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.
THIRD QUARTER, 2021 - (Vol. 6, No. 3)
- Industry diversification in Southwest Florida increased to 5.320 in the first 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 16th and 21st in the state, respectively.
- Industry diversification for the state of Florida increased to 5.204 for the first quarter of 2021, ranking it 19th out of 50 states.
The IDI for the Southwest Florida workforce region—comprising Charlotte, Collier, Glades, Hendry, and Lee counties— increased in the first quarter of 2021, indicating a increase in workforce diversification for that time period. The workforce region’s IDI measured 5.320, an increase from the first quarter of 2020 revised measure (5.266) and a slight increase from the fourth quarter of 2020 (5.244). The region ranked as the ninth most diversified workforce region in the state (out of 24 total regions).
After spiking in the second quarter of 2020, industry diversification in the workforce region decreased until the first quarter of 2021. The Covid-19 pandemic played a role in the IDI spike, as employment in the hospitality and leisure industry decreased by 35 percent from the first to 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 first quarter of 2021, registering at 5.105. This was an increase from the fourth quarter of 2020 (revised at 5.017), and an increase from the the same quarter in the previous year (5.021). In addition to a quarterly increase, the MSA went up two positions in the rankings, registering as the 16th most diversified MSA in the state, out of 22 total MSAs in Florida.
The Naples-Immokalee-Marco Island IDI took a slight dip in the first quarter of 2021, with an IDI of 5.437— a decrease from the fourth quarter of 2021 revised measure (5.443), however higher than the first quarter of 2020 (measured at 5.348). 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 first quarter of 2021 was 4.896, a increase from both the last quarter (4.796), the same quarter last year (4.818). The Punta Gorda MSA had the 21st lowest IDI in the state of Florida, the same ranking as the previous quarter and the first quarter of 2020.
Florida’s workforce experienced an increase in industry diversification during the first quarter of 2021, while improving in the rankings nationally. Florida’s IDI measured at 5.204, up from the fourth quarter of 2020 (revised at 5.184), but down from the first quarter of 2020 (measured at 5.228). Florida’s ranking amongst the states also increased, rising one spot to 19th, behind Texas (5.205) and ahead of South Carolina (5.191). The state ranks in the third position of the Southeast Region, which contains five states in the top 25.
Washington, Colorado, and Utah had the three highest quarterly IDI measures, while Mississippi, Delaware, and Connecticut had the three lowest IDI measures. The IDI for the United States was 5.241 for the first quarter of 2021.