Economic Development

[jrs2]

This is a duplicate of a thread I thought I had created ten years ago.  This may solve the issues presented in the CSP thread.

[dcluley98]

Uhh, I'm sure that's news to Charlotte.  Raliegh-Durham gets good businesses because of the "Research Triangle" not because it is the only Major City. Which leads us back to Downtown UCF being a catalyst to help grow downtown and high wage job market here, as several of us mentioned upthread. 

Thing is, the programs being offered at the new campus don't necessarily align with the tech sectors or STEM or business programs.  That is still out on the main campus. Downtown campus has the following:

The new college will include programs and their affiliated centers or institutes from the College of Health and Public Affairs, College of Education and Human Performance, and College of Arts and Humanities. These existing units are: 

• School of Public Administration, including nonprofit management, urban and regional planning, research administration, and public administration;
• Architecture;
• School of Teaching, Learning, and Leadership;
• Educational Sciences (currently a component of the Department of Educational and Human Sciences);
• Child, Family, and Community Sciences;
• Health Management and Informatics;
• Criminal Justice;
• Legal Studies; and
• the Public Affairs Doctoral Program.

Not a ton of "high wage" job creation in that list, but I guess it's a start. 

Edited March 7, 2018 by dcluley98

[spenser1058]

And it's a good place to review Orlando Business 101. For a couple of decades now, the Greater Orlando economy has been the equivalent of a three-legged stool. It's propped up by three major legs: Tourism, Tech and Growth (also known as construction.)

Tech has grown steadily (the Martin plant beat WDW by 14 years). The issue is that tourism has grown even faster.

A few years ago, the major theme parks, led by Disney, had reached a plateau of sorts. They had reached the status of "cash cows": they weren't exactly growing but were a reliable source of cash for the theme park companies to invest elsewhere (in Disney's case, ESPN, the acquisition of Pixar, international parks.)

A lot of local movers and shakers (and myself - I did a study on this for some candidates I was consulting for at the time) thought it was a good time to shift emphasis to the tech sector. Orlando  is a nationwide center for simulation and optics (simulation, btw, is the perfect marriage of tech, tourism and training both private and defense.)

That leads us to one of our true jewels in the crown: the Central Florida Research Park adjoining UCF. It's the largest research park in Florida, the fourth largest in the US and, just for our "Reality-based" folks, is #7 in the US in number of employees. A list of The Who's Who of corporations and defense firms in the Park is here:

https://en.m.wikipedia.org/wiki/Central_Florida_Research_Park

Interestingly, it hasn't been updated lately to include firms like Apple.

Everything went swimmingly and the future was absolutely rosy on the east side of town. It has gotten even better with the addition of Medical City and the explosion of tech as the private launch business gears up a mere 45 minutes away in Brevard (it's interesting to note that Spaceport Florida/KSC/CCAFS is just as close to CFRP as Silicon Valley is to San Francisco - just as the Bay Area is considered one region, so are we.)

But then Harry Potter happened. It's long been true in the theme park business that "if you build it, they will come." That lesson, forgotten in the late Eisner era, came roaring back with a vengeance. When Comcast bought Universal and installed former Disney exec Steve Burke in charge of their parks, a new Golden Era of Theme Parks began (not just here but also in Cali).

A Reality check: NO city in the history of economic development has turned down billions of dollars in new investment both direct and ancillary and thousands of new jobs, just because many of those jobs were unskilled and entry-level. To do so would also turn away all the good-paying construction jobs, management jobs (WDW alone has tens of thousands of salaried positions) AND all the governmental, legal and accounting/financial jobs that fill up those towers downtown as a side benefit from Mickey and Harry.

Part of the reason discussions of Orlando's economy goes in circles is because there's never been one quite like ours before. The sheer scope of our tourism industry is unprecedented. In the past, beach and resort areas like the Poconos or ski towns out west were of a kind, but they never had the same scale nor the number of management and professional jobs associated with them that we do. While Hard Rock was leaving town, we were gaining the HQ for the international amusement park body. We also have gotten firms like Birket Industries in Winter Garden, where professional engineers and others design and build infrastructure for theme parks worldwide.

A major cash cow for us is the convention business, where we have eclipsed New York, Chicago and just about every other city but Las Vegas.

In fact, Vegas is the only other economy that can really be compared to ours. We would do much better for our starting-wage folks if we had unions like they do, but whereas Vegas has long been the Big Deal in Nevada, we are well down the list of cities in Florida and power in Tallahassee (even though the tax dollars from tourism here totally eclipse othe regions of the state.) Don't forget tourism is not just our #1 industry, it's  the state's. All those tourists paying sales taxes, btw, are a major reason we can run a state this large without an income tax (Texas does also thanks to oil.)

It's also important to note that, while Vegas has a tourism economy like ours (not to mention gaming which is another source of cash flow), they don't have much of anything to compare with our tech success.

All of these are things to remember when comparing us to anyone else. It's why Orlando keeps moving up the list of fastest-growing cities and why Orange County can be in the Top 50 list for millionaires despite a big low-wage base.

Fun fact: we have one billionaire in the region: an heiress to the Publix fortune.

Today's rant is now complete. Anyone who read all that has my thanks and my sympathy!

 

Edited March 8, 2018 by spenser1058

[aent]

10 hours ago, I am Reality said:

I stand by everything I have said for the past few weeks. Guess I have to rehash the whole argument. Again. I have said EA is a great thing here locally and that we should be proud.  I wish we had many more like it.  As for my knowledge of the city, I was gone for many years and don't presume to know every company in town. I have said in the past  that Orlando has some good paying jobs. Remember the Huntsville/Omaha/OKC comment?.  I have also said that Orlando has a disproportionate number of low-wage tourism jobs.  I also said Orlando should have more high-wage jobs, given its size.

Need we really go around in circles?

Someone wrote me that no one thinks the Orlando economy is not dominated by low-wage tourism jobs.

Exhibit A

 

 

UCF's Florida Interactive Entertainment Academy (game design masters) is generally considered a top program in the nation (ranked #1 or 2 for the past several years). Full Sail is fairly successful as a design school for those outside of the major cities, and has impressive partnerships as well (such as WWE production)

[JFW657]

On 3/3/2018 at 3:09 PM, dcluley98 said:

You do realize that the image you picked to show of the Salesforce building is one that somebody photoshopped to look like an ejaculating penis, right?   Hahaha!

Well, I guess that is "interesting" to some people! LOLOL. 

I just noticed that!!! 

The two "orbs" at the base of it were Photoshopped on, too.

They even made an animated video clip:

Jokesters propose fountain on top of Salesforce Tower (link to article)w

[I am Reality]

9 hours ago, aent said:

UCF's Florida Interactive Entertainment Academy (game design masters) is generally considered a top program in the nation (ranked #1 or 2 for the past several years). Full Sail is fairly successful as a design school for those outside of the major cities, and has impressive partnerships as well (such as WWE production)

I am impressed with the local computer/gaming-design schools.

Arrow Sky Media, a computer design company, is moving its HQ from TN to the Creative Village.  It will bring 114 high-wage jobs.

I am glad that Orlando identified a strength and found a nice niche.

[I am Reality]

15 hours ago, spenser1058 said:

And it's a good place to review Orlando Business 101. For a couple of decades now, the Greater Orlando economy has been the equivalent of a three-legged stool. It's propped up by three major legs: Tourism, Tech and Growth (also known as construction.)

Tech has grown steadily (the Martin plant beat WDW by 14 years). The issue is that tourism has grown even faster.

A few years ago, the major theme parks, led by Disney, had reached a plateau of sorts. They had reached the status of "cash cows": they weren't exactly growing but were a reliable source of cash for the theme park companies to invest elsewhere (in Disney's case, ESPN, the acquisition of Pixar, international parks.)

A lot of local movers and shakers (and myself - I did a study on this for some candidates I was consulting for at the time) thought it was a good time to shift emphasis to the tech sector. Orlando  is a nationwide center for simulation and optics (simulation, btw, is the perfect marriage of tech, tourism and training both private and defense.)

That leads us to one of our true jewels in the crown: the Central Florida Research Park adjoining UCF. It's the largest research park in Florida, the fourth largest in the US and, just for our "Reality-based" folks, is #7 in the US in number of employees. A list of The Who's Who of corporations and defense firms in the Park is here:

https://en.m.wikipedia.org/wiki/Central_Florida_Research_Park

Interestingly, it hasn't been updated lately to include firms like Apple.

Everything went swimmingly and the future was absolutely rosy on the east side of town. It has gotten even better with the addition of Medical City and the explosion of tech as the private launch business gears up a mere 45 minutes away in Brevard (it's interesting to note that Spaceport Florida/KSC/CCAFS is just as close to CFRP as Silicon Valley is to San Francisco - just as the Bay Area is considered one region, so are we.)

But then Harry Potter happened. It's long been true in the theme park business that "if you build it, they will come." That lesson, forgotten in the late Eisner era, came roaring back with a vengeance. When Comcast bought Universal and installed former Disney exec Steve Burke in charge of their parks, a new Golden Era of Theme Parks began (not just here but also in Cali).

A Reality check: NO city in the history of economic development has turned down billions of dollars in new investment both direct and ancillary and thousands of new jobs, just because many of those jobs were unskilled and entry-level. To do so would also turn away all the good-paying construction jobs, management jobs (WDW alone has tens of thousands of salaried positions) AND all the governmental, legal and accounting/financial jobs that fill up those towers downtown as a side benefit from Mickey and Harry.

Part of the reason discussions of Orlando's economy goes in circles is because there's never been one quite like ours before. The sheer scope of our tourism industry is unprecedented. In the past, beach and resort areas like the Poconos or ski towns out west were of a kind, but they never had the same scale nor the number of management and professional jobs associated with them that we do. While Hard Rock was leaving town, we were gaining the HQ for the international amusement park body. We also have gotten firms like Birket Industries in Winter Garden, where professional engineers and others design and build infrastructure for theme parks worldwide.

A major cash cow for us is the convention business, where we have eclipsed New York, Chicago and just about every other city but Las Vegas.

In fact, Vegas is the only other economy that can really be compared to ours. We would do much better for our starting-wage folks if we had unions like they do, but whereas Vegas has long been the Big Deal in Nevada, we are well down the list of cities in Florida and power in Tallahassee (even though the tax dollars from tourism here totally eclipse othe regions of the state.) Don't forget tourism is not just our #1 industry, it's  the state's. All those tourists paying sales taxes, btw, are a major reason we can run a state this large without an income tax (Texas does also thanks to oil.)

It's also important to note that, while Vegas has a tourism economy like ours (not to mention gaming which is another source of cash flow), they don't have much of anything to compare with our tech success.

All of these are things to remember when comparing us to anyone else. It's why Orlando keeps moving up the list of fastest-growing cities and why Orange County can be in the Top 50 list for millionaires despite a big low-wage base.

Fun fact: we have one billionaire in the region: an heiress to the Publix fortune.

Today's rant is now complete. Anyone who read all that has my thanks and my sympathy!

 

It's hard to disagree with much of what you said. My father worked for years at the Research Park and I know it well. While it may be large in size, every city had its own version of something similar. And they are growing everywhere.  

A HUGE research park is located outside Las Vegas.  Blockchain company "Blockchains" bought 60k acres there for a huge HQ. Blockchain is the hottest trend in tech right now. It is the foundation of Bitcoin, Ethereum and the other cryptocurrencies. Cities are killing each other for Blockchain-related jobs.  The same research park also includes Tesla (which has 2800 acres there and built a state-of-the-art lithium-battery "gigafactory"), Google (which has 1200 acres there) and data-center company Switch (which built a huge executive center there on 2000 acres) .

A huge new reasearch park is being built in upstate NY, to be anchored by a solar company that would employ 1000 people. (That plan may fall apart due to lack of federal loan guarantees now).

A huge data-center is being announced outside of Atlanta at another research park.

 

[bqknight]

I'm surprised Lockheed hasn't been brought up more here. There are two GROWING campuses in Orlando that have extremely well paying jobs. 

What about Siemens? There's nearly 4,000 people employed by Siemens in the Orlando-Kissimmee DMA.

Edited March 8, 2018 by bqknight

[jrs2]

On 3/4/2018 at 12:19 PM, spenser1058 said:

 

The reason a corporate HQ matters is to have businesspeople with the interest to make changes in the area and the corporate resources to finance them. By that definition, Disney Parks was largely run from Florida and local honchos Dick Nunis, Al Weiss and Meg Crofton were very involved in community affairs (current WDW prez George Kalogridis, a Winter Haven native, has been less active, but Disney's presence is likely to change again with other leaders. Before the Lockheed merger with Martin, local execs like Norm Augustine played active roles in civic affairs. Since the merger, we haven't seen that and we'll wait to see if that changes.

 

Apparently, with Hard Rock, the newest president, since 2016, was based in Broward and his only interest was to move back down there.

[I am Reality]

4 hours ago, bqknight said:

I'm surprised Lockheed hasn't been brought up more here. There are two GROWING campuses in Orlando that have extremely well paying jobs. 

What about Siemens? There's nearly 4,000 people employed by Siemens in the Orlando-Kissimmee DMA.

I LOVE those Siemens jobs.  They are my favorites here locally. Not only are they great paying positions...but they are also involved in cutting-edge renewable-energy technology. We don't see the Siemens products here locally (FL has no wind-energy Industry), but they are really catching on elsewhere.

That industy will grow for years.  Great example of great local jobs. 

From my point-of-view, the Siemens' Jobs are more important here locally than Disney jobs. I know it sounds counter-intuitive. 

[jrs2]

What about Mitsubishi Power Systems up in Lake Mary?  What kind of jobs are those?  They're still here, right?

[I am Reality]

42 minutes ago, jrs2 said:

What about Mitsubishi Power Systems up in Lake Mary?  What kind of jobs are those?  They're still here, right?

Those are good jobs as well. Most of the local Mitshubishi jobs are in manufacturing, which is important in a very different way. There is little manufacturing in the area. The Lake Mary executive office is rather small from what I understand. The rest of the employees work at the plant.

Mitshubishi is a more traditional power generation company that is not heavily involved in renewables. There is absolutely nothing wrong with that. I personally prefer renewables.  

But you are right, those jobs (the HQ and the manufacturing ones) are super important. Manufacturing is rarely even discussed in the region.  I would assume (and certainly hope) those manufacturing jobs pay well - especially the skilled technician-type positions (even though they are likely not unionized)

Does anyone know about that?

[jrs2]

On 3/8/2018 at 8:57 AM, I am Reality said:

I am impressed with the local computer/gaming-design schools.

Arrow Sky Media, a computer design company, is moving its HQ from TN to the Creative Village.  It will bring 114 high-wage jobs.

I am glad that Orlando identified a strength and found a nice niche.

Does this mean that an office building is in the works in CV?

[I am Reality]

16 minutes ago, jrs2 said:

Does this mean that an office building is in the works in CV?

Arrow Sky will take 45-60k square feet in a new building. I am not sure if it will be a custom building or something already planned to be built. They'll be taking a decent-sized space though.

I though I remember reading UCF is moving its visual, media and digital arts programs to the Creative Village.  I may be wrong though.  Someone posted the UCF programs moving to CV, but it didn't include those programs. That would be a shame. It would be a great fit for the downtown scene and would encourage other companies like Arrow Sky (and maybe EA) to move in.

[dcluley98]

Well we are out of Amazon running. . . but are we gunning for Apple? 

https://www.bloomberg.com/graphics/2018-apple-new-campus/

 

 

[spenser1058]

Apple does have a small office in CFRP and there was talk a few weeks ago about using what we learned in the HQ2 process to go all in on this. I hope we make the most of it.

Edited March 11, 2018 by spenser1058

[I am Reality]

WalletHub released it list of the Happiest Cities in the U.S.

Overall, Orlando ranked #89 out of 182 cities, just below Reno and Jersey City.

On Income & Employment factors, it ranked  #76.

On Emotional & Physical Well-Being factors, it ranked #62.

On Community & Environmental factors, it ranked #154.

[I am Reality]

How cool is this project? 

San Diego is planning a 500 ft observation tower, office towers, retail and marina harborside.

 

[I am Reality]

New Orleans will be the new corporate HQ for DXC Technologies (a Fortune 500 company).  City officials have approved $6.5 million in economic incentives. The company will move from out-of-state.

DXC is world's largest IT services & solutions company. 

The HQ will lead to 2,000 new jobs directly. Another 1,600 indirect jobs will also be created. 

The DXC project is considered the second-largest economic development project in the U.S. (behind the Foxconn facility being built in Milwaukee).

 

 

[I am Reality]

Infosys announced a tech office in Hartford, CN yesterday.  It will employ 1,000 workers in artificial intelligence, digital applications and cloud-based technology.

Infosys will soon open its flagship "Technology & Innovation Hub" in Indianapolis. That tech hub will employ 2,000 high-wage workers.

Facebook is leasing space in 4 buildings in Seattle for an additional 2,900 workers. Seattle is already FB's second-largest engineering office (after its California HQ).

Facebook is also opening a large office in Denver. It is close to signing a lease downtown.

Magic Leap (an augmented-reality firm) is rapidly expanding and is hiring 175 workers in Miami.

 

[I am Reality]

This afternoon's OBJ reports Luminar Technologies will hire "at least 100" workers locally.   The company is located at the UCF Research Park.  Luminar produces sensors for autonomous vehicles. 

[I am Reality]

Orlando was just named as 1 of 23 possible host cities for the U.S. 2026 World Cup entry.

[Boomer136]

I am Reality, are you the sort that when out with your significant other points out other people's style and looks you would like him/her to adopt?

[I am Reality]

2 hours ago, Boomer136 said:

I am Reality, are you the sort that when out with your significant other points out other people's style and looks you would like him/her to adopt?

No, I am not.

Is there something disagreeable about reporting that Orlando is a World Cup finalist?

Or that there are dozens of high-wage jobs at the Research Park?

I explained before I would talk about economic development here and elsewhere.

If you don't like that, ignore it. But don't give me any cheap responses.

[Boomer136]

No, the body of your work makes me ask the question. I am glad you are learning about the community you have been critiquing.   I see you continually asking why Orlando doesn't have something or the other, when that something or other have obvious reasons why Orlando doesn't have them.  Economic Development.   Other things Orlando doesn't have much: Steel industry, coal mining, Steam Engine Yards. (I'm still not over loosing the train downtown.)

I'd rather have, right now, a Wozniak garage or three than a couple Toys 'R Us or Sears corporate headquarters.  And I think we have them.   Lake X has been resurrected, btw. Lots of specialized, even one of a kind businesses. That's what excites me. What is becoming, not what's been.