Miami and Orlando continue dragging Florida out of recession, but only Orlando is performing above its economic weight class.
Though Orlando represents just 14 percent of Florida鈥檚 7.2 million-person workforce, it accounts for 46 percent of the Sunshine State鈥檚 44,000 new jobs in the latest monthly report. South Florida, home to 30 percent of the state鈥檚 workers, accounts for 44 percent of the new jobs.
Orlando鈥檚 muscular role in the recovery makes sense, given the tourism rebound that hit Florida well before other industries showed signs of life. But Orlando鈥檚 vitality also highlights Central Florida鈥檚 lead over South Florida when it comes economic growth, and why analysts increasingly look north for the Sunshine State鈥檚 next boom.
“Orlando鈥檚 position has risen compared to its peers,” Wells Fargo economist Mark Vitner told reporters Thursday during his annual review of Florida鈥檚 economic outlook. 鈥淚t鈥檚 certainly coming out ahead of the other large metropolitan areas in this recession.鈥欌��
Vibrant medical and technology sectors give Orlando bragging rights as economic development agencies across Florida try to supplement low-wage hospitality jobs with industries generating well-paying careers.
A new 鈥淢edical City鈥� park tied to the 海角直播鈥檚 medical school is expected to jumpstart an already bustling $3 billion industry tied to bio research, according to the Metro Orlando Economic Development Commission.
Orlando鈥檚 strong video-game industry also supports a lucrative niche of combat simulation, pumping tens of millions of dollars worth of Pentagon contracts into Central Florida.
鈥淭he high-tech workforce in Orlando is growing,鈥欌�� said Chris Lafakis, who follows Florida鈥檚 economy for Moody鈥檚.
South Florida boasts its own bio-medical hopes, most notably in the new Scripps research center in Palm Beach County, but also a 海角直播 of Miami medical park under construction in the health district centered around Jackson Memorial.
And Orlando lacks the boost from foreign trade enjoyed by South Florida, where commerce tied to booming Latin American economies helped shield Miami-Dade from an even bigger downturn during the recession.
In the last 12 months, South Florida added 1,100 financial jobs compared to Orlando鈥檚 loss of 1,500, hints of a broader recovery, said Jaap Donath, vice president of research for the Beacon Council, Miami-Dade鈥檚 economic development agency.
鈥淐ompanies are hiring,鈥欌�� Donath said. 鈥淭hey鈥檙e hiring across the board.鈥欌��
For all the talk of Central Florida鈥檚 diversifying its economy, theme parks continue to dominate. Eighty percent of the Orlando area鈥檚 new jobs in March came from the leisure and hospitality sector, compared to 41 percent in South Florida. (Healthcare was South Florida鈥檚 top growing industry, with 8,700 added positions.) A new Harry Potter park at the Universal Studios theme park opened last summer, boosting tourism and prompting more marketing by Disney and other rivals.
Part of Orlando鈥檚 comeback story stems from its David status compared to the Goliath of Miami. Along with having less than half the workers of the South Florida metropolitan area, the Greater Orlando鈥檚 $100 billion economy also is about 40 percent the size of South Florida鈥檚 $253 billion economy, according to the federal Bureau of Economic Analysis. The smaller the economy and the smaller the workforce, the easier it is to show big gains.
Between 2001 and 2009, Orlando鈥檚 economy grew 55 percent compared to South Florida鈥檚 39 percent gain, according to the BEA. While no 2010 data is available yet, forecasters expect the trend to continue. By 2014, a UCF forecast has Orlando鈥檚 economy up 31 percent compared to 16 percent growth for South Florida.
鈥淥rlando is the most dynamic, and the strongest, economy in Florida,鈥欌�� said William Fruth, president of Policom, a financial research firm in Palm City, near Stuart. Policom ranks Orlando the 27th strongest metropolitan economy in the country, compared to No. 53 for South Florida, an area that includes Broward, Miami-Dade and Palm Beach counties.
Tourism will continue fueling both economies, but real estate factors favor Orlando鈥檚 growth. Situated in the center of the state, it faces none of the natural development boundaries squeezing South Florida.
South Florida鈥檚 coastal boundary also makes housing more expensive, in part thanks to the high cost of hurricane insurance and in part thanks to pure demand for vacation homes near the ocean. At the end of 2010, the median price for a Miami-Dade home ($191,000) was 45 percent higher than the median Orlando price ($131,000.)
鈥淭he Everglades are crimping you,鈥欌�� said economist Sean Snaith, who compiles the UCF forecasts. 鈥淵ou鈥檝e got nowhere to go.鈥欌��
Source: Miami Herald, Orlando pulling Florida out of recession, Florida鈥檚 economic slide reversed thanks to Miami and Orlando, though Central Florida is posting a stronger recovery, by Douglas Hanks,聽DHANKS@MIAMIHERALD.COM