Florida gets slice of overseas pie

Susan Strother Clarke
BUSINESS COMMENTARY

December 23, 2005

You hear a lot of talk about outsourcing and offshoring -- you know, when U.S. companies open operations in or move them to places like India and China.

But the flip side? That would be insourcing -- when international companies operate plants in this country.

And on that score, Florida ranks fifth in the nation when you count the employees of foreign companies.

The Guv and Enterprise Florida are crowing about the latest report, which found that 248,900 folks in the state get their paychecks signed an ocean or two away.

It's true that the report gives some idea of the strength of the global economy here. The number of jobs at foreign companies increased by nearly one-third since 2000, according to the Organization for International Investment, the Washington outfit that conducted the research.

In Orlando, the stats include thousands of employees at outfits like Reed Elsevier, the Dutch firm that owns Harcourt publishing; and Siemens, the German conglomerate.

Still, the study is just a snapshot. Many of the jobs in Florida and throughout the country reflect positions that were acquired when a U.S. plant was purchased. That doesn't juice up the economy anywhere near as much as a brand-new job would.

Nationally, 5.3 million folks work at foreign firms, earning an average of about $60,000 a year, the report found. California, New York, Texas and Illinois were ahead of Florida in the top five.

BOWLING FOR BUSINESS. Last year, I gave kudos where they were due -- to the Metro Orlando Economic Development Commission, which, with partners, put together a clever ad using comedian Carrot Top to promote Orlando in the Capital One Bowl.

This year, the EDC has taken a different approach -- but it's still a nice job. The new one-minute spot drops Top in favor of a more high-tech feel. In fact, it looks and sounds a lot like a video game as it describes business opportunities in Orlando. Look for it during half time.

You have to remember that before last year, these spots were a snore-fest -- pretty pictures, nice voiceover but, for the most part, nothing that really grabbed you.

The goal is to burnish Orlando's image in front of a national audience during the Jan. 2 game.

You never know who'll be watching the Auburn-Wisconsin matchup -- maybe some tech genius, like the next Bill Gates, who's looking for a cool town to move to.

This year's spot was produced by Bob Allen's Ideas. Helping the EDC foot the $100,000 bill for production and airtime were Orange County, the city, the Orlando/Orange County Convention & Visitors Bureau and the Florida High Tech Corridor Council.

BOTTOM LINE. Was it something we said? The Florida Venture Capital Conference, which for the past three years has been held in Orlando, will be in Ponte Vedra Beach next month. Organizer Robin Kovaleski said the group eventually will come back to Central Florida, but the event needed to move around to accommodate folks in other parts of the state. It's scheduled Jan. 31-Feb. 1. Go to floridaventureforum.org. . . . The Games Synergy Summit planned here Jan. 17-18 has been postponed -- probably until late summer or early fall, organizers tell me. The event, in its second year, brings together people from the simulation and entertainment industries. Go to synergysummit.com.

Jacksonville Business Journal

December 20, 2005

Florida fifth in 'insourcing' jobs

With nearly a quarter of a million Floridians working for U.S. subsidiaries of international companies, Florida ranks fifth in the nation in the total number of "insourcing" jobs. The figures are from a study of U.S. Commerce Department statistics done by the Organization for International Investment.

Gov. Jeb Bush endorsed the national report Tuesday that shows 248,900 Floridians working for U.S. subsidiaries of companies based abroad.

"The increase of foreign employment investment in Florida, as well as foreign direct investment, signifies the vital role that the state plays in the world market," Bush said.

According to OFII, insourcing jobs in Florida grew by 58,800 over five years, an increase of 31 percent. Of those foreign investment jobs in Florida, 14 percent, or a total of 35,600 employees, are in the high-wage manufacturing sector.

The combination of international trade and foreign direct investment account for about a fifth of Florida's economy and sustain about one in eight jobs in the state. About $81 billion of merchandise goes through the state's seaports and airports each year. Florida also is a hub for foreign direct investment, with total holdings by foreign companies in the state valued at $34.2 billion in 2003.

Tampa Business Journal

Florida shines in foreign employment investment

Florida ranks fifth nationally in total number of "insourcing" jobs, a study based on U.S. Department of Commerce statistics shows. U.S. subsidiaries of companies headquartered abroad employ 248,900 Floridians.

The study, conducted by the Organization for International Investment (OFII), shows that insourcing jobs grew by 58,000 over five years, an increase of 31 percent. Of those foreign investment jobs in Florida, 14 percent, or a total of 35,600 employees, are in the high-wage manufacturing sector, a release said.

"I am pleased to recognize the strength of Florida's trade and commerce communities," said Gov. Jeb Bush. "As the gateway to the Americas, Florida remains a leader in the international trade and export arena and the number one trading partner for most nations throughout the Americas. The increase of foreign employment investment in Florida, as well as foreign direct investment, signifies the vital role that the state plays in the world market."

Companies that do insourcing in Florida include Alcon Inc. (NYSE: ACL), Nestle Waters North America, Reed Elsevier (NYSE: RUK), Siemens Corp., Sodexho Inc., Unilever United States Inc. and Zurich North America, the release said.

"These figures prove what we already know -- that Florida's tremendous strength in international trade and foreign direct investment enhance its economic stability and help create high-value jobs for its citizens," said Enterprise Florida President and Chief Executive Officer John Adams. "Our state will continue to build on these strengths, including our efforts to capitalize on the opportunities provided by the upcoming implementation of the CAFTA treaty."

International trade and foreign direct investment combined account for about one fifth of Florida's economy and sustain about one in eight jobs in the state.

"We believe that a quality workforce is the key factor in attracting international investment to the state," said OFII president and CEO Todd Malan.