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An Overview of the Relative Economic Importance of Florida's Coastal Counties
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 Material Information
Title: An Overview of the Relative Economic Importance of Florida's Coastal Counties
Physical Description: Fact Sheet
Creator: Adams, Chuck
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 2001
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Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "Published September 2001."
General Note: "FE 306"
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Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00001917:00001

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An Overview of the Relative Economic Importance of Florida's Coastal Counties1 Chuck Adams, Effie Philippakos, Alan Hodges, and David Mulkey2 1. This is EDIS document FE 306, a publication of the Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Published September 2001. Please visit the EDIS website at http://edis.ifas.ufl.edu. 2. Chuck Adams, professor, Department of Food and Resource Economics, and marine economics specialist, Florida Sea Grant Program; Effie Philippakos, research assistant, Department of Food and Resource Economics; Alan Hodges, coordinator of economic analysis, Department of Food and Resource Economics; and David Mulkey, professor, Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. The Institute of Food and Agricultural Sciences is an equal opportunity/affirmative action employer authorized to provide research, educational information and other services only to individuals and institutions that function without regard to race, color, sex, age, handicap, or national origin. For information on obtaining other extension publications, contact your county Cooperative Extension Service office. Florida Cooperative Extension Service/Institute of Food and Agricultural Sciences/University of Florida/Christine Taylor Waddill, Dean. Introduction Florida is a coastal state. Although only 35 of the state's 67 counties have a contiguous border with either the Gulf of Mexico or the Atlantic Ocean, none of the non-coastal counties are situated more than 50 miles from either coast. With the exception of a small, virtually unpopulated region within Pinhook Swamp in far north Florida, no point in Florida is further than 60 miles from either coast. For Florida's 16 million residents and 50 million annual visitors, the Gulf and Atlantic coasts, with their complement of natural resources, represent a major attraction and an important component of Florida's environment and identity. Florida's 1,350 miles of coastline exceeds that for all other states combined along the U.S. Atlantic seaboard. Nowhere else in the United States are so many people so close to such an extensive and economically valuable coastline (Florida Sea Grant, 2001). Economic Activity The majority of Florida's metropolitan statistical areas are located in coastal counties, with the exceptions of Orlando, Tallahassee, Gainesville, Ocala, Lakeland, and Winter Haven. Thus, a large share of the state's population, and resulting economic activity, occurs in the coastal counties (Table 1). Approximately 12.3 million (77%) of Florida's residents live in the coastal counties. Over three-fourths of both the gross retail sales ($354 billion) and taxable retail sales ($157 billion) occur in the coastal counties. The total personal income accruing to residents of coastal counties is almost $321 billion, as compared to $79 billion for the non-coastal counties. The average annual, per-capita income of $27,885 is 19% higher in the coastal counties of Florida. Interestingly, the unemployment rate of 3.72% is almost 20% higher in the coastal counties than that found for the non-coastal counties (3.16%). The various industry sectors in Florida contribute to Florida's economy in several ways. Florida industries generate economic output, provide additional value to inputs and/or intermediate goods, and create employment opportunities for local residents. The magnitude of these components of the overall economic activity in Florida can be measured by using the IMPLAN PRO (IMPLAN) software

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An Overview of the Relative Economic Importance of Florida's Coastal Counties 2 package. The IMPLAN database provides economic and socio-demographic descriptions for all United States counties across 528 economic sectors. The categorization of these sectors relies on the United States Department of Commerce's four-digit Standard Industrial Classification (SIC) System. The software for IMPLAN calculates economic output, value added, employment, and other economic attributes specific to a predefined region. IMPLAN was utilized to determine the magnitude of economic output, value added, and employment for all Florida counties, using data for 1997. These findings were then summarized for coastal and non-coastal counties, and the 528 industry sectors were then aggregated into 10 major industry groups (Table 2). Economic Output The total economic output across all sectors of Florida's economy totaled $612 billion, of which 78%, or $477 billion, was collectively attributed to coastal counties. The top five industry groups (in order of magnitude) were Services, Finance/Insurance/Real Estate, Trade, Manufacturing, and Government. For each of these industry groups, over three-fourths of the respective economic output was associated with coastal counties. Collectively, these five industry groups accounted for 82% of the total economic output in the coastal counties of Florida and 64% of the total economic output in the entire state. In contrast, only 31% and 59% of the economic output associated with Mining and Agriculture, respectively, could be attributed to coastal counties. Value-Added Activity Economic contributions resulting from value-added activities in Florida totaled $375 billion, of which 79%, or $296 billion, can be attributed to industry sectors located in coastal counties. The top five industry groups for value-added activities were the same as for economic output, although the rank ordering is slightly different. These top five industry groups represent 85% of the total value-added activity for the coastal counties and for all counties in Florida. Employment Employment associated with the ten industry groups in Florida is estimated to be 8.06 million. The coastal counties accounted for 77% of the total employment in the state. The rank ordering among the industry groups is slightly different with respect to employment. The top five industry groups are represented in order of importance by the categories of Services, Trade, Government, Finance/Insurance/Real Estate and Construction. These industry groups account for 85% of the employment in the coastal counties, as well as the entire state. As with economic output and value-added activities, the least important specific industry groups were mining and agriculture. Conclusion The coastal counties of Florida account for the majority of the state's population and income, and represent an important base for a multitude of industry sectors. Approximately 77% of the state's population resides in the coastal counties, and over 75% of gross and taxable retail sales occur in the coastal corridor of Florida. In addition, 78% of the economic output, 79% of the value-added activity, and 77% of the state's employment are attributable to industry sectors located in these 35 coastal counties. The coastal corridor of Florida is therefore an important region of the state, which is where most of the projected state growth will likely occur. The challenge to Florida will be to accommodate this growth, while simultaneously ensuring that the coastal environment and quality of life for coastal residents are sustained. References Bureau of Business and Economics Research. Florida Statistical Abstract, 2000. University of Florida, Gainesville, FL. 2001. Bureau of Labor Statistics. United States Bureau of Census, Washington, DC. 2001. Florida Department of Labor and Employment Security. Unpublished employment and unemployment data. Tallahassee, FL. 2001.

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An Overview of the Relative Economic Importance of Florida's Coastal Counties 3 Florida Department of Revenue. Information Systems Office, Tallahassee, FL. 2001. Florida Sea Grant College Program. "Strategic Plan 2002-2005." Florida Sea Grant Teaching Paper TP-108. University of Florida, Gainesville, FL. 2001. Implan Professional Software, Version 2.0. Stillwater, MN: Minnesota Implan Group, Inc. 1999. http://www.implan.com. Regional Economic Information System, Bureau of Economic Analysis. United States Department of Commerce, Washington, DC. 2000.

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An Overview of the Relative Economic Importance of Florida's Coastal Counties 4 Table 1. Comparative Data for Coastal and Inland Counties of Florida. Characteristics Coastal Counties Inland Counties Personal Income, 1998 ($ millions) 320,815 79,394 Average Per-Capita Income, 1998 ($) 27,885 23,413 Population, 2000 (% of Florida's total) 12,285,697 (76.9%) 3,696,681 (23.1%) Gross Retail Sales, 1998 ($millions, % of Florida's total) 353,661 (76.9%) 106,201 (23.1%) Taxable Retail Sales, 1998 ($ millions, % of Florida's total) 156,683 (75.6%) 50,593 (24.4%) Unemployment Rate, 2000 (%) 3.72% 3.16% Source: Data were taken from various sources, including Regional Economic Information System, United States Bureau of Census, Florida Department of Revenue, Florida Bureau of Economic and Business Research, and Florida Department of Labor and Employment Security.

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An Overview of the Relative Economic Importance of Florida's Coastal Counties 5 Table 2. Comparison of key economic activity measures for Florida coastal counties and all Florida counties (1997). Major Industry Group Economic Output ($ millions) Value-Added ($ millions) Employment (number of jobs) Coastal Counties Total Florida Percent Coastal Coastal Counties Total Florida Percent Coastal Coastal Counties Total Florida Percent Coastal Agriculture 6,22410,53859% 3,7965,95664%145,135227,71164% Mining 5911,91631% 3261,03332% 4,4689,25848% Construction 36,75047,36578%14,36718,42978%419,627542,80877% Manufacturing 66,54788,90875%23,34130,37477%394,241513,00777% Transport, Communications, and Public Utilities 40,99450,77881%23,02828,40381%288,550362,32380% Trade 75,12395,22579%53,05867,19379%1,437,2551,861,06677% Finance, Insurance, and Real Estate 92,696112,45582%68,19582,62383%504,080616,24182% Government 41,89855,07076%38,30750,00577%759,3551,075,29471% Other 78991786% 78991786%66,10977,04386% Total All Industry Groups 477,031 611,807 78% 295,724 375,274 79% 6,181,260 8,060,065 77% Source: Minnesota Implan Group, Inc., Implan Professional Software, Version 2.0; and 1997 county data for Florida.