Orlando Insight is a publication of the Orlando Economic Forum, an initiative of the Orlando Economic Development
Commission (EDC). Comprised of local industry leaders, the Forum meets quarterly to discuss both current economic
conditions and issues of regional significance in the four-county Orlando Metropolitan Statistical Area (MSA).
Orlando Insight reflects those discussions and draws from the most recent data available at time of preparation.
Orlando’s Next Act
In early July 2016, the International Consortium for
Advanced Manufacturing Research (ICAMR) in Osceola
County announced a new international partner in its effort
to position the Orlando region as the global home of smart
sensor innovation.
Belgium-based imec, the world-leading nanoelectronics
research center employing approximately 3,000 worldwide,
will work in collaboration with ICAMR on an R&D center
within the Florida Advanced Manufacturing Research
Center (FAMRC). lmec’s early focus will be on photonics
and high-speed electronics Integrated Circuit (IC) design, in
what will be their first U.S. location.
Florida Advanced Manufacturing Research Center (FAMRC), July 2016
The announcement brought instant credibility to Osceola County’s efforts to become an early leader in the estimated
$32.5 trillion per year sensor-driven economy - and signaled a huge milestone in the Orlando region’s efforts to forever
change its economic trajectory.
Why Smart Sensors?
Wearable technology. Smart phone apps. Self-driving cars.
All familiar inventions with sensor technology embedded deep within them – but all just scratching the surface of what is
possible with a truly disruptive technology that promises to impact every current industry and create industries we do not
yet know. By 2020, it is estimated over 50 billion devices will be connected by sensors.
ICAMR, the world’s first industry-led consortium for the manufacturing of smart sensors, is leading the charge for
this next generation of sensor-driven products. In early 2017, the consortium will complete construction of FAMRC, a
100,000-square foot state-of-the-art R&D center that will allow industry partners access to advanced lab/fab and universal
technology platforms with the scale needed for cost-effective manufacturing. Early partners include Aurora Semiconductor,
Harris Corporation, and Argonne National Laboratory. Adjacent to FAMRC will be a 135-acre research park.
–– Chester Kennedy
CEO
International Consortium
for Advanced Manufacturing
Research (ICAMR)
“The combination of capabilities that we have pulled together - the
flexible advanced manufacturing infrastructure, the design center, and
the sustainable easy access business model - truly makes this a oneof-a-kind world-class resource.“
301 E. Pine Street, Suite 900 // Orlando, FL 32801 // P/ 407.422.7159 // orlandoedc.com
Third Quarter 2016 | 2
The economic potential of growing Orlando’s advanced
manufacturing economy is limitless. Advanced
manufacturing represents the nation’s highest value-added
economic activity, with a history of long supply chains and
wage premiums at every education level delivering broadbased prosperity. It embeds a culture of innovation and
skilled workforce that serve communities for decades to
come.
It is the path Austin followed in the 1990s with SEMATECH,
the semiconductor consortium later credited as the catalyst
for the region’s emergence as one of the nation’s leading
high-tech economies.
ORLANDO INSIGHT
“Developing a robust high-tech research campus means high
wage jobs for our citizens, and a diversified tax base which
already includes successful industries such as tourism and
agriculture.”
–– Don Fisher
County Manager
Osceola County Board of
County Commissioners
Why Now?
For all of its recent success, Orlando is faced with the
same challenge as every other domestic economy: how to
break from a consumption-driven growth model and the low
wages and cyclical volatility that accompany it.
FAMRC is Orlando’s first serious challenger to that status
quo and represents an exciting new approach to economic
development. It is a strategic investment for long-term
prosperity, not near-term job growth. It is a proactive
response to unparalleled technological change and
opportunity. It is a case study in regionalism and visionary
partnership.
“The partnership that has given rise to ICAMR is reminiscent
of that which gave birth to the Medical City in Lake Nona. The
potential for creating a new cluster of high tech/high wage
jobs is a huge step forward in the further diversification of the
Orlando economy.”
–– Sean Snaith, Ph.D.
Director
Institute for Economic
Competitiveness
University of Central Florida
It takes intentionality to put a region on a path to longterm economic growth, and it takes bold moves to stake
a claim as a great region of the future. In Orlando, all that
begins with the International Consortium for Advanced
Manufacturing Research in Osceola County.
ORLANDO - home to the world’s first industry-led consortium for manufacturing of smart sensors.
ORLANDO INSIGHT
Third Quarter 2016 | 3
Around the Region
Lake County: Work is ramping up on the
Wekiva Parkway project, which will provide
an ideal connection from the Wolf Branch
Innovation District to Orange County and
the SR 429 beltway around Orlando via
the new SR 453 toll facility. The Florida
Department of Transportation (FDOT) will
begin construction in 2017 of SR 429 in
eastern Lake County, thus completing the
Orlando Beltway in Lake County in 2019.
FDOT will complete the final section of the
beltway in Seminole County in 2021.
Orange County: ADP, LLC, a global leader in
business outsourcing services, announced the
opening of a new office in Maitland, creating
up to 1,600 jobs within the next five years
and undertaking a capital investment of more
than $28 million. ADP cited Orlando’s growing
workforce and sustainable talent pipeline as
key drivers for the region’s selection. It is one
of the region’s largest economic development
announcements in recent history.
Osceola County: In July, imec, the world’s leading
nanoelectronics research center, announced the
creation of imec Florida, a new entity focusing on
photonics and high-speed electronics Integrated
Circuit (IC) design in Osceola County. The new
imec Design Center will work in close collaboration
with the International Consortium for Advanced
Manufacturing Research (ICAMR).
Seminole County: In July, Florida Blue announced the
addition of 280 jobs and a new 30,000-square-foot office
in Lake Mary. The expansion adds to the momentum and
growth of Seminole County’s business services cluster.
City of Orlando:
In August, Nashvillebased Asurion
announced it will add
a customer and tech
support center in
Orlando. The center will
create 600 new jobs
and involve a capital
investment of $15
million. Asurion provides
device protection and
support services for a
variety of technology
devices.
Third Quarter 2016 | 4
ORLANDO INSIGHT
Labor Market
% Change in Payroll Employment, MSAs > 1 Million Jobs
Unemployment Rate vs. Initial Claims, Orlando MSA
June 2015 – June 2016, Not Seasonally Adjusted
Through June 2016
Unemployment Rate vs. Initial Claims, Orlando MSA
Through June 2016
15%
15,000
Unemployment Rate (left axis)
Rank
Initial Claims (right axis, 12-MMA)
12%
12,000
9%
9,000
6%
6,000
3%
3,000
0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0
Source: U.S. Department of Labor, Bureau of Labor Statistics
•
MSA
ORLANDO, FL
4.50%
2
San Jose, CA
3.94%
3
Phoenix, AZ
3.60%
4
Seattle, WA
3.53%
5
Tampa, FL
3.50%
6
Dallas, TX
3.35%
7
Riverside, CA
3.33%
8
Denver, CO
3.20%
9
Portland, OR
3.04%
San Francisco, CA
2.99%
10
Unemployment closed the second quarter of 2016 at
4.5 percent, down seven-tenths of a percentage point
from twelve months earlier. Monthly new claims for
unemployment benefits have fallen to their lowest level in
recent history.
% Change
1
Source: U.S. Department of Labor, Bureau of Labor Statistics
•
Monthly STEM Online Job Ads, Workforce Region 12
Through June 2016, 3-MMA
Orlando employers added an additional 4,300 jobs
in June, bringing private year-over-year employment
gains to 49,000 jobs. Total payroll employment between
June 2015 and June 2016 subsequently expanded by
4.5 percent, extending Orlando’s tenure as the fastestgrowing of the country’s 30 largest employment centers.
Orlando first assumed that position in October 2015.
Jobs Added by Wage Tier, Orlando MSA
12,000
Year-Over-Year, 3-MMA
11,000
60,000
10,000
50,000
Lower than Regional Average
9,000
Higher than Regional Average
40,000
8,000
30,000
7,000
6,000
5,000
20,000
2011
2012
2013
2014
2015
2016
10,000
0
2011
Source: The Conference Board, Help Wanted OnLine (HWOL)
•
Demand for technical talent continues to intensify. At
midyear, monthly online postings for STEM (science,
technology, engineering and math) occupations in the
Orlando region are close to twice the level seen in 2011.
STEM postings accounted for 28 percent of all online
ads in June 2016, up from 20 percent five years earlier.
Labor Force
1,260,129
Unemployment Rate
4.5%
2012
2013
2014
2015
2016
Source: U.S. Department of Labor, Bureau of Labor Statistics
•
A common concern raised about Orlando’s recent job
growth has been its perceived reliance on lower-wage
industries. However, an analysis of all jobs added in
Orlando post-recession indicate an increasing share of
jobs now being added at higher wage levels. More than
half of all net new jobs at midyear paid higher than the
regional average, in contrast to earlier in the recovery
when gains were almost exclusively driven by jobs in
lower-wage industries.
Initial UI Claims
3,719
New Job Postings
31,105
Total Payroll
Employment
1,194,000
Arrows indicate change from previous year. Data for June 2016 unless otherwise specified.
ORLANDO INSIGHT
Third Quarter 2016 | 5
Commercial Real Estate
Significant Lease Transactions, Orlando Office Market
2nd Quarter 2016
Tenant
Submarket
SF
New
Maitland
256,892
Florida Blue
Expansion
Lake Mary
30,502
400,000
Booking.com
New
Tourist Corridor
25,014
0
Aspect Software
New
Central Business District 23,711
-400,000
Source: Cushman & Wakefield
•
4 - Quarter Trailing Average
1,200,000
Type
ADP
Direct Net Absorption, Orlando Industrial Market
SF
800,000
2010
2011
2012
2013
2014
2015
2016
Source: Cushman & Wakefield
Pressure continues to mount in the office market, where
ADP took one of the last remaining large blocks of
space on the market. Vacancy in Class A space has
fallen to just 8.7 percent from a recessionary peak of
17.0 percent in the fourth quarter of 2010.
•
Significant leasing volume is occurring in the industrial
market, but is not fully translating into comparable gains
in absorption. Much of the 2.8 million square feet of space
leased through mid-year was a function of pre-leasing of
projects currently under construction. Just 217,164 square
feet of direct net absorption was recorded in the second
quarter.
Residential Real Estate
Monthly Home Sales, Orlando MSA
Median Sales Price vs. Months of Inventory, Orlando MSA
Through June 2016, 12-MMA
Through June 2016
40
$300,000
Median Sales Price (left axis, 3-MMA)
4,000
Inventory (right axis, 3-MMA)
30
3,000
$200,000
20
2,000
$100,000
10
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0
Source: Orlando Regional Realtor Association
•
Office Asking
Rate
$20.11
(Q2 2016)
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Orlando Regional Realtor Association
Another double-digit decline in available inventory in
June saw Orlando’s median home price rise 15 percent
year-over-year to $207,000, its highest level since July
2008. Inventory has now seen 12 consecutive months
of year-over-year declines.
Office Vacancy
12.7%
(Q2 2016)
1,000
Industrial
Vacancy
7.5%
(Q2 2016)
•
Despite the limited choice of available homes, traditional
summertime demand helped generate a five percent
increase in sales in June compared to May. Monthly sales
volume remains above the levels seen even in 2005 and
2006.
Industrial
Asking Rate
$5.93
(Q2 2016)
Existing
Home Sales
3,513
Median Home
Price
$207,000
Arrows indicate change from previous year. Data for June 2016 unless otherwise specified.
ORLANDO INSIGHT
Third Quarter 2016 | 6
Consumer Spending / Visitor Industry
Index of Retail Activity, Orlando MSA
Through May 2016
Dec 1999 = 100
200
•
Softness in the tourism industry is
beginning to show up in regional
consumer spending. Total taxable
sales in May 2016 were down
three percent from May 2015
following a 16 percent decrease
in tourism expenditures. Tourism
accounts for more than 30
percent of all taxable sales in the
region.
180
160
140
120
100
2010
2011
2012
2013
2014
2015
2016
Source: Florida Department of Revenue
Total Passengers – Orlando International Airport
Through June 2016, Rolling 12 Months
Millions
45
•
40
35
30
On a rolling 12-month basis,
Orlando International Airport
broke 40 million passengers
for the first time in April,
and then repeated the
accomplishment in both May
and June. An increase in
seating capacity from more
flights as well as incoming
attendees for summer
convention season helped
boost traffic.
25
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Greater Orlando Aviation Authority
Orlando
International
Passengers
3,508,532
Orlando Sanford
International
Passengers
276,484
Hotel
Occupancy
75.5%
Average
Daily Rate
$108.47
Taxable Sales
$4.7 billion
(May 2016)
Index of Retail
Activity
179.6
(May 2016)
Arrows indicate change from previous year. Data for June 2016 unless otherwise specified.
ORLANDO INSIGHT
Third Quarter 2016 | 7
Orlando Spider Chart
The Orlando Spider Chart is designed to allow monitoring of the Orlando economy by comparing current conditions to
those over a rolling 10-year period. For each indicator shown, the center of the chart represents its worst same-quarter
level over the last 10 years and the outside line represents its best. An indicator’s proximity to the outside measures its
current health relative to 10-year lows and highs.
There are four indicators that move inversely to economic health (unemployment, initial unemployment insurance claims,
office vacancy rate, and industrial vacancy rate). For all four, the indicator is inverted so that a decline is represented by
outward movements on the chart.
2nd Quarter 2016
2nd Quarter 2015
10-Year Low
10-Year High
Payroll Employment
Airport Passengers
Unemployment
Hotel Occupancy
Initial Claims
Median Home Sales Price
Office Vacancy
Home Sales
Industrial Vacancy
Commentary: Entering the second half of 2016, almost all major indicators in the Orlando economy are on an upward
trajectory.
Four indicators sit at 10-year highs: total payroll employment is now 207,000 jobs above its 2010 low, new claims for
unemployment benefits have dropped to just a quarter of their 2009 peak, home sales have more than doubled from 2008,
and total quarterly passengers through Orlando International Airport have increased by 20 percent since 2009.
Two indicators remain far from their 10-year peaks: median home sales price and office vacancy. However, both are
showing measurable progress at mid-year. Median home sales price has recovered approximately two-thirds of its 2007
peak value, and office vacancy has fallen more than three percentage points in the last year alone.
Just one indicator has declined over the last year. Amid global headwinds, hotel occupancy has softened slightly from its
10-year high in 2015 but remains elevated in historical terms.
Orlando Economic Forum
CHAIR
Sean Snaith, Ph.D.
University of Central Florida
MEMBERS
Thomas Baptiste, Lt. Gen., USAF (Ret.)
Bill Martin
National Center for Simulation
Greater Osceola Partnership for Economic Prosperity
Chair, Regional Economic Developers (RED) Team
Cecelia Bonifay
Bill Moss
Akerman, LLP
Chair, EDC Economic Strategy Committee
Phillip Brown
CBRE
Co-Chair, EDC Business Development Committee
Pamela Nabors
Greater Orlando Aviation Authority
CareerSource Central Florida
Orlando Evora
Bob Provitola
Greenberg Traurig, LLP
Mitsubishi Hitachi Power Systems Americas, Inc.
Chair, Manufacturers Association of Central Florida
Scott Faris
AeroSonix, Inc.
Jon Rambeau
David Fuller
Lockheed Martin Training and Logistics Solutions
SunTrust Foundation
Chair, Orlando EDC
Jerry Ross
National Entrepreneur Center
Larry Henrichs
Thomas K. Sittema
Visit Orlando
CNL Financial Group
Past Chair, Orlando EDC
Daryl Holt
Electronic Arts (EA Studios)
Jacob Stuart
Steven Jamieson
Central Florida Partnership
The Mall at Millenia
Rasesh Thakkar
Tony Jenkins
Tavistock Group
Florida Blue
Rick Wassel
Chester Kennedy
International Consortium for Advanced Manufacturing
(ICAMR)
Kimberly Maki
IQ Orlando
Vickie White
Florida Hospital
Holly Wiedman
Bright House Networks
Orlando EDC
ABOUT THE EDC
The Orlando Economic Development Commission (EDC) is a not-for-profit, public-private partnership on a
mission to aggressively attract, retain and grow jobs for the Orlando region while advocating, championing,
and educating in support of efforts to improve its national and global competitive position. The EDC serves
Orange, Seminole, Lake and Osceola counties and the City of Orlando – a region of about 4,000 square miles
and 2.3 million people. Since its start in 1977, the EDC, with the support of its community partners, has assisted
thousands of companies locate and expand in the Orlando/Central Florida region.
For more information, contact:
NEIL HAMILTON
Director, Business Intelligence
[email protected]
ELIZABETH GODWIN
Associate Director, Business Intelligence
[email protected]
301 E. Pine Street, Suite 900 // Orlando, FL 32801 // P/ 407.422.7159 // orlandoedc.com