Swiss investment heats up job-making Florida economy
RUAG, a Swiss company that manufactures satellite parts, recently opened a new plant in Titusville. RUAG is teaming up with space technology firm OneWeb to build and launch 900 communications satellites, which will offer fast internet connections to rural communities across the globe. The project will generate more than 600 jobs along the Space Coast.
The satellite maker isn’t the only Swiss firm helping to grow Florida’s economy. Financial services giant Credit Suisse, food and beverage behemoth Nestlé, and watchmaker TAG Heuer have all brought their business to Florida. Ingenus, a Swiss pharmaceutical company that manufactures generic medicines, set up its corporate headquarters in Orlando. And Swiss biotech firm Novartis has several locations across the state.
Companies from the tiny Alpine nation have quietly become some of Florida’s largest investors. And thanks to demographic shifts and tax reform, these foreign firms are poised to further expand their Sunshine State operations. That’s terrific news for job seekers in our state.
Swiss companies are some of the largest employers in the Sunshine State. These firms support almost 20,000 Florida jobs — 7 percent of all jobs created by foreign investment. Florida’s exports to Switzerland support an additional 15,000 jobs. All told, the livelihoods of 35,000 Floridians are dependent on Swiss businesses and consumers.
Take Swiss cigar maker Davidoff. In 2010, the company decided to relocate from Stamford, Conn., to take advantage of $240,000 in state money and $64,000 in fee reductions and tax breaks from Pinellas Park. Davidoff brought 90 jobs to the local community, each paying 150 percent of Pinellas Park’s average yearly salary.
Or consider Swiss freight shipper Panalpina. In 2012, the company opted to move its Americas regional headquarters to Miami. The reason? “From Miami, you can reach destinations in the U.S. and Latin America fast,” explained thenCEO for the Americas Ferdinand Kurt. The decision created 300 local jobs.
Swiss companies generate social and community benefits as well. Nestlé, which employs over 850 Floridians, is working with the Environmental Protection Agency and local volunteers to keep the Hillsborough River free of trash. And Art Basel, a Swiss gallery, annually hosts an exhibit of paintings, sculptures, and photographs from internationally renowned artists in Miami Beach.
Florida attracts investments from all around the globe, not just from Switzerland. In fact, Florida ranks sixth in the nation for foreign direct investment — the state garnered over $10 billion in 2016. We host over 14,000 international firms in South Florida alone. And across the state, foreign companies employ over 266,000 workers.
Among the international businesses that have set up shop in Florida are Taiwan-based Acer, Japan-based Panasonic, Germany’s Porsche, and South Korea’s Samsung.
These foreign firms are attracted to Florida for the same reasons Swiss companies flock to the state — geographic advantages, pro-business policies and a talented work force.
Florida serves as a gateway between the United States and Latin America. In 2014, research organization América Economía Intelligence ranked Miami the best place to do business in Latin America — even though Miami technically isn’t in Latin America.
This isn’t an accident or the result of good fortune. Florida’s past and current elected leaders can rightfully take credit for providing companies with a stable tax and regulatory climate. Out of the 44 states that collect a corporate income tax, Florida has one of the lowest, at only 5.5 percent.
Plus, Florida doesn’t have a personal income tax, so workers keep more of their hard-earned money. That’s an important consideration for foreign companies deciding where to locate their U.S. operations. Firms know it’ll be easier to persuade new hires to move to the Sunshine State compared to hightax states like New York and California. The recent tax-reform bill, which limits the state and local tax deduction for people in high-tax states, makes Florida even more attractive to workers and companies.
As long as Tallahassee politicians maintain pro-business policies, foreign firms will continue to create jobs across the Sunshine State.