By Jeremy Merchant
Tampa Bay leads the way: The surge of tech jobs in Florida
Is Florida becoming a tech powerhouse?
While Florida's fruit industry has been in decline for several years, another not-so-similar industry has been filling the void and creating jobs left and right.
Tech.
Florida’s tech scene is BOOMING, with cities like Tampa Bay, St. Petersburg, Miami, and Orlando leading the charge. The state’s favorable economic policies and business-friendly climate have turned it into a magnet for tech companies, creating a surge in tech job opportunities and offerings for Floridians.
This influx is transforming Florida into a new go-to destination for tech professionals across the country, as well as motivating locals to pursue an education and career in the world of tech.
This rapid growth is not just reshaping the state’s economy, but also positioning Florida as a formidable competitor to traditional tech hubs you might be familiar with, such as Silicon Valley and more recently Austin, Texas.
What are key drivers behind tech job growth in Florida?
So, the elephant in the room, why is this happening?
Well, lucky for you, we’re here to break it down to brass tax.
Economic incentives and business-friendly environment
One of the biggest draws for tech companies to Florida and a big reason for this unprecedented tech boom is the state’s welcoming and highly sought-after business environment and policies.
With there being no state income tax and a wide range of tax incentives tailored specifically for tech firms, Florida offers financial perks that other states just cannot compete with.
For instance, the state’s Qualified Target Industry (QTI) Tax Refund program provides tax refunds to companies that create high-wage jobs in certain, targeted industries, which includes the technology sector.
Additionally, the Quick Response Training (QRT) program offers funds to new and expanding businesses for customized training of new employees.
These incentives, combined with Florida’s relatively low cost of living and operational expenses compared to other tech hubs, make it a very attractive destination for tech companies looking to maximize their investments.
Furthermore, the state of Florida has invested heavily in infrastructure improvements, such as expanding broadband access and upgrading transportation networks, which are critical for supporting a growing tech ecosystem and new tech jobs.
The regulatory environment in Florida is also a significant factor that plays a role here. The state government has made efforts to streamline the permitting process and reduce bureaucratic hurdles for new businesses. This approach not only attracts startups but also encourages established tech firms to expand their operations in Florida.
The result is a thriving business climate that fosters innovation and growth in the tech sector.
Migration of tech companies to Florida
Florida’s appeal is evident in the increasing number of tech companies relocating to its flagship cities. This corporate migration is driven by a variety of factors, including the generally lower cost of living and operating, favorable weather, and an expanding talent pool of workers looking to get into the field.
The Tampa Bay area, in particular, has emerged as a top market for tech talent, with a 23.5% increase in tech talent growth from 2016 to 2020. The region’s growing reputation as a tech hub is further bolstered by its strategic and rather beautiful location, offering easy access to both national and international markets.
Now, Miami has been catering to a different type of tech industry, becoming a hotspot for emerging technologies such as cryptocurrency and blockchain. The city’s pro-crypto policies, including the launch of MiamiCoin, have attracted a wave of fintech companies and venture capital firms. Miami’s ability to draw in significant venture capital, seeing a 22% growth in VC dollars, has positioned it as a key player in the tech industry.
Orlando is also seeing a rise in tech company relocations, particularly in the fields of simulation, gaming, and software development. The city’s strong ties to the entertainment industry along with its growing tech ecosystem make it quite an attractive location for technology firms looking to capitalize on cross-industry opportunities.
Major tech hubs in Florida
Now, let's take a deeper look into what we consider the Big 3:
Tampa Bay & St. Petersburg
The Tampa Bay area has firmly established itself as a major tech hub in Florida, with tech job growth soaring by 30% over the past five years. The region is expected to add more than 3,700 new tech jobs by 2027, underscoring its growing importance in the tech industry. This progressive rise of tech companies in Tampa Bay is not only diversifying the local economy, but also creating a wealth of new job opportunities for locals.
The city’s overall tech industry growth is driven by several key sectors, including cybersecurity, fintech, and health tech. Tampa Bay is home to a wide variety of leading tech companies, such as KnowBe4, a cybersecurity firm that has just recently gone public, as well as ReliaQuest, another cybersecurity company that has expanded its footprint in the Tampa Bay region.
These companies, along with a robust startup ecosystem and ample workforce, are driving innovation and job creation in the Tampa Bay area in the tech sector.
To dive deeper, the emergence of Tampa coding bootcamps and training resources also opens up individuals working in other sectors to the opportunity of jumping into the tech sector without the costs of a typical college degree. These resources allow individuals to explore the different skills needed to find a job in the tech sector, and then pursue that path.
These resources along with the consistent rise of tech job offerings in the bay area make Tampa and St. Pete an outstanding place to explore a career in tech.
Miami
Miami’s tech landscape is evolving rapidly, driven by a surge in job postings and a significant increase in venture capital investments.
The city’s strategic focus on becoming a leader in emerging technologies, such as cryptocurrency and blockchain, has attracted significant investment and talent. Programs like Venture Miami are helping to nurture a diverse and inclusive tech community, further adding to Miami’s status as a key player in Florida’s tech space.
Miami’s tech scene is not just about big companies and venture capital, though. The city is also developing a vibrant tech startup culture, with a growing number of tech entrepreneurs choosing to launch their businesses in the Miami metro area. The city’s diverse population and international connections make it an ideal location for startups looking to scale and fundraise globally.
Additionally, Miami’s pro-business mayor, Francis Suarez, has been a vocal advocate for the tech industry, promoting the city as a welcoming destination for tech talent and investment.
Orlando
Orlando, best known for its entertainment industry, is also making significant strides in tech. The city has seen sizable growth in sectors like simulation, gaming, and software development, contributing billions to the local economy.
Orlando’s tech scene is now a vital part of the city’s economic fabric, offering exciting career opportunities for tech professionals either graduating locally or moving to the area.
The simulation industry, in particular, is a major driver of tech job growth in Orlando. The city is home to a variety of companies specializing in simulation technology and development, which is used in industries ranging from defense to healthcare.
Additionally, Orlando’s gaming industry is booming, with companies like EA, the developer behind the popular Madden NFL video game series, expanding their presence in the city. These industries are not only creating jobs but also attracting top tech talent from across the country.
Impact of tech job growth on Florida’s economy
Economic contributions
The tech industry’s impact on Florida’s economy is profound and measurable.
With tech jobs making up 6.2% of the state’s total workforce, the sector’s influence is far-reaching and growing every year. Florida’s tech industry also contributes $73.8 billion to the state’s economy, ranking sixth nationally in terms of economic impact.
As more tech companies and professionals settle in Florida, the economic benefits, from job creation to increased tax revenue, are set to continue expanding, further strengthening the state’s economic foundation and techs overall presence in the state.
Tech job growth is also having quite a ripple effect on other industries and sectors in Florida. The demand for tech talent is pushing up general wages, which in turn boosts consumer spending and stimulates growth in sectors such as real estate, retail, and hospitality.
Moreover, this influx of tech companies starting in or moving to Florida is creating opportunities for local businesses that provide services to the tech industry, from legal and financial services to marketing and recruitment businesses.
Workforce development and education
Now, to keep pace with this rapid growth, Florida is heavily investing in education and workforce development.
Collaborations between educational institutions and tech companies are crucial in building a pipeline of skilled workers ready to meet the demands of the tech industry. These initiatives are essential for sustaining Florida’s momentum as a growing and leading tech hub.
One example of this collaboration is the partnership between Miami Dade College and Facebook, which provides a social media marketing certificate program designed to equip students with the skills needed to succeed in the digital sector.
Similarly, the University of Central Florida (UCF) has launched a variety of programs tailored around emerging technologies such as artificial intelligence and cybersecurity. These programs are working to ensure that Florida’s workforce is prepared and ready for the jobs of the future that are certain to come.
Florida’s investment in workforce development is not exclusive to college level learners, but also extends to K-12 education. The state has introduced computer science courses in schools all across Florida, with the goal of fostering an early interest and passion for technology among younger students. By introducing students to coding and other tech skills at a young age, Florida is laying the groundwork for a future generation of tech professionals.
Challenges and opportunities in Florida’s tech job market
Addressing talent shortages
While the tech job market in Florida is indeed booming, there’s a growing challenge in finding enough skilled workers to fill these roles, at least for the time being.
Addressing this talent shortage requires a combination of attracting out-of-state talent, as well as investing in local education and training programs. Florida’s commitment to creating a more inclusive and diverse workforce also presents a unique opportunity for the state to lead the way in building a tech industry and tech workforce that reflects the diversity of its population.
To address the immediate talent gap, as mentioned earlier, Florida is looking out and focusing on attracting remote workers. The rise of remote work, accelerated by the COVID-19 pandemic, has allowed Florida to tap into a national, and in some cases even a global, talent pool.
Many tech companies and businesses are now offering flexible work arrangements, making it easier for employees to live in Florida while working for companies based elsewhere. These range from fully remote positions to hybrid situations requiring occasional time in the office.
This trend is helping to alleviate some of the concerning talent shortages, but ongoing efforts in education and workforce development remain critical to developing a workforce for the future.
Future growth prospects
Looking ahead, Florida’s tech job market shows no signs of slowing down by any means.
The state is poised to continue its upward trajectory, with emerging technologies and new sectors driving further growth and training programs popping up left and right. Florida’s tech industry is also likely to benefit from the ongoing trend of companies relocating from high-cost regions like California and New York to more affordable locations in the Southeast.
As Florida cements its reputation as a major tech hub, the future looks bright for the state’s tech sector.
What exactly does the future hold?
Florida’s rise as a tech hub is no accident, nor was it a mistake.
It’s the result of strategic economic policies, a business-friendly environment, and the proactive efforts of cities like Tampa Bay, Miami, and Orlando to attract the companies and talent needed to become a tech powerhouse.
As more tech companies and professionals make Florida their home, the state’s economy will continue to benefit from the tech sector’s contributions and advancements. The key to sustaining this growth will be ongoing investment in education, workforce development, and policies that foster innovation and inclusivity.
