INVESTOR NEWSLETTER - NOVEMBER 2011
Medtronic Expanding Surgical Technologies Division
Medtronic, the City of Jacksonville and the State of Florida finalized an expansion that will add 175 new high-wage jobs and $14 million in capital investment in a new research and development and manufacturing facility. The company is constructing a 75,000 square-foot building to expand R&D and manufacturing for its surgical technologies division, which is headquartered in Jacksonville. As part of the expansion, Medtronic is also building a training lab for physicians to test the new equipment.
Medtronic is a medical technology company that acquired Jacksonville-based Xomed Surgical Products in 1999 and has since grown to 600 people.
Reflections from Site Consultants in the Current Market Environment
This month JAXUSA Partnership President Jerry Mallot and Business Development Director Broderick Green attended the CoreNet Global Summit in Atlanta. CoreNet offers us a chance to meet with top corporate real estate executives and site consultants that manage projects. The consultants also provided their views on the current market environment. Here is what we heard:
-Companies remain cautious in decision making on the growth of jobs.
-Mergers and acquisitions are driving many deals and we see this in Jacksonville as well. We are vulnerable when our companies are acquired like Solantic, which was recently acquired and is moving its headquarters to Nashville. However, more often than not we win when a merger or acquisition occurs, so stay tuned for an announcement or two in the coming weeks.
-Existing markets are preferred, as well as existing buildings. Companies are choosing markets where they already have operations and a proven track record of success.
-A talent war is developing for college graduates and workers with technical and engineering skills. In spite of high unemployment, it is still difficult to find employees with specialized skills, which is affecting site location decisions.
-Certainty and reduced risk in the site location process continue to be very important, as well as the time it takes to get a project approved.
-Incentives are very critical and more so in the final decision between the last two or three location options. Flexibility on the type and use of incentives is also critical. Companies want the flexibility to estimate the number of new jobs and do not want to be penalized for incorrectly projecting the number of people needed for a new facility.
-International competition remains fierce, but some companies are actually moving projects back to the U.S.
International Business Growth Remains a Top Priority
Building and maintaining strong international relationships has been an important priority throughout the year. The JAXUSA Partnership team and local business and government leaders have visited a number of countries to strengthen existing relationships or to build new ones.
Most recently, Mayor Alvin Brown and JAXUSA President Jerry Mallot accompanied Gov. Rick Scott on a mission to Brazil to visit companies and our sister city of Curitiba, and to expand Florida’s trade and export opportunities. Brazil is currently the state’s number one trade market, valued at $13.7 billion, and offers important market opportunities to expand trade and create jobs in Florida. This mission exemplifies the purpose of our international focus to build our economy, create high-skill, high-wage jobs, and ensure Florida leads the nation in private sector job growth.
Northeast Florida has also hosted a number of international delegations this year from countries including Germany, Japan, the Netherlands, Belgium and Italy. While hosting these delegates we are able to showcase the unique and competitive business advantages our region can offer international companies looking to establish or expand their presence in the U.S.
Companies and Individuals Honored at International Awards Event
JAXUSA Partnership held its annual international awards event at its fourth quarter luncheon. Two companies and two individuals were recognized for their commitment and dedication to the growth of international business in the region.
COACH won the International Business Leader of the Year – Large Company award for its work in the global distribution market. The company has expanded its facility several times to reach 850,000 square feet and from this distribution center, COACH distributes goods to every part of the world Beaver Street Fisheries won the International Business Leader of the Year – Smaller Company award for its innovative and diverse seafood distribution facility. Beaver Street Fisheries imports nearly 1,000 containers of seafood from more than 50 countries and maintains over 2.5 million cubic feet of freezer space in Jacksonville. Rep. Lake Ray won the International Business Leader of the Year – Individual award for his dedication to growing our port and helping establish the Jacksonville region as a hub for international business.
A special honor was given to International Chair George Gabel for his work positioning the Jacksonville region as a hub for international business. In his past six years as International chair, George was instrumental in generating funding for the intermodal study, which will develop a regional plan for freight distribution, and was influential in naming the city as America’s Logistics Center and helped organize the signage you see when entering or leaving the county. He also worked with JAXUSA Partnership and the City of Jacksonville to create the Jacksonville International Business Coalition, which has provided the cooperation between the city and private sector to foster the international development of the Jacksonville region.
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Thank you for your continued commitment to JAXUSA Partnership, formerly Cornerstone.
Sincerely,
Scott P. Keith
JAXUSA Partnership Chair
Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns Counties
3 Independent Drive • Jacksonville Fl 32202 • 904.366.6639
bizrelo@jacksonvillechamber.org • www.jaxusa.org
Where the Future Leads®