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Agenda 08/22/2023 Item #11A (Economic Development Agreement for the US Headquarters of Dialum Glass)08/22/2023 EXECUTIVE SUMMARY Recommendation to approve an Economic Development Agreement for a proposed advanced manufacturing and processing facility for the US headquarters of Dialum Glass within the Town of Ave Maria Innovation Zone in the amount of $1,500,000. OBJECTIVE: To approve an Economic Development Agreement with Dialum Glass. CONSIDERATIONS: Dialum Glass (“Dialum”) is one of the largest suppliers of architectural glass in South America and the Southeastern United States. They are currently headquartered in Santiago, Chile. The demand for Dialum’s architectural glass using propriety technologies and processes has experienced significant growth over the last decade prompting Dialum to establish a dedicated US facility. Over the last 18 months, Dialum has narrowed down its search to several locations in the US. They are evaluating two locations in Florida with a ten-acre site located within the Ave Maria Innovation Zone being the preferred location in Florida. Dialum is a Targeted Industry, as defined by Enterprise Florida for the State of Florida, as NAICS Code 327 - Nonmetallic Mineral Products Manufacturing. On June 23, 2015, the Board of County Commissioners adopted resolution 2015-133 creating the Ave Maria Innovation Zone. The purpose of the Ave Maria Innovation Zone is to attract and retain qualified targeted industry business to the County. Dialum is proposing to construct a 90,000 square -foot state-of-the-art processing facility and add approximately 80-100 local jobs. The ten-acre site has been tentatively site planned to accommodate an additional expansion for a total of approximately 200,000 square feet. Dialum is seeking a $1.5 million grant payable only after it constructs the facility. The initial capital investment is estimated at $20-$25 million, including the new building and equipment. The proposed Agreement provides for payment over 5 years, with $500,000 payable after the certificate of occupancy is issued and the remaining balance disbursed equally over the subsequent four years. The payments are subject to Dialum being in good standing, with the facility open, and property taxes current. The Innovation Zone is seeing increased interest based on the lack of light industrial space available in the urban area and the increased residential development in the Rural Land Stewardship Area (RLSA). The Innovation Zone concept is a tool used by the Board to incentivize jobs and appropriate businesses. In the recent approval of villages, the need for commercial, industrial, and other job-producing businesses was highlighted as a key need in the RLSA. Additionally, innovation zone funds and other incentives have been recently used by the Board to successfully bring a resort hotel, logistics facility, and manufacturing to various parts of the county in the urban area. Creating jobs in the RLSA and in and around the Immokalee urban area are high priories of the RLSA and Immokalee Area Master Plan. FISCAL IMPACT: The proposed economic development incentive payment is $1,500,000. The payment schedule is $500,000 when the facility is completed and issued a Certificate of Occupancy followed by annual payments of $250,000 over the next 4 years. The Ave Maria Innovation Zone Trust Fund (1030) generates an annual revenue stream of approximately $185,900 per year and presently has an available balance of $900,000. Barring unforeseen reductions in taxable value or tax rate the Trust Fund will have sufficient cash flow to support the planned incentive payment schedule. GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the Economic Element of the Collier County Growth Management Plan which states: “Collier County will support programs which are designed to promote and encourage the recruitment of new industry as well as the expansion and retention of 11.A Packet Pg. 22 08/22/2023 existing industries in order to diversify the County’s economic base.” LEGAL CONSIDERATIONS: This item has been reviewed by the Count Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: To approve an Economic Development agreement for a proposed advanced manufacturing and processing facility for the US headquarters of Dialum Glass within the Town of Ave Maria Innovation Zone in the amount of $1,500,000. Prepared by: Sarah Harrington, Interim Director, Economic Development and Housing and Amy Patterson, County Manager ATTACHMENT(S) 1. Economic Development Agreement - Dialum final (PDF) 2. Target-Industry-Update-2022 (PDF) 3. 327 - NAICS Code Description - NAICS Association - www.naics.com (PDF) 11.A Packet Pg. 23 08/22/2023 COLLIER COUNTY Board of County Commissioners Item Number: 11.A Doc ID: 26412 Item Summary: *** This item to be heard at 9:30 AM. *** Recommendation to approve an Economic Development Agreement for a proposed advanced manufacturing and processing facility for the US headquarters of Dialum Glass within the Town of Ave Maria Innovation Zone in the amount of $1,500,000. (Amy Patterson, County Manager) Meeting Date: 08/22/2023 Prepared by: Title: Management Analyst II – County Manager's Office Name: Geoffrey Willig 08/16/2023 3:08 PM Submitted by: Title: Deputy County Manager – County Manager's Office Name: Amy Patterson 08/16/2023 3:08 PM Approved By: Review: County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/16/2023 3:10 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 08/16/2023 3:47 PM Board of County Commissioners Geoffrey Willig Meeting Pending 08/22/2023 9:00 AM 11.A Packet Pg. 24 11.A.a Packet Pg. 25 Attachment: Economic Development Agreement - Dialum final (26412 : Dialum Agreement) 11.A.a Packet Pg. 26 Attachment: Economic Development Agreement - Dialum final (26412 : Dialum Agreement) 11.A.a Packet Pg. 27 Attachment: Economic Development Agreement - Dialum final (26412 : Dialum Agreement) 11.A.a Packet Pg. 28 Attachment: Economic Development Agreement - Dialum final (26412 : Dialum Agreement) 11.A.a Packet Pg. 29 Attachment: Economic Development Agreement - Dialum final (26412 : Dialum Agreement) 11.A.a Packet Pg. 30 Attachment: Economic Development Agreement - Dialum final (26412 : Dialum Agreement) 11.A.a Packet Pg. 31 Attachment: Economic Development Agreement - Dialum final (26412 : Dialum Agreement) 1 UPDATE 2022 11.A.b Packet Pg. 32 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 2 TABLE OF CONTENT EXECUTIVE SUMMARY ........................................................ TARGET INDUSTRIES BY NAICS CODE ............................... TARGET INDUSTRY DEFINITION ......................................... ECONOMIC OVERVIEW ...................................................... TARGET INDUSTRY OVERVIEW ........................................... MANUFACTURING ................................................................. CORPORATE HEADQUARTERS ............................................. GLOBAL LOGISTICS AND TRADE ......................................... FINANCIAL AND PROFESSIONAL SERVICES ........................ INFORMATION TECHNOLOGY ............................................. AVIATION AND AEROSPACE ................................................. DEFENSE AND HOMELAND SECURITY ................................ LIFE SCIENCES ....................................................................... CLEAN TECHNOLOGY .......................................................... RESEARCH AND DEVELOPMENT ......................................... APPENDIX A ........................................................................ 3 4 5 7 15 16 18 19 21 23 25 27 28 30 31 32 11.A.b Packet Pg. 33 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 3 As required by Section 288.106, Florida Statutes, at least every three years the Florida Department of Economic Opportunity (DEO), in consultation with Enterprise Florida, Inc. (EFI), shall review and, as appropriate, revise the list of Florida’s target industries (the “Target Industry list”). The last review was completed in 2019 for use from 2020 through 2022. The Target Industry List is used by many state and local economic development programs, and it identifies industries and sectors that have the potential to generate significant returns on investment for statewide growth, recruitment, and retention efforts. A target industry must possess one or more of the following six statutory characteristics: future growth, stability, high wage, market and resource independence, industrial base diversification, and positive economic impact. Based on recommendations by EFI and consultation with stakeholders, DEO has retained all sectors presently included in the Target Industry List, which encompasses: Corporate Headquarters, Research & Development, Manufacturing, Global Logistics & Trade, Financial & Professional Services, Information Technology, Aviation & Aerospace, Defense & Homeland Security, Life Sciences, and Clean Technology. However, it is also clear that greater weight should be given to existing statutory provisions in Section 288.106 (2)(q)1.,5. and 6., Florida Statutes, which identify “special considerations” for elevating target industries. 1. Specifically, with the incredible and unique economic success Florida has experienced in recent years there comes to consider both “industries that strengthen” and “facilitate” the development of “clusters” and “hubs” for target industries. For example, workforce housing related industries are industries that are becoming increasingly vital to target industries’ relocations and expansions. 2. Moreover, there are increasing demands on industries that are necessary to repatriate target industries to the United States, especially in Florida, as is often viewed as the geographically ideal gateway between the United States, South America, Europe and now even Asia. For example, logistics industries that increase the capacity of our port, rail, road and intermodal systems are value-adds to economic development considerations. The attached study examines the performance of each of Florida’s target industries. The study uses the North American Industry Classification System (NAICS) to define the industries and sectors under consideration. Through evaluation of employment and economic trends, this update illustrates the state’s continued success on the economic development stage, and provides a powerful demonstration that good leadership, good policy, and good implementation can provide clear pathways for individuals and businesses to grow and thrive. EXECUTIVE SUMMARY 11.A.b Packet Pg. 34 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 4 TARGET INDUSTRIES BY NAICS CODE Retail activities, utilities, mining and other extraction or processing businesses, and activities regulated by the Division of Hotels and Restaurants within the Department of Business and Professional Regulation, are statutorily excluded from consideration. All projects are evaluated on an individual basis, and therefore operating in a target industry does not automatically indicate eligibility. MANUFACTURING (31-33) Food Manufacturing (311) Beverage Manufacturing (312) Textile Mills (313) Textile Product Mills (314) Apparel Manufacturing (315) Leather and Allied Product Manufacturing (316) Wood Product Manufacturing (321) Paper Manufacturing (322) Printing and Related Support Activities (323) Petroleum and Coal Products Manufacturing (324) Chemical Manufacturing (325) Plastics and Rubber Products Manufacturing (326) Nonmetallic Mineral Product Manufacturing (327) Primary Metal Manufacturing (331) Fabricated Metal Product Manufacturing (332) Machinery Manufacturing (333) Computer and Electronic Product Manufacturing (334) Electrical Equipment, Appliance, and Component Manufacturing (335) Transportation Equipment Manufacturing (336) Furniture and Related Product Manufacturing (337) Miscellaneous Manufacturing (339) GLOBAL LOGISTICS & TRADE Wholesale Trade (42) Merchant Wholesalers, Durable Goods (423) Merchant Wholesalers, Nondurable Goods (424) Wholesale Electronic Markets and Agents and Brokers (425) Transportation and Warehousing (48-49) FINANCE & INSURANCE Credit Intermediation and Related Activities (522) Securities, Commodity Contracts, and Other Financial Investments and Related Activities (523) Insurance Carriers and Related Activities (524) Funds, Trusts, and Other Financial Vehicles (525) INFORMATION TECHNOLOGY Publishing Industries (except Internet) (511) Motion Picture & Sound Recording Industries (512) Telecommunications (517) Data Processing, Hosting & Related Services (518) Other Information Services (519) PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES (54) CORPORATE HEADQUARTERS Management of Companies and Enterprises (55) OTHER Educational Services (611430, 611512 and 611710) Medical & Diagnostic Laboratories (621) Space Research & Technology (927) ADMINISTRATIVE & SUPPORT SERVICES (561; Excludes 5611 and 5614 unless otherwise permitted in 288.106 F.S.) 11.A.b Packet Pg. 35 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 5 TARGET INDUSTRY DEFINITION Section 288.106 (2)(q), Florida Statutes, sets forth the criteria for an industry or sector to be included in the Target Industry List. “Target industry business” is defined as a corporate headquarters business or any business that is engaged in one of the target industries identified pursuant to the following criteria developed by DEO in consultation with EFI: 1. Future growth - Industry forecasts should indicate strong expectation for future growth in both employment and output, according to the most recent available data. Special consideration should be given to businesses that export goods to, or provide services in, international markets and businesses that replace domestic and international imports of goods or services. 2. Stability - The industry should not be subject to periodic layoffs, whether due to seasonality or sensitivity to volatile economic variables such as weather. The industry should also be relatively resistant to recession, so that the demand for products of this industry is not typically subject to decline during an economic downturn. 3. High wage - The industry should pay relatively high wages compared to the statewide or local prevailing private sector wage. 4. Market and resource independent - The location of industry businesses should not be dependent on Florida markets or resources as indicated by industry analysis, except for businesses in the renewable energy industry. 5. Industrial base diversification and strengthening - The industry should contribute toward expanding or diversifying the state’s or area’s economic base, as indicated by analysis of employment and output shares compared to national and regional trends. Special consideration should be given to industries that strengthen regional economies by adding value to basic products or building regional industrial clusters as indicated by industry analysis. Special consideration should also be given to the development of strong industrial clusters that include defense and homeland security businesses. 6. Positive economic impact - The industry is expected to have strong positive economic impacts on or benefits to the state or regional economies. Special consideration should be given to industries that facilitate the development of the state as a hub for domestic and global trade and logistics. 1 of 2 11.A.b Packet Pg. 36 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 6 The term does not include any business engaged in retail industry activities; any electrical utility company as defined in Section 366.02(2), Florida Statutes; any phosphate or other solid minerals severance, mining, or processing operation; any oil or gas exploration or production operation; or any business subject to regulation by the Division of Hotels and Restaurants within the Department of Business and Professional Regulation. Any business within NAICS code 5611 or 5614, administrative services and business support services, respectively, may be considered a target industry business only after the local governing body and EFI, make a determination that the community where the business may locate has conditions affecting the fiscal and economic viability of the local community or area. The determination includes, but is not limited to, factors such as low per capita income, high unemployment, high underemployment, and a lack of year-round stable employment opportunities, and such conditions may be improved by the location of such a business to the community. By at least January 1 of every 3rd year, beginning January 1, 2011, DEO, in consultation with EFI, economic development organizations, the State University System, local governments, employee and employer organizations, market analysts, and economists, shall review and, as appropriate, revise the list of such target industries and submit the list to the Governor, the President of the Senate, and the Speaker of the House of Representatives. TARGET INDUSTRY DEFINITION 2 of 2 11.A.b Packet Pg. 37 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 7 ECONOMIC OVERVIEW GDPFlorida’s GDP is $1,303,944,600,000 ($1.3T) as of the 1st quarter of 2022.1 This represents an increase of $207.3 billion (18.9% increase) since the previous target industry update.2 Table 1, shows Florida’s Gross Domestic Product (GDP). Florida’s GDP has realized steady annual growth of approximately 5% since emerging from the Great Recession. Florida’s GDP growth experienced a brief contraction in 2020, the state’s contraction of 0.9%, compared to the 1.5% contraction nationally, proved that Florida’s open-for-business policies were the best path forward to rapid economic recovery. 2021 saw the largest year-over-year growth in more than a decade as the state continued to lead the country in economic growth with a 10.9% increase, outpacing the nation by 0.8%.3 1 U.S. Bureau of Economic Analysis, Gross Domestic Product: All Industry Total in Florida [FLNQGSP], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/FLNQGSP, September 22, 2022. 2 Ibid 3 IbidTable 1Gross Domestic Product: All Industry Total in Florida 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000Million of DollarsQ1 2015 Shaded areas indicate U.S. recessions.Source: U.S. Bureau of Economic Analysis fred.stlouisfed.org Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q31 2019 Q1 2020 Q3 20205 Q1 2021 Q3 2021 Q1 2022 11.A.b Packet Pg. 38 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 8 FLORIDA’S GROSS DOMESTIC PRODUCT, BY INDUSTRY, 2021 Industry GDP ($ millions)Share of Total Financial Activities (including Real Estate)311,103 25.4% Professional and Business Services 164,758 13.4% Government 120,357 9.8% Educational Services, Health Care, and Social Assistance 110,710 9.0% Retail Trade 93,915 7.7% Wholesale Trade 86,741 7.1% Leisure and Hospitality 69,357 5.7% Manufacturing 64,264 5.2% Construction 66,778 5.4% Transportation and Utilities 52,985 4.3% Information 47,393 3.9% Other Services 28,488 2.3% Natural Resources and Mining 9,451 0.8% Source: Bureau of Economic Analysis, GDP and Personal Income Source: Bureau of Economic Analysis Table 3, contains information on Florida’s GDP, broken down by industry, for calendar year 2021. Since the last review of the Target Industry List the increased share of total GDP generated from Financial Activities increased by 2.9%, more than any sector. The largest decrease in share of total GDP came from Government, which decreased by 1.1%.4Table 34 Bureau of Economic AnalysisTable 2Table 2, shows Florida’s year-over-year rate of GDP growth. 11.A.b Packet Pg. 39 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 9 Source: JobsEQ, derived from the Bureau of Economic Analysis Table 4, above, compares Florida’s GDP against the nationwide GDP with respect to its target industries grouped in accordance with the NAICS identified on page 3 and all industries. In 2021, target industries contributed 35.8% to the state’s total economic output, or more than $438.9 billion of Florida’s total GDP of more than $1.2 trillion. Importantly, target industry GDP growth consistently outpaced Florida’s overall economy in each year measured, and remained roughly steady at approximately 35% of total GDP. While the GDP growth of the state’s target industries has outperformed the nation (1-year percent change in GDP), it is nearly 9% less than the nation when considering target industry GDP numbers as a percent of total GDP. TARGET INDUSTRIES TOTAL - ALL INDUSTRIES Year GDP 1 Year % Change in GDP GDP 1 Year % Change in GDP Target Industry as % of Total Florida 2018 $374,880,060,000 6.8%$1,057,862,300,000 5.5%35.4% 2019 $397,312,930,000 6.0%$1,116,435,400,000 5.5%35.6% 2020 $390,649,358,000 -1.7%$1,106,035,500,000 -0.9%35.3% 2021 $438,933,333,000 12.4%$1,226,297,500,000 10.9%35.8% USA 2018 $9,030,266,066,000 6.3%$20,526,601,645,000 5.4%44.0% 2019 $9,404,055,362,000 4.1%$21,372,382,656,000 4.1%44.0% 2020 $9,263,789,518,000 -1.5%$20,893,372,862,000 -2.2%44.3% 2021 $10,257,578,729,000 10.7%$22,996,086,400,000 10.1%33.6% FLORIDA’S GDP AGAINST THE NATIONWIDE GDP WITH RESPECT TO ITS TARGET INDUSTRIES AND ALL INDUSTRIES Table 4TARGET INDUSTRY GDP Understanding the share of economic activity and contribution created by target industries vs. non-target industries will signal the economic diversity and thus anticipated resiliency of a geographical region. For the purposes of this review, economic activity and contribution will be considered through GDP, job creation, and average wage. Target industries are aggregated by NAICS coes, which can be found in the appendix of this report. Most data has been compiled using JobsEQ, an economic development data aggregator which relies heavily upon public data sources such as the Bureaus of Labor Statistics and Economic Analysis within the United States Department of Labor. 11.A.b Packet Pg. 40 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 10 EMPLOYMENT Table 5, contains employment data for Florida’s target industry and non-target industry jobs. Employment data for target industry jobs represents associated with the NAICS codes identified on page 3. Target industries support nearly three million Florida jobs, representing 30.2% of all jobs in the state. This is an increase of roughly 500,000 jobs and a 3% share of all jobs since 2015. The increase in share of target industry jobs is encouraging, however does lag national target industry job share of 34%. Table 6, contains Florida’s employment growth trends and compares target industries against all industries. Target industries have generally experienced faster than average job growth, outpacing total job growth in each year since 2015, peaking in 2021 with year-over-year job growth of 7.7%. In 2020, target industry jobs demonstrated significant resiliency through the pandemic, only decreasing by 1.2% as compared to a 4.8% decrease in all jobs. FLORIDA EMPLOYMENT GROWTH TRENDS – TARGET VS. ALL INDUSTRIES Target Industries Total - All Industries Time 1 Year % Change in Employment 1 Year % Change in Employment 2015 4.0%3.6% 2016 3.5%3.0% 2017 3.3%2.4% 2018 3.0%2.4% 2019 3.1%1.8% 2020 -1.2%-4.8% 2021 7.7%5.1% Source: JobsEQ, derived from the Bureau of Labor Statistics, (p) Q1 2022 Source: JobsEQ, derived from the Bureau of Labor Statistics, (p) Q1 2022Table 5Table 6FLORIDA TARGET VS. NON-TARGET INDSTRY JOBS Year Target industry Jobs “Non-target” Industry Jobs Total - All Jobs % Target Industry Jobs 2015 2,436,104 6,433,644 8,869,748 27.5% 2016 2,521,013 6,617,517 9,138,531 27.6% 2017 2,603,983 6,757,113 9,361,095 27.8% 2018 2,681,237 6,906,413 9,587,650 28.0% 2019 2,765,618 6,995,244 9,760,862 28.3% 2020 2,733,113 6,560,173 9,293,287 29.4% 2021 2,944,015 6,820,012 9,764,027 30.2% Professional, Scientific, and Technical Services (770,688 jobs), Transportation and Warehousing (502,005 jobs), and Employment Services (243,402 jobs) make up the top three job creation sectors within the target industries. The fastest growing sectors for job growth over the last three years are Funds and Trusts (53.7%), Transportation and Warehousing (22.8%), and Information Services (21.1%). 11.A.b Packet Pg. 41 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 11 UNEMPLOYMENT RATE – FLORIDA VS. USA ANNUALIZED UNEMPLOYMENT RATE YEAR FLORIDA USA 2017 4.3%4.4% 2018 3.7%3.9% 2019 3.2%3.7% 2020 8.3%8.1% 2021 4.6%5.4% Nov-22 2.6%3.7% Florida’s unemployment rate is typically lower than the national average. The last three years were further evidence of this trend, with the state’s unemployment rate lower than the country pre-pandemic; 3.2% in Florida vs. 3.7% nationally. The state did temporarily spike higher than the national average in 2020 due to the pandemic impact on the hospitality and tourism sectors. However, strong policies and data-driven decisions to keep Florida open quickly led Florida to outperform the nation in unemployment, with most current data showing Florida with a 2.6% unemployment rate vs. 3.7% nationally. As of November 2022, Florida’s unemployment rate dropped to 2.6%, the lowest among the nation’s top ten largest states and 1.1% lower than the nation’s. November 2022 marks 24 consecutive months that Florida’s unemployment rate has remained below the nation’s. Florida also continues to exceed the national job growth rate for the 20th consecutive month in November 2022. Florida’s total private sector employment increased by 5.2% (+420,700 jobs) over the year, faster than the national private sector jobs growth rate of 3.6% over the same time period. As of November 2022, Florida employers have added jobs for 31 consecutive months. Tables 7, show Florida’s unemployment rate compared against the national rate.Table 7Source: U.S. Bureau of Labor Statistics 11.A.b Packet Pg. 42 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 12 AVERAGE WAGE – FL VS. USA – 2015-2021 YEAR FLORIDA ANNUAL INCREASE UNITED STATES ANNUAL INCREASE 2015 $46,260 -$52,942 - 2016 $47,035 1.68%$53,621 1.28% 2017 $48,455 3.02%$55,390 3.30% 2018 $50,094 3.38%$57,266 3.39% 2019 $51,741 3.29%$59,209 3.39% 2020 $55,868 7.98%$64,021 8.13% 2021 $60,276 7.89%$67,610 5.61% *Source: Bureau of Labor Statistics, data pulled December 2022, **JobsEQ, Bureau of Labor Statistics, data pulled October 2022 Table 9, shows average wage data for Florida against the nation. Since 2015, the average wage in Florida has increased more than $14,000, surpassing $60,000 in 2021 with robust annual growth of nearly 8% in the last two years. State wage growth has been largely in line with national growth, with 2021 standing out as Florida’s wage growth outperformed that of the nation by 2.28% (7.89% growth in Florida vs. 5.61% for the U.S.). AVERAGE WAGE – FLORIDA – TARGET VS. ALL INDUSTRY – 2015-2021 FLORIDA WAGES - TARGET INDUSTRIES VS. ALL INDUSTRY Target Industry All Industries Year Average Annual Wage** Annual Growth Average Annual Wage* Annual Growth 2015 $64,912 -$46,260 - 2016 $65,417 0.78%$47,035 1.68% 2017 $67,540 3.25%$48,455 3.02% 2018 $69,700 3.20%$50,094 3.38% 2019 $71,937 3.21%$51,741 3.29% 2020 $75,959 5.59%$55,868 7.98% 2021 $82,281 8.32%$60,276 7.89% Source: JobsEQ, Bureau of Labor Statistics, data pulled October 2022 AVERAGE WAGE Table 8, contains average wage data for Florida’s target industries, compared against all industries. Data for target industry jobs represents associated with the NAICS codes identified on page 3. The average annual wage of all jobs, in target industries in Florida is $82,281, more than $25,000 above the average wage of the overall Florida economy. While the growth rate of wages for target industry jobs has largely aligned with all jobs, it is notable that target industries are less affected by the increases in minimum wage, which is a large driver of total wage growth.Table 8Table 911.A.b Packet Pg. 43 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 13 Florida’s per capita income growth has outperformed the nation in five of the last seven years. The 2021 per capita income in Florida is $62,270, which indicates the largest year-over-year growth of per capita income since 1981. One contributing factor to this growth is the relocation of significant wealth from around the country, as Florida has ranked as the top geography for domestic wealth relocation for the last two years. PER CAPITA INCOME Source: U.S. Bureau of Economic Analysis and Federal Reserve Bank of St. Louis, Per Capita Personal Income in Florida [FLPCPI], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/FLPCPI, October 20, 2022 FLORIDA VS. UNITED STATES IN PER CAPITA INCOME Florida United State Year Per Capita Income Annual Growth Per Capita Income Annual Growth 2015 $45,659 4.92%$48,694 3.92% 2016 $46,454 1.74%$49,588 1.84% 2017 $49,055 5.60%$51,519 3.89% 2018 $51,520 5.02%$53,783 4.39% 2019 $54,560 5.90%$56,236 4.56% 2020 $57,292 5.01%$59,779 6.30% 2021 $62,270 8.69%$64,100 7.23% 2015 2016 2017 2018 2019 2020 2021 +$ +$ +$ +$ +$ +$ $Table 10Table 10, contains data on Florida’s per capita income against the overall per capita income of the nation. 11.A.b Packet Pg. 44 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 14 TARGET INDUSTRY JOBS IN FLORIDA INDUSTRY NAICS JOBS 3-YEAR FORECAST JOBS GROWTH RATE 3-YEAR FORECAST JOBS GROWTH DEMAND Professional, Scientific, and Technical Service 54 770,688 5.4%41,095 Transportation and Warehousing 48 502,005 4.6%22,557 Employment Services 5613 243.402 6.1%14,416 Insurance Carriers and Related Activities 524 208,582 4.6%9,525 Merchant Wholesalers, Durable Goods 423 205,219 3.2%6,565 Credit Intermediation and Related Activities 522 180,619 2.0%3,520 Merchant Wholesalers, Nondurable Goods 424 151,922 2.9%4,252 Management of Companies and Enterprises 55 117,600 3.2%3,756 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 523 60,109 3.3%1,984 Transportation Equipment Manufacturing 336 52,855 1.7%891 Telecommunications 517 47,490 -1.3%-639 Fabricated Metal Product Manufacturing 332 45,352 3.7%1,640 Computer and Electronic Product Manufacturing 334 44,724 2.2%971 Food Manufacturing 311 38,300 4.4%1,643 Publishing Industries (except Internet)511 36,054 4.7%1,680 Machinery Manufacturing 333 32,498 3.9%1,254 Medical and Diagnostic Laboratories 6215 28,326 8.3%2,318 Chemical Manufacturing 325 27,874 3.1%854 Wholesale Electronic Markets, Agents and Brokers 425 26,854 3.0%819 Data Processing, Hosting, and Related Services 518 25,839 5.1%1,293 Nonmetallic Mineral Products Manufacturing 327 23,925 1.8%431 Printing and Related Support Services 323 17,057 -4.0%-670 Motion Picture and Sound Recording Industries 512 16,962 20.0%3,265 Wood Product Manufacturing 321 15,974 4.8%748 Facilities Support Services 5612 15,539 3.1%484 Furniture and Related Product Manufacturing 337 15,140 3.2%478 Plastic and Rubber Product Manufacturing 326 14,626 0.7%98 Other Information Services 519 13,077 8.6%1,084 Beverage Manufacturing 3121 11,849 5.8%675 Educational Support Services 611710 11,142 8.3%915 Electrical Equipment, Appliance, and Component Manufacturing 335 10,266 5.0%502 Paper Manufacturing 322 8,426 -0.8%-70 Professional and Management Development Training 611430 6,765 4.3%286 Primary Metal Manufacturing 331 5,450 2.5%130 Apparel Manufacturing 315 4,358 -9.9%-425 Textile Product Mills 314 4,314 -1.5%-64 Flight Training 611512 3,220 4.9%155 Petroleum and Coal Products Manufacturing 324 3,186 3.5%114 Space Research and Technology 927 2,180 2.3%50 Funds, Trust, and Other Financial Vehicles 525 2,176 3.8%84 Leather and Allied Product Manufacturing 316 1,349 -5.9%-77 Textile Mills 313 1,159 -3.1%-35 Source: JobsEQ, derive from the Bureau of Labor Statistics, (p) Q1 2022 Table 11, below, contains the 3-year job demand forecast for Florida’s target industries.Table 1111.A.b Packet Pg. 45 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 15 In addition to identifying sectors eligible for state economic development programs, the Target Industry List guides statewide, regional, and local agencies, organizations, and economic development partners around the state as they implement programs and policies geared toward economic growth and resiliency. For example, CareerSource Florida is one statewide organization that utilizes the Target Industry List to inform its use of sector strategies in supporting Florida’s workforce development efforts. Sector strategies are regional, industry-focused approaches to building a skilled workforce, and are an effective way to align public and private resources to address the talent needs of employers. Evidence from states employing this approach shows that sector strategies can simultaneously improve employment opportunities for job seekers and enhance the competitiveness of industries. Effective sector strategies rely on strong sector partnerships, sometimes referred to as industry partnerships, workforce collaboratives, or regional skills alliances. In an effort to avoid duplicate counting, the following correspond to the NAICS code groupings on page 3. METHODOLOGY Employment, establishment, and wage data is largely derived from government agencies, including the Bureau of Labor Statistics, while other sources are included to provide discussion on specific industry clusters throughout the state. When possible, Q4 2021 or Q1 2022 data is used. This review adopts the following definitions for use in the Target Industry List: • Sector: A high-level establishment grouping identified by two-digit NAICS coding; inclusive of Corporate Headquarters, Research and Development, Manufacturing, and Logistics and Trade for the purpose of this review. • Sub-sector: A mid-level establishment grouping identified by three-digit NAICS coding. • Target Industry: A sub-sector considered by the state of Florida to be consistent with the criteria listed above. • Industry: A specific establishment grouping identified by four- to six-digit NAICs coding. The employment and wage numbers to follow are calculated according to a specially defined grouping of NAICS. For example, Financial & Professional Services are organized by the NAICS identified below. For a complete list of the clusters and their NAICS codes, please see Appendix A. TARGET INDUSTRY OVERVIEW FINANCIAL & PROFESSIONAL SERVICES TOTAL Sub-sector Description Sub-sector NAICS Credit Intermediation and Related Activities 522 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 523 Insurance Carriers and Related Activities 524 Funds, Trusts, and Other Financial Vehicles 525 Professional, Scientific, and Technical Services 541 11.A.b Packet Pg. 46 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 16 MANUFACTURING SNAPSHOT – 2022 UPDATE VS. 2019 UPDATE • $60.3 billion to Florida GDP • $55.1 billion at time of last update – increase of $5.3 billion • 9.5% increase • 23,154 Manufacturing Establishments • 20,493 at time of last update – increase of 2,661 • 12.98% increase • 411,744 Jobs • 393,403 at time of last update – increase of 18,341 • 4.66% increase • $69,923 Average Wage • $61,192 at time of last update – increase of $8,731 • 14.27% increase • 2025 Forecast • 10,467 more manufacturing jobs • 0.8% annual job growth INDUSTRY OVERVIEW The Manufacturing sector includes companies that process raw materials or assemble component parts into new products using either a mechanical, physical, or chemical process. National employment growth for the manufacturing sector is expected to increase annually by 0.2% to 16.5 million workers, and the number of manufacturing establishments are projected to increase from 785,274 in 2022 to 853,535 in 2028.5 The major products in the manufacturing sector include food and beverage; petroleum, coal, chemicals, plastics, and rubbers; transportation and machinery equipment; metal and mineral production; computer, electronic and electric products; wood and paper products; textiles, apparel, and leather products. To some degree, the Florida manufacturing sector mirrors the national trends of major manufacturing products. In the last five years, companies have made significant capital investments and created jobs in the marine, food and beverage, and metal and mineral production sectors. Where Florida deviates from the national manufacturing segment is the diversity in the subsectors of the manufacturing sector. Manufacturing intersects with all Target Industries, including Life Sciences, Aviation & Aerospace, Defense & Homeland Security, Information Technology, and Cleantech. MARINE MANUFACTURING Florida surpasses all other states in boat building, accounting for 19.1% of establishments in 2022.6 Florida’s unique coastline includes a chain of barrier islands with inlets and shallow creeks which require small ocean vessels. Florida also has a strong commercial fishing industry. However, boat builders have been shifting focus to concentrate on game fishing which requires more inputs and provides better returns for boat manufacturers. Although marine manufacturing is prevalent throughout Florida, Central and South Florida continue to be hubs for the marine industry. South Florida is internationally considered the capital for yachts and sport fishing craft while Central Florida is home to several large production boat manufacturers. The boat manufacturing industry may face challenges in future years. Increases in interest rates, fuel costs, and declining consumer confidence may generally temper growth in the coming years. Further, while Florida +9.5% +12.98% +14.27% +0.8% $55.1 Billion +$5.3 Billion +4.66% 20,493 +2,661 393,403 +18,341 $61,192 +$8,731 +10,467 11.A.b Packet Pg. 47 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 17 has the second longest coast in the United States – with 8,436 miles of shoreline – many marine builders have fully built-out existing on-water sites, and historically preferred boat building locations in Central and South Florida are becoming cost prohibitive for relocating businesses to consider. TEXTILES, NON-WOVEN, AND ADVANCED MATERIALS Between 1997 and 2009, nearly 650 textile plants closed in the U.S. Despite these alarming statistics, a new wave of growth and technology advancement, and thus opportunity, is building in the American South. As a result, textiles, nonwovens, and advanced material manufacturers are seeing a significant increase in demand. According to Straits Research Nonwovens Market Forecast Report, the growth rate for nonwovens is forecast to rise 6.7% annually through 2028. International companies have new opportunities to invest in facilities within North America to offset supply chain challenges and higher shipping costs. In recent years, carbon fiber, textile, and nonwoven textile companies announced more than $2 billion in manufacturing investments in Tennessee, South Carolina, North Carolina, and Georgia. WOOD PRODUCTS Forestry play a significant economic role in Florida. The Florida Forestry Association’s economic impact study found that state’s forest industry contributes $25 billion to Florida’s economy. As of January 2018, the Institute of Food and Agricultural Services (IFAS) reports the Florida’s forestry industry employs 36,055 in full-time and part-time jobs. Per Jobs EQ, there were 722 wood product manufacturing establishments in Florida, an increase from 578 establishments ten years earlier. More importantly, the Florida average wage per worker was $60,329, $4,601 above the sector’s national average. The timber industry experienced a full recovery fueled by renewed housing starts, continuing Asian demand for softwood logs and lumber and expanding domestic and foreign bio-energy consumption, among other factors. The U.S. paper industry has been running a trade surplus in recent years, with about 20% of production exported in 2013. World paper consumption is expanding approximately 2.1% a year and continues to experience growth in the containerboard and tissue sectors. North Florida is particularly poised to take advantage of the upswing, given it contains the overwhelming majority of the state’s forestlands, 96% of its tree plantations and most of the primary wood-using mills, earning it the moniker of “wood basket.” PROJECT ACTIVITY Since the last update, EFI has worked with 203 manufacturing opportunities considering the state, successfully facilitating 48 relocation/expansions, with an anticipated 3,310 new jobs and $1.1 billion in capital investment. Adopted changes to the manufacturing target industry designation As recommended by EFI, DEO has adopted no changes to the Manufacturing sector on the Target Industry List. Snapshot Source: JobsEQ® - Data as of 2022Q2 5 IBIS World, page 15 6 IBIS World, page 24 11.A.b Packet Pg. 48 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 18 CORPORATE HEADQUARTERS SNAPSHOT – 2022 UPDATE VS. 2019 UPDATE • $20.0 billion to Florida GDP • $16.6 billion at time of last update – increase of $3.4 billion • 20.5% increase • 6,755 Corporate Headquarter Establishments • 4,930 at time of last update – increase of 1,825 • 37.01% increase • 116,001 Jobs • 109,984 at time of last update – increase of 6,017 • 5.5% increase • $136,475 Average Wage • $112,071 at time of last update – increase of $24,404 • 21.78% increase • 2025 Forecast • 3,746 more headquarters jobs • 1.1% annual job growth INDUSTRY OVERVIEW The growth of the Corporate Headquarters sector has only accelerated since the last update, demonstrating more than 20% GDP growth, 37% growth in number of headquarters establishments, and nearly 22% wage increases. While this positive growth has been trending for some time, it was fueled by the pandemic, as businesses took note of the state’s response as Florida remained open for business. PROJECT ACTIVITY Since the last update, EFI has worked with 65 corporate headquarters opportunities, successfully facilitating 24 relocations/expansions, with an anticipated 6,253 new jobs and $1.5 billion in capital investment. Adopted changes to the Corporate Headquarters target industry designation As recommended by EFI, DEO has adopted no changes to the Corporate Headquarters sector on the Target Industry List. +20.5% +37.01% +21.78% +1.1% $16.6 Billion +$3.4 Billion +5.5% 4,930 +1,825 109,984 +6,017 $112,071 +$24,404 +3,746 Snapshot Source: JobsEQ® - Data as of 2022Q2 11.A.b Packet Pg. 49 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 19 GLOBAL LOGISTICS AND TRADE SNAPSHOT – 2022 UPDATE VS. 2019 UPDATE • $122.3 billion to Florida GDP • $113.1 billion at time of last update – increase of $9.2 billion • 8.13% increase • 65,382 Global Logistics and Trade Establishments • 58,545 at time of last update – increase of 6,837 • 11.7% increase • 862,950 Jobs • 758,851 at time of last update – increase of 104,099 • 13.7% increase • $70,046 Average Wage • $62,879 at time of last update – increase of $7,582 • 12.1% increase • 2025 Forecast • 34,250 more Global Logistics and Trade jobs • 4.4% annual job growth INDUSTRY OVERVIEW The Global Logistics and Trade industry in Florida is primarily identified as wholesale trade, transportation and warehousing, and logistics services. Companies in the logistics and distribution sector are critically important to Florida’s supply chain for manufacturing and information industries. Further, the performance of the manufacturing and information technology industries – and Florida’s economy as a whole – is closely tied to the effectiveness of the supply chain. Florida’s economy has grown significantly in the past few decades due to its positioning as a global trading gateway and hub, and its geography is well positioned to capture trade flows and support higher-paying jobs for Floridians. According to the Florida Chamber Foundation’s latest Trade and Logistics study, Florida’s private sector is seeking to double goods exports and triple service exports by 2030. In 2022, Florida’s Wholesale Trade (NAICS 42) and Transportation and Warehousing (NAICS 48) sectors employed a combined 862,950 Floridians across 65,400 establishments and paid wages 18% greater than the industry average.7 This employment level is a result of 4% growth over the period (+153,800) since the last Target Industry Update.8 The Transportation and Warehousing sector supports virtually every other industry. Florida experienced an increase of 21.5% in two-way trade in 2021 – a 25.7% increase in merchandise exports and 18.2% growth in merchandise imports. Further, consumer spending in Florida grew 15.6% between 2020 and 2021, highest in the Southeast, and 3rd highest in the U.S. The state’s Wholesale Trade sector is forecast to add 19,594 jobs over the next five years (1.0% growth) while the Transportation and Warehousing sector is expected to add 38,172 jobs (1.5% growth). After significant recovery in 2021 and 2022 following slowed revenue due to the pandemic, the Wholesale Trade sector nationally is projected to grow at an annualized rate of 2.2% from 2022 to 2027.9 +8.13% +11.7% +13.7% +12.1% +4.4% $113.1 Billion +$9.2 Billion 58,545 +6,837 758,815 +104,099 $62,879 +$7,582 +34,250 11.A.b Packet Pg. 50 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 20 As was seen during the pandemic, most sectors are vulnerable to movements in global trade as is business and consumer confidence. This was underscored in the sudden inability to source and move goods that had moved freely in the past. It also highlighted that the Transportation and Warehousing sector in particular supports virtually every other industry. And while the world saw significant declines in international trade in 2020, Florida experienced an increase of 21.5% in two-way trade in 2021 – a 25.7% increase in merchandise exports and 18.2% growth in merchandise imports. Further, consumer spending in Florida grew 15.6% between 2020 and 2021, highest in the Southeast, and 3rd highest in the U.S.10 International trade and consumer spending are indicators that give insight into this sector’s stability and growth. Florida-origin exports are the value of overseas shipments that originate in Florida (indicating that the product was grown, mined, made, or processed at a Florida location prior to export). Florida-origin exports are solely for merchandise and do not include services exports, which are only tabulated at the U.S. level. Both Florida-origin and Services exports have been an economic success story for the state, as Florida maintains a “top ten” placement among competitor states.11,12 In 2020, Florida companies accounted for 20% of all U.S. exporters, second highest in the country.13 That can be seen as a reflection of the state’s important role in shipping both Florida and U.S. goods globally. PROJECT ACTIVITY Since the last update, EFI has worked with 66 Global Logistics and Trade opportunities, successfully facilitating 21 relocations/expansions, with an anticipated 5,730 new jobs and $1.4 billion in capital investment. Adopted changes to the Global Logistics and Trade Target Industry designation As recommended by EFI, DEO has adopted no changes to the Global Logistics and Trade on the Target Industry List. VALUE OF FLORIDA EXPORTS AND IMPORTS Value in $U.S. (Billions)% Change vs. Previous Year U.S. Rank Total Trade with the World (2021) $164.1 21.5% N/A Merchandise Exports $74.7 25.7% N/A Merchandise Imports $89.4 18.2% N/A Florida-Origin Exports (2021)$55.5 21.3% 7th Services Exports (2019)$43.3 0.9% 4th Snapshot Source: JobsEQ® - Data as of 2022Q2 7 Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2022 8 Ibid. 9 IBISWorld, “Wholesale Trade in the US Industry Report” 10 Bureau of Economic Analysis, Personal Consumption Expenditures by State, 2021 11 Census Bureau, Foreign Trade Division and WISERTrade, 2021 12 Coalition of Services Industries, 2019 13 Census Bureau, Dept. of Commerce, “A Profile of U.S. Importing and Exporting Companies, 2019-2020” Source: Census Bureau, Foreign Trade Division, Bureau of Economic Analysis (BEA). 11.A.b Packet Pg. 51 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 21 FINANCIAL AND PROFESSIONAL SERVICES SNAPSHOT – 2022 UPDATE VS. 2019 UPDATE • $178 billion to Florida GDP • $142.3 billion at time of last update – increase of $35.7 billion • 25.1% increase • 175,130 Financial and Professional Services Establishments • 140,788 at time of last update – increase of 34,342 • 24.4% increase • 1,204,329 Jobs • 1,068,437 at time of last update – increase of 135,892 • 12.7% increase • $98,748 Average Wage • $80,601 at time of last update – increase of $18,147 • 22.5% increase • 2025 Forecast • 18,518 more Financial and Professional Services jobs • 3.8% annual job growth INDUSTRY OVERVIEW The Financial Services cluster includes Credit Intermediation, Securities and other Financial Investments, Insurance Carriers, Funds, Trusts and other financial vehicles. The Professional Services cluster is made up of the sub-sector identified as Professional, Scientific and Technical Services. Florida’s Professional and Business Service sectors continue to grow at a high rate due to the state’s favorable business environment, and as of 2021, Florida ranks second in the nation.14 Many of the nation’s leading financial and insurance services companies have significant operations in Florida due to its tax climate and access to international markets. Florida boasts the third largest finance and insurance cluster in the U.S. with significant growth of 9.2% in 2022 versus 5.7% in the U.S.15 FINANCIAL SERVICES AND INSURANCE With more than 200,000 establishments employing 1.5 million Floridians in the sector, Florida is the second largest hub for companies within the Professional, Scientific and Technical Services sector. The revenue growth rate for Florida stands at 6.2% in 2022, compared to 5.3% in the U.S. Of the industries included within the Professional Services NAICS, the largest in Florida include Management Consulting Services, Legal Services, Engineering Services and Accounting Services. As of Q1 of 2022, there were 96 banks in Florida with over $247 Billion in assets, which constitutes an increase of $47 billion from 2019.16 There are 4,630 insurance-related entities operating in Florida writing over $189 billion in premiums.17 Insurance industry jobs in Florida have grown by 5% since 2021 to 203,997.18 The Financial Investment Regulatory Authority (FINRA) ranks Florida second in the nation in the number of branches and third in the total number of firms. MANAGEMENT CONSULTING SERVICES Development of Professional and Scientific Services has been driven by a GDP growth in Florida that is 360% over the national average. Consequently, Florida enjoyed a tremendous growth in the number of firms to 131,000, an increase of over 30,000, while employing over 750,000 staff as of Q1 2022.19 +25.1% +24.4% +12.7% +22.5% +3.8% $142.3 Billion +$35.7 Billion 140,788 +34,342 1,068,437 +135,892 $80,601 +$18,147 +18,518 11.A.b Packet Pg. 52 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 22 LEGAL SERVICES As with many of the Professional Services industries, Legal services remain in demand when GDP and economic activity are high. The number of Legal Services firms has grown to 45,897 which is second in the nation with an annualized growth rate of 1.36% and a revenue of $28.7 billion. Florida Legal firms employ over 114,000 Floridians with annual wages that have grown by 5.64%. ENGINEERING SERVICES The geographic spread of establishments in the Engineering Services industry corresponds with the distribution of economic activity and population. With more than 12,547 Engineering Services companies, Florida ranks third in the nation. According to a July of 2022 published statistics, these Florida Engineering businesses employ more than 64,000 people with an average wage of $64,242.20 ACCOUNTING SERVICES With 8,839 Accounting Services establishments, Florida is second in the nation and is the Southeast’s largest state with an estimated 8.3% of business locations in 2022, growing at annualized rate of 1.2%. The Accounting establishments employ 46,467 people with wages reaching $2.7 billion and is projected to grow at annualized rate of 0.6% to $7.1 billion.21 PROJECT ACTIVITY Since the last update, EFI has worked with 80 Financial and Professional Services opportunities, successfully facilitating 40 relocations/expansions, with an anticipated 6,626 new jobs and $439 million in capital investment. Adopted changes to the Financial and Professional Services target Industry designation As recommended by EFI, DEO has adopted no changes to the financial and professional services sector identified in the Target Industry List. In the 2010 Target Industry Update, it was noted that most of the projects within the 56 NAICS Code were eliminated from eligibility due to change in statute. Section 288.106 of the Florida Statute excludes NAICS Codes 5611 (Office Administrative Services) and 5614 (Business Support Services) from Target Industry status unless specific conditions are satisfied to allow for inclusion. Snapshot Source: JobsEQ® - Data as of 2022Q2 14 US Bureau of Labor Statistics 15 IBIS World 16 FDIC – Florida State Profile 17 National Association of Insurance Commissioners, State Insurance Regulation: Key Facts and Market Trends Florida 2020 18 U.S. Department of Commerce, Bureau of Economic Analysis, SAEMP27N Full-Time and Part-Time Wage and Salary Employment by NAICS Industry, 11/22/21 19 JOBSeq 20 IBIS World 21 IBIS World Financial & Professional Services Total Sub-sector Description Sub-sector NAICS Credit Intermediation and Related Activities 522 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 523 Insurance Carriers and Related Activities 524 Funds, Trusts, and Other Financial Vehicles 525 Professional, Scientific, and Technical Services 541 11.A.b Packet Pg. 53 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 23 INFORMATION TECHNOLOGY SNAPSHOT – 2022 UPDATE VS. 2019 UPDATE • $42.7 billion to Florida GDP • $34.9 billion at time of last update – increase of $7 billion • 22.1% increase • 16,597 Information Technology Establishments • 10,851 at time of last update – increase of 5,746 • 53% increase • 138,258 Jobs • 134,183 at time of last update – increase of 4,075 • 3% increase • $101,945 Average Wage • $78,969 at time of last update – increase of $22,976 • 29.1% increase • 2025 Forecast • 7,342 more Informational Technology jobs • 1.7% annual job growth INDUSTRY OVERVIEW The technology and innovation sector will see tremendous growth now and through the next decade, based on a continued trend of innovation focus in business spending despite continued nationwide economic uncertainty. Florida remains a hotspot for tech businesses. Four key areas provide lucrative opportunities for the state to maintain its hold while climbing the list in other areas: computer system design and software development – including in the areas of finance and insurance – Artificial Intelligence, robotics and semiconductors will remain signature verticals for EFI’s business development strategies. Information Technology intersects with the Target Industry of Professional Services. COMPUTER SYSTEMS DESIGN Computer systems design accounts for the largest share of overall tech employment in the state with 29% of all jobs (37,134 employed), with software publishing in second at a 6.3% share with 8,157 employed. Both areas are projected to grow exponentially as demand for Application Programming Interfaces (API), cloud-based computing and various other software continues. FinTech and InsureTech, still somewhat new verticals, rely heavily on Artificial Intelligence and security systems and thus open multiple upstream and downstream business potential. Multiple universities including the University of Florida and Florida Atlantic University have invested millions in research and innovation space for AI ventures, with the University of South Florida’s FinTech Center is one of many niche centers aimed at tapping into that market. +22.1% +53% +29.1% +1.7% $34.9 Billion +$7 Billion 10,851 +5,746 134,183 +4,075 $78,969 +$22,976 +7,342 +3% 11.A.b Packet Pg. 54 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 24 ROBOTICS Robotics is projected to grow 24% nationwide by 2026, with an estimated economic impact of $26.25 billion. Robotics hits multiple target industries in Florida – life sciences, innovation and technology, aerospace and aviation, and manufacturing to name a few – and the state has some critical infrastructure. The Institute for Human and Machine Cognition in Ocala is conducting groundbreaking robotics research and its widespread uses, such as exoskeletons for human mobility assistance. Eventually this technology has the potential to be used in virtually every industry in some capacity, especially where workforce is lacking, or work conditions are dangerous. SEMICONDUCTOR MANUFACTURING Lastly, with continued federal investment in semiconductor chips, Florida is poised to potentially capture much this growth as newer and established companies look to expand production and distribution. Existing assets such as NeoCity in Osceola County have abundant acreage for tenants in the field. According to BEA, Florida’s semiconductor manufacturing industry GDP exceeded $3.7 billion dollars in 2021. Globally, the overall industry is expected to generate a trillion dollars in revenue by the end of the decade. According to the Semiconductor Industry Association, the industry supported 1.85 million Information Technology jobs in 2020, with 277,000 direct domestic jobs. For each direct job, 5.7 indirect jobs are created by the industry. The report ranked Florida sixth in the nation in semiconductor employment with 12,900 employed, a 5% share of the entire U.S. industry. PROJECT ACTIVITY Since the last update, EFI has worked with 127 Information Technology opportunities, successfully facilitating 13 relocations/expansions, with an anticipated 1,837 new jobs and $397 million in capital investment. Adopted changes to the Information Technology target Industry designation As recommended by EFI, DEO has adopted no changes to the Information Technology sector on the Target Industry List. 11.A.b Packet Pg. 55 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 25 AVIATION AND AEROSPACE SNAPSHOT – 2022 UPDATE VS. 2019 UPDATE • $13.5 billion to Florida GDP in 2021 • $22.6 billion at time of last update – decrease of over $9 billion • 40% decrease • 2,743 Aviation and Aerospace Establishments • 2,426 at time of last update – increase of 317 • 13% increase • 123,905 Jobs • 121,564 at time of last update – increase of 2,341 • 1.9% increase • $96,690 Average Wage • $86,411 at time of last update – increase of $10,279 • 11.9% increase • 2025 Forecast • 6,518 more Aviation and Aerospace jobs • 1.7% annual job growth INDUSTRY OVERVIEW Home to the renowned Kennedy Space Center, Cecil Spaceport and Cape Canaveral Air Force Station, Florida’s aviation and aerospace industry is the world’s gateway to space. As the birthplace of commercial aviation, Florida has 130 public-use airports and 20 commercial airports to seamlessly move goods and people around the globe. Florida has positioned itself as a major hub for flight training, MRO and the manufacturing of aircraft, engines, and components. Opportunities for the state in the near future are the manufacturing of electric vertical takeoff and landing (eVTOLs) aircraft and unmanned aerial vehicles (UAV’s), continuing MRO growth and satellite manufacturing. With industry contribution totaling $13.5 billion to Florida’s GDP in 2021, aviation and aerospace will continue being one of the state’s strongest target industries.  The target industry data for Aviation & Aerospace intersects with data from Manufacturing, Defense & Homeland Security, and Global Logistics & Trade. ELECTRIC VERTICAL TAKEOFF AND LANDING AIRCRAFT MANUFACTURING The electric vertical takeoff and landing (eVTOL) aircraft uses electric power to take off, hover, and land vertically. This technology came about thanks to major advances in electric propulsion and the growing need for new vehicles to transport cargo and people faster than ever before. Manufacturers are working to have eVTOLs in the air by as early as 2024, and widely available by 2030.22 Prototypes are being developed by aircraft companies such as Boeing, Airbus, Embraer, Honda, Toyota, Hyundai, and NASA. There is room for potential growth within this segment in Florida, with 20 commercial airports and more than 130 public-use airports. +13% +11.9% +1.7% $13.5 Billion -$9 billion 2,426 +317 121,564 +2,341 $86,411 +$10,279 +6,518 -40% +1.9% 11.A.b Packet Pg. 56 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 26 UNMANNED AERIAL VEHICLE MANUFACTURING (FOR COMMERCIAL USES) An unmanned aerial vehicle (UAV), or drone, is an aircraft without any human pilot, crew, or passengers on board. The market for contactless parcel delivery has grown significantly in the past few years. As drone technology continues to improve it makes last-mile fulfillment of food and goods significantly faster, more cost effective, more sustainable, and more eco-friendly while helping unclog congested roads. Programs in the U.S. are already in place by major companies like Amazon, UPS, FedEx, and Walmart. As of early 2022, it is estimated that more than 2,000 drone deliveries are occurring each day worldwide. The growth rate is accelerating every week, and projections are close to 1.5 million deliveries in 2022, up from just under half a million in 2021.23 Opportunity presents itself as manufacturing facilities and maintenance, repair, and overhaul facilities will be needed to maintain drone fleets as mass delivery operations becomes more of a reality. MAINTENANCE REPAIR AND OVERHAUL (MRO) Companies in this industry provide support services to air transportation operators, such as aircraft inspection and testing, ferrying aircraft between departure gates and taxiways, aircraft maintenance and repair and aircraft and parts overhaul. Over the next ten years, approximately 11,000 aircraft retirements are expected.24 This presents a multifaceted opportunity as the retired aircraft may be used for spare parts by MROs, and it will naturally cause newer aircraft to be brought in, which will require more advanced and highly technical MRO services. In response to advanced air mobility trends, MRO players are anticipated to diversify and expand their services to cover testing for everything from electric aircraft prototypes to unmanned aircraft. MRO continues to be a great opportunity as Florida has the highest MRO concentration in the nation, as well as the highest revenue at $6 billion.25 PROJECT ACTIVITY Since the last update, EFI has worked with 69 Aviation and Aerospace opportunities, successfully facilitating 30 relocations/expansions, with an anticipated 10,460 new jobs and $2.05 billion in capital investment. Adopted changes to the Aviation and Aerospace target Industry designation As recommended by EFI, DEO has adopted no changes to the Aviation and Aerospace sector on the Target Industry List. 22 McKinsey & Company. “The future of air mobility: Electric aircraft and flying taxis.” 2022. 23 McKinsey & Company. “Drone delivery: More lift than you think.” March 15, 2022. 24 IATA (International Air Transport Association). “Helping Aircraft Decommissioning.” 2022 25 IBIS World. “Aircraft Maintenance, Repair & Overhaul in the U.S “June 2022. 11.A.b Packet Pg. 57 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 27 DEFENSE AND HOMELAND SECURITY INDUSTRY OVERVIEW With 21 military installations, over 23,000 companies and over 250,000 employees, Florida is home to one of the nation’s largest defense and homeland security industries. Virtually every major defense contractor from the U.S. and abroad has significant operations in Florida proving that there are major benefits of being within close proximity of key procurement offices, research operations, testing units, and training commands for all branches of the military. Opportunities for the state in the near future are the manufacturing of unmanned aerial vehicles (UAV’s) for military applications, as well as, the manufacturing of hypersonic weapons. As with Aviation & Aerospace, the target industry data for Defense and Homeland Security intersects with data from Manufacturing. UNMANNED AERIAL VEHICLE MANUFACTURING (FOR MILITARY APPLICATIONS) Industry operators manufacture and design unmanned aerial vehicles (UAVs) or drones for primary military applications: armed attack, surveillance, communications, and research. UAVs can be either autonomous or remote-controlled and are used in situations where the use of a human pilot is undesirable or dangerous. As the military shifts priorities to modernization, research and development could be an opportunity for industry growth. Despite limited overall funding, the industry has continued to receive US military funding for key development and production programs such as the Global Hawk, stealth combat and surveillance drones, aircraft carrier- launched UAVs and many other initiatives, including top-secret projects.26 Additionally the Ukrainian battlefield is functioning as a testing ground for emerging drone technologies; the world may look back upon the war as the beginning of a new era in multimodal tactics.27 HYPERSONICS The United States has actively pursued the development of hypersonic weapons - maneuvering weapons that fly at speeds of at least Mach 5 - as a part of its conventional prompt global strike program since the early 2000s.28 Development efforts are in two categories: hypersonic glide vehicles - which are launched from a rocket before gliding to a target, and hypersonic cruise missiles -which are powered by high-speed, air-breathing engines during flight. As global conflicts with Russia and China escalate, the race to develop hypersonic weapons and defense systems becomes increasingly more important. The Pentagon’s FY2023 budget request for hypersonic research is $4.7 billion - up from $3.8 billion in the FY2022 request.29 Major players in the hypersonics market are Lockheed Martin, Raytheon Technologies, Northrop Grumman, and Boeing to name a few; one thing they all have in common are strong ties to Florida which would present expansion opportunities in the defense market. PROJECT ACTIVITY Since the last update, EFI has worked with 16 Defense and Homeland Security opportunities, successfully facilitating four relocations/expansions, with an anticipated 333 new jobs and $77.7 million in capital investment. Adopted changes to the Defense and Homeland Security Industry Designation As recommended by EFI, DEO has adopted no changes to the Defense and Homeland Security sector on the Target Industry List. 26 IBIS World. “Unmanned Aerial Vehicle (UAV) Manufacturing.” 2022. 27 PWC. “Global Aerospace and Defense Annual Industry Performance and Outlook.” 2022. 28 Congressional Research Service. “Hypersonic Weapons: Background and Issues for Congress.” July 20, 2022. 29 Congressional Research Service. “Hypersonic Weapons: Background and Issues for Congress.” July 20, 2022. 11.A.b Packet Pg. 58 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 28 LIFE SCIENCES SNAPSHOT – 2022 UPDATE VS. 2019 UPDATE (INCLUDES HEALTH SERVICES) • $102 billion to Florida GDP in 2021 • $96 billion at time of last update – increase of over $4 million • 6.9% increase • 60,514 Life Science Establishments • 53,239 at time of last update – increase of 7,275 • 13.6% increase • 983,450 Jobs • 956,259 at time of last update – increase of 27,191 • 2.8% increase • $83,053 Average Wage • $72,576 at time of last update – increase of $10,477 • 14.4% increase • 2025 Forecast • 56,697 more Life Science jobs • 1.8% annual job growth INDUSTRY OVERVIEW The state of Florida offers Life Sciences companies and R&D centers a broad range of industry expertise. Florida is home to the nation’s second-largest medical device manufacturing industry, second-largest pharmaceuticals manufacturing industry and the fifth-largest biotech R&D industry. Major players in the field that have already taken up residence in Florida include Johnson & Johnson, Bausch + Lomb, Bristol-Myers Squibb, Medtronic, Arthrex, and the Mayo Clinic. PHARMACEUTICAL MANUFACTURING The prescription drug industry is being driven forward by the rising number of drug approvals, especially in the orphan and oncology drug areas. Barriers for exponential growth in the industry include uncertainty in drug pricing, patent expirations, cost of clinical development, increased competition in the anti-rheumatics, and low research and development investments as a proportion of sales. Brand-name pharmaceutical manufacturers are predicted to have a slower growth in revenue going into the next year. IBIS World reports that revenue growth will decrease from a predicted 4.5% to a 2.6%.30 This decrease is due to a lower demand in non-essential medication, with consumers being less likely to travel for medication that is not vital to their health. Mitigating world supply chain disruptions, specifically in the active pharmaceutical ingredients industry is keeping trade alive. The generics industry is expanding at a steady pace due to efforts to minimize medication costs and increased access to health insurance. While patent expirations have benefited industry revenue, they have also induced brand-name manufacturers to cut costs, including R&D spending which ultimately decreases the total number of new pharmaceutical products coming off the pipelines, threatening the long-term viability of generics. In response, generic manufacturers are exploring new product lines, such as biosimilars which is shrinking the spending gap for R&D between brand- name manufacturers and generic manufacturers. In addition, the generics industry is expanding into new emerging markets where consumers can only afford generics and the cost to market entry is low. Healthcare reform will further benefit the industry through expanded insurance coverage for prescription drugs, an improved generic drug approval process and an established approval pathway for biosimilars. The use of generic drugs helps lower costs for employers, insurance companies, governments, and ultimately patients. +6.9% 13.6% 14.4% +1.8% 2.8% $96 Billion +$4 Million 53,239 7,275 956,259 27,191 $72,576 $10,477 +56,697 11.A.b Packet Pg. 59 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 29 MEDICAL DEVICE MANUFACTURING “The global medical device market was valued at $425.5 billion in 2018 and is expected to reach $612.7 billion by 2025…. The United States leads the medical device market globally.”31 Technological advances, the legislative expansion of healthcare access and the improving economy have stimulated demand for medical devices in the past five years, and the aging U.S. population has further contributed to revenue growth. The future of the domestic industry is two-fold as over the past five years the trend to outsource has continued due to unpredictable regulations and increased operational costs. It is critical to encourage medical device manufacturing to ensure supply chain strength and the ability to provide for domestic healthcare needs. Despite outsourcing, the industry has continued to increase its employment numbers, a trend which is likely to continue with increased revenue. BIOTECHNOLOGY The biotechnology industry relies on research and development to advance various products and enter new market segments. In the next year, the industry is well positioned to grow with the number of industry operators rising, and continuous government funding for the industry. In order to lower costs and advance product lines, major companies will continue to acquire small companies with patents for new products. While pharmaceuticals remain the largest sub-sector, biopharmaceuticals are likely to grow as a share of the overall industry. Over the next five years, industry revenue is projected to increase at an annualized rate of 2.9% to $124.8 billion.32 Life sciences companies will likely continue to take advantage of emerging technologies such as artificial intelligence (AI), robotic process automation (RPA), and predictive analytics to speed innovation, enable precision medicine, support the development of new therapies, and address productivity challenges. PROJECT ACTIVITY Since the last update, EFI has worked with 86 Life Sciences opportunities, successfully facilitating 31 relocations/ expansions, with an anticipated 4,153 new jobs and $584 million in capital investment. Adopted changes to the Life Sciences Industry designation As recommended by EFI, DEO has adopted no changes to the Life Sciences sector on the Target Industry List. 30 IBIS World. “Unmanned Aerial Vehicle (UAV) Manufacturing” 2022. 31 IBIS World 32 Deloitte, 2020 Global Life Science Outlook Report 11.A.b Packet Pg. 60 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 30 CLEAN TECHNOLOGY INDUSTRY OVERVIEW Clean Technology (Cleantech) encompasses the investment asset class, technology, and business sectors which include clean energy, and environmental and sustainable products and services. Florida is the 7th state for an overall size of the clean economy, a sector that provides the opportunity for workers at all levels of income and skills distribution. Florida boasts one of the nation’s largest markets for cleantech goods and services, with over 11,700 establishments.33 According to figures presented at the Global Cleantech Summit the world market for clean technology is expanding and will continue to expand for the next three years. Demand for Cleantech can potentially grow due to electric power consumption growth, volatility, and increase in the price of natural gas and steaming coal. The battery manufacturing industry is also experiencing significant growth, with a growth rate of 5.9% from 2017 to 2022.34 In particular, the solar industry has an opportunity to grow in the United States. Historically, low-cost solar cell and panel imports from Asian countries have prevented American-produced panels from capturing the solar market. The U.S. International Trade Commission has proposed a remedy of sanctions that will help U.S.-produced solar panels stay competitive in the short-run. In addition, the solar investment tax credit has been extended through 2032. This creates a favorable window of opportunity for foreign solar manufacturers to relocate to the U.S. EFI has seen a sense of urgency from solar manufacturers to locate in the U.S. due to these policy changes and the recent tariff levied on foreign manufactured panels entering the U.S. market. Within the last year, EFI has been involved in multiple site visits from leading solar module and panel manufacturers for this reason. According to the Interstate Renewable Energy Council’s 2021 Solar Job Census, Florida ranks second nationally in solar jobs and with operators seeking skilled employees for manufacturing, installation, operations, and maintenance. In 2022, semiconductor and related device manufacturing alone employed 17,809 Florida workers with an annual average wage of $109,039. PROJECT ACTIVITY Since the last update, EFI has worked with 38 Clean Technology opportunities, successfully facilitating seven relocations/expansions, with an anticipated 952 new jobs and $129 million in capital investment. Adopted changes to the Clean Technology Industry designation As recommended by EFI, DEO has adopted no changes to the Clean Technology sector on the Target Industry List. 33 Jobs EQ 34 IBIS World 11.A.b Packet Pg. 61 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 31 RESEARCH AND DEVELOPMENT INDUSTRY OVERVIEW Research and Development (R&D) spending covers investments made by universities, industries, and public and private institutions to develop new products, devise new applications, and advance Florida’s stock of knowledge and manufacturing capacity. The State of Florida’s R&D expenditures, the fourth largest among the states, are primarily in health, environmental and natural resources, and agriculture.35 The state’s total R&D spending is significant, reaching $11.3 billion in 2019 which placed it 14th among the states.36 Higher education expenditures totaled $2.4 billion in 2020, ranking 12th among the states.37 Industry expenditures on R&D will have to match the academic and state levels to solidify Florida’s position as a leader in R&D. The State University System’s Board of Governors has focused on R&D activities and expenditures over the past year. Florida’s State University System (SUS) is ranked fifth in the country for public institution research expenditures resulting from efforts to increase research expenditures by 30% since 2013.38 Further, the SUS has seen a 13% increase in such expenditures over the last five years.39 Looking forward, the Board of Governors has increased the R&D goal in their strategic plan to a total of $3 billion annual expenditures by 2025.40 Florida’s R&D community is associated with and bolstered by the Life Sciences industry within the state. Scientific Research & Development is a $3.8 billion industry in Florida.41 R&D wages reflect a higher education requirement than that of occupations in other industries. The national average annual wage for companies operating under the Scientific Research and Development Services industry (NAICS 5417) was $116,290 in 2021.42 PROJECT ACTIVITY Since the last Target Industry Update, Enterprise Florida has not competed for projects with primary focus solely on Research & Development. However, as with Manufacturing and Corporate Headquarters, Research & Development intersects with all Target Industries, and increasingly Enterprise Florida is partnering with the Florida Department of Education, technical colleges, state colleges and state universities to collaboratively compete for relocations/expansions. By their nature, those collaborations with partners in education infuse postsecondary institutions’ workforce education and sometimes even research missions into economic development projects. Moreover, Enterprise Florida and the Florida Department of Economic Opportunity are more frequently collaborating with their small business and early stage venture capital tools to engage Florida-based companies that may not yet be inducible for large scale projects but offer high-reward R&D opportunities. Adopted changes to the Research and Development Target Industry designation As recommended by Enterprise Florida, DEO has adopted no changes to the Research and Development sector on the Target Industry List. 35 National Science Foundation, Science and Engineering State Profiles 36 Ibid 37 Ibid 38 Ibid 39 Ibid 40 Florida Board of Governors 2025 System Strategic Plan (amended November 2022) 41 IBISWorld, “Scientific Research & Development in Florida,” IBISWorld 42 Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2021 11.A.b Packet Pg. 62 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 32 APPENDIX A INDUSTRY GROUPINGS AND CORRESPONDING NAICS CODES AVIATION & AEROSPACE DESCRIPTION NAICS CODE AVIATION Air Transportation, of which:481 Scheduled Passenger Air Transportation 481111 Scheduled Freight Air Transportation 481112 Nonscheduled Chartered Passenger Air Transportation 481211 Nonscheduled Chartered Freight Air Transportation 481212 Other Nonscheduled Air Transportation 481219 Support Activities for Air Transportation, of which:4881 Air Traffic Control 488111 Other Airport Operations 488119 Other Support Activities for Air Transportation 488190 Flight Training 611512 AEROSPACE Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing 334511 Aerospace Product and Parts Manufacturing, of which:3364 Aircraft Manufacturing 336411 Aircraft Engine and Engine Parts Manufacturing 336412 Other Aircraft Parts and Auxiliary Equipment Manufacturing 336413 Guided Missile and Space Vehicle Manufacturing 336414 Propulsion Units and Parts, Guided Missile and Space Vehicle Manufacturing 336415 Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing 336419 Satellite Communications 517410 Space Research and Technology 927 11.A.b Packet Pg. 63 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 33 CLEANTECH DESCRIPTION NAICS CODE ENERGY Solar, including: Semiconductor and Related Device Manufacturing 334413 Heating Equipment (Except Warm Air Furnaces) Manufacturing 333414 Current-Carrying Wiring Device Manufacturing 335931 Plastics Material and Resin Manufacturing 325211 Unlaminated Plastics Film and Sheet Manufacturing 326113 Biofuels, including: Ethyl Alcohol Manufacturing 325193 All other Basic Organic Chemical Manufacturing 325199 Air and Gas Compressor Manufacturing 333912 Turbine and Turbine Generator Set Units Manufacturing 333611 Industrial Process Furnace and Oven Manufacturing 333994 Sawmills 321113 Starch and Vegetable Fats and Oils Manufacturing 31122 Storage, including: Industrial Gas Manufacturing 325120 Storage Battery Manufacturing 335911 Smart Grid, including: Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals 334515 Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables 334513 Other Measuring and Controlling Device Manufacturing 334519 Power, Distribution and Specialty Transformer Manufacturing 335311 EFFICIENCY Advanced Materials, including: Automatic Environmental Control Manufacturing 334512 Electric Bulb and Part Manufacturing 335110 Other Industrial Machinery Manufacturing 333249 Other Codes: Engineering Services 541330 Other Scientific and Technical Consulting Services 54169 Research and Development 54171 ENVIRONMENT Water, including: Other Commercial and Service Industry Machinery Manufacturing 333318 Air and Environment, including: Environmental Consulting Services 541620 Testing Laboratories 541380 Industrial and Commercial Fan and Blower and Air Purification Equipment Manufacturing 333413 11.A.b Packet Pg. 64 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 34 DEFENSE AND HOMELAND SECURITY DESCRIPTION NAICS CODE AIRCRAFT, MISSILES, AND ORDNANCE Aircraft Manufacturing 336411 Aircraft Engine and Engine Parts Manufacturing 336412 Other Aircraft Parts and Auxiliary Equipment Manufacturing 336413 Guided Missile and Space Vehicle Manufacturing 336414 Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing 336415 Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing 336419 Military Armored Vehicle, Tank and Tank Component Manufacturing 336992 Ammunitions (Except Small Arms) Manufacturing 332993 Small Arms, Ordnance, and Ordnance Accessories Manufacturing 332994 DEFENSE ELECTRONICS AND EQUIPMENT Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing 334220 Other Communications Equipment Manufacturing 334290 Semiconductor and Related Device Manufacturing 334413 Printed Circuit Assembly Manufacturing 334418 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing 334511 PHOTONICS AND OPTICS SUBTOTAL Portion of Industry Identified by NAICS, of which: Optical Instrument and Lens Manufacturing 333314 Photographic and Photocopying Equipment Manufacturing 333316 MODELING, SIMULATION, AND TRAINING SUBTOTAL Engineering Services 541330 Custom Computer Programming Services 541511 Computer Systems Design Services 541512 R&D in the Physical, Engineering, and Life Sciences 54171 SHIPBUILDING AND REPAIR Shipbuilding and Repair 336611 11.A.b Packet Pg. 65 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 35 FINANCIAL & PROFESSIONAL SERVICES DESCRIPTION NAICS CODE FINANCIAL SERVICES Credit Intermediation and Related Activities, of which:522 Depository Credit Intermediation 5221 Nondepository Credit Intermediation 5222 Activities Related to Credit Intermediation 5223 Securities, Commodity Contracts, and Other Financial Investments and Related Activities, of which: 523 Securities and Commodity Contracts 5231 Intermediation and Brokerage Securities and Commodity Exchanges 5232 Other Financial Investment Activities 5239 5239 Insurance Carriers and Related Activities 524 Funds, Trusts, and Other Financial Vehicles 525 PROFESSIONAL SERVICES Professional, Scientific, and Technical Services, of which:541 Legal Services 5411 Accounting, Tax Preparation, Bookkeeping, and Payroll Services Architectural, Engineering, and Related Services 5412 Architectural, Engineering, and Related Services 5413 Specialized Design Services 5414 Management, Scientific, and Tech Consulting Services 5416 Scientific R&D Services 5417 Advertising and Related Services 5418 5418 Other Professional, Scientific and Tech Services 5419 CORPORATE HEADQUARTERS Managing Offices 551114 11.A.b Packet Pg. 66 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 36 INFORMATION TECHNOLOGY DESCRIPTION NAICS CODE SOFTWARE AND COMPUTER SYSTEMS Software and Computer Programming, of which: Software Publishers 513210 Custom Computer Programming Services 541511 Computer System Design and Support, of which: Computer System Design 541512 Computer Facilities Management Services 541513 Other Computer Related Services 541519 Computer Training 611420 PHOTONICS/OPTICS Portion of Industry Identified by NAICS, of which: Optical Instrument and Lens Manufacturing 333314 Photographic and Photocopying Equipment Manufacturing 333316 DIGITAL MEDIA Digital Media Components, of which: Magnetic and Optical Recording Media Manufacturing 334613 Software and Other Prerecorded Compact Disc, Tape, and Record Reproducing 334614 Digital Media Services, of which: Sound Recording Studios 512240 Motion Picture and Video Production 512110 Teleproduction and Other Post Production 512191 Other Motion Picture and Video Industries 512199 Graphic Design Services 541430 COMMUNICATIONS Communications Equipment Manufacturing, of which: Telephone Apparatus Manufacturing 334210 Radio and TV Broadcasting and Wireless Communications Equipment Manufacturing 334220 Other Communications Equipment Manufacturing 334290 Audio and Video Equipment Manufacturing 334310 Switchgear and Switchboard Apparatus Manufacturing 335313 Fiber Optic Cable Manufacturing 335921 Other Communication and Energy Wire Manufacturing 335929 11.A.b Packet Pg. 67 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 37 Communications Services, of which: Internet Publishing and Broadcasting and Web Search Portals 519130 Data Processing, Hosting and Related Services 518210 Wired Telecom Carriers 517111 Wireless Telecom Carriers 517112 Satellite Communications 517410 All Other Telecommunications 517810 COMPUTER PRODUCTS, MICRO ELECTRONICS, AND PRECISION DEVICE MANUFACTURING Computer and Peripheral Equipment, of which: Electronic Computer Manufacturing 334111 Computer Storage Device Manufacturing 334112 Computer Terminal Manufacturing and Other Computer Peripheral Equip. Manufacturing 334118 Semiconductor and Related Devices, of which: Semiconductor and Related Device Manufacturing 334413 Semiconductor Machinery Manufacturing 333242 Microelectronic Components, of which: Bare Printed Circuit Board Manufacturing 334412 Capacitor, Resistor, Coil, Transformer, and Other Inductor Manufacturing 333416 Electronic Connector Manufacturing 334417 Printed Circuit Assembly (Electronic Assembly) Manufacturing 334418 Other Electronic Component Manufacturing 334419 Measuring, Precision, and Process Simulation Components, of which: Search, Detection, and Navigations Instruments 334511 Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use 334512 Instrument and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables 334513 Totalizing Fluid Meter and Counting Device Manufacturing 334514 Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals 334515 Other Measuring and Controlling Device Manufacturing 334519 Relay and Industrial Control Manufacturing 335314 11.A.b Packet Pg. 68 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 38 LIFE SCIENCES DESCRIPTION NAICS CODE BIOTECHNOLOGY Research and Development in Biotechnology 541714 PHARMACEUTICAL AND MEDICINE MANUFACTURING Medicinal and Botanical Manufacturing 325411 Pharmaceutical Preparation Manufacturing 325412 In-Vitro Diagnostic Substance Manufacturing 325413 Biological Product Manufacturing 325414 MEDICAL DEVICES Electromedical and Electrotherapeutic Apparatus Manufacturing 334510 Analytical Laboratory Instrument Manufacturing 334516 Irradiation Apparatus Manufacturing 334517 Surgical and Medical Instrument Manufacturing 339112 Surgical Appliance and Supplies Manufacturing 339113 Ophthalmic Goods Manufacturing 339115 LOGISTICS & DISTRIBUTION DESCRIPTION NAICS CODE LOGISTICS AND DISTRIBUTION Wholesale Trade Agents and Brokers 425120 Freight Transportation Arrangement 488510 Packing and Crating 488991 General Warehousing and Storage 493110 Refrigerated Warehousing and Storage 493120 Other Warehousing and Storage 493190 Process, Physical Distribution, and Logistics Consulting Services 541614 Packaging and Labeling Services 561910 TRANSPORTATION AND WHOLESALE TRADE Transportation and Warehousing 48-49 Wholesale Trade 42 11.A.b Packet Pg. 69 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 39 MANUFACTURING (31-33) DESCRIPTION NAICS CODE DURABLE GOODS SUBTOTAL Wood Product Manufacturing 321 Nonmetallic Mineral Product Manufacturing 327 Primary Metal Manufacturing 331 Fabricated Metal Product Manufacturing 332 Machinery Manufacturing 333 Computer and Electronic Product Manufacturing 334 Electrical Equipment and Appliance Manufacturing 335 Transportation Equipment Manufacturing 336 Furniture and Related Product Manufacturing 337 Medical Equipment and Miscellaneous Manufacturing 339 NONDURABLE GOODS SUBTOTAL Food Manufacturing 311 Beverage and Tobacco Product Manufacturing 312 Textile Mills 313 Textile Product Mills 314 Apparel Manufacturing 315 Leather and Allied Product Manufacturing 316 Paper Manufacturing 322 Printing and Related Support Activities 323 Petroleum and Coal Products Manufacturing 324 Chemical Manufacturing 325 Plastics and Rubber Products Manufacturing 326 RESEARCH & DEVELOPMENT DESCRIPTION NAICS CODE Scientific Research and Development Services 5417 Space Research and Technology 927 11.A.b Packet Pg. 70 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 40 MIAMI 201 Alhambra Circle, Suite 610 Coral Gables, Florida 33134 +1-305-808-3660 ORLANDO 800 North Magnolia Avenue, Suite 1100 Orlando, Florida 32803 +1-407-956-5600 TALLAHASSEE 101 North Monroe Street, Suite 1000 Tallahassee, Florida 32301 +1-850-298-6620 11.A.b Packet Pg. 71 Attachment: Target-Industry-Update-2022 (26412 : Dialum Agreement) 11.A.cPacket Pg. 72 Attachment: 327 - NAICS Code Description - NAICS Association - www.naics.com (26412 : Dialum Agreement) 11.A.c Packet Pg. 73 Attachment: 327 - NAICS Code Description - NAICS Association - www.naics.com (26412 : Dialum Agreement)