1. ECONOMIC AND INDUSTRY PERSPECTIVES
ON PALM BEACH COUNTY
Tony Villamil
The Washington Economics Group, Inc.
INDUSTRY APPRECIATION
Business Development Board of Palm Beach
September 21, 2006

2. Economic Drivers of Palm Beach County Economy
Local and state business climate
U.S. economic activity
Global economic activity

3. “Stars” Properly Aligned for Strong 2006
Business climate one of the best in the nation
Expanding clusters of innovation, especially life sciences
U.S. economic driver; five years of above average growth
Global economy expanding strongly, especially key trade partners of Palm Beach

4. South Florida: Leading Florida in payroll employment growth
RESULTS: Solid Industry Expansion as Reflected in Regional and County Economic Numbers
South Florida: Leading Florida in payroll employment growth
57,400 jobs created over 12 months ended in August
Twice as fast as national average growth
Among leading growth industries in Palm Beach are professional and business services, leisure and hospitality, life sciences, educational services and knowledge-intensive manufacturing

5. Palm Beach County vs. Florida Employment Expansion 2006
Industry
Job Gains
(State)
 %
Palm Beach vs. State
( %)
Construction
38,400
6.6%
Moderately higher
Manuf. (knowledge intensive)
1,700
4.0%
Strongly higher (aerospace)
Financial Services
15,800
3.0%
Professional & Business Services
64,800
4.9%
Slightly higher
Educational Services
4,100
3.5%
Strongly higher
Health Care Services
25,200
3.1%
Leisure & Hospitality
35,600
4.1%
Sources: WIA and WEG estimates

6. A Look at 2007 Strengths and Challenges
Population-driven economic growth
Economies of agglomeration (clusters)
U.S. economic expansion
Real interest rate estate environment
Global business partners expanding
Favorable exchange rate environment
Business climate issues
“Smart” growth
Property taxes
Commercial insurance
Workforce housing
Moderately slower economic expansion U.S. and global
Tax and budget reform commission

7. Examples of Growing Life Sciences Clusters of Palm Beach
Scripps Research Institute and Scripps Florida were awarded $10.4 million by the National Institutes of Health to establish The Scripps Research Institute Molecular Screening Center.
Boca Raton's Nabi Biopharmaceuticals opens the first-ever vaccine manufacturing plant in the southeastern United States, a 12,000-square-foot facility.
Florida Atlantic University scientists win $4 million to research HIV, heart disease, and cancer from the National Institutes of Health
Source: Business Development Board, Palm Beach County (
Courtesy of EFI-September 2006

8. Examples of Growing Life Sciences Clusters of Palm Beach (cont.)
The cornerstone of the new Poinciana Biopharmaceutical Park will be the MediVector Biopharmaceutical Centers headquarters, a training and manufacturing facility, projected to create more than 1,500 jobs in the next five years
UF start-up, NovaMin Technology, receives $4 million in venture capital to further NovaMin®, its discovery offers consumers whiter, less sensitive teeth while protecting them from tooth decay
The Life Sciences industry employs more than 50,000 people in Palm Beach County. The cluster is comprised of companies involved in the manufacturing of drugs, medical instruments, supplies and health care services
Source: Business Development Board, Palm Beach County (
Courtesy of EFI-September 2006

9. Concluding Observations
Outstanding industry leadership assures continued economic success for Palm Beach
From cyclical perspective, next months will be more challenging, but Palm beach faces the business climate challenges from a position of strength
An expanding FAU and new additions to the 50,000 employee strong life sciences cluster adds a high-wage, knowledge-intensive dimension to Palm Beach