Earlier this week, I joined my peer economic development leaders from across the country to discuss the significant challenges and opportunities we’re facing in our respective regions at the International Economic Development Council’s Leadership Summit. While it would take far more than a column to do justice to these conversations, I’ve cherry-picked three items that are especially relevant to us here in Tampa Bay.Housing – It’s no surprise that the cost and availability of housing continues to be a challenge for most major metros. But post-Covid relocations to less densely populated and rural communities have resulted in a housing crisis that is affecting most states. For cities and suburbs, innovative new approaches to housing such as land banking and tearing down outdated office space in urban areas to make more room for housing are being explored. Concerns are widespread when it comes to new construction, with anticipated tariffs adding significant costs to building materials and the price of new homes as well as labor shortages in the construction industry. The good news for Tampa Bay, however, is that rent prices have started to come down – a big relief for younger segments of the workforce in particular. We’re not in an optimal spot right now but we are heading in the right direction.
Climate Event Costs and Resiliency – According to NOAA and the National Centers for Environmental Information, the cost for US climate events in the decade of the 1980s was $22 billion; in the 90s, it was $33.5 billion. In the first three decades of the 2000s, US climate event-related spending has risen from $62 billion in the first decade, to $99.5 billion in the 2010s, and now up to a whopping $149 billion in the first four years of the 2020s. In a vulnerable state like Florida, we’re used to preparing and dealing with storms. But figuring out a better way to manage the costs associated with these weather events and strengthening our resilience so that our economy can keep thriving will require intense collaboration among municipalities, regions, states and the federal government. Solutions are out there – we just need to double down on our efforts to create them.
- Labor Force Shortages – One of the hot topics at the IEDC Summit was the impact of AI on jobs and industries. According to Lightcast, the jobs that will feel the impacts of AI first – both positive and negative – include IT, Financial Services, Insurance, Entertainment and Education. Industries such as Manufacturing, Transportation and Logistics, Hospitality, Healthcare and Construction will also be affected, but in the short term, these industries are more concerned about labor shortages caused in part by Baby Boomer workforce retirements and insufficient immigration, since immigrants often comprise large portions of the labor force in these industries. Locally, healthcare and skilled trade positions are in increasingly high demand – which is why the EDC’s Tampa Bay Economic Prosperity Foundation has made the promotion of careers in these fields a top priority.
