.

How CLA can help manufacturers

Insights gained from Florida's manufacturing sector provide valuable lessons for businesses across the United States. Embracing digital transformation, enhancing cybersecurity, planning for succession, and investing in workforce development are critical steps toward sustained growth and competitiveness.

Reach out to CLA’s manufacturing team today to learn how you can benefit from these strategic practices and take your business to the next level.