Beach, breeze, sea, shopping centers, amusement parks and a lot of rumba. Or at least that’s the image most have of the State of Florida, the Sunshine State. In reality, it is much more than a tourist place: this sector of the economy is barely twenty percent (20%) of the total GDP of the state. The most important sectors are real estate, government, health and social services, finance, logistics and exports, and tourism.
The geographical proximity of Latin America to Florida makes it the gateway for Latin products to the USA, as well as a good part of American exports leave through this State. According to 2020 figures from the US Department of Commerce, Florida’s exports to the Latin American region exceed 15 billion dollars, with the main commercial allies being Brazil, Mexico, Colombia, Chile, the Dominican Republic, Paraguay and Peru.
The main products exported were computers, transport equipment, chemicals, machinery, manufactures, primary metals and food according to data provided by, again, the US Department of Commerce. In fact, it ranks eighth in exports from the American Union.
The situation is similar when examining imports. The main products demanded are: transport equipment, computers, machinery, chemicals, food, electrical components, manufactures, petroleum and its derivatives, primary metals and beverages and tobacco. What changes is who you buy from. In first place, there is China followed by Mexico, Canada, Germany, Brazil, France, Vietnam, United Kingdom, Chile and Colombia.
A lot has happened since the 2008 housing crisis. While it is true that the real estate industry and its derivatives continues to be the main line of the economy, it is undeniable the lessons learned since the recession, including diversifying and, with it, the increasingly important weight of logistics services, the financial sector, and the technology sector including health sciences, as well as high-tech manufacturing.
Florida has an ecosystem with the infrastructure that strengthens the logistics sector and necessary to support the growth of the State:
1. Aviation: The state has twenty-six airports of which seven are international, contributes more than 43,000 jobs, 40% more than a decade ago, producing more than 175,000 million dollars.
2. Bridges: It currently has 12,518 bridges. The condition of the bridges is much better than the rest of the country (the state of the American infrastructure is no secret to anyone), only 3% are in poor condition. The investment focuses on maintenance and exploring new technologies.
3. State of the coast: tourism depends on the state of the beaches, which also protect the state from damage in case of natural disasters. It is one of the lines where more is invested.
4. Drinking water: it is above the national level and an investment of twenty-two billion is expected in the coming years. It highlights the fact that it is the national leader in reuse and sanitation of the liquid.
5. Energy: Florida is the national leader in implementing clean energy. As well as putting the entire cable system below ground to prevent further damage during hurricane season.
6. Levees: The state has over ninety levees with 1,053 miles built. Due to its age, it is one of the critical areas for maintenance.
7. Ports: The fifteen ports of the state generate around 900,000 direct jobs and contribute 117 billion to the economy. With the expansion of the Panama Canal, investment has focused on adapting to new freighters and large cruise ships.
8. Roads: The road maintenance programme is a model for the whole union to follow. There are studies on the evolution of transportation, resilient constructions and important advances are expected such as the train that connects Orlando with Miami.
9. Solid waste: it is one of the greenest states in the USA.
10. Public transport: integrates bus, paratransit, train and ferry services for 227.4 million passengers per year. It is one of the most important investments that will be made in the next twenty years with the aim of integrating all the services of the state with environmental awareness and state-of-the-art technology.
Clearly, the importance of the strength of the logistics sector in Florida cannot be underestimated. In 2016 the state was home to a fifth of the exporting companies of the United States, about 60 thousand. This figure has been increasing over the years. The economic strength of Florida is evident, making it the ideal place to invest and diversify your wealth.
In PFS Realty Group given our real estate activity we are focused on advising those individuals and families who are interested in making real estate investments in Miami and South Florida, we have been working for more than twenty (20) years and for this, twenty (20) years that give us a specialty in what we do, if you want to explore real estate investment opportunities, We can schedule a meeting, face-to-face or virtual, to expand this information. Write to us at info@pfsrealty.kinsta.cloud and also visit our www.pfsblog.kinsta.cloud website to learn more about us.
