The Regional Economic Research Institute first developed the Industry Diversification Index in Spring of 2016 and updates it on a quarterly basis.
Researchers and academics are encouraged to contact the RERI to request access to the data for use in academic studies and modeling. The IDI begins in 1990 and is computed for each Florida metropolitan statistical area, each Florida workforce region, and each U.S. state. Upon request, the RERI will compute it for any MSA in the United States.
FIRST QUARTER, 2022 - (Vol. 7, No. 1)
- Industry diversification in Southwest Florida decreased to 5.279 in the third quarter of 2021, ranking 9th out of all 24 workforce regions.
- The Naples-Immokalee-Marco Island MSA was the 3rd most diversified MSA in the state (out of 22 total MSAs). Moreover, the Cape Coral-Fort Myers MSA and Punta Gorda MSA ranked 15th and 21st in the state, respectively.
- Industry diversification for the state of Florida decreased to 5.220 for the third quarter of 2021, ranking it 28th out of 50 states.
The IDI for the Southwest Florida workforce region—comprising Charlotte, Collier, Glades, Hendry, and Lee counties— decreased in the third quarter of 2021, indicating a decrease in workforce diversification for that time period. The workforce region’s IDI measured 5.279, a decline from the second quarter of 2021 (revised at 5.300), as well as a decrease from the third quarter of 2020 (5.281). Despite the decline, the region remained the ninth most diversified workforce region in the state (out of 24 total regions).
The region’s IDI has fluctuated since the beginning of the Covid-19 pandemic, when the decline in hospitality and leisure employment forced the measure to spike in the second quarter of 2020. Historically, the region typically experiences higher index measures during the quarters spanning January through June, and lower index measures during the quarters spanning July through December. The higher index measures during the winter period can be attributed to an influx of tourism and seasonal residents, which leads to an increase in demand for both the retail trade and accommodation and food service industries to meet the seasonal demand. In return, the increased seasonal demand in these industries create spillover effects for all of the other super sector industries in the region. In addition, the first two quarters of the year are associated with crop harvesting in the region, creating demand in all other sectors of the economy as well. During the second half of the year, there is a higher concentration in fewer industries driven by construction, professional and business services, trade, transportation and utilities, and education and health services.
The Cape Coral-Fort Myers FGCU Industry Diversification Index (IDI) increased in the third quarter of 2021, registering at 5.098. This was a slight increase from the second quarter of 2021 (revised at 5.097), and an increase from the same quarter in the previous year (5.086). In addition to a quarterly increase, the MSA went up two positions in the rankings, registering as the 15th most diversified MSA in the state, out of 22 total MSAs in Florida.
The Naples-Immokalee-Marco Island IDI continued to slip in the third quarter of 2021, with an IDI of 5.410— a decrease from both the second quarter of 2021 revised measure (5.423), and third quarter of 2020 (5.471). Despite the decline, the Naples-Immokalee-Marco Island MSA maintained its ranking as the 3rd most diversified MSA in the state for the quarter.
The Punta Gorda IDI in the third quarter of 2021 was 4.874, an increase from both the last quarter (revised at 4.883) and the same quarter last year (4.807). The Punta Gorda MSA had the 21st highest IDI in the state of Florida, the same ranking as the previous quarter, but one spot below the third quarter of 2020.
Florida’s workforce experienced a minute decrease in industry diversification during the third quarter of 2021, while falling in the rankings nationally. Florida’s IDI measured at 5.220, down slightly from the second quarter of 2021 (revised at 5.221), also down from the third quarter of 2020 (measured at 5.226). Despite the marginal change, Florida’s ranking amongst the states declined significantly, falling seven spots to 28th, behind Delaware (5.223) and ahead of Michigan (5.209). The state rank remains in the fourth position of the Southeast Region, which contains three states in the top 25.
Washington, Oregon and Colorado had the three highest quarterly IDI measures, while Vermont, Mississippi and Hawaii had the three lowest IDI measures. The IDI for the United States was 5.360 for the third quarter of 2021.