Our previous Defense and Homeland Security blogs identified Florida's growth in military personnel and defense-related procurement. In this environment, states throughout the Union compete to attract and maintain military missions and the significant federal investment that follows. Still, many communities without military installations generally don't consider defense contractors part of their BR&E and Business Attraction strategies.
Often, economic developers with little experience in dealing with the defense industry are unsure how to approach these firms, as those supporting military installations generally do not require extensive development assistance. However, defense contractors that produce weapon systems, ammunition, aircraft, and other products outside the fence line pose an excellent opportunity for communities without military installations.
Like most commercial industries, many factors influence the ability to attract defense contractors to a region, including supply chain resiliency, infrastructure capacity and quality, transportation, security, and financial incentives. However, it is the region’s workforce and ability to attract needed talent that is consistently reported as the most significant factor behind locational decision-making. Ultimately, if Florida does not have or cannot recruit the talent required, attracting off-base contractors becomes more challenging, and those contactors currently operating in Florida may be forced to automate or relocate to regions with a more qualified workforce.
What Talent is Needed?
The analysis below considers the talent needed to support and grow the defense contracting sector. Utilizing the industry definition of defense and homeland security cluster provided by Enterprise Florida and Florida's Department of Commerce, which includes aerospace, missile and ammunition, and semiconductor manufacturing, in addition to professional and business services associated with engineering, programming, and research and development. In this week's blog post, ABLE Operations maps the skills and talent required to support these industries so that Florida's economic and workforce practitioners understand how well the state’s workforce development ecosystem is producing the necessary talent required to attract defense contractors to their community.
The table below highlights those occupations most in demand by Florida's defense and homeland security contracting industry. For each occupation, this includes the total number of jobs in Florida (inclusive of the defense industry), median wage, and typical education requirements. Accounting for more than 64,000 jobs across Florida (again, these include defense contractors and commercial sectors), these skills are well-paid and forecasted to grow more than 13% by 2030.
Job Description | 2022 FL Jobs | 2021 Median Wage | Typical Education Requirements |
Aircraft Maintenance | 18,077 | * | Post-Secondary |
Avionics Technicians | 2,221 | $29.01 | Post-Secondary |
Aircraft Mechanics & Service Technicians | 14,558 | $29.58 | Post-Secondary |
Aircraft Structure, Surfaces, Rigging & Assemblers | 1,298 | $18.29 | Post-Secondary |
Welding | 15,989 | * | Post-Secondary |
Welders, Cutters, Solderers and Brazers | 15,414 | $21.28 | Post-Secondary |
Welding, Soldering, Brazing, Setters, Operators & Tenders | 575 | $17.80 | Post-Secondary |
Aerospace Engineering and Operations Technicians | 1,887 | $37.40 | Associates |
Aerospace Engineers | 3,815 | $48.79 | Bachelors |
Industrial Engineers | 11,246 | $40.97 | Bachelors |
Electronics Engineers | 13,522 | * | Bachelors |
Avionics Technicians | 7,415 | $39.33 | Bachelors |
Aircraft Mechanics &Service Technicians | 6,107 | $48.07 | Bachelors |
Source: Florida Department of Commerce
Annual Florida Completions Relative to Demand
Through growth and attrition, it is expected that over 6,000 jobs across these occupations will need to be filled in Florida annually. So, does Florida have the talent and skills required to support the military and continue to attract defense contracting dollars? If not, what specific skills must be developed or attracted to the state? Let's take a deeper dive into the data to gain more insight. The infographic provides Florida's supply (latest completions of training programs) and the demand (or job openings) for occupations expected annually. For example, Florida is forecasted to have 1,950 open welding positions (including new and replacement) over the next year. To fill those positions, 1,853 students completed welding training, giving a rough estimate of supply relative to demand. By examining Aerospace Engineers, we see that Florida trains more than twice the expected job openings (831 completions vs 385 job openings). It is likely that these graduates will have to adjust their engineering skills to other occupations or find employment outside the state.
While this quantitative analysis provides an excellent planning metric, other qualitative factors should also be considered to understand the current workforce environment comprehensively. For example, welders don't necessarily require institutional training, as some workers learn "on the job" or through employer training programs. On the other hand, a bachelor's degree in aerospace engineering is typically required to fill an Aerospace Engineer position. Therefore, to get a comprehensive idea of supply and demand and whether Florida is well positioned to compete nationally, we compare Florida's performance with the nation.
Supply and Demand Gap Analysis
The following graph presents Florida's supply and demand ratio (blue) relative to the United States (orange). A ratio of 1.0 represents recent completions of designated training programs that are expected to meet the demand of occupations. A ratio less than 1.0 may indicate that completed programs, or supply, is less than demand (undersupply of talent or skills). A ratio greater than 1.0 could mean oversupply, making it difficult for graduates to find work in their field locally.
As we can see from the graph, Florida outpaces the U.S. in production for these occupations from a supply-to-demand perspective, except for Aerospace Engineering and Operations Technicians, where the nation outpaces Florida. While Florida is not keeping up with demand in several occupations such as Aircraft Maintenance, Welding, and Industrial Engineers (all occupational groupings with less than a 1.0), it outpaces the nation regarding talent production relative to demand.
Florida's Completions
In addition to recent completions, looking at trends observed through Florida's training institutions is important. The final two graphs present a historical view of specific training completions, including less than 2-year, A.A., BA/BS, and graduate. Florida has seen tremendous growth in these training programs, particularly in the last fifteen years – significantly faster than Florida's growth in sector-specific employment.
This trend is fantastic news for regions with a high concentration in defense-related aerospace manufacturing, such as Brevard and Orange counties. Moreover, for those regions with a burgeoning aerospace sector or with aspirations of developing one, leveraging and marketing Florida's homegrown aerospace talent should be a core business attraction strategy.
Return on Investment of Workforce Development
So, how does this growth of in-demand skills occur?
The answer is likely a combination of factors in which a region focuses on filling talent gaps. This might include:
Marketing – providing information to high school students and adults considering career changes and that opportunities exist. The training is available, obtainable, and offers a return on that investment through a rewarding career.
Investment in Infrastructure and Institutions – a community leveraging public and private resources to enhance or embark on training programs and offerings.
Business, Recruitment, Retention, and Expansion – providing opportunities to attract and retain businesses aligned with industry clusters, which might include suppliers, competitors, startups, etc.
Regional Examples
The Northwest Florida (NWFL) and Space Coast regions are two examples of success through workforce investment and community support. Recent investments from NWFL into aircraft maintenance and aerospace engineering technician programs fuel the growth of talent in these fields. In the past few years, the Triumph Gulf Coast supported investment into multiple institutions and programs supporting training in these skills. One example is the Aviation Center of Excellence located at Northwest Florida State College.
Brevard County has leveraged resources to advertise the opportunities in the region through workforce development. Here is just one example of Eastern Florida State College providing insight into the training programs offered and the opportunities once completed.
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