Well known for its tourist attractions, golf courses, and a destination of choice for the silver economy, Florida is also one of the top locations in the business world. In 2022, Citadel, one of the world’s most successful hedge funds, announced it would relocate to Miami after being headquartered in Chicago for more than 30 years.
“I am excited to have recently moved to Miami with my family and look forward to rapidly expanding Citadel in a city so rich in diversity and abounding with energy,” Ken Griffin, CEO of Citadel wrote to his employees. “Miami is a vibrant, growing metropolis that embodies the American Dream.”
Monta, a Copenhagen-based tech firm that creates operating software applications for electric vehicle (EV) chargers, has opened a new North America headquarters in Miami’s Wynwood Arts District, and Apple has said it has leased a significant amount of office space at The Plaza Coral Gables in Miami-Dade and set to open a multi-million-dollar retail site at the Miami WorldCenter in 2025. These are just some of the latest in US corporate relocations and expansions to the Sunshine State over the past few years.
A wave of investment
Since the pandemic a wave of US hedge funds, private equity firms, and investment banks have set up shop across the state, tapping into Florida’s pro-business policies, warm weather and more casual pace. Data from the US Bureau of Labor Statistics show that in 2023, net firm migration, at 503 firms, was highest in Florida, as 1,000 firms moved into the state and 497 left the state.
International business is keen on Florida
GlobalData’s FDI Projects Database shows that Florida has consistently ranked fourth for foreign direct investment (FDI) in the US between 2019 and 2023, after New York, California and Texas and in 2023, overtook Texas for business and professional services FDI, with 26 greenfield projects announced, beating 17 for Texas. Most of Florida’s FDI over the four years between 2020 and 2023 in terms of capital expenditure came from the renewable energy and electronics sectors, according to GlobalData, which combined accounted for more than $2 billion of investment in Florida between 2020 and 2023.
In another sign of robust economic activity, Florida’s non-farm employment for the 12 months to March 2024 grew by 2.2%, outpacing the US as a whole. Over that timeframe, Florida ranked 6th in the nation for job growth. An estimated 1,000 new residents arrive in Florida daily.
Global connectivity
Florida’s logistics and transport infrastructure also serve as a compelling reason for businesses to expand in the state. Florida serves as the gateway to the Latin American and the Caribbean economies from the US, and its global connections are enhanced by well-developed transport hubs, including 15 deepwater seaports. Connectivity is boosted by Florida’s 19 major commercial airports, including Miami International, which consistently ranks in the top five airports in the US for international freight. Transport across the state (and into the US) is equally easy thanks to Florida’s 2,756 miles of rail track and 12,136 miles of roadway. Key highways such as I-75, I-95 and I-10 mean much of the Southeastern US is accessible from Florida by road in less than a day, and connectivity within the state and beyond is expected to grow.
Florida’s foreign trade zone
Trade in Florida is further facilitated by its status as the US’s second largest foreign trade zone (FTZ) in the US. No duties need to be paid on products produced or assembled in Florida until they leave the FTZ, reducing operational costs and overheads. Currently, more than 2 million (1 in 5) jobs in Florida are dependent on trade, with more than 266,000 employed by majority-owned US affiliates of foreign companies. Such a fertile business environment and a supportive logistics network makes Florida ripe for further foreign direct investment (FDI). According to GlobalData, between 2019 and 2024 more than 620 companies announced or opened an operation in Florida, creating more than 47,000 jobs with a total project value of over $22 billion.
Companies also benefit from a convenient time zone for establishing meetings with clients. With more business being conducted online via video call, it is more important than ever that employees can schedule meetings across a variety of time zones. Florida is three hours ahead of California, aligning its working hours more closely with those of Europe and regions further afield. By basing themselves in the state, businesses can more easily communicate with key stakeholders across continents without wasting money on expensive trips abroad.
Florida is the third most populus state in the US, and it is forecast to add 3.5 million more residents by 2030. The state has a robust education system, with 28 colleges, 12 public universities, six major medical schools, and other higher education institutions equipping students with employable skills for their careers. The state has been ranked number one for higher education by US News for eight consecutive years.
A growing population of skilled employees
Additionally, the high quality of living in the state is already attracting talented people from across the US and beyond. Residents of the Sunshine State benefit from warm weather year-round, as well as living in close proximity to the beach and nature, with most rural areas no more than 90 minutes from an urban settlement. According to US News, five Floridan cities now rank among the top 25 best places to live in the country.
With a growing population of talented workers to tap into, an easygoing economic environment, and clear directives for progress, Florida has become one of the best place to do business in the US, ranking the number two business state by Chief Executive magazine last year. The scope for opportunity remains limitless, and executives and foreign investors should be taking note.
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