Corridor In The News

'Economic Summit' answers 'what next'

by Gary Roberts
May 19, 2010

It is a question that some may fear the answer to: “The Future—What’s Next for Seminole County’s Economy?”

But local experts ventured into the realm of prognostication at the recent “Economic Summit,” hosted by the Seminole County Regional Chamber of Commerce and the University of Central Florida Metro Center.

And while speakers noted the inexact science involved in predicting the future, especially when based on such an economic aberration of the last few years, business leaders also know the value of planning ahead.

In general, the new economy that emerges from the Great Recession will demand increased technological skills, entrepreneurship and innovation. And Seminole County, having already made significant inroads in these areas in transitioning from a bedroom community to a high-tech destination, is well positioned to compete in the future workplace, said Graham Toft, founder and CEO of Growth Economics, Inc., which partners with public and business leaders.

“Some call it the new normal, but I call it the next abnormal,” he said.

“Regenerative economics is very much part of our DNA. Every time we got into a recession, we figure out a new way to come out of it. All this is part of a creative environment that feeds on itself.”

Toft said the path toward a revitalized economy must also be lined with a pro-business climate and quality-of-life assets that draw top talent and entrepreneurs to the area. While these conditions already exist in Seminole County, success is not guaranteed, with local business leaders needed to navigate still-troubling waters.

“Growth will be disparate,” he said, noting that only a handful of states and maybe 20 to 30 regions in the country will take the lead in the economic recovery. “Basically, you’re on your own for growth.”

This do-it-yourself economy will reward innovation and the ability to adapt to a changing landscape.

“Diversification really matters in a fast-changing economy,” he said.

In Central Florida, high-tech industries are in place and ready to surge, including biotech and life sciences, simulation and modeling, optics and photonics, and digital media.

Moreover, major economic drivers also exist—the University of Central Florida, Central Florida Research Park and the Orlando and Orlando Sanford international airports.

But, according to Toft, the major driver of the new economy will be small businesses and the self-employed. This “economic gardening” will be fueled, he said, by pro-growth strategies, more capital investment and a regional approach to economy that will attract the next generation of entrepreneurs and highly skilled workers.

“We want to become the No. 1 high-tech region in the world,” said Randy Berridge, president of the Florida High Tech Corridor Council since its formation in 1996.

By working closely with UCF, the University of South Florida and the University of Florida, the FHTCC is in the vanguard of developing new initiatives, providing money to about 50 projects annually.

“This is a government-funded program that has worked,” he said.

Berridge announced that the area recently lost its bid to bring in Sematech, a national center for photovoltaic research and development. Seminole County and Winter Springs commissioners had committed $15 million to locate a 100,000-square-foot manufacturing facility at the intersection of state roads 417 and 434 in Winter Springs.

But while this effort failed, other positives signs continue to develop locally.

UCF is now in the top tier of university research facilities across the country, and also boasts a medical school. Meanwhile, the UCF Business Incubator program has grown to 10 sites, including one in downtown Sanford that continues to expand. And then there is the Research Park, the seventh largest in the U.S. with 10,000 jobs.

As executive director of the National Center for Simulation, Lt. Gen. Thomas Baptiste is an integral part of a $5 billion industry, with the U.S. Department of Defense a primary customer.

“Central Florida is a powerhouse in the simulation and modeling industry,” Baptiste said.

Almost one in four of his employees live in Seminole County. The center in Research Park, near the UCF campus, also is located in close proximity to military acquisition commands for the Army, Navy and Marines.

But even the defense industry is facing cutbacks.

“Defense budgets will not be immune from budget cuts,” said Baptiste, noting a lack of any major projects in the pipeline.

Still, simulation and modeling will fare well because these technologies have proven to be an effective, and cost-efficient, method for military training.

We’re not going to sacrifice the readiness of our forces just because we have less money,” he said. “That bodes well for us.”

Simulation also can be applied to the health care industry.

“What we have learned in simulation is ripe to be transferred to how we train future health care providers,” he said. “Why don’t our surgeons practice in a risk-free environment?”

However, C.J. Soileau, UCF’s vice president for research and commercialization, had more sobering news regarding shrinking budgets. UCF, he said, is entering its fourth year of substantial cuts to its base budget.

“That’s the worst problem we have,” he said. “We are starving our higher-education system something fierce.”