Targeted Industries Recent Announcements & Case Studies

Jacksonville & Northeast Florida

Targeted Industry Strategy

Industry Clusters (geographical concentration of interconnected companies)

Key to community’s overall economic development strategy

Based on research (Location Quotient -SWOT analysis)

Targeted Industries (adopted October 2006)

Headquarters

Finance & Insurance

Information Technology

Advanced Manufacturing

Aviation & Aerospace

Distribution & Logistics

Life Sciences

Recent AnnouncementsHeadquartersCompany Name Employees

Adecco 100

Fidelity National Financial 200

I.B.A. (Ion Beam Applications) 50

InEnTec Chemical 10

Nemours Home Office 25

Pilot Pen 66

PSS World Medical 277

RailAmerica 95

Headquarters Case Study

Adecco (formerly MPS Group)HQ for professional staffing divisions; adding 100 high-wage jobs in Jacksonville (236 existing jobs)

Competitive Advantages Established management for professional staffing brands; minimal

disruption to grow in Jacksonville. Competitive real estate and labor costs vs. Melville, NY

Competitive Disadvantages Consolidation to corporate HQ would have been ideal for efficiency in

operations Florida incentives minimal for HQ expansion Company’s downtown location no longer made sense; relocating to

suburban office market in April, 2011.

Recent AnnouncementsFinance & Insurance ServicesCompany Name Employees

CIT 300

Deutsche Bank 1,000

Digital Risk 300

Enhanced Recovery Corporation 274

EverBank 120

Fidelity Investments 1,200

Lender Processing Services (LPS) 600

Bank of America Merrill Lynch 800

PNC Mortgage 200

Tax Defense Network 150

Financial Services Case StudyFidelity Investments1,200 new jobs

Competitive Advantages Labor market availability and cost were driving factors; Series 7

licensure pass rate highest in U.S. Incentives were competitive for this deal with other locations under

consideration. Company was committed to a Florida market; final competition for

this project was Tampa

Competitive Disadvantages Site consulting firm placed Jacksonville in last place at start of

location analysis. Intensive 9-month process with at least 8 site visits. Air service (offset by JetBlue service to Boston)

Recent AnnouncementsInformation Technology

Company Name Employees

AT&T Florida 266

BellSouth/AT&T 300

Blue Cross Blue Shield of Florida 60

Comcast 160

Meridian Technologies 27

Ultramatics 50

Web.com 139

WebEx 50

IT Case StudyWeb.comAdded 139 high-wage jobs, retained 250 jobs

Competitive Advantages Website Pros was already located in Jacksonville with experienced workforce CEO was not relocating from Ponte Vedra, but was willing to commute to

Atlanta IT work can be completed just about anywhere.

Competitive Disadvantages Website Pros had just completed acquisition of web.com, an Atlanta-based

website design firm. Board was concerned about depth of marketing talent in Jacksonville vs.

Atlanta Atlanta could offer incentives for almost 400 new jobs; Jacksonville could only

139 incent new Florida jobs

IT Case StudyDeutsche Bank319 IT positions (average wage $90K) lost to Raleigh, NC, $6.7 million investment

Competitive Advantages Jacksonville offered competitive IT salaries compared to the Northeast,

where many of our companies have relocated jobs Surprising amount of IT depth in Northeast Florida; but within companies

that are not branded as IT. Company did agree to place 50 IT network support positions in Jacksonville

Competitive Disadvantages Lack of Tier 1 Research University limits ability to collaborate Area universities not producing enough IT graduates NC offered $9.4 million in incentives for this project. Florida’s incentives for

this type of project are not competitive.

Recent AnnouncementsAdvanced Manufacturing

Company Name Employees

Florida Boilerplate 25

Gerdau Ameristeel 5

J.C. Renfroe & Sons 32

Oshkosh Truck 100

St. Johns Ship Building 73

Saft America 279

Manufacturing Case StudySAFT America Lithium ion storage batteries for alternative energy power

production Investing $200 million, adding 279 high-wage jobs DOE grant for $95 million allowed project to move forward in U.S.

Competitive Advantages SAFT executive on the site location team was a longtime friend of Mayor

Peyton, which got Jacksonville into consideration City able to provide no cost site at Cecil Commerce Center; other state and

city incentives made us competitive Cornerstone had recently completed labor study proving depth of

manufacturing workforce in Jacksonville

Competitive Disadvantages JEA electric rates were higher than other locations under consideration. Cecil site was under water during a site visit.

Recent AnnouncementsAviation & AerospaceCompany Name Employees

Airborne Tactical Advantage Company 60

Aviation Systems Engineering Company (ASEC)

10

AVMAX Montana Inc 100

Boeing Company 125

Embraer 50

FlightStar Aircraft Services 250

SSE, Inc. 60

Aviation Case Study

BoeingTwo recent expansions of its assembly plant at Cecil Commerce Center, total employment around 300

Competitive Advantages Competitively priced, existing hangar space at Cecil

Commerce Center Labor force is strengthened by military presence

Competitive Disadvantages Company has numerous alternative location options

Aviation Case StudySpirit Aerosystems$1 Billion investment in manufacturing plant to build fuselages for Boeing 787 jets; 900 high-wage jobs

Competitive Advantages City able to offer free land at Cecil Field Other state and city incentives were substantial Jacksonville labor force was stronger than NC site under consideration.

Stronger educational resources and better trained employees.

Competitive Disadvantages Project was delayed for a year and Kinston, NC was able to win deal with

incentives that Florida did not match. Heavy involvement of NC Governor in deal.

Recent AnnouncementsDistribution & LogisticsCompany Name Employees

Bridgestone Americas Tire Operations 250

COACH 80

Dr. Pepper-Cadbury Schweppes 40

ICS Logistics 90

Interline Brands 70

Mercedes-Benz 98

Michael’s 60

Mitsui O.S.K. Lines 200

Samsonite 53

Unilever USA 150

Volkswagen of America 60

Volvo/Mack Trucks 52

Logistics Case Study

Bridgestone Firestone One million sq. ft. tire distribution facility constructed at Cecil Commerce Center

Competitive Advantages City able to provide below market land deal at Cecil Commerce Center. Heavy port user; Jacksonville’s location was the perfect fit.

Competitive Disadvantages Almost lost deal to Savannah because we did not have direct shipping to

Asia at that time. Mayor Peyton and a team of business leaders went back to HQ and guaranteed Mitsui was initiating service at JAXPORT to win deal back. Logistics projects don’t qualify for many state/local incentives due to

high-wage requirements

Logistics Case Study

Wal-MartJacksonville was a finalist for a four million sq. ft. mega distribution facility that would have served regional distribution facilities.

Competitive Advantages Competitive port location and operating cost City offered below market land deal at Cecil Commerce Center Florida’s 18 million consumer market provided strong demand for

retail products

Competitive Disadvantages Global logistics models shifted and deal never happened. Only two

similar facilities are currently sited in Houston and Chicago.

Company Name Employees

Bodytel 13

Eurofin Scientific 12

PSS World Medical 50

Ranbaxy Pharmaceuticals 12

Specialty Disease Management Services 40

W. Lorenz Surgical/Biomet Microfixation 20

Recent AnnouncementsLife Sciences

Factors for Our Success

Workforce Availability & Cost

Building & Sites

Quality of Life

Business Environment/Tax or Permitting

Cecil Commerce Center

Regional Options

Incentives

Key Competitors - Aviation

Dallas/Ft. Worth

Charlotte

Mesa

Melbourne

Northern VA

Savannah

Charleston

Key Competitors - Office

Dallas/Ft. Worth

Tampa

Atlanta

NashvilleCharlotte

Key Competitors - Logistics

Atlanta

Memphis

Norfolk

Charleston

Savannah

Key Issues That Will Influence Our Future Mayport/Nuclear Carrier

Retaining Jaguars

Downtown Revitalization & Development

Raising Educational Attainment Levels/K-12 Education Reform

Regional Intermodal Plan and Investment

Port Infrastructure - River, Roads, Rail and Airports

Industries of the Future & Incentives to Attract Projects

www.expandinjax.com