Factor

Strength (S)

Weakness (W)

Opportunity (O)

Threat (T)

Ease of Doing Business

Top Tier Business Climate: Consistently ranked as a Top 3 state for business and the #1 economy in the nation (CNBC, U.S. News & World Report 2025).

High Living Costs: Rising housing costs and high insurance premiums, driven partly by weather events, can negate the advantage of a lower tax environment and affect talent retention.

Talent Migration: Continued influx of high-skilled talent and company headquarters from higher-tax states, bolstering the already strong #2 ranked workforce (CNBC 2025).

Dependence on Consumer Spending: The economy is heavily reliant on consumer spending (tourism, retail, real estate), making it highly sensitive to national economic downturns or sustained high inflation/interest rates.

Domestic Manufacturing

Growth and Diversification: Manufacturing employment reached a two-decade high of 432,000 jobs (Feb 2025). Key sectors include aerospace, life sciences, and electronics.

Broad-Based Contraction: Recent reports (e.g., Northeast Florida PMI - Aug 2025) show contraction in manufacturing activity due to slowing domestic and export demand.

Supply Chain Reshoring: Strategic push to strengthen manufacturing to reduce reliance on imports and capitalize on companies seeking to relocate production closer to the U.S. market.

Global Trade Uncertainty: Persistent tariff uncertainty and slowing global trade conditions weigh heavily on the confidence and future production outlook of manufacturers, especially those with export pipelines.

Sustainability Initiatives

Targeted Coastal Resiliency Focus: Strong programs like the Coastal Partnership Initiative (CPI) grants for resilient communities, habitat restoration, and working waterfronts.

Extreme Vulnerability to Climate Change: Extensive coastline and low-lying areas face severe threats from rising sea levels, ocean acidification, and escalating severity of major storm events, putting trillions in assets at risk.

Green/Blue Economy Innovation: Potential for Florida to become a hub for maritime and blue economy technologies (e.g., the Florida Seafloor Mapping Initiative) that enhance coastal management and resource protection.

Infrastructure Strain: The increasing frequency and cost of major hurricanes and flooding can consistently outpace disaster relief and infrastructure hardening efforts, leading to a permanent "new normal" of economic damage.

Balance of Trade

Strong Export Engine: Florida is a leading US trading state (ranked #6 in US exports in July 2025), generating a record $1.9 billion in export sales for small businesses (FY 2024-2025).

Consistent Trade Deficit: Florida has a significant goods trade deficit (e.g., a $34B negative balance in July 2025), driven by heavy imports of consumer goods, cars, and electronics.

Global Trade Partnerships: Actively signing MOUs (e.g., with the Lombardy Region of Italy) to increase trade and industrial ties in strategic sectors and expand market access for Florida companies.

Global Protectionism: New and unpredictable federal tariff policies (e.g., on China, Mexico, and Canada) introduce volatility that directly impacts the cost and flow of goods through Florida’s major ports.